Auckland, New Zealand: 29 January 2016 - Besra Gold Inc, through the appointed Proposal Trustee, MNP Limited, has today submitted a proposal (Proposal) for consideration by its creditors, in accordance with the Notice of Intention to Make a Proposal (NOI) filed by Besra on 19 October 2015. The Proposal was filed in Toronto, Ontario, Canada - Besra's jurisdiction of incorporation. The lodgement of the Proposal marks a significant step in progress towards resolving a major impediment to the company obtaining funding and returning to normal operations.

The Proposal, if accepted by the requisite majority of creditors and approved by the Ontario Superior Court of Justice, will provide potential new investors with certainty of Besra's financial position. Upon the issuance of a court order approving the Proposal (Approval Order), BGI will make an application to the Ontario Securities Commission to lift or vary the existing cease trade order and complete the exit financing contemplated by the Proposal, which provides that such financing must be completed within six months of the date of the Approval Order. Besra will work intensively with its potential exit financiers to complete the funding as quickly as is practically possible to facilitate a return to normal operations and re-commence investment in the Bau property in East Malaysia.

Operations at the company's Bong Mieu site in Vietnam are still on minimal production while the ongoing licensing situation there remains uncertain, and Phuoc Son is preparing to draw down on local loan funds in preparation for a return to production there in the next six months. Incremental progress is being made in Vietnam, however the company's efforts to return to full scale production are still being hampered by drawn out negotiations with local bureaucracy and generally unfavourable and unstable conditions for foreign investors in the resources sector, including a recent 2% increase in the headline gold royalty amount. Negotiations with local tax authorities continue with respect to a restatement of Bong Mieu and Phuoc Son's tax and royalty situation and Besra's local partners are actively involved in resolving these matters.

The company will return its focus to the Bau property in East Malaysia once the proposed financing is concluded. Planning is underway for a 3-year exploration programme targeting progressive increases in the existing 3.3 million ounce resource to 4.5 million ounces and beyond. Further test work will be undertaken in concert with resource increase to optimise production scenarios for Bau.

Following the restructure and refinancing, Besra will also look at relisting on an appropriate trading platform; either the TSX, ASX or an Asian bourse.

Further information, including a copy of the proposal may be viewed on MNP's website at: http://bit.ly/MNP_BEZ

Besra Gold Inc. issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 01 February 2016 22:03:09 UTC

Original Document: http://www.besra.com/besra-proposal-to-creditors/