USD$9,500,000 Financing Term Sheet Signed for Kamativi Lithium Tailings Project

1015 – 789 West Pender Street, Vancouver, BC V6C 1H2 CSE - CAT

USD $9,500,000 Financing Facility Term Sheet Signed with Transamine Trading S.A. for the Kamativi Lithium Tailings Project

Vancouver, BC January 9, 2018 – Canadian strategic metals company, Chimata Gold Corp. (CSE – CAT) (“Chimata” or the “Company”) announces the signing of a Term Sheet between Transamine Trading S.A. (“Transamine”) and the Kamativi Tailings Company (Pvt) Ltd (“KTC”) for a USD $9.5 Million finance and off-take facility for concentrate produced from the Kamativi Tailings Lithium Project (the “Project”). Chimata’s local Zimbabwean partner (https://webfiles.thecse.com/sedar_filings/00032110/1811021139575616.pdf) holds a 60% equity stake in KTC which is a Joint Venture with the remaining 40% of the equity being held by Kamativi Tin Mines (Pvt) Ltd.

Salient points of the Term Sheet are set out as follows:

• USD $9.5 Million debt funding will be provided as a lump sum payment on completion of the relevant condition’s precedent by each of Transamine and KTC.
• The tenor of the facility is in line with the construction project plan and allows sufficient time for repayment from free cash
• The use of proceeds of the financing facility will be put toward the construction of the Phase 1 Processing Plant to be constructed for the Project and working capital.
• KTC will produce a +6% Li2O Spodumene concentrate to be sold to Transamine.
• Transamine will have the right to 150,000 tonnes of Concentrate produced from the Phase 1 Processing Plant.
• Commercial terms shall be agreed in line with the international market terms for +6% Li2O Spodumene concentrate.

Transamine, a Swiss based off-taker, is a full-service company providing worldwide raw material sourcing, marketing, finance and investment. Transamine are actively trading other mineral concentrates in Zimbabwe and have lithium offtake agreements elsewhere in the world. John McTaggart, the Chairman of the Kamativi Tailings Company, has said “they are a strong partner for the project with their extensive experience in supporting African mining operations and their long history of minerals marketing internationally. We look forward to developing a long-lasting and beneficial relationship with Transamine over the years to come”. Further information on Transamine, can be found on their website at http://www.transaminetrading.com/

he Project team is looking forward to finalising all documentation to continue the rapid advancement of the Project and the construction of the Phase 1 Processing Plant to bring the project into production as quickly as possible.

Alain Moreau, a “qualified person” as defined by NI 43-101 – Standards of Disclosure for Mineral Projects has approved the scientific and technical disclosure in this press release.

ON BEHALF OF THE BOARD

Richard Groome

Chairman and Interim President and CEO

Further information regarding the Company can be found on SEDAR at www.SEDAR.com, or by contacting the Company directly at (604) 674-3145.

This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with planned production, including the ability of the company to achieve its targeted production outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates

Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

We seek safe harbour