DOTZ NANO LIMITED — Capital/Financing Update 2014

Dec 21, 2014

ASX ANNOUNCEMENT 22 December 2014 by e-lodgement

Sydvaranger Gruve AS – Update

Northern Iron Limited (NFE) is pleased to advise its wholly owned Norwegian subsidiary, Sydvaranger Gruve AS (SVG), has accepted offers from its financiers, DNB and Innovasjon Norge (IN), for support in respect of a restructure of its short term financing arrangements, subject to completion and execution of final documentation.

The supportive measures provided by DNB and IN include a waiver of servicing existing debt facility obligations and associated covenants for the period January to March 2015. Similar support to waive leasing obligations has also been made available to the Company by Tschudi Bulk Terminals for the Q1’15 period. In addition, to support the working capital requirements of the SVG operations, DNB has also extended a new working capital credit facility in the amount of USD 10 million for Q1’15.

SVG continues to implement cost improvement initiatives across the operation with good progress being made, inclusive of payroll reductions which were accepted by all employees and directors during the current quarter.

Commenting on the supportive measures, Northern Iron Limited Managing Director Antony Beckmand said:

“ We are pleased to enjoy the continued and strong support of SVG’s financiers, key stakeholders and our employees. Upon execution of documentation for these measures the near term liquidity position of SVG will be significantly improved.

The Board and Management continue to actively explore and pursue options to further improve the financial position of the Company in the medium to longer term and remain meaningfully engaged with relevant stakeholders, business partners and potential investors. It is important to stress, however, that if these efforts are unsuccessful, the viability of operations in the current iron ore price environment and the group’s ability to continue as a going concern, remains uncertain.”

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