Financial Update

LONDON--()--

China Nonferrous Gold Limited 中国有色黄金有限公司

(“CNG” or the “Company”)

Financial Update

China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to provide the following financial update.

Loan Agreement with CNMC

The Company has signed documentation with CNMC International Capitals Company Limited (“CNMC”), an associate of China Nonferrous Metals International Mining Co., Ltd (“CNMIM”), the Company’s 38.36% shareholder, for a loan facility of USD$120 million (“CNMC Loan”). The CNMC Loan will be used to refinance the loan facility with Industrial and Commercial Bank of China (Macau) Limited (“ICBC”), under which USD$115 million is currently drawn, and for working capital.

The CNMC Loan is repayable on 31 December 2018 and includes an annual fixed interest rate of 4% on the amount drawn down, payable half yearly in arrears. There is no penalty for pre-payment, however in the event of default an interest rate of 6% per annum will be applied on any overdue amount from the date on which it is due until the date on which it is repaid. The CNMC Loan is governed by the law of China and secured by a pledge granted by the Company to CNMC over its 100% equity interest in Kryso Resources Limited, CNG’s wholly-owned subsidiary which indirectly holds the Pakrut project. The pledge is governed by BVI law.

Related Party Transaction

As CNMC is an associate of CNMIM, a substantial shareholder in the Company and pursuant to AIM Rule 13, the provision of the CNMC Loan is deemed to be a related party transaction. The Company’s board of directors (excluding Wu Xiang and Weili (David) Tang, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser, Investec Bank plc, that the terms of the CNMC Loan are fair and reasonable insofar as the shareholders of CNG are concerned.

Weili (David) Tang, Managing Director of CNG, commented:

“We are delighted to have refinanced our loan with ICBC given the current challenging debt markets. The new facility provides considerable financial flexibility at a lower cost for the Company.”

For further information please visit the Company’s website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

David Tang, Managing Director

Tel: +86 10 8442 6681

Investec Bank Plc

Jeremy Ellis, George Price

Tel: +44 (0)20 7597 4000

Beaufort Securities Limited

Jon Belliss

Tel: +44 (0)20 7382 8300

Blytheweigh

Tim Blythe, Camilla Horsfall

Tel: +44 (0)20 7138 3224

Short Name: China Nonferrous Gold
Category Code: MSCU
Sequence Number: 525089
Time of Receipt (offset from UTC): 20160506T114621+0100

Contacts

China Nonferrous Gold Limited

Contacts

China Nonferrous Gold Limited