Extension of Loan Agreement

Extension of Loan Agreement

China Nonferrous Gold Limited

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

("CNG" or the "Company")

Extension of Loan Agreement with CNMC International Capitals Company Limited

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.

Extension of the Loan Agreement with CNMC International Capitals Company Limited

As announced on 29 September 2017 in the financial update, the Company signed a loan facility of USD$6.5 million with CNMC International Capitals Company Limited (“CNMC International”) comprising three tranches of US$1 million, US$4 million and US$1.5 million (CNMC International Loan”). Each tranche is repayable on 15 December 2017, 23 December 2017 and 19 January 2018, respectively.

The Company is pleased to announce it has signed a supplementary agreement, with CNMC International who are an associate of China Nonferrous Metals International Mining Co., Ltd (“CNMIM”), the Company’s 38.36% shareholder, for the extension of the CNMC International Loan by one year to be repayable on 15 December 2018, 23 December 2018 and 19 January 2019, respectively, only with an annual fixed interest rate increased from 4% to 5%, and all other terms including default an annual interest rate of 6% remaining unchanged (the “CNMC International Supplementary Agreement”).

The signing of the CNMC international Supplementary Agreement, extending repayment of the US$6.5 million loan by one year, follows a similar agreement announced on 24 November 2017 in relation to a deferment of a US$20 million repayment under the Company’s facility with CNMC.

Yu Lixian, Managing Director commented:

“We are grateful for the support from our major shareholder, as a result the business now has a stronger backdrop from which to continue negotiations on a wider refinancing of the Company, which we hope to conclude by the end of the first quarter 2018.

The Company has recently drawn down USD$20 million from the CCBC loan facility announced on 30 October 2017 to fund capital and operating expenditures associated with restoring production and we continue to progress discussions regarding a wider refinancing which is required to ensure we can meet our debt repayment schedule. ”

Related Party Transaction

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

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

China Nonferrous Gold Limited

Yu Lixian, Managing Director

Tel: [phone]

Investec Bank Plc

Jeremy Ellis, George Price

Tel: [phone]

Beaufort Securities Limited

Jon Belliss

Tel: [phone]

Blytheweigh

Tim Blythe, Camilla Horsfall

Tel: [phone]

LEI: 213800N6OF4LUDO7WD52

2.2. Inside information

View source version on businesswire.com: http://www.businesswire.com/news/home/20171213006283/en/