Noront Resources : Wyloo and Noront Arrangement Agreement

EXECUTION COPY

NORONT RESOURCES LTD.

AND

WYLOO METALS PTY LTD

AND

WYLOO CANADA HOLDINGS PTY LTD

ARRANGEMENT AGREEMENT

December 20, 2021

	TABLE OF CONTENTS
ARTICLE 1 INTERPRETATION .................................................................................................	2
1.1	Definitions ............................................................................................................	2
1.2	Interpretation Not Affected by Headings.............................................................	14
1.3	Number and Gender ..........................................................................................	14
1.4	Computation of Time..........................................................................................	14
1.5	Time References................................................................................................	14
1.6	Currency ............................................................................................................	15
1.7	Accounting Matters ............................................................................................	15
1.8	Knowledge .........................................................................................................	15
1.9	Statutes .............................................................................................................	15
1.10	Capitalized Terms ..............................................................................................	15
1.11	Schedules ..........................................................................................................	15
1.12	Disclosure in Writing ..........................................................................................	15
1.13	Unanimous Approvals ........................................................................................	16
ARTICLE 2 THE ARRANGEMENT ..........................................................................................	16
2.1	Arrangement ......................................................................................................	16
2.2	Interim Order......................................................................................................	16
2.3	Company Meeting..............................................................................................	17
2.4	Company Circular ..............................................................................................	19
2.5	Final Order.........................................................................................................	21
2.6	Court Proceedings .............................................................................................	21
2.7	Arrangement and Effective Date ........................................................................	22
2.8	Payment of Consideration..................................................................................	22
2.9	Announcement and Shareholder Communications ............................................	22
2.10	Withholding Taxes .............................................................................................	22
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY .........................	23
3.1	Representations and Warranties........................................................................	23
3.2	Survival of Representations and Warranties ......................................................	43
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.....................	43
4.1	Representations and Warranties........................................................................	43
4.2	Survival of Representations and Warranties ......................................................	45
ARTICLE 5 COVENANTS ........................................................................................................	45
5.1	Covenants of the Company Regarding the Conduct of Business .......................	45
5.2	Mutual Covenants of the Parties Relating to the Arrangement ...........................	51
5.3	Non-Solicitation..................................................................................................	52
5.4	Access to Information; Confidentiality ................................................................	58
5.5	Insurance and Indemnification ...........................................................................	58
5.6	Pre-Acquisition Reorganization ..........................................................................	59
5.7	Regulatory Approvals.........................................................................................	61
5.8	[Intentionally deleted] .........................................................................................	61
5.9	Voting Company Shares of Parent and Purchaser .............................................	61
ARTICLE 6 CONDITIONS ........................................................................................................	62
6.1	Mutual Conditions Precedent .............................................................................	62
6.2	Additional Conditions Precedent to the Obligations of the Purchaser .................	62

	- iii -
6.3	Conditions Precedent to the Obligations of the Company ..................................	64
6.4	Satisfaction of Conditions...................................................................................	64
6.5	Notice of Breach ................................................................................................	64
ARTICLE 7 TERM, TERMINATION, AMENDMENT AND WAIVER .........................................	65
7.1	Term ..................................................................................................................	65
7.2	Termination........................................................................................................	65
7.3	Termination Payments .......................................................................................	68
7.4	Amendment .......................................................................................................	69
7.5	Waiver ...............................................................................................................	70
ARTICLE 8 GENERAL PROVISIONS ......................................................................................	70
8.1	Notices...............................................................................................................	70
8.2	Purchaser Guarantee.........................................................................................	71
8.3	Governing Law...................................................................................................	71
8.4	Injunctive Relief .................................................................................................	71
8.5	Time of Essence ................................................................................................	72
8.6	Entire Agreement, Binding Effect and Assignment .............................................	72
8.7	No Liability .........................................................................................................	72
8.8	Severability ........................................................................................................	72
8.9	Waiver of Jury Trial ............................................................................................	73
8.10	Third Party Beneficiaries ....................................................................................	73
8.11	Counterparts, Execution.....................................................................................	73
SCHEDULE A PLAN OF ARRANGEMENT UNDER SECTION 182 OF THE BUSINESS
CORPORATIONS ACT (ONTARIO) .............................................................................	75
SCHEDULE B ARRANGEMENT RESOLUTION......................................................................	87
SCHEDULE C FORMS OF RESIGNATION AND MUTUAL RELEASE ...................................	88
SCHEDULE D REGULATORY APPROVALS ..........................................................................	97

ARRANGEMENT AGREEMENT

THIS ARRANGEMENT AGREEMENT is made as of December 20, 2021

BETWEEN:

WYLOO METALS PTY LTD, a corporation existing under the laws of Australia, with its registered and records office in Perth, Australia (the "Parent")

- and -

WYLOO CANADA HOLDINGS PTY LTD, a corporation existing under the laws of British Columbia, with its registered and records office in Vancouver, British Columbia (the "Purchaser")

- and -

NORONT RESOURCES LTD., a corporation existing under the laws of Ontario, with its registered and records office in Toronto, Ontario (the "Company")

RECITALS:

1. The Purchaser proposes to acquire up to 100% of the issued and outstanding Company Shares that it does not beneficially own;
2. Upon the effectiveness of the Arrangement, Company Shareholders who elect (or are deemed to have elected) to sell all or a portion of their Company Shares will receive the Consideration for each Company Share they sell under the Plan of Arrangement;
3. The Independent Directors have unanimously determined, after receiving financial and legal advice and following the receipt and review of a unanimous recommendation from the Special Committee, that the Arrangement is in the best interests of the Company, and the Independent Directors have resolved to recommend that the Company Shareholders vote in favour of the Arrangement Resolution, all subject to the terms and the conditions contained in this Agreement;
4. The Purchaser has entered into the Voting Agreements with the Locked-Up Shareholders, pursuant to which each of the Locked-Up Shareholders has agreed to vote their Company Shares in favour of the Arrangement Resolution on the terms and subject to the conditions set forth in the Voting Agreements;
5. The parties hereto have entered into this Agreement to provide for the matters referred to in the foregoing recitals and for other matters related to the transaction herein provided for; and
6. The Parent is Party to this Agreement to unconditionally and irrevocably guarantee in favour of the Company the due and punctual performance by the Purchaser of each and every covenant and obligation of the Purchaser arising under this Agreement.

THEREFORE, in consideration of the covenants and agreements herein contained, the Parties agree as follows:

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ARTICLE 1

INTERPRETATION

1.1 Definitions

Whenever used in this Agreement, the following words and terms have the meanings set out below:

"Acquisition Proposal" means, other than the transactions contemplated by this Agreement, any offer, proposal, inquiry or public announcement, whether written or oral, from any person or group of persons other than the Purchaser (or an affiliate of the Purchaser) relating to any:

1. take-overbid, tender offer, exchange offer or other similar transaction that, if consummated, would result in a person or group of persons beneficially owning 20% or more of any class of voting or equity securities of the Company or of any of its Subsidiaries whose assets, individually or in the aggregate, represent 20% or more of the consolidated assets of the Company (based on the consolidated financial statements of the Company most recently filed on SEDAR), or securities convertible into or exercisable or exchangeable for 20% or more of any class of voting or equity securities of the Company or such a Subsidiary;
2. amalgamation, plan of arrangement, share exchange, debt exchange, business combination, merger, consolidation, recapitalization, reorganization, or other similar transaction or series of related transactions involving the Company or any of its Subsidiaries whose assets , individually or in the aggregate, represent 20% or more of the consolidated assets of the Company (based on the consolidated financial statements of the Company most recently filed on SEDAR), or any liquidation, dissolution or winding-up of the Company or such a Subsidiary;
3. direct or indirect sale or disposition of assets (or any alliance, joint venture, lease, long-term supply arrangement, licence or other arrangement having the same economic effect as a sale or disposition) representing, individually or in the aggregate, 20% or more of the consolidated assets of the Company;
4. direct or indirect sale, issuance or acquisition of Company Shares or any other voting or equity interests of the Company (or securities convertible into or exercisable or exchangeable for Company Shares or such other voting or equity interests) resulting in a person or group of persons owning 20% or more of the issued and outstanding voting or equity interests (or rights or interests therein or thereto) of the Company or any direct or indirect sale, issuance or acquisition of voting or equity interests (or securities convertible into or exercisable or exchangeable for voting or equity interests) of any Subsidiary of the Company resulting in a person or group of persons owning 20% or more of the issued and outstanding voting or equity interests of such Subsidiary (or rights or interests therein or thereto); or
5. any other similar transaction or series of transactions involving the Company or any of its Subsidiaries,