TSTR.L Regulatory News (TSTR)

24 August 2015

Tri-Star Resources plc ("Tri-Star" or the "Company")

Oman Antimony Roaster project update

Tri-Star announces that Strategic & Precious Metals Processing LLC ("SPMP") has entered into definitive agreements with regard to the provision of a $40 million debt facility ("Senior Debt") with Bank Nizwa SAOG. SPMP's shareholders have also reached agreement as to the equity funding structure of SPMP. SPMP is developing a 20,000 tonne per annum antimony processing facility in Oman, the Oman Antimony Roaster project ("OAR"). The Company has a 40% equity interest in SPMP.

OAR funding is confirmed as $70 million, and made up as follows:

- $15 million of equity is being provided by the joint venture partners in proportion to their respective individual interests. In accordance with the terms of the shareholders agreement, the Company's share, of $6 million, will be put aside into a designated account on financial close

- A mezzanine loan facility of $15 million; and

- Senior Debt of the Omani equivalent of $40 million

In relation to the sale of certain of the Company's intellectual property rights ("IPR") on financial close Tri-Star is to receive the first two tranches of consideration due under the Assignment Agreement dated 5 June 2015. The only remaining condition being the funding condition which will be satisfied on the transfer of equity funds to SPMP.

The consideration for the sale of IPR is up to $6 million in cash, receivable as follows:

- The first two tranches, totalling $4 million are to be received by Tri-Star on financial close and will be offset against the Company's equity commitment of $6 million, noted above.

- A $2 million tranche remains payable to Tri-Star on the commissioning of an antimony roasting pilot plant, part of the overall OAR and will be used by Tri-Star for general corporate purposes.

Emin Eyi, Managing Director of Tri-Star, said "This is an important development for Tri-Star and its joint venture partners. Financial close of the Roaster Project will enable SPMP to move on to the detailed engineering and technical work required in order to commence construction. Securing the debt facility also acknowledges all SPMP's stakeholders' confidence in Tri-Star's clean roasting technology that Tri-Star has brought to Oman. We expect to be commissioning the plant during the course of 2016, with commercial production by 2017".

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FORWARD LOOKING INFORMATION

This press release may contain "forward-looking information", as defined under applicable Canadian securities laws. Forward-looking information typically contains statements that relate to future, not past, events and often contains words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. There can be no assurance that the forward-looking information contained in this report will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information.

All statements, other than statements of historical fact, included in this press release including, without limitation, relating to the OAR (as defined), the Company's intentions with respect to a gold roasting facility and plans for its mineral properties, constitute forward-looking information. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the ability to deliver any of the outcomes referred to in respect of the OAR, the ability to complete construction of the OAR, the availability of financing for the cost of the OAR on acceptable terms, or likewise any facility that might process refractory gold, and general economic and market conditions. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks associated with changes in laws applicable to the OAR, the ability to raise finance on acceptable terms for any of the projects or facilities mentioned, the volatility of commodity and raw material prices, currency exchange rates and interest rates, global economic conditions and the additional risks identified in this press release or other reports and filings with applicable securities regulators. Forward-looking information in this press release is based on the Directors' beliefs, estimates and opinions on the date of this press release and the Company does not undertake to update publicly or revise the forward-looking information contained in this press release, except as required by applicable securities laws.

Any financial outlook or future-oriented financial information in this press release, as defined by applicable Canadian securities laws, has been approved by the Directors as of the date of this press release. Such financial outlook or future oriented financial information is provided for the purpose of providing information about the Company's current expectations and plans relating to the future. Readers are cautioned that such outlook or information should not be used for purposes other than for which it is disclosed in this press release.