Bushveld Minerals Regulatory News (BMN)

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

18 December 2017

Bushveld Minerals Limited

("Bushveld" or the "Company")

Issuance of Second tranche of Convertible bonds

Bushveld Minerals Limited (AIM: BMN), a mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and a minority investment in tin, is pleased to announce that the Company has agreed to issue the second tranche of £3.5 million ("Second Tranche") of unsecured convertible bonds to UK based fund, Atlas Capital Markets Limited, and its New York based joint venture company, Atlas Special Opportunities Limited (collectively the "Investor").

Details of the Convertible Bond:

The Second Tranche was issued on the 18 December 2017, upon receipt of funds by the Company. The First Tranche of of £4,500,000 was issued on the 22 September 2017.

A total fundraising of up to £8.0 million through the creation and issuance of convertible bonds, with denomination of £25,000 each, which bear a coupon of 7.5 per cent per annum and have a maturity date of two years from the date of issuance (the "Maturity Date") (the "Convertible Bonds"). The Convertible Bonds are issued at 98 per cent of face value.

The Convertible Bonds are convertible into BMN ordinary shares at a price equal to the average of the lowest five days volume weighted average price (as published by Bloomberg) determined over the ten trading days immediately prior to receipt of a conversion notice by the Company from the Investor.

The Investor has agreed not to convert more than 25 per cent of the Convertible Bonds outstanding during every period of three calendar months: (i) from 1 January to 31 March; (ii) from 1 April to 30 June; (iii) from 1 July to 30 September; and (iv) from 1 October to 31 December, subject to certain exceptions, and agrees not to short sell and/or borrow BMN ordinary shares at any point during the twenty-four month period from the date of issuance of the First Tranche.

A total of 4,861,111 warrants over BMN ordinary shares will be issued as part of the Second Tranche.

A total of 6,250,000 warrants over BMN ordinary shares were issued as part of the First Tranche. The warrants have a three year term, a strike price of 14.4p and are exercisable at any time.

The net proceeds receivable from the issue of the Second Tranche will be applied to further developing the Company's vanadium platforms, as well as providing general working capital.

The Company has the option to redeem the Convertible Bonds prior to the Maturity Date at 105 per cent of the face value of the outstanding Convertible Bonds to be redeemed. If a material change of ownership (being the acquisition of ownership of, or voting control or direction over, more than 50% of the issued and outstanding shares of the Company) occurs, or certain events of default occur, the Investor has the right to request redemption of all or part of the outstanding amount at 105 per cent of the face value of the outstanding Convertible Bonds to be redeemed.

On the Maturity Date, any unconverted Convertible Bonds will be converted into BMN ordinary shares, with such number of ordinary shares determined by dividing the principal amount of the unconverted Convertible Bonds by the average of the lowest three days volume weighted average price (as published by Bloomberg) during the period of fifteen consecutive trading days prior to the Maturity Date.

Enquiries: info@bushveldminerals.com

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is an AIM listed mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and a minority investment in tin.

The Company's flagship vanadium platform includes an interest in Bushveld Vametco Alloys (Pty) Ltd primary vanadium mining and processing company, which the company has announced a conditional acquisition of 100%; the Mokopane Vanadium Project and the Brits Vanadium Project. The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.

Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owned high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.

Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com