Katanga Mining Ltd Ord KATFF

Debt Rollover

[patels96]

Ok lets just stop and think, I think the last two days are just shareholders wanting to be out for the time being until all the projects have been completed and resumed normal production, and frankly the selling yesterday exacerbated the effect today

Regardless, KAT back in March 2013, got a proposal from GLEN to have the loans extended to Janaury 2018. After an independent review with BMO and Fasken LLP, on November 2014 GLEN offered to extend the loans to January 2021, representing an extension of about 6 to 7 Years.

That being said, according to MI 61-101 (Protection of Minority Shareholder in Related Party Transaction), GLEN has to give a proposal to KAT so the independent BOD can review this with their independent legal counsel and/or valuator (this is the consultation process). In certain related party transaction, there might be a need to obtain a majority of the minority shareholder approval. The amended loans transactions should be such that would reasonably be expected to have the effect of materially enhancing the lender's (KAT) position.

If you need more information: https://www.osc.gov.on.ca/documents/en/Securities-Category6/rule_20080201_61-101_protect-minority.pdf

I believe that KAT and GLEN will reach and agreement whereby to extend the loan facilities and modify the terms of the loans. I think there will be a very good chance of GLEN spreading out the maturities of the different facilities as to reduce the indebtedness of KAT. I also would not be surprised if the amended loans gave KAT grace period on certain facilities (KAT gave KCC 24 Months), to pay interest only, and increase it's cash postiion.

Best,

[patels96]

KAT back in March 2013  Should be March 2014... Best,

[stockhunter20001]

@patels96, Thank you for your through analysis. But let's assume you are right. WHY would GLENCORE offer this now not in 2021? What is pushing them to do this? Is there any pressure on Glencore to give relief to KAT? Is DRC applying any pressure on GLEN to see KAT profitable? Are they trying to make DRC happy so they can allow the ION EXCHANGE project to happen? Any news about the

[patels96]

@stockhunter20001 If you look at the loan facilities, these are due January 2021 (end of 2020). They need to do this now in order to go through the consultation process. The timeline makes perfect sense to me, and GLEN now wants to take a more active role in KAT unlike before. Best,