Bellzone Mining Regulatory News (BZM)

28 December 2016

Bellzone Mining plc

("Bellzone" or "the Company")

2017 Funding and Business Update

Bellzone (AIM: BZM) announces that agreement has been reached with Hudson Global Group Limited ("Hudson"), which has a 61.93 per cent. shareholding in the Company, regarding the Company's working capital funding for 2017.

The Company's working capital requirements up to the end of 2016 have been funded by a US$6.5 million loan facility which is to be repaid to Hudson with accrued interest on 31 March 2018. A total of US$6.0 million has been drawn down to date.

In addition to the remaining US$0.5 million undrawn commitment, Hudson has agreed to make available a second loan facility of up to US$4.0 million to Bellzone (the "Hudson Additional Loan Facility") with effect from 1 Jan 2017, with the first drawdown occurring no later than 28 February 2017.

This smaller loan amount compared to previous loans is a reflection of Bellzone's continuing collective effort to further reduce its operating budget in 2017. The Hudson Additional Loan Facility will be on substantially the same commercial terms as the existing Hudson loan facility, with interest chargeable at Libor plus 5 per cent. which will accrue to be paid along with repayment of the principal drawn on 31 March 2018.

Accrual of interest due under CSIS Loan Facility

Bellzone also announces that China Sonangol International (S) Pte Ltd ("CSIS") has agreed to revise the interest payment dates on 31 December 2016 and 31 December 2017 with respect to its US$10.2 million loan facility as last amended on 5 March 2015 to 31 March 2018 and for the net expenses incurred by Bellzone in relation to this loan facility to be aggregated together as part of the same loan facility.

Related Party Transactions

Under the AIM Rules, as a result of its 61.93 per cent. shareholding in the Company, Hudson is a related party of Bellzone. The Independent Directors of Bellzone, being Michael Farrow, Simon Brickles and Antony Gardner-Hillman consider, having consulted with Bellzone's Nominated Advisor, WH Ireland Limited, that (i) the terms of the Hudson Additional Loan Facility; and (ii) the change of interest due dates on the CSIS US$10.2 million loan facility are fair and reasonable insofar as the shareholders of Bellzone are concerned.

2017 Business Plan

Bellzone is in the final stages of negotiations with the Government of the Republic of Guinea to update its Kalia Base Convention which was ratified in August 2010. Following the signing and ratification of the Addendum and updated Convention provisions, Bellzone intends to proceed without delay to complete the next steps required to convert the initial results of the technical study announced on 25 August 2016 into a full feasibility study assessment of the economic viability of the Ferronickel Project. The financing required to complete the key next steps of the feasibility study work has already been substantially raised in the equity placing announced on 21 January 2016.

Termination and dissolution of Bellzone Employee Share Plan Trust ("BESPT")

The BESPT was dissolved on 19 December 2016. At the time of dissolution, the BESPT held 21,652,840 ordinary shares of no par value ("Ordinary Shares") in the issued share capital of the Company. These shares have been transferred to Bellzone Mining plc and will be held in treasury.

Total Voting Rights

The issued share capital of the Company is 1,469,858,383 Ordinary Shares. As a result of the transfer of shares from the BESPT to Bellzone, Bellzone now holds 32,657,970 Ordinary Shares in treasury. Accordingly, the issued share capital of the Company for the purpose of calculating total voting rights will be 1,437,200,413 Ordinary Shares.

Mr. Michael Farrow, Chairman of Bellzone, said:

"2016 has been a productive year in terms of advancing our discussion with the Guinea Government to update our Kalia Convention, developing our understanding around the economic possibilities with respect to the Ferronickel Project and working together as a team to add to our operating resilience. Once again on behalf of the Board and all our shareholders, I would like to express my sincere appreciation to Hudson and CSIS for their continuing strong support for Bellzone, which will allow us to move another step closer to realising the world-class potential of our Kalia iron ore concession."

Enquiries:

http://www.bellzone.com/