Mr. Ellert Arnarson reports

IMPROVED DEBT FINANCING AGREEMENT

Amaroq Ltd. has extended by 14 months and improved margins for its debt financing package with Landsbankinn hf, as announced Dec. 30, 2024.

Ellert Arnarson, chief financial officer of Amaroq, commented: "We are very pleased to have executed an amendment to our debt financing agreement with Landsbankinn, extending the maturity from December, 2026, to February, 2028, and the potential to improve overall terms to 4.5 per cent plus SOFR, thereby enhancing Amaroq's financial flexibility.

"The Nalunaq project in south Greenland is well advanced in its commissioning and beginning to generate revenues, which will unlock the improved margins on our financing facility and lower operating costs. We also continue to pursue additional financing opportunities, including with offtakers and credit agencies, to further support the company's growth and balance sheet strength."

Details of the agreement

The company has a revolving credit facility with Landsbankinn for a total commitment of $35,245,000 (U.S.). This is spread across three tranches (A, B and C):

• $18.5-million (U.S.) facility A and $10,245,000 (U.S.) facility B, which are fully drawn, 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 the company's cumulative EBITDA (earnings before interest, taxes, depreciation and amortization) over the preceding three-month period exceeds $6-million (Canadian).

The company and Landsbankinn have reached an amended agreement for the facility, whereby:

• Facility term is extended by 14 months, from Dec. 1, 2026, to Feb. 1, 2028;
• Additional margin stepdowns introduced, based on last-12-month EBITDA:
  • 6.25 per cent if LTM EBITDA exceeds $25-million (Canadian);
  • 5.00 per cent if LTM EBITDA exceeds $50-million (Canadian);
  • 4.50 per cent if LTM EBITDA exceeds $70-million (Canadian).

The amendment carries a 0.7-per-cent fee of total commitments ($245,000 (U.S.)), which has been capitalized through facility B. The facility remains secured by a combination of property and operational equipment mortgages, share pledges over subsidiaries, bank account pledges, and a licence transfer agreement.

About Amaroq 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 AS, incorporated under the Greenland Companies Act.