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Reservoir Reminds Shareholders to Vote Now FOR the Strategic Combination

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 13, 2016) - Reservoir Minerals Inc. (TSX VENTURE:RMC) ("Reservoir") today reminded Reservoir shareholders to vote FOR the strategic US$1.1 billion combination of Reservoir and Nevsun Resources Ltd. ("Nevsun") (the "Arrangement") in order to ensure Reservoir shareholders receive a premium price for their shares and participate in the long term growth of the combined company and the Timok copper and gold project.

All Reservoir shareholders are encouraged to vote for the Arrangement, no matter how many shares they own. The proxy deadline of 9:00 am, Vancouver time, on Wednesday, June 15, 2016 so it is important to vote prior to this deadline in order for your votes to be counted. Following the completion of the Arrangement the pro-forma company will have over US$300 million in cash to fund the development of Reservoir's Timok copper-gold project, as well as ongoing cash flow generated by the pro-forma company's 60%-owned Bisha mine, a high grade mine which generated US$120 million of operating cash flow in 2015.

Reservoir's board of directors, its financial advisor (Canaccord Genuity) and two leading independent proxy advisors (ISS and Glass Lewis) have all unanimously recommended the transaction. The Arrangement with Nevsun was determined to be in the best interest of Reservoir's shareholders as it:

  • Combines Nevsun's $300 million of cash with Reservoir's high grade Timok Copper-Gold project
  • Benefits from Nevsun's track record of building and operating a similar size project, the Bisha mine
  • Provides diversification for on-going shareholders
  • Offers significant exploration exposure in two prolific mining districts
  • Continues partnerships with Freeport and Rio Tinto

In order for the transaction to be successful, a 2/3 majority of the votes cast by Reservoir's shareholders must be in favour of the US$1.1 billion transaction. 

TIME IS SHORT - PROXIES SUBMITTED MUST BE RECEIVED BY 9:00 AM, VANCOUVER TIME, ON WEDNESDAY, JUNE 15, 2016. VOTE YOUR PROXY NOW TO AVOID THE VALUE DESTRUCTION INHERENT TO THE DISSIDENTS' PROPOSALS.

If you have any questions or need assistance with voting, please contact D.F. King, the proxy solicitation agent, by telephone at 1-866-822-1237 (North American Toll Free) or 1-201-806-7301 (Collect Outside North America); or by email at: inquiries@dfking.com.

About Reservoir Minerals Inc.

Reservoir Minerals Inc. is an international mineral exploration and development company run by an experienced technical and management team, with a portfolio of precious and base metal exploration properties in Europe and Africa. The Company operates an exploration partnership business model to leverage its expertise through to discovery.

About Nevsun Resources Ltd.

Nevsun Resources Ltd. is the 60% owner of the high grade Bisha Mine in Eritrea. Bisha has 9 years of reserve life, generating revenue from both copper and zinc concentrates containing gold and silver by-products. Nevsun has a strong balance sheet with no debt and pays a peer leading quarterly dividend. Nevsun is well positioned to grow shareholder value through exploration at Bisha and acquisition of additional mining assets.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking information"). The use of any of the words "expect", "potential", "target", "anticipate", "continue", "estimate", "objective", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning: the previously announced combination of Nevsun and Reservoir, the alternative transactions that Reservoir may or may not have at its disposal, the proposed terms of such alternatives and the potential outcomes that may arise from such alternatives. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties, many of which are beyond Nevsun's and Reservoir's control. These include, but are not limited to, the risk that the Arrangement may not close when planned or at all or on the terms and conditions set forth in the Arrangement Agreement; and the failure to obtain the necessary shareholder and court approvals, if applicable, required in order to proceed with the Arrangement, as well as all the possible outcomes involving both Jing Bao and XGC proposals to Reservoir referred to in previous news releases. Readers are cautioned that the foregoing list of factors is not exhaustive. Further information concerning risks and uncertainties associated with these forward-looking statements and Nevsun's business can be found in Nevsun's Annual Information Form for the year ended December 31, 2015, which is available on Nevsun's website (www.nevsun.com), filed under Nevsun's profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits may be derived there from. Accordingly, readers should not place undue reliance on this information.

Neither the TSX Venture Exchange, nor the TSX nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Reservoir Minerals Inc.
Chris MacIntyre
VP Corporate Development
+1 416 703-0010
chris@reservoirminerals.com

Nevsun Resources Ltd.
Scott A. Trebicock
Chief Development Officer
+1-604-623-4700
strebilcock@nevsun.com



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