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Endomines has agreed on convertible loan to start production at Hosko and to increase production at the Pampalo underground mine – apart from the company's CEO, a number of Finnish investors among the financiers

Endomines Finland

Endomines Finland Plc – Stock Exchange Release, 20/6/2023, at 15.30 EET

Endomines Finland Plc and a group of Finnish investors have agreed on a convertible loan of up to EUR 3.6 million in connection with the 24 May 2023 announced start of gold production at Hosko and the increase in production at the Pampalo underground mine.

The financing arrangement includes a EUR 1.8 million convertible loan to be executed in June 2023, and in addition to this the company has the option to draw down another EUR 1.8 million convertible loan in October 2023. The maturity of the convertible loans is 36 months, and the annual interest rate is 12.0%.

Under the terms of the financing agreement, the convertible loans can be exchanged in whole or partly into shares of the company, 24 months after the drawdown date of the loan. The subscription price for the first EUR 1.8 million convertible loans is the average share price for the period 15.5.2023–15.6.2023 reduced by 15%.

The subscription price of the optional second convertible loan is the average share price for the period 1.9.2023–30.9.2023 reduced by 15%. Apart from the subscription price, the other terms, and conditions of the optional second loan will be the same. The minimum amount to be invested by the members of the group of investors in the financing arrangement is EUR 100,000.

"This financing will enable the next step in the company's growth strategy, taking Endomines' business to the next level. It is great to see the commitment of our financiers to the company's development, and it is a pleasure to be part of building and supporting the company's growth story. I strongly believe in our potential to grow the Karelian gold line into one of the most significant and responsible gold-producing regions in the world", comments Kari Vyhtinen, CEO of Endomines Finland Plc.

Endomines Finland Plc

Contact Information:

Kari Vyhtinen, CEO

kari.vyhtinen@endomines.com, +358 40 585 0050

Minni Lempinen, acting CFO

minni.lempinen@endomines.com, +358 40 769 3483

Endomines

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our mining operations in Pampalo, Ilomantsi region, focus on gold mining and processing, as well as exploration in the Karelian gold line, in Eastern Finland. We also own the rights to seven gold deposits in the US. We produce gold for the jewellery and electronics industries, and we also create value by transforming natural resources into wealth, an investment that withstands the volatility of global politics. We are a growing mining company who embrace new ways of thinking; we want to leave a positive footprint where we operate, which is why our goal is to grow the Karelian gold line into a significant, sustainable gold-producing region. Endomines is listed on the main list of OMX Helsinki (PAMPALO). More information at www.endomines.com

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