North American Tungsten Corporation Ltd. announced an amendment to the $11.0 million loan with Callidus Capital Corporation dated May 15, 2014. The amendment includes additional proceeds of $3.65 million and an extension of the repayment date for the loan balance to May 31, 2016. The Callidus loan remains repayable on demand and bears interest at 18% per annum with interest payable monthly.

Principal repayments of $150,000 per month will continue, with the remaining balance due at maturity. The Callidus loan is secured by a first charge over substantially all assets of the company, excluding the Mactung Project and all mining and mineral leases, claims and tenures related thereto. Of the additional proceeds, $2.0 million was utilized to repay a note payable with a former mining contractor due December 31, 2014.

The remaining proceeds will be used for capital projects and working capital. Callidus earned a facility fee in the amount of $154,208 in respect of the increase and extension of the loan agreement, which is due at maturity. A condition of the amendment to the Callidus loan was that Queenwood Capital Partners II LLC loan a further $2.0 million in the company.

Accordingly, prior to this amendment, Queenwood II advanced $2.0 million pursuant to a demand grid promissory note which allows for borrowing of up to $3.0 million. The Queenwood II loan bears interest at 18% per annum, and such interest is payable by the company quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, with any remaining accrued and unpaid interest payable on maturity. The repayment of the principal amount of the Queenwood II loan is fully subordinated to the repayment of the Callidus loan.

The Queenwood II loan is secured by a charge over all of the assets of the company pursuant to a previously existing general security agreement. Two directors of the company, Ronald Erickson and Kurt Heikkila, collectively own all of the issued and outstanding units of Queenwood II.