RE: ONGOING FUNDING ARRANGEMENTS Herald Resources Limited ("Herald") is please to announce that PT Bumi Resources TBK ("Bumi") has agreed to provide Herald a standby loan facility of up to USD$30,000,000 ("Loan"). Bumi is the holder of approximately 84% of the issued capital of Herald (through Bumi's wholly owned subsidiary Calipso Investment Pte Ltd).
The material terms of the Loan are as follows: - Bumi will make available to Herald up to USD$30,000,000 which may be drawn at Herald's election (up to a maximum of $5,000,000 per month). - The Loan is unsecured and interest free. - Any outstanding Loan amounts shall be promptly repaid from the following sources: o any dividends that Herald receives from its Singaporean subsidiary Gain & Win Pte Limited, owner of 80% of the Dairi Project; o any funds that Herald receives from the sale of a portion or all of Gain & Win Pte Limited; or o if Herald (or any of its subsidiaries) receives funding by way of a commercial loan with a third party lender.
It should be noted that this announcement supersedes the previous announcement made by the Company on 31 October 2008 in relation to a draft USD$160m loan facility with Bumi.
The independent directors are encouraged by Bumi's ongoing support of Herald and the Dairi Project. The funds loaned by Bumi will assist Herald to continue operations until further notice without additional recourse to debt or equity markets.
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