Excelsior Gold : Secures Initial DFS Funding

20th May 2014
ASX Market Announcements
ASX Limited
Exchange Centre ASX Code: EXG
20 Bridge Street
Sydney NSW 2000

 $4 million convertible loan facility with Macquarie Bank

 Enables acceleration of Definitive Feasibility Study at Kalgoorlie North Gold

 Definitive Feasibility Study is to include

o new 1.0Mtpa treatment plant option,

o toll treatment, and

o joint venture scenarios

 Advanced discussions with third party mill owners to evaluate toll treatment and joint venture options are now in progress

Excelsior Gold Limited (Excelsior Gold or the Company) is pleased to announce that it has accepted a credit approved offer of up to $4 million via a convertible loan facility (Facility) from Macquarie Bank Limited (Macquarie). The Facility serves to provide working capital to complete a Definitive Feasibility Study (DFS) over the Kalgoorlie North Gold Project (Project). The DFS will evaluate the construction of a new standalone 1Mtpa treatment plant and other possible toll milling and joint venture scenarios.
Key terms and conditions of the Facility are summarised below.

 Facility amount of up to $4 million accessible in two equal tranches with the first $2 million available upon the execution of final documentation for the Facility and satisfaction of conditions precedent by 30 September 2014. Drawdown for the second tranche is subject to completion of a $3 million equity raising.

 A margin of 7% per annum on the amount drawn will be payable over and above the

3 month bank bill swap bid rate as quoted on Reuters page BBSY for the relevant period.

Address: Unit 2, 124 Stirling Highway, North Fremantle WA 6159 Postal: PO Box 520, North Fremantle WA 6159

Telephone: 08 9335 7770 Facsimile: 08 9335 6231

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 A Facility fee of 2.5% of the Facility amount is payable upon the execution of final documentation for the Facility.

 The Facility is to be repaid in full on or before the earlier of (a) 31 December 2015; or (b) initial drawdown under a project finance facility or other facility or debt for the purpose of funding or partial funding the development of the Project.

 Upon execution of final documentation, Macquarie will receive options equivalent to the Facility Amount divided by the Exercise Price. The exercise price is 125% of the VWAP during a period of 20 trading days preceeding the date on which the Termsheet is accepted by the Company. The expiry date of the options will be 31

December 2015 (Options). The exercise price of Options is adjustable in the event
of a capital raising or in-specie distribution of shares.

 Funds raised on exercise of the Options will first apply to repaying any outstanding amounts under the Facility.

 The Company and its subsidiary GPM Resources Pty Limited will provide guarantee, general and specific security, standard financial covenants and negative pledges to Macquarie.

Commenting on the acceptance of the Facility, Excelsior Gold Managing Director, Mr David Hamlyn said, "Excelsior Gold views this Facility as recognition of the technical and financial merits of the Project. The Facility is well timed for the commencement of a Definitive Feasibility Study for the Project and prudent in the current market conditions."
The Company has evaluated the relative commercial costs of the Facility against other market based capital raising methods, such as rights issues or placements and concluded that, given the premium applied to the potential exercise price of the Options, the weighted average cost to capital of the Macquarie Facility is highly attractive when compared to the conventional market based funding alternatives.
The Facility is subject to a number of customary conditions precedent. The Company anticipates finalisation of documentations for the Facility over the coming weeks and will inform shareholders of the completion in due course.
For further information visit www.excelsiorgold.com.auor contact

David Hamlyn Nicholas Ong

Managing Director Commercial Director and Company Secretary

T: + 61 8 9335 7770 T: + 61 8 9335 7770
E: dhamlyn@excelsiorgold.com.auE: nickong@excelsiorgold.com.au

Address: Unit 2, 124 Stirling Highway, North Fremantle WA 6159 Postal: PO Box 520, North Fremantle WA 6159

Telephone: 08 9335 7770 Facsimile: 08 9335 6231

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