Solway Investment Group Offers Euromax Resources Ltd. and the Ilovica-Shtuka Project a Better Path Forward

ZUG, Switzerland, April 25, 2019 /PRNewswire/ -- Solway Investment Group GmbH (Solway) today announced that it has delivered a proposal to Euromax Resources Ltd. (TSX: EOX) (Euromax), which will address Euromax's long-term financing and development requirements (the Solway Proposal) and provides feasible solution to the environmental and social issues the project has faced with. 

Combining the Buchim Project and Ilovica-Shtuka Project under a single joint venture as contemplated by Solway Proposal is a unique value creation opportunity and may be the only viable near-term opportunity to get the Ilovica-Shtuka Project approved by the North Macedonian government and supported by the hosting communities and environmental groups. One of the main problems with the current Ilovica-Shtuka Project design is the close proximity to the Ilovica communities, resulting in concerns with the Ilovica-Shtuka Project's potential environmental impact. By combining the Buchim and Ilovica-Shtuka Projects under the same joint venture, tailings from the Ilovica-Shtuka Project could be stored at Buchim Project's tailings storage facilities and processing facilities could be built on the existing Buchim Project plant site, thereby reducing the environmental footprint of the Ilovica-Shtuka Project dramatically. Conversely, it is unclear how the Private Placement Transaction advances the development of the Ilovica-Shtuka Project. Any design options (including paste tailings) providing for tailings storage in the proximity of the local villages will face fierce opposition and strong resistance from local communities and result in a material increase of capital and operating costs. 

The Solway Proposal is a superior alternative to the private placement announced on March 22, 2019 (the Private Placement Transaction), which does not address the primary environmental concerns of local communities, offers no clear road map for getting the Ilovica-Shtuka Project permitted, and leaves its financial partners facing continued uncertainty regarding the prospects of their investments. The Private Placement Transaction is subject to the approval of the North Macedonian Commission for Competition, which Euromax's news release indicates is expected no later than June 30, 2019.  Solway believes it is highly unlikely that the approval will be obtained in this time frame. Solway has therefore decided to present Euromax with the Solway Proposal so that Euromax has a superior alternative to the Private Placement Transaction in the event that the approval of the North Macedonian Commission for Competition is not obtained within the time frame provided under the Private Placement Transaction.