Stratmin Global Resources : US$1.5m non-recourse loan secured against Bass Metals Ltd holding

28 September 2016

StratMin Global Resources Plc

("StratMin" or the "Company")

StratMin Global Resources Plc (AIM: STGR) is pleased to announce that it has arranged a US$1.5 million non-recourse loan facility (the "Loan") secured against the Company's holding of 75,000,000 ordinary shares (the "Bass Shares") of Bass Metals Ltd ("Bass").

Working with a corporate investor that is an existing stakeholder in Bass, the Company has agreed to assign security and voting rights over its entire Bass holding, to the lender, in return for a 12-month non-recourse loan facility. The loan will be repaid in some or all of the Bass Shares, with no cash amounts payable. The key terms of the Loan are as follows:

• US$1.5 million, 12-month non-recourse facility, commencing on 27 October 2016;

• Secured against the Bass Shares;

• No interest payable during the term of the Loan;

• StratMin to assign all voting rights to the Bass Shares upon first drawdown of the facility;

• The redemption amount of the Loan is set at 120% of the amount drawn down (the "Basic Redemption Value"), plus 50% of the value of the Bass Shares in excess of the Basic Redemption Value, all to be settled by part or all of the Bass Shares (the "Repayment Shares");

• If the Bass Shares are worth less than the Basic Redemption Value on the expiry of the Loan, no further amounts are payable;

• StratMin to retain 50% of any value of the Bass Shares in excess of the Basic Redemption Value by way of retaining any excess of the Bass Shares over the Repayment Shares;

• The number of Repayment Shares to be calculated as the 5-day volume weighted average price ("VWAP") of Bass shares at the redemption date

• Drawdown will be according to the following schedule:

StratMin became the largest shareholder in Australian Stock Exchange listed Bass Metals Ltd following the divestment of the Company's Graphmada investment to Bass, which was completed on 14 September 2016.

As previously announced, a further consideration of up to A$8,000,000 in Bass ordinary shares is to be paid to StratMin subject to Graphmada meeting production milestones.

In addition, a net smelter royalty of 2.5 per cent on Graphmada production, capped at A$5,000,000, will begin on 22 February 2017.

The Loan will be used to fund the Company's investment commitment to the Tirupati Resources Mauritius ("TRM") joint venture and for general working capital.

TRM owns the Vatomaina project in Madagascar, a 12,000 ton per annum large-flake graphite project, currently being developed by Tirupati Carbons and Chemicals Pvt Ltd.

Brett Boynton, CEO, commented:

"By working with existing Bass stakeholders and leveraging the value of the voting block held by the Company, we were able to secure funding on terms well in excess of the open market value of the Bass shareholding. This facility gives us capacity to fully fund our commitment to our joint venture partner without any delay to the planned development of the Vatomaina project.

Now that Vatomaina is funded, we will work with Tirupati to release a detailed project review and update for shareholders within the week."

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