SRHI Inc. Completes Customary Documentation Required under JRA - Seite 2

• Effective August 24, 2020, approximately $22 million of MTV’s accounts payable and accrued liabilities were converted to long-term debt (the “Unsecured Debt”)
• Effective August 24, 2020, Unsecured Debt amounting to approximately $17 million converted from accounts payable of MTV to long-term debt (“Unsecured Term Debt”)
• Effective August 24, 2020, Unsecured Debt amounting to approximately $5 million converted from accounts payable of MTV to subordinated long-term debt ("Subordinated Debt") to be repaid only after all amounts due to the Lenders and unsecured creditors are fully repaid
• Principal and interest repayment grace period for Unsecured Term Debt – first payment to begin March 31, 2022
• 50% of Unsecured Term Debt to be repaid in 13 quarterly payments beginning March 31, 2022
• Remaining 50% of Unsecured Term Debt to be repaid on June 30, 2025
• Annual interest rate of New Unsecured Debt is 5%
• Opportunity for accelerated prepayments
• Subordinated Debt and Unsecured Term Debt totaling approximately $7 million is due to Vecchiola S.A, a related party to the minority Shareholder of MTV.
  
  

About SRHI Inc.

SRHI is a publicly-listed company based in Toronto and its principal operating business is its 70% equity interest in the producing copper mine Minera Tres Valles in Salamanca, Chile. For more information about SRHI, please visit www.srhi.ca.

Cautionary Statement Regarding Forward-Looking Information

Certain statements in this news release, contain forward-looking information (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the foregoing, this news release contains Forward-Looking Statements pertaining to: the terms of the JRA; and the expected timelines for provision, drawdown and repayment of indebtedness of MTV.

Although SRHI believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including: the terms of the JRA; that the assumptions for future ore mined and copper cathode production together with future cash flows, including future copper prices, operating costs and capital expenditures remain materially accurate; there being no additional significant disruptions affecting the development and operation of MTV; the timing for the expected reopening of the Don Gabriel mine; the timing and success of the Papomono Masivo underground mine construction and development and assumptions concerning general marketing, political, business and economic conditions.