Strandline Resources (ASX: STA) is pleased to announce it has successfully completed an oversubscribed US$60 million Senior Secured Bond Issue for the development of its world-scale Coburn mineral sands project in Western Australia.

The combination of the Bond and the previously announced 15-year A$150m NAIF loan facility means Strandline has secured all the required debt funding for Coburn.

The Bond is based on a 5-year tenor, will be senior secured and rank equally with the NAIF loan facility.

Together, the NAIF and Bond financing will account for a significant portion of Coburn's total development capital cost of A$260 million excluding financing costs.

Strandline Managing Director Luke Graham said completion of the Bond was another pivotal milestone in the Company's strategy to become a world-scale mineral sands producer at Coburn.

'This highly successful debt raising is another strong endorsement of Coburn's outstanding financial returns and technical merit,' Mr Graham said.

'The US$60 million bond, combined with the NAIF A$150 million loan facility, will complete Coburn's debt requirements and account for a significant portion of Coburn's overall development capital.

'In parallel with the funding process, Strandline continues to advance front-end engineering design, award of construction contracts, long lead procurement and site early works.'

The Bond was completed following an extensive due diligence process of technical, financial, market, legal, environmental and social fundamentals. Financial settlement of the Bond is expected by the end of March 2021 and is subject to customary closing conditions.

First drawdown of the Bond proceeds will coincide with the NAIF drawdown regime on a pro-rata basis and will be subject to customary conditions precedent. Key terms for the Bond and NAIF loan facilities are outlined in Schedule 1 and 2 respectively.

With key development approvals in place, +90% product pre-sold to highly reputable customers via long term offtake contracts, major construction contractors appointed, and debt financing completed, Strandline is moving rapidly into development of Coburn.

The Coburn mine life currently contemplates mining until 2045 (based on mining the initial 22.5-year JORCcompliant Ore Reserves), with the potential to extend to 2060 (total 37.5 years mine life) through converting Mineral Resources which exist immediately north and along strike of existing Ore Reserves.

The Coburn Definitive Feasibility Study (DFS) has a pre-tax NPV of A$705 million (AUD: USD 0.70, 8% discount rate), pre-tax IRR of 37% and high-margin revenue-to-operating cost (C1) ratio of 2.4. The projected revenue for the initial 22.5 years of ore reserves is A$4.4 billion, with an average annual EBITDA of A$104 million. This announcement is authorised for release by the Strandline Resources Board of Directors.

For more information on the Coburn mineral sands project, refer to the ASX Announcement dated 4 June 2020 & 10 June 2020 for details of the material assumptions underpinning the production target and financial results for the Coburn Project DFS, Ore Reserve and Mine Life Extension Case Scoping Study. The Company confirms that all material assumptions and technical parameters underpinning Resource Estimates, Production Targets and Project Feasibility Studies, continue to apply and have not materially changed.

The Bond Issue was arranged by ABG Sundal Collier and Pareto Securities, leading European investment banks, with local support from BurnVoir Corporate Finance.

ABOUT NAIF

The Northern Australia Infrastructure Facility is a Commonwealth Government A$5 billion lending facility to finance projects to achieve growth in the economies and populations of northern Australia and encourage and complement private sector investment. Projects supported by NAIF are diversified across sectors including ports, airports, tourism, education, agriculture, resources and renewable energy. Every NAIF project will support important Indigenous engagement with many projects committing to Indigenous employment or procurement targets.

ABOUT STRANDLINE

Strandline Resources Limited (ASX: STA) is an emerging heavy mineral sands developer with a portfolio of 100%- owned development assets located in Western Australia and within the world's major zircon and titanium producing corridor in East Africa. Strandline's strategy is to develop and operate high margin, expandable mining assets with market differentiation and global relevance.

Strandline's project portfolio contains high quality assets which offer a range of development options and timelines, geographic diversity and scalability. They include two zircon-titanium rich, 'development ready' projects, being the large Coburn Project in Western Australia and the Fungoni Project in central Tanzania, as well as a series of titanium dominated exploration projects spread along the highly prospective Tanzanian coastline, including the advanced and large scale Tajiri Project in northern Tanzania.

FORWARD LOOKING STATEMENTS

This report contains certain forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside of the control of Strandline. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay, approvals and cost estimates. Actual values, results or events may be materially different to those contained in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement reflect the views of Strandline only at the date of this announcement. Subject to any continuing obligations under applicable laws and ASX Listing Rules, Strandline does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement to reflect changes in events, conditions or circumstances on which any forward looking statements is based.

Contact:

Tel: +61 8 9226 3130

Email: enquiries@strandline.com.au

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