Melior Resources Inc. announced that it has reached agreement with Pala Investments Limited to extend the expiry and repayment date of the $5 million loan facility (pala facility) from August 28, 2016 to October 31, 2017. As at June 30, 2016, a total of $2,255,000 had been drawn down under the Pala facility. Based on the terms of the extension, an additional $475,000 remains available to be drawn down by Melior prior to the expiry of the loan on October 31, 2017. Pursuant to the terms of the extension, during the period the loan is outstanding, Melior has agreed to maintain a minimum cash balance of CAD 200,000, pay accrued interest monthly in arrears, and ensure material plant and equipment with respect to its Goondicum Ilmenite Mine are on-site, adequately insured and maintained in good condition. In addition, during the period the loan is outstanding, in the event Melior proposes to offer for sale any of its Capital Stock, Pala shall be entitled to participate in such issuance on a pro rata basis to the extent necessary to maintain its proportional fully diluted equity interest in Melior. Pala will be entitled to participate in any such issuance of Capital Stock at the price and on the terms such securities are to be offered to a third party.

The company announced that Joseph Connolly has informed the Board that as a result of a change in his employment circumstances he is no longer able to maintain a position as an independent non-executive director on the Board of Melior. In this regard, Mr. Connolly has submitted his resignation from the board of directors of Melior, which shall be effective July 18th, 2016.