TSG.L Regulatory News (TSG)

5 June 2020

Trans-Siberian Gold plc

("TSG", the "Company" or the "Group")

Debt Re-Financing

Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Kamchatka, Russia, is pleased to confirm that the Company's wholly owned subsidiary AO Trevozhnoye Zarevo ("TZ") has entered into an agreement with PJSC VTB Bank ("VTB") for a revolving credit line with a limit of $10 million for a period of 3 years.

This agreement, successfully re-finances an existing credit line with a limit of $5 million expiring on 20 June 2020 and enhances the short-term liquidity of the Group. The existing facility has been fully repaid. TZ currently has not drawn down any funds under the new credit facility.

The interest rate on the new facility has been reduced from 6.2% to 5.2% per annum. The credit agreement retains customary representations and warranties from TZ to VTB and is secured against the equity and fixed assets of TZ. Certain amounts drawn down under the credit line must be repaid within one year. TZ also retains its obligation to sell gold exclusively to VTB Bank.

Furthermore, the Credit Committee of VTB has agreed to lower the current interest rate on a separate existing Russian ruble-denominated credit line, which was provided to TZ in 2019 at an annual interest rate of 10.7% and has a current balance of ₽604.5 million (approximately $8.8 million). A floating interest rate will now be set on this existing facility, calculated as 3.5% over the lending rate of the Russian Central Bank.

The key lending rate of the Russian Central Bank currently stands at 5.5% per annum, meaning the annual interest rate attached to the loan will now amount to 9%, resulting in a 1.7% reduction in the cost of borrowing per annum. An additional agreement regarding the change of the interest rate is expected to be signed before the end of June 2020. Other credit facility conditions remain unchanged.

Following a careful evaluation of available refinancing options, the Board is confident that the debt levels remain low by industry standards and provide an appropriate capital structure, giving the Group enhanced liquidity on improved terms.

Alexander Dorogov, CEO of Trans-Siberian Gold commented:

"We are pleased to successfully re-finance our lending arrangements with VTB who have been a supportive bank to the Group. As a result, we have greater liquidity on improved terms. Our leverage remains very manageable and low when compared to our peers."

ENDS

About TSG

TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia. The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.

Additional information is available from the Company's website: www.trans-siberiangold.com

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Disclaimer

This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.