AUSTRALIA SUM.AX 0,23 AU$ 0,00%

Execution of Amended Finance Facility

Publié le 23 décembre 2016

SUMATRA COPPER & GOLD PLC

Registered No. 5777015

ASX Announcement: 23 December 2016

Further to its ASX announcement dated 25 November 2016, Sumatra Copper & Gold plc ("the Company") is pleased to announce that the Company, and its wholly owned subsidiary PT Dwinad Nusa Sejahtera (collectively "the Group"), has executed agreements with its lenders to amend the existing US$45 million senior secured debt facility and warrants ("Amended Facility") and with its major shareholders to support the Amended Facility and to convert or terminate their existing convertible notes in order to acquire additional equity in the Company.

The key terms and conditions of the Amended Facility are as set out in the schedules to the Explanatory Statement in the Company's Notice of General Meeting dated 25 November 2016. The date for the required initial equity raise of a minimum of US$2.5 million ("Initial Equity Raise") has been moved from 30 December 2016 to 31 January 2017 due to the proximity to the year-end holiday period. In order to accommodate the delayed capital raise the Company's major shareholders, Provident Minerals Pte Ltd and PT Saratoga Investama Sedaya Tbk, will provide an additional working capital loan of US$1.375 million, under the terms of the existing Working Capital Facility Agreement (refer to ASX Announcement of 16 June 2016) which will be repaid from the proceeds of the Initial Equity Raise.

The Amended Facility will improve the financial position of the Group by lowering the cost and amount of debt, and increasing short term cashflow.

In summary, the following key changes have been made to the senior secured debt facility:

Subject to the Company conducting the Initial Equity Raise of US$2.5 million by 31 January 2016:
- reduction of interest rate to 7.5%;
- conversion of outstanding redemption premium of approximately US$5.9 million (accrued through a deferral of a portion of the interest rate) into up to US$3 million of CDIs with the balance converted to a zero coupon, unsecured loan repayable upon maturity of the debt facility;
- cancellation of 250,597,351 warrants for consideration of US$4.05 million payable in CDIs; and termination of the warrant deed.
Subsequent to a second equity raise by the Company of a minimum of US$12.5 million by 30 June 2017 ("Major Equity Raise") repayment of US$10 million of the principal of the debt facility.

Both the Initial Equity Raise and the Major Equity Raise are conditions of the Amended Facility.

The Company's major shareholders have agreed to take-up any shortfall in the Initial Equity Raise and the Major Equity Raise. In addition, the major shareholders have agreed to:
convert all of their convertible notes in the Company to CDIs by no later than 30 June 2017, such notes comprising US$7 million plus accrued interest; or
should the convertible notes be redeemed prior to 30 June 2017, immediately apply the full proceeds from the redemption to a placement of CDIs at the lower of 90% of the volume weighted average price of CDIs during the 10 days immediately preceding the closing date of the Major Equity Raise and the price at which CDIs are issued in connection with the Major Equity Raise.

ASX ANNOUNCEMENT 23 DECEMBER 2016

The Company has also amended its gold hedging arrangements such that 50% of the net out-of-the money value on the six monthly deliveries commencing on 31 October 2016 will be deferred, without interest, and must be repaid by 30 June 2017. The remaining 50% of the hedging arrangements will continue to be cash settled within 3 days of the due date. The balance (if any) is to be paid subsequent to the Major Equity Raise.

The Company has received shareholder approval for the Initial Equity Raise, cancellation of the warrants for consideration payable in CDIs and conversion of the redemption premium to CDIs (refer to ASX Announcement of 13 December 2016). Subsequent shareholder approval will be required, prior to 30 June 2017, for completion of the Major Equity Raise and conversion of convertible notes to CDIs.

For further information please contact:

David Fowler Phil Retter

Managing Director Investor Relations

Sumatra Copper & Gold plc NWR Communications

+61 8 6298 6200 M: +61 407 440 882

[email protected] [email protected]

About Sumatra Copper & Gold plc

Sumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer in southern Sumatra, Indonesia. The Company's flagship asset is its Tembang gold-silver mine, currently in production. The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings.