Era Resources Inc. Announces Proposed Financing with its Major Shareholder - Seite 2

Pursuant to the terms of the Letter Agreement, the Company and Sentient have agreed that the conversion price for the currently outstanding debentures of the Company in the aggregate principal amount of US$59,926,130 held by Sentient pursuant to the terms of prior debenture financings between the Company and Sentient (the "Prior Financings") will be adjusted to C$0.25 per common share of the Company upon the Company receiving the necessary shareholder approval at the Meeting and the requisite approvals from the TSXV.

As of the date hereof, Sentient and its related entities currently hold 2,499,530 Common Shares, representing approximately 22% of the issued and outstanding Common Shares. If the Transaction is completed and the Debentures are issued to Sentient then, assuming the conversion into Common Shares of the Debentures, Sentient could be issued up to an additional 36,699,600 Common Shares, for a total of 39,199,130 Common Shares owned, representing approximately 81.5% of the then issued and outstanding Common Shares.

If, in addition to the Debentures issuable under the Transaction, Sentient also converts all of the debentures issued pursuant to the Prior Financings into Common Shares, Sentient could be issued up to an additional 271,725,627 Common Shares, for a total of 310,924,757 Common Shares owned, representing approximately 97.2% of the then issued and outstanding Common Shares.

The proceeds from the Transaction will primarily be used for the development of the Company's Yandera Project, including ongoing exploration; business development opportunities; and general corporate purposes.

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward looking information, including but not limited to statements with respect to ongoing exploration at Yandera and Pomiea. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or to be achieved and any other similar expressions.