Heron to be fully funded to first production at Woodlawn

Heron Secures Complete A$240 Million Funding Package for Development of its Woodlawn Zinc-Copper Project

Total funding solution of ~A$240 million, comprising equity and debt components will enable Heron to complete the development of its 100% owned Woodlawn Zinc-Copper Project in New South Wales, Australia.

  • The funding package is designed to ensure the timely development of the Woodlawn project, and provides eligible shareholders an ability to participate
  • Heron intends to commence construction works immediately following shareholder approval with first production targeted end 2018 / early 2019
  • All major project approvals and contracts in place (mining lease, EPC, offtake, environmental, Veolia co-operation agreement)

~A$140m Equity Funding

  • Placement to sophisticated and professional investors to raise approximately ~A$32 million
  • Three high quality cornerstone private equity investors contributing ~A$103 million in equity – Greenstone Resources, Castlelake L.P. and Orion Mine Finance Group
  • Share Purchase Plan to raise up to a maximum of A$5 million through eligible existing shareholders

~A$100m Debt Funding*

  • Orion to provide US$60 million senior secured loan facility and US$16 million silver stream prepayment
  • Highly commercial and experienced lender offering low covenant package with major conditions already satisfied
  • Strong track record of financing the development of successful mining projects

* Not including ~A$7 million in capitalised interest during construction

Shareholder approval of the funding package is required at an Extraordinary General Meeting to be held in August 2017

THE BOARD OF HERON UNANIMOUSLY RECOMMENDS SHAREHOLDERS VOTE IN FAVOUR OF ALL RESOLUTIONS

A VOTE ‘FOR’ ALL RESOLUTIONS WILL SECURE THE TIMELY DEVELOPMENT OF WOODLAWN

For further information, please contact:

Australia:

Mr Wayne Taylor
Chief Executive Officer
Tel: +61 2 9119 8111
heron@heronresources.com.au

Jon Snowball
FTI Consulting
Tel: +61 2 8298 6100
jon.snowball@fticonsulting.com

Canada:

Carolyn Muir
Heron (Toronto)
Tel: +1 647-862-1157
cmuir@heronresources.com.au