SECURITIES EXCHANGE ANNOUNCEMENT

28 August 2014

KARARA PROJECT FUNDING UPDATE

Gindalbie Metals Limited (ASX: GBG - "Gindalbie") provides the following update on funding arrangements for Karara Mining Limited ('KML') (Ansteel: 52.16%; Gindalbie: 47.84%).

New Bank Loan Facility

KML has executed documentation with China Development Bank ('CDB') and Bank of China ('BOC') to provide a loan facility for an additional US$400 million on terms consistent with KML's existing bilateral loan facilities for a period of three years (maturing in August 2017).
The new loan facility provides KML with additional working capital support. Final steps for satisfaction of conditions precedent were completed today along with an initial drawdown of US$100 million.
The new loan facility affirms the strong ongoing support KML has received from existing relationship banks, together with the continued commitment of its shareholders Ansteel and Gindalbie.

- ENDS -

Released by :

On behalf of:

Nicholas Read

Read Corporate

Mr Michael O'Neill

Acting Managing Director

Telephone: +61 8 9388 1474

Mobile: +61 419 929 046

Ms Jan Horsman

Manager Investor Relations & Administration

Telephone: +61 8 9480 8700 www.gindalbie.com.au

Level 9, London House

216 St Georges Tce Perth

Western Australia, 6000

PO Box 7200, Cloisters Square, PERTH Western Australia 6850

W: www.gindalbie.com.au

T: +61-8 9480 8700

F: +61-8 9480 8799

E: gbg@gindalbie.com.au

ASX: GBG

Issued Shares: 1.49B

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