First Bauxite Announces the Arrangement of $5 Million Bridge Loan Facility

NEW ORLEANS, LOUSIANA--(Marketwired - Jan. 23, 2018) - First Bauxite Corporation (TSX VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) ("First Bauxite" or the "Company") is pleased to announce that it has entered into a loan agreement (the "Loan Agreement") with Resource Capital Fund VI L.P. ("RCF VI") pursuant to which RCF VI has agreed to provide a bridge loan facility (the "Bridge Loan") to the Company in the principal amount of up to US$5 million. The proceeds of the Bridge Loan are to be used for the purpose of funding development initiatives related to its direct shipping operations and to fund working capital expenses.

The Bridge Loan is to be advanced in three separate advances: (1) a first advance (the "First Advance") of up to US$2 million, which amount has been paid to the Company; (2) a second advance of up to US$2 million, which is to be available on or after March 1, 2018; and (3) a third advance of up to an amount equal to the undrawn balance, which is to be available on or after April 1, 2018. The Bridge Loan will be repayable in full on the earlier of the demand of RCF VI after an "Event of Default" (as this term is defined in the Loan Agreement); and (2) the date falling 12 months after the date of the First Advance (the "Maturity Date").

The Bridge Loan would become immediately due and payable in full upon the incurrence, creation or assumption by the Company or any of its subsidiaries of any indebtedness or the establishment, sale or creation of any royalty, metal stream or similar arrangement in connection with financing the Company's Bonasika Bauxite Project (the "Bonasika Project") and the Company's bauxite mining and beneficiation plant in Guyana, in an aggregate amount of more than US$25 million.

The Company may pay or prepay the Bridge Loan in whole or in part at any time prior to the Maturity Date without penalty or premium. Interest will accrue at a rate equal to 10.0% per annum, which will immediately be increased by 3.5% annually on the occurrence of an Event of Default, all accrued and outstanding interest on the Bridge Loan to be payable on the date of repayment of the Bridge Loan. In consideration for establishing the Bridge Loan, the Company will pay RCF VI an upfront fee of US$150,000 on or before the first advance of the Bridge Loan.