PGR.L Regulatory News (PGR)

28 May 2019

Phoenix Global Resources plc

("Phoenix" or the "Company")

Additional Funding

Further to the Company's announcement on 4 February 2019, Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream oil and gas company offering its investors direct exposure to Argentina's Vaca Muerta shale formation and other unconventional resources, is pleased to announce additional funding arrangements.

Highlights

· Existing convertible revolving credit facility with Mercuria Energy Netherlands BV ("MENBV"), part of the Mercuria Group, increased to US$275 million, providing immediate additional funds of US$40 million (the "Amended Convertible RCF")

· Additional funds will be used to support the Group's 2019 business plan

Amended Convertible RCF

The Amended Convertible RCF will provide immediate additional funds of US$40 million and bears interest at a rate of 4% over 3-month US$ LIBOR with a maturity date of 31 December 2021. The Amended Convertible RCF has three tranches, a facility A commitment of US$160 million ("Facility A"), which was entered into in February 2018, a facility B commitment of US$75 million ("Facility B"), which was entered into in February 2019 and a facility C commitment of US$40 million ("Facility C") (Facility A, Facility B and Facility C the "Loan") . Facility A carries the right to convert all or part of Facility A into additional new ordinary shares of Phoenix at a price of 45 pence per share at any time from 30 June 2018 until 10 business days prior to the maturity date. Facility B carries the right to convert all or part of Facility B into additional new ordinary shares of Phoenix at a price of 28 pence per share at any time from 30 June 2019 until 10 business days prior to the maturity date. Facility C carries the right to convert all or part of Facility C into additional new ordinary shares of Phoenix at a price of 23 pence per share at any time from 30 June 2020 until 10 business days prior to the maturity date. The Amended Convertible RCF provides for a grace period (interest and principal) from 1 January 2019 to 29 February 2020 and the Loan will be amortised in equal quarterly repayment instalments from 31 March 2020 until maturity

The rights to convert Facility B and Facility C are subject to appropriate shareholder resolutions, in relation to the authority to allot and disapplication of pre-emption rights in relation to such shares, having been approved. The Company intends to propose the relevant resolutions at its annual general meeting to be held this year (Facility B) and next year (Facility C).

Related Party Transaction

Mercuria Group is a substantial shareholder of the Company and a related party under the AIM Rules. The entering into of the Amended Convertible RCF constitutes a related party transaction (the "Transaction") under the AIM Rules. The directors of the Company, except for the two Mercuria directors (being Mercuria's designated directors under the Relationship Agreement between Phoenix and certain Mercuria Group companies), having consulted with the Company's nominated adviser, Stockdale Securities Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Kevin Dennehy, CFO of Phoenix said:

"I am pleased to announce that funding is in place to support the balance of the 2019 work program, which will allow Phoenix to continue to develop its highly attractive asset base."

Ends

For further information, please contact:

About Phoenix

Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on the London Stock Exchange (AIM: PGR) and Buenos Aires Stock Exchange (BCBA: PGR). The Company has over 1.8 million licensed working interest acres in Argentina (of which over 0.7 million are operated), 57.1 million boe of working interest 2P reserves and average working interest production of approximately 10,249 boepd in 2018. Phoenix has significant exposure to the unconventional opportunity in Argentina through its approximately 700,000 working interest acres with Vaca Muerta and other unconventional potential.

The Company's website is www.phoenixglobalresources.com