WRES.L Regulatory News (WRES)

11 January 2021

W Resources Plc

("W" or the "Company")

£500,000 Atlas Facility Drawdown & Conversion Notice

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal announces that it has drawn down a further £500,000 tranche from the £4.0 million Atlas Capital Markets ("Atlas") convertible bond facility. This is the second drawdown made from the facility which was secured on 30 March 2020.

This convertible bond tranche has a 5% coupon and 3-year term. As part of the agreement, Atlas can convert the bond to W shares by issuing a conversion notice with the price set at 95% of the selected 3-day VWAP in the 15 days leading up to the issue of a conversion notice by Atlas.

Michael Masterman, Chairman of W Resources, commented: "These funds will be used to advance the Régua development and provide additional working capital for the Company. It is Important that the Company is able to proceed with mining activities at Régua once Covid-19 restrictions are eased and take the opportunity to produce an 8-12% WO3 concentrate which will then be trucked to the La Parrilla processing plant for upgrade to 60% WO3 concentrate and purification."

The Atlas convertible bond facility is unsecured and subordinated to the BlackRock Financial Management Inc. ("BlackRock") loan facility with Blackrock consent required for any repayment.

The Company has received a Conversion Notice from Atlas for £100,000 of Convertible Bonds, the third tranche in respect of the first £500k drawn from the £4m facility.

W will issue 96,525,097 ordinary shares of 0.1p per share ("Ordinary Shares") at a conversion price of 0.1036p per Ordinary Share.

Application has been made for the admission to trading on AIM of the Ordinary Shares ("Admission"). Following Admission, which is expected on or around 15 January 2021, the Company's enlarged issued share capital will comprise 7,365,746,049 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 7,365,746,049 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Information communicated within this announcement is deemed to constitute inside information as stipulated under the UK Market Abuse Regulation. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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