Bushveld Minerals Regulatory News (BMN)

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Convertible Loan Note

Bushveld Minerals (AIM: BMN), a diversified mineral development company with projects in Southern Africa, announces it has today entered into a subscription agreement ("Subscription Agreement") with Riveridge Limited ("Riveridge") pursuant to which Riveridge has conditionally agreed to subscribe for a six month unsecured convertible loan note to raise £2,600,000 (the "Convertible Loan"). Riveridge is an existing shareholder in Bushveld with an interest in 25,000,000 ordinary shares representing 5.2% of the existing issued share capital. The Convertible Loan could be converted into new ordinary shares in Bushveld at a price of 8 pence per share and if the Convertible Loan is converted in full, Riverridge would become interested in 9.9% of the enlarged issued share capital.

Terms of the Subscription Agreement

The Company has entered into the Subscription Agreement to support the off-market takeover offer, announced today, to acquire all of the ordinary shares in Lemur Resources Limited ("Lemur") that the Company doesn't currently own (the "Offer"). Bushveld currently has a Relevant Interest in Lemur of approximately 63.6%.

Subject to the Company obtaining acceptances pursuant to the Offer which would result in Bushveld being entitled to compulsorily acquire any outstanding Lemur securities in accordance with the Corporations Act 2001 (Cth) and declaring the Offer unconditional in all respects prior to 30 September 2015, Bushveld can serve notice on Riveridge requiring it to subscribe for the Convertible Loan. In the event that the Company elects to draw down on the Convertible Loan, it will agree to certain undertakings in relation to the Offer including delisting Lemur from the ASX.

Terms of the Convertible Loan

The Convertible Loan will incur interest at 15% over the term of the Convertible Loan, payable in cash in a single payment at maturity of the Convertible Loan, being six months following draw down by the Company. As noted above, the Convertible Loan may be converted into Bushveld's ordinary shares of the Company at 8p per share at the election of Riveridge in the period of 10 business days prior to the maturity date.

The Convertible Loan may be redeemed early in certain circumstances, including customary events of default and a change of control of Bushveld.

Contact

For further information on Bushveld please visit http://www.bushveldminerals.com or contact:

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Notes to the editor

Bushveld Minerals Limited is a mineral development company with a portfolio of vanadium-and titanium bearing iron ore and tin assets in Southern Africa.

The Company owns the Bushveld Vanadium Project, Bushveld Iron Ore Project and Mokopane Tin Project, located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

Bushveld was admitted to the AIM of the London Stock Exchange in March 2012.