Stratmin Global Resources : Early Cash Settlement of Outstanding Payments from Bass Metals Ltd

15 December 2016

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

StratMin Global Resources Plc

("StratMin" or the "Company")

StratMin Global Resources Plc (AIM: STGR) has agreed to an immediate discounted cash settlement of the share payments from Bass Metals Ltd ("Bass") under the 6 June 2016 Share Purchase Agreement ("SPA"). Under the SPA, Bass equity was to be issued to StratMin in two tranches of A$3 million and A$5 million subject to Bass meeting certain performance criteria by 31 December 2017 and 31 December 2018 respectively. Bass recently approached StratMin with an offer to settle the equity payments in cash and facilitate the divestment of the Company's remaining 70 million Bass share. The Board considered this offer with reference to the recent share price performance of both Bass and StratMin and the need to establish the best possible platform for StratMin ahead of initiating a reverse takeover ("RTO"). The early settlement has been agreed with the following terms:

• Payment by Bass of A$2,640,000 in cash consisting of,

  • A$955,000 on or before 16 December 2016;

  • A$1,185,000 on or before 15 March 2017; and

  • A$500,000 on or before 30 September 2017.

• Immediate placement of the entire remaining 70 million shareholding in Bass at a minimum price of 1.3 cents per share.

  • This will provide a further A$910,000 in cash to StratMin in the next 5 days.

• An option for Bass to purchase the 2.5% royalty for A$500,000 prior to 30 June 2018 with a royalty holiday if purchased prior to 31 December 2017 (the "Royalty").

In summary, this settlement will provide StratMin with an immediate A$1,865,000 (£1.1 million) in cash and a total of A$3,550,000 (£2.1 million) in cash with potential for a further A$500,000 (£296,000) from the sale of the Royalty.

In addition, all warranties provided by StratMin to Bass under the SPA are immediately extinguished, removing any potential liability for the Company from historic operations.

The Company announced the establishment of a US$1.5 million loan facility on 28 September 2016 (the "Announcement"). As stated in the Announcement, the loan was to be used primarily to provide funding to develop the Vatomaina graphite project joint venture (the "JV"). The Company subsequently determined to prioritise completion of an RTO with a focus on opportunities in the gold sector, as announced on 30 November 2016. The loan facility was undrawn but was not terminated as the Company considered alternatives for continued participation in the JV. With the Company's change of strategic direction and the collateral for the loan being the holding in Bass that will be divested in conjunction with this settlement; the facility will be duly terminated. StratMin is not planning to increase its participation in the JV in the foreseeable future.

Brett Boynton, CEO commented:

"The Board is conscious of the pressure on the StratMin share price and market speculation of a discounted capital raise in the near term. The early settlement with Bass and divestment of the Bass equity holding removes the need for the Company to raise short term capital with a weak share price and provides a stronger platform for negotiating an RTO. This transaction mitigates completion risk with Bass and provides capital to pursue the Company's gold strategy which the Board believes will deliver better shareholder returns."

For further information please visit www.stratminglobal.com or contact: