Greenvale Mining Limited, (formerly known as Greenvale Energy Limited) (ASX: GRV) is pleased to advise that, as foreshadowed in previous announcements and its Prospectus dated 29 June 2020, it has now finalised terms for the sale of its economic interest of approximately 25% in the Arizona Gold Basin Project in the United States (Interest).

Rationale for the disposal

After several months of being in dispute and conducting negotiations with the various parties involved in the Gold Basin Project, the Board formed the view that it was in the Company's best interests to enter into a financial arrangement which provided it with a return on its original investment while retaining some level of exposure to the future upside from Project.

As a result, GRV has agreed terms to dispose of its Interest for cash and shares in Fiorentina Minerals Inc. (CSE: FLO), a company listed on the Canadian Securities Exchange which has previously announced the acquisition of a 75% interest in the Gold Basin Project. Following completion of the transaction, FLO move to 100% ownership of the Project.

FLO has recently announced (on 31 July 2020) a capital raising of C$4.7 million via a non-brokered private placement, to be used for exploration and development of its mineral properties, including the Gold Basin Project.

Completion of the transaction remains subject to the receipt of funds from FLO and the finalisation of certain documentation including board minutes and share transfer agreements, most of which is considered to be largely procedural. The Board of Greenvale expects to finalise all of these outstanding matters within a period of up to two (2) weeks and will advise the market as soon as the transaction has been completed.

The transaction addresses all legal and commercial issues associated with the Interest and allows the Company to focus on progressing its majority-owned Georgina Basin and Alpha Resources Projects, respectively located in the Northern Territory and Queensland, while retaining exposure to the future upside from the Gold Basin Project via its shareholding in FLO.

Together with the completion of the $2.1 million fully subscribed Entitlement Offer, the additional funds to be received as a result of this transaction will further strengthen the Company's financial position moving forward and provide certainty for all shareholders. The alternative option of pursuing potential litigation against the other parties would have been costly and without any real certainty of an outcome that is as favourable at that achieved under the current transaction.

Commenting on the transaction, Greenvale's Chairman, Mr Leo Khouri, said: 'We are very pleased to have finalised the terms of this transaction with FLO, marking the completion of a lengthy process between the parties and allowing GRV to move down its own forward pathway focusing on its Australian resource projects while still retaining exposure to some of the potential upside in the Gold Basin Project through its shareholding in FLO.'

Contact:

Vince Fayad

Tel: 0414 752 804

Email: vince.fayad@vfassociates.com.au

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