ORM.L Regulatory News (ORM)

18 February 2015

Ormonde Mining plc

("Ormonde" or "the Company")

Barruecopardo - Financing and Operations Update

The Board of Ormonde is pleased to provide the following update in relation to its flagship Barruecopardo Tungsten Project in Salamanca, Spain ("Barruecopardo" or "the Project").

Financing

The Company has entered into an exclusivity period extending to 10 April 2015 and has finalised and signed a term sheet with funds managed by Oaktree Capital Management, L.P. ("Oaktree"), a leading global investment manager, with regards to a financing package that would secure the funding requirements for the development of the Barruecopardo Project and a budget to conduct the early evaluation of a Stage-2 expansion of the Project. The total funding amount provided for under the term sheet is split between debt and project equity such that Oaktree would hold a majority position in the Project. Ormonde would be manager of the Project, and receive an ongoing management fee for this service. Ormonde has been assisted with the arrangement of this financing package by Swedbank Norway and Davy Corporate Finance.

A technical due diligence exercise has been completed by Oaktree. It is now envisaged that, during the exclusivity period, the Company and Oaktree will progress towards finalising the project financing arrangements including completion of long form documentation and signing of binding agreements.

Ormonde has also signed a loan agreement relating to the provision, by Oaktree to Ormonde, of US$1.5M, secured on a first priority basis by way of a share pledge of the project holding company. The loan is provided on normal commercial terms and repayable after six months from drawdown, with the repayment date being automatically extended by a period equal to any subsequent extension to the exclusivity period. This loan arrangement provides Ormonde with near term working capital as it finalises project finance arrangements.

On-site Operations

Substantial progress and preparations are being made on-site, that would expedite development upon completion of the financing process. These include:

Infrastructure Works

· Negotiations completed for power connection

· Power line construction designs underway

· Negotiations for water supply finalised

· Constructions design for water-line finalised

· Construction design for by-pass road finalised

Construction Permits and Land Rental/Acquisition

· Modification to council by-laws for building erection approved

· Application for council building permit submitted

· Municipal license for the construction of the water line submitted

· Finalisation of preparations for expropriation of outstanding lands required, following receipt of the Mining Concession

Equipment and Sub-contractors

· Preparation of the equipment enquiry documents is advanced

· Finalising negotiations for construction management contract

· Shortlist of construction sub-contractors drawn-up

· Project statutory manager and environmental officers appointed

Kerr Anderson, Ormonde's Managing Director, commented:

"The exclusivity arrangement with Oaktree follows a considerable period during which Ormonde, together with its advisors, have explored multiple avenues for the funding of the Project. Completion of the financing package for our flagship Barruecopardo Tungsten Project, would mean that Ormonde is in a position to rapidly advance the Project through its development stage during 2015 and towards production in the second half of 2016."

About Ormonde

Ormonde Mining Plc is admitted to trading on the AIM market in London and the ESM market in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker: ORM).

Ormonde is developing a low cost mining operation at its Barruecopardo tungsten project to become a major, secure European supply of tungsten. Following the completion of a Definitive Feasibility Study in 2012, and the Environmental and Mining Permit being received during 2014, Ormonde is now in the process of completing a financing package for the Project which would enable its development during 2015, with production commencing in the second half of 2016. Ormonde also has a number of other exploration projects including tungsten, gold and copper.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $90.8 billion in assets under management as of 31 December 2014. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 17 cities worldwide.. For additional information, please visit Oaktree's website at www.oaktreecapital.com 

Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director Tel: +353 (0)1 8253570

Capital M Consultants

Simon Rothschild Mob: +44 (0)7703 167065

Murray Consultants

Mark Brennock Tel: +353 (0)1 4980300 Mob: +353 (0)87 2335923

Davy (Nomad / ESM Adviser)

Eugenée Mulhern / Roland French Tel: +353 (0)1 6796363

SP Angel Corporate Finance LLP(Joint Broker)

Ewan Leggat / Katy Birkin Tel: +44 (0)20 3 470 0470

A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/en/investors/technical_glossary.

For more information please visit www.ormondemining.com or follow Ormonde on Twitter https://twitter.com/ormondemining or Linkedin http://www.linkedin.com/company/ormonde-mining-plc

ENDS