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Refinancing Agreement

NQ Minerals US$60 million debt refinancing agreement

NQ Minerals Plc (NEX:NQMI) (OTCQB: NQMLF) and its subsidiary, Hellyer Gold Mines Pty Ltd, have agreed a definitive term sheet with the Traxys Group and a leading European Natural Resource bank for a US$60m debt facility as part of its previously announced intention to refinance debt that was initially raised to start mining and processing at its flagship Hellyer base and precious metals operation in Tasmania.

The agreement follows extensive due diligence by both Traxys and the Bank. In addition, it reflects Hellyer’s transition during 2019 from a project in commissioning to an ongoing operation demonstrating continued improvements in performance.

The facility comprises a 6 year amortising loan with a coupon rate of Libor + 5%. This allows NQ and Hellyer to retire a portion of the initial project startup and commissioning debt and replace this expensive 12% debt with funding that has a significantly lower interest rate and is more aligned with the project’s maturity and projected life.

Completion of the facility and potential draw down of funds is subject to final documentation and a number of conditions precedent customary to a facility of this nature, including final Credit Committee and Board approvals.

NQ Minerals advises that it is also continuing in parallel discussions with other potential refinancing institutions to complement the Traxys/Bank facility and will update shareholders as negotiations progress and/or when material events occur.

David Lenigas, NQ Minerals Chairman, stated:

“This agreement represents an important step forward in executing NQ’s financing strategy as the Company consolidates the financing of Hellyer and its ongoing operation now that the operations are performing to expectations. This US$60m debt refinancing package provides a solid cornerstone to aid the refinancing of NQ’s debt providers.

“Importantly, I would like to thank Traxys, our valued offtake partner at Hellyer, and the Bank for all their effort and support as we have worked towards this agreement and for the confidence that this potential funding represents in the Hellyer team and the ongoing operations.”

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