Mindoro Joint Venture Acquires US$8 Million Loan for Agata Project

EDMONTON, ALBERTA--(Marketwired - Nov. 20, 2014) - Mindoro Resources Ltd. (TSX VENTURE:MIO) (FRANKFURT:WKN 906167) today announced that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which Mindoro holds a 40% interest, has received a Letter of Advice from China Banking Corporation ("Chinabank") granting an US$8 million term loan facility (the "Facility") to support AMVI's high iron/low nickel direct shipping ore ("DSO") operations and exploration work at the Agata project, located in northern Mindanao, the Philippines.

In addition to the Chinabank US$8 million Facility, AMVI has also received advances totaling US$3 million from Tewoo Hoperay (Singapore) Pte. Ltd, a subsidiary of Tianjjn Hoperay Mineral Limited Company, a major Chinese State Owned Enterprise, as part of offtake agreements signed in June and August 2014, to sell a total of 1.5 million wet metric tonnes of high iron/low nickel DSO. This brings the total amount of funding that AMVI is able to secure for the project to US$11 million. AMVI expects to be able to arrange similar commitments for additional funds in the future, if necessary.

If AMVI draws upon the Facility, it will use the funds to ramp up operations at the Agata DSO project, to fund detailed exploration programs and resource updates at the Agata nickel laterite and limestone projects, and for general working purposes. Details of these programs will be announced in the upcoming weeks.

"The ability of the Agata joint venture to secure this substantial funding should send a positive signal to the market," stated Penny Gould, CEO of Mindoro. "With the high-iron DSO operations now underway, this further funding will allow the joint venture to unlock additional value from the Agata project through increasing the high-iron DSO production, updating the nickel laterite resource, and commencing work on the limestone DSO project."

TERMS OF THE LOAN FACILITY

The term of the Chinabank Facility is three years, with a six-month grace period before repayments of the principal are to commence, spread equally over 10 quarterly periods, beginning at the end of the third quarter. The interest rate of the Facility is fixed at a competitive rate for three years, payable quarterly in arrears, to start at the end of the first quarter from the initial drawdown date. The Facility is also accompanied by an additional PHP10 million Domestic Bills Purchase ("DBP") Line available to AMVI at prevailing interest rates up to June 30, 2015.