Minbos Resources : Raises $3.4 Million to Progress the Cabinda Project

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ASX ANNOUNCEMENT/MEDIA RELEASE

MINBOS RAISES $3.4 MILLION TO PROGRESS THE CABINDA PROJECT

Highlights:

• Placement of 680m shares to raise $3.4million.
• Fundraising to be used to complete the Cabinda project BFS

  
  

  Minbos Resources Ltd (Minbos or the Company) is pleased to advise that it has entered into a binding subscription agreement (Subscription Agreement) with Green Services Innovations Ltd (Green), a company incorporated in the British Virgin Islands, to place 680 million shares at $0.005 per share to raise $3.4 million. The proceeds from the placement will fund the Bankable Feasibility Study on the Cabinda phosphate project and working capital.

  
  

  The placement will be conducted in two tranches:

• Tranche 1 consists of the issue of 268 million shares at $0.005 per share to raise $1.3 million. These shares will be issued under ASX Listing Rules 7.1 and 7.1A. and is expected to settle in the next week.

• Tranche 2 comprises the issue of 412 million shares at $0.005 per share to raise $2.1 million and the issue of 385 million options at an exercise price of $0.01 per option and an expiry date of 30 December 2016. Tranche 2 is conditional upon the issue of the Tranche 1 shares and shareholder approval at a general meeting of Minbos that will be convened in April 2016. Green has provided a bank guarantee in favour of Minbos in support of its obligation to pay the subscription price for the Tranche 2 shares under the Subscription Agreement.

The issue of Tranche 1 shares and the Tranche 2 shares and options (if approved and exercised) will raise $7.2 million.

Green has the right to appoint a director to the Minbos Board following the issue of the Tranche 1 shares and a 2nd director when they have a shareholding of 40% or more in Minbos.

Minbos Chief Executive Officer Lindsay Reed said: "I am very encouraged by the strong support that we have received from Green Services Innovations Ltd for the Cabinda phosphate project. This significant investment underlines the potential value of Cabinda project that can be realised for the benefit of all shareholders. Minbos now has funding in place to complete the BFS".

About Green Services Innovations Ltd

Green Services Innovations Ltd has a wide range of investments in Africa. Green Services Innovations Ltd invests where its know-how can add value to the efficiency and improved production of the companies or projects in which it invests, as well as contributing to the social development of the communities where its investments are active. The principals of the company have significant experience in developing countries, and a profound understanding of Angola that will be of substantial value to the development of the Cabinda project.

For further information please contact

Lindsay Reed Chief Executive Officer [e-mail] [phone]

Stef Weber Company Secretary [e-mail] [phone]

About Minbos

Minbos Resources Limited (ASX: MNB) is an ASX-listed exploration and development company focused on phosphate ore within the Cabinda Province of Angola. Through its subsidiaries and joint ventures, the Company is exploring approximately 200,000ha of highly prospective ground hosting phosphate ore in Angola.

Minbos is focussing on the development of the high grade Cacata project in Cabinda whilst growing its current resource base in incremental stages on the remaining deposits in Angola.

The Company's strategy is to specifically target the exploration and development of low cost fertiliser-based commodities in order to tap into the growing global demand for fertilisers. Phosphate is an essential component in certain agricultural fertilisers, with the market supported by the increasing global demand for food and bio-fuel products.