The Company has secured a AUD 15 million loan from Bishop Resources UK Ltd. (Bishop) to provide funding towards the payments required by MGO under the Coris settlement agreement. The facility has been entered into between Bishop and Bassari Mauritius Holding No2 Ltd, (Bassari Mauritius) a subsidiary of Bassari. The key terms of the loan, including the fees payable to Bishop Resources, are set out in the Schedule. The key terms of the loan provided by Bishop Resources are as follows: Loan amount: AUD 15 million. Interest rate: 12% p.a (15% p.a on default). Loan period: 36 month (early repayment permitted after 18 months) with the loan repayment to be made from production proceeds. Loan tranches: AUD 3.9 million provided immediately, with the balance to be provided in subsequent tranches as required by the Company. Security: Subject to the approval of the board of directors of MGO, the loan will be secured by a pledge of all shares held by Bassari Mauritius in MGO (comprising 63% of MGO's issued capital), a mortgage by MGO over the mining licence and the land comprising the mining area of the Project (consisting of a land with an area of 121.83km2), together with related guarantees and pledges. Repayment Amount: Loan balance and interest, plus the issue, subject to Bassari shareholder approval, of 20 Bassari options for each AUD 1 of the loan amount (each exercisable at AUD 0.015 within 5 years of grant), totalling 300,000,000 options. The options have an indicative value of USD 1.5 million using the valuation methodology set out below.