Endomines — Capital/Financing Update 2023

Jan 4, 2023

LDA uses the investor call option and provides convertible loan to Endomines

LDA uses the investor call option and provides convertible loan to Endomines

Endomines Finland Plc - Stock Exchange Release, 4.1.2023, at 16.00 EET.

LDA uses the investor call option and provides convertible loan toEndomines
Finland Oyj. Endomineshas received investor call notice for request of issuance
of the convertible loans as following: first part of trances, EUR 1,000,000,
will be issued immediately. Following parts of trances, total maximum of EUR
2,400,000, will be subject to conditions of the loan agreement and the
investor's consideration, and can be executed no later than 31st of March 2023.
According to the funding agreement, the investor has right to request issuance
of the convertible loans of the remaining undrawn part, total EUR 3,400,000.

Thedirected Issueof convertible loansis carried out as part of the financing
package as part of the financing package between Endomines and LDA, which was
announced in a press release on 8 of May 2021, and for which the convertible
loan authorisationswere granted by the Endomines AB (publ) Annual General
Meeting on 10 June 2021. The financing package comprises,inter alia,a
convertible notes facility agreement.In accordance with the agreement, Endomines
Finland Plc is committed to issue convertibles to LDA for a total nominal amount
of EUR 6 million. The convertible bonds have previously been issued in the
amount of EUR 2.6 million in total, which LDA has converted in its entirety into
the company's shares.After issuing EUR 1.0 million and potential EUR 2.4
million, the total amount has been fulfilled.

Each convertible has a nominal value of EUR 10,000 and will be issued at a
subscription price per convertible of 100 percent of the nominal value. In
accordance with the agreement, the conversion price shall correspond to 85
percent of the daily volume weighted average price of Endomines Finland Plc's
share on Nasdaq Helsinki during the 15 trading days preceding the date of the
conversion, which according to the Board of Directors' assessment, is in line
with the market value with a customary discount. The convertibles accrue no
interest, and the maturity date of the loan is 18 months from the date of
registration at the Finnish Patent and Registration Office. The convertibles may
be converted into new shares in the company during the period commencing on the
date of registration up to and including the maturity date. If the convertibles
have not been converted prior to the maturity date, the company has the right to
either (i) redeem in cash the outstanding amount of the convertibles on the
maturity date at a price corresponding to 115 percent of the outstanding amount
or (ii) convert all outstanding convertibles on the maturity date into shares of
the company.

Endomines Finland Plc

Contact person

Mikko Sopanen, CFO,mikko.sopanen@endomines.com, +358 50 434 7439

Endomines

Endomines is a mining and exploration company with its primary focus on gold.
Endomines is engaged in mining operations at the Pampalo mine in Ilomantsi, and
in exploration activities along the Karelian Gold Line in Eastern Finland.
Endomines also owns rights to several gold deposits in Idaho and Montana, US,
where Endomines aims to continue the development work through partnership
agreements. www.endomines.com

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