Oracle Mining Signs Indicative Term Sheet for Minimum US$6.5 Million and Maximum US$7.5 Million Secured Convertible Loan and up to CAD$20 Million Future Project Financing - Seite 3

Current Debt Obligations

In addition to signing the indicative term sheet with Vincere, the Corporation has also signed a loan extension agreement with its existing lender, Rich Stone Mining Investment (Hong Kong) Limited. The CAD$10,180,000 (the "Rich Stone Debt") secured convertible loan dated November 12, 2013 had a Maturity Date of November 12, 2014 and has been extended by agreement to an Extended Maturity Date of December 15, 2014 for no penalty. For greater certainty, no interest shall accrue or be payable during the extension period.

Upon closing of the Loan with Vincere, the Rich Stone Debt will be managed by converting, CAD$4,000,000 into 13,333,333 Common Shares at a conversion price of CAD$0.30 per Common Share and CAD$1,000,000 into 2,702,702 Common Shares at a conversion price of CAD$0.37 per Common Share (collectively, the "Rich Stone Conversion Shares"), repaying CAD$1,000,000 to Rich Stone and Rich Stone forgiving CAD$120,000 of the Rich Stone Debt. The balance of CAD$4,060,000 principal amount will be extended on an interest free basis with no change to the conversion rights (the "Rich Stone Facility") until the earlier of eighteen (18) months after the Closing Date (which period shall be extended for each month of extension of the Maturity Date of the Loan transaction) or the time at which the Corporation or a subsidiary obtains project and/or construction financing of at least USD$10,000,000 together with commitments sufficient to fund the Oracle Ridge Project into commercial operations, at which time CAD$3,060,000 of the Rich Stone Facility will be converted automatically into up to 30,600,000 Common Shares at the greater of:

1. CAD$0.10 per Common Share; or
2. the market price of the Common Shares (as determined in accordance with the rules of the TSX) on the date of conversion provided, however the number of Common Shares issuable upon such automatic conversion will in no event exceed 49% of the issued and outstanding Common Shares at that time.

The remaining CAD$1,000,000 of the Rich Stone Facility will remain outstanding and will not be payable until all obligations and liabilities owing pursuant to the Loan transaction are repaid in full and CAD$1,000,000 (which is an unsecured obligation) will be paid to Rich Stone in cash as an extension payment.