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Melior Announces Price Reservation FOR Financing

Corporate Updates

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE

UNITED STATES

NEWS RELEASE

MELIOR ANNOUNCES PRICE RESERVATION FOR FINANCING

Toronto, Ontario, Jan 5, 2018 - Melior Resources Inc. (TSXV: “MLR”) (“Melior” or the “Company”) is

pleased to announce that it submitted a Price Reservation Form (Form 4A) with the TSX-Venture

Exchange (the “Exchange”) on December 6, 2017. This Price Reservation Form reserved an offering

price of $0.08, representing a 25% discount to the Market Price (as defined in Exchange Policy 1.1 –

Interpretation) of Melior’s common shares on market close December 5, 2017. In connection therewith,

Melior today announced that it intends to complete a non-brokered private placement offering (the

“Offering”) for up to 62,500,000 units (each, a “Unit”) at a price of $0.08 per Unit (“Unit Price”) for

aggregate gross proceeds of up to $5,000,000. Each Unit shall be comprised of one common share in the

capital of the Company (each, a “Common Share”) and one common share purchase warrant to acquire a

Common Share (each, a “Warrant”). Each Warrant shall have a term of two years and entitle the holder to

purchase one additional Common Share upon payment of an exercise price of $0.105. The Offering is

expected to close on or before January 24, 2018.

The proceeds from the Offering will be used primarily for the purposes of re-starting operations at the

Goondicum ilmenite mine. All of the securities issued pursuant to the Offering will be subject to a statutory

4-month plus one day hold period from the date of issuance. The Offering remains subject to Exchange

approval.

About Melior

Melior is the owner and operator of the Goondicum ilmenite mine, a past-producing ilmenite and apatite

mine strategically located in Queensland Australia. Further details on Melior and the Goondicum ilmenite

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 Venture Exchange.

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 matters 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.

U.S. Securities Law Disclaimer

No securities regulatory authority has either approved or disapproved of the contents of this press

release. This press release is not for distribution, directly or indirectly, in or into the United States

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(including its territories and possessions, any state of the United States and the District of Columbia) or

any other jurisdiction outside Canada. This press release does not constitute or form a part of any offer or

solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada.

The securities offered pursuant to the Offering have not been and will not be registered under the United

States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state

of the United States and may not be offered or sold within the United States or to a U.S. person absent

registration or pursuant to an available exemption from the registration requirements of the U.S.

Securities Act and applicable state securities laws. There will be no public offering of securities in the

United States.

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 arising from normal business operations as they become due. There remains a

significant risk that the Company is unable to find alternative 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.

Failure to obtain sufficient financing could result in a delay or abandonment of the Goondicum ilmenite

mine and could force the Company into reorganization, bankruptcy or insolvency proceedings. Additional

financing 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 to existing shareholders. Failure to raise

capital when needed would have a material adverse 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

[email protected]

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.