Melior Resources Inc., Melior Australia Pty Ltd. and Goondicum Resources Pty Ltd. As a consequence of the appointment of the voluntary administrators to the Subsidiaries, the Company and its Subsidiaries have received a notice of default and demand (the “Default Notice”) from their senior lender (the “Senior Lender”) under the loan agreement dated August 9, 2018, as amended (the “Loan Agreement”). The Company announced that it has entered into a standstill agreement with the Senior Lender (the “Standstill Agreement”) pursuant to which the Senior Lender has agreed (on certain terms and conditions) not to proceed with enforcement actions against Melior (excluding the Subsidiaries) for a period until October 31, 2019. Under the Default Notice, the Senior Lender has demanded that Melior and its Subsidiaries make payment to it in the amount of USD 22,714,700, representing the amount outstanding under the Loan Agreement as at September 9, 2019, together with related interest, costs and charges, on or before 4:00 p.m. Australian Western Standard Time on September 13, 2019. As of this date, Melior and its Subsidiaries do not have sufficient cash resources to meet such a demand for payment.