Silver Bear Resources Plc announced that effective 01 January 2022, it has amended its existing loan agreement between the company's wholly-owned subsidiary, Joint Stock Company Prognoz, and SKA Assets Management Limited with respect to a loan in the principal amount of RUB 750,000,000 (equivalent to approximately CAD 12,825,000 based on a foreign exchange rate of 0.0171) by extending the maturity date of the loan from 31 December 2021 to 31 December 2022 and increasing the interest rate of the loan from 8.27% per annum to 10.27% per annum effective from 01 January 2022. All other provisions of the Loan Agreement will remain unchanged. The SKA Loan Amendment has been conditionally approved by the Toronto Stock Exchange.

SKA Assets is indirectly owned by Sergey Kolesnikov, who is in turn a majority shareholder of Inflection Management Corporation Limited, a major shareholder of Silver Bear. The SKA Loan Amendment is a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions because Inflection is a related party of the Company, as its major shareholder. Pursuant to Section 5.7(1)(f) of MI 61-101, the Company is exempt from obtaining minority shareholder approval for the SKA Loan Amendment as a result of the amendment to the loan being obtained from a related party on reasonable commercial terms that are not less advantageous to the Company than if such loan was obtained through an arm's length lender and having no equity or voting component.

The Company will file a material change report in respect of the SKA Loan Amendment. However, the material change report will be filed less than 21 days prior to the execution of the SKA Loan Amendment, which is consistent with market practice and the Company deems reasonable in the circumstances.