Mr. Eldur Olafsson reports

CLOSING OF US$35 MILLION REVOLVING CREDIT FACILITY AND UPDATE ON IMPACT BENEFIT AGREEMENT

Amaroq Minerals Ltd. has closed its previously announced $35-million (U.S.) debt financing package with Landsbankinn hf in three revolving credit facilities, securing a substantial increase and extension to its current debt facilities (see press release dated July 2, 2024).

Ellert Arnarson, Amaroq chief financial officer, commented: "We are pleased to have successfully closed and signed definitive documentation for our enhanced debt financing package with Landsbankinn, securing larger facilities at more favourable terms. This simplifies our debt structure, while further strengthening our liquidity and financial flexibility, following a successful equity raise completed in December, 2024.

"We remain well positioned to further develop our Nalunaq project in south Greenland following first gold production, with ramp-up to nameplate capacity expected in 2025. We remain committed to disciplined capital management as we approach our strategic growth ambitions and delivering long-term value for our stakeholders."

The debt financing package with Landsbankinn consists of:

• $18.5-million (U.S.) facility A and $10-million (U.S.) facility B with a margin of 9.5 per cent per annum, reducing to 7.5 per cent once facility C has become available;
• $6.5-million (U.S.) facility C with a margin of 7.5 per cent per annum, available once all other facilities have been fully drawn and the company's cumulative earnings before interest, taxes, depreciation and amortization over the preceding three-month period exceed $6-million (Canadian).

Facility A will be used to refinance the company's existing revolving credit facilities entered into on Sept. 1, 2023. Amounts borrowed under facility B and facility C will be applied toward working capital and general corporate purposes, and involve covenants relating to the EBITDA and equity ratio.

The facilities carry a 1.5-per-cent arrangement fee, payable depending on closing and utilization dates, a 0.4-per-cent commitment fee on unutilized amounts and a termination date of Dec. 1, 2026.

The facilities will be secured by a combination of a property and operational equipment mortgage, share pledge over subsidiaries, certain bank account pledges and a licence transfer agreement. Execution of the security documentation is a condition precedent to the utilization of the facilities.

In parallel, the unutilized $10-million (U.S.) cost overrun facility with JLE Property Ltd., dated Sept. 1, 2024, will be cancelled.

Update on impact benefit agreement

Additionally, the company provides an update on the progress of the impact benefit agreement.

Amaroq has been actively working in collaboration with the government of Greenland and Kommune Kujalleq to advance the IBA. However, due to the government of Greenland's need to address competing priorities, the IBA will not be formalized by Dec. 31, 2024, as was previously announced.

In recognition of these circumstances, the potential for an extension of the deadline to June 30, 2025, has been indicated by the government of Greenland. Amaroq remains fully committed to its collaborative approach to ensure the IBA reflects the shared objectives of all parties. This delay to the formalization of the IBA will not impact current and future mining operations, with ramp-up to nameplate plant capacity of 260 to 300 tonnes per day at Nalunaq still planned to take place in fourth quarter 2025.

About Amaroq Minerals Ltd.

Amaroq's principal business objectives are the identification, acquisition, exploration and development of gold and strategic metal properties in southern Greenland. The company's principal asset is a 100-per-cent interest in the Nalunaq gold mine. The company has a portfolio of gold and strategic metal assets in southern Greenland covering the two known gold belts in the region, as well as advanced exploration projects at Stendalen and the Sava copper belt exploring for strategic metals such as copper, nickel, rare earths and other minerals. Amaroq is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.