Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:Any thoughts about the debt offer?

[Sogosohubidu201]

The debts are due in 2021. KAT will not need to take any action on debts under its obligations with Glencore before 2021 except for discussion to handle the debts issue when they are due. If Glencore is going to buy out minority shareholders in 2021, Glencore will own 100% KAT and 75% KCC. It is between Glencore and Gecamines to handle KCC debts, of which Glencore and Gecamine always had the agreement. For debts for equity swap, it will not affect DRC.

In January last year after Glencore and Gecamines restructured KCC debts, KCC owed KAT about $3.46 billions while KAT owed Glencore about $6 billions. Glencore and Gecamines already had the arrangement of debts payment for $3.46 billions which is now about $4 billions after further debts for capital investment and interest charges. In another world, out of total $6.3+ billions debts KAT owed Glencore and due in 2021, about $3.46-$4 billions of debts payment had already been settled by Glencore and Gecamines. The debt payment is about 8 years with about $500 millions per year. The remaining $2.6 billions KAT owed Glencore and due in 2021 needs to be handled. That is what all this debt payment discussion about.