Melior Amends Its Loan Facility
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NEWS RELEASE
MELIOR AMENDS ITS LOAN FACILITY
Toronto, Ontario, July 12, 2017 - Melior Resources Inc. (TSXV: “MLR”) (“Melior” or the “Company”) is pleased to
announce that it has entered into an amendment to its loan agreement (the “Amended Loan Agreement”) with Pala
Investments Limited (“Pala”) after receiving final acceptance from the TSX Venture Exchange and approval from holders of
more than 50% of its issued and outstanding c ommon shares (the “Common Shares”), excluding Common Shares held by Pala.
Pursuant to the terms of the Amended Loan Agreement, Pala has increased the debt facility available to Melior by
US$1,240,000 to an aggregate of US$4,750,929 (the “Pala Facility”). In addition, Pala will have the right to convert the
amount outstanding under the Pala Facility (excluding any interest accrued thereon), in whole or in part, into Common Shares
at a conversion price of $0.052 (the “Initial Conversion Price”) for the first 12 months, and thereafter, at the greater of $0.10 and
the Initial Conversion Price (after adjusting to account for any share consol idation undertaken by Melior). All other terms of the
Amended Loan Agreement are as disclosed in the press release issued by the Company on June 27, 2017.
Prior to the entering into of the Amended Loan Agreement, Pala held a total of 131,194,865 Common Shares, representing
approximately 48.33% of the issued and outstanding Common Shares. Based on US$4,750,929 principal outstanding under
the Pala Facility and assuming (i) an exchange rate of C$1.2887 for each US$1.00 (the Bank of Canada rate for July 7, 2017)
and (ii) using the Initial Conversion Price, the Pala Facility would be convertible into a total of 117,740,835 Common
Shares. Following such conversion, Pala would hold 248,935,700 Common Shares, representing a securityholding
percentage of 67.42% , an increase of 19.09% .
The new proc eeds under the Pala Fac ility will be used by Melior primarily for purposes of finalizing a confirmatory technical
work programme in preparation for a possible re -start of operations at its Goondicum ilmenite mine , with the balance to satisfy
outstanding payables of the Company.
About Melior
Melior is the owner and operator of the Goondicum mine, a past -producing ilmenite and apatite mine strategically located in
Queensland Australia. Further details on Melior and the Goondicum mine can be found at www .meliorresources.com and
regulatory filings are available on SEDAR.
Melior is incorporated under the provisions of the Business Corporations Act ( British Columbia) and has a registered office in
Toronto, Ontario. Melior is classified as a Tier 1 Mining Issuer under the policies of the TSX-V.
Forward Looking Statements Disclaimer
Statements made in this news release may be forward -looking and therefore subject to various risks and uncertainties. Such
statements can typically be identified by terminology such as ‘‘may’’, ‘‘will’’, ‘‘could’’, ‘‘should’’, ‘‘expect’’, ‘‘plan’’,
‘‘anticipate’’, ‘‘believe’’, ‘‘intend’’, ‘‘possible’’, ‘‘continue’’, “objective” or other similar expressions concerning matt ers that
are not historical facts. Certain material factors or assumptions are applied in making forward -looking statements and actual
results may differ materially from those expressed or implied in such statements. Melior does not undertake to update any
forward-looking statements; such statements speak only as at the date made.
Going Concern Risk
As described in Melior’s most recent MD&A, the continuing operations of the Company are dependent upon its ability to
continue to raise adequate financing, to commence profitable operations in the future, and repay its liabilities aris ing from
normal business operations as they become due. There remains a significant risk that the Company is unable to find alternativ e
sources of financing for on -going working capital requirements. These material uncertainties cast significant doubt upon the
Company’s ability to continue as a going concern.
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Failure to obtain sufficient financing could result in a delay or abandonment of the Goondicum Mine and could force the
Company into reorganization, bankruptcy or insolvency proceedings. Additional fi nancing may not be available when needed
or, if available, the terms of such financing might not be favourable to the Company and might involve substantial dilution t o
existing shareholders. Failure to raise capital when needed would have a material advers e effect on the Company’s ability to
pursue its business strategy, and accordingly could negatively impact the Company’s business, financial condition and results
of operations.
For further information please contact:
MELIOR RESOURCES INC.
Mark McCauley
Chief Executive Officer
+61 7 3233 6300
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.