Extension to Loan Agreement

Extension to Loan Agreement

China Nonferrous Gold Limited

China Nonferrous Gold Limited

("CNG" or the "Company")

Extension to Loan Agreement

China Nonferrous Gold Limited 中 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to announce that the Company has extended the repayment period for Loans that in place with CNMC Trade Company Limited (“CNMC Trade”). The loans in place with CNMC Trade total USD $146.5 million.

The Company has total debt facilities (including banking facilities) of c. US$341m at this current time (unaudited).

As announced on 09 April 2020, the Company has been in discussions to agree a formal extension of its existing debts facilities with CNMC Trade, as the loans were due for repayment.

The current loans provided by CNMC Trade, which were also detailed in the announcement dated 1 July 2019, are set out below, along with the new repayment date. No other changes have been made to the loan agreements:

• A loan of US$120m. This was due to be repaid on 20 December 2019 but, in support of the Company's business, conversations have been progressing to agree an extension . It is now agreed that the repayment date for this loan will be extended to 20 December 2020. Annual interest remains unchanged (it is 3.7% over 6 month LIBOR). Interest will be payable on 30 June and 31 December each year;
• A loan of US$6.5m. This was due to be repaid on 20 December 2019 but which has been informally extended on a month by month basis. It is now agreed that the repayment date for this loan will be extended to 20 December 2020. Annual interest remains unchanged (it is 3.7% over 6 month LIBOR). Interest will be payable on 30 June and 31 December each year;
• A loan of US$20m. This was due to be repaid on 26 November 2019. It has been informally extended on a month by month basis. It is now agreed that the repayment date for this loan will be extended to 26 November 2020. Annual interest remains unchanged (it will be 3.7% over 6 month LIBOR). Interest will be payable on 30 June and 31 December each year;

CNMC Trade is a wholly owned subsidiary of China Nonferrous Metals Mining (Group)Co., Ltd (“CNMC Group”), a substantial shareholder in the Company.

The Company continues to engage with commercial banking partners to explore a wider refinancing of the business and will update shareholders in due course.

Related Party Transaction

As CNMC Trade is a wholly owned subsidiary of CNMC Group, a substantial shareholder in the Company, the extension of the CNMC Loan is deemed to be a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies. The Company’s board of directors (excluding Liang Boyi, Yu Lixian and Feng Delin, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser,WH Ireland Limited, that the terms of the extension of the CNMC 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]

WH Ireland Limited (NOMAD & Broker)

Katy Mitchell, James Sinclair-Ford

Tel: [phone]

Blytheweigh (PR)

Tim Blythe, Camilla Horsfall

Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

Project Summary

The Pakrut gold project, of which CNG has 100 per cent ownership, is situated in Tajikistan approximately 120 km northeast of the capital city Dushanbe. Pakrut is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a number of multi-million ounce gold deposits.

CNG is currently continued full production despite COVID-19, and the operation of Pakrut gold mine is remaining stable overall and the key technical production figures were increased significantly.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. CNG's management team has extensive experience in the mining industry in Tajikistan.

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