Saudi Arabian Mining Co. — Capital/Financing Update 2015

Jul 15, 2015

Saudi Arabian Mining Company (Maaden) announces the developments regarding the use of proceeds from the rights issue shares subscription

1211 · 15/07/2015 15:46:38 · Announcement #39269 · View on Saudi Exchange

Saudi Arabian Mining Company (Maaden) announces the developments regarding the use of proceeds from the rights issue shares subscription

Saudi Arabian Mining Company (Maaden) announces the developments of the use of proceeds from its rights issue shares subscription, which was held during the period 18-11-2014 to 02-12-2014, where the received gross proceeds amounted to SAR 5.6 billion. As at 30/6/2015, the used proceeds were SAR 2.93 billion and the remaining proceeds were SAR 2.67 billion.

The expenses details and projects progress percentages compared with what was declared in the rights issue prospectus are as follows:

1. Offering Expenses:

Offering expenses were SAR 23.9 million as compared to SAR 21 million stated in the rights issue prospectus. The reason for the increase in offering expenses was the increase in advisory fees from those estimated.

2. Maaden Waad Al-Shamal Phosphate Company:

As stated in the prospectus, as of 30/06/2015 the Company used SAR 2.39 billion from the proceeds as an equity contribution to Maaden Waad Al Shamal Phosphate Company. The remaining amount SAR 2.67 billion will be used to complete financing the Companys equity investment in the project. The total amount to be used from the offering proceeds to fund the Maaden equity investment in Maaden Waad Al Shamal Phosphate Company as per the prospectus will be SAR 5.06 billion.

There are changes in the project total cost and the scope related to the downstream projects manufacturing products of the project following a review by Maaden and its partners in the project.

The total project cost is now estimated to be approximately SAR 29.9 billion compared to SAR 28 billion stated in the rights issue prospectus representing an increase of 6.8%. The project cost increase is mainly a result of higher contracting costs in the area of construction in the northern province. Maaden Waad Al Shamal Phosphate Company will ensure all the plants previously agreed with the concerned parties will be built.

The additional project costs of SAR 1.9 billion are expected to be funded 70% by the existing lenders to the project and 30% by the shareholders in Maaden Waad Al Shamal Phosphate Company pro rata to their equity interests in the company. Maadens share of such costs would amount to SAR 342 million. This amount would be funded from Maadens internal resources. Certain lender notifications and approvals are required in accordance with the terms of the loan agreements.

3. Construction progress reached the following levels as of 30/6/2015G:

Completed 27.2% of the Beneficiation Plant compared to 9.2% as at 30/8/2014G, as stated in the prospectus.

Completed 51.8% of the Sulphuric Acid Plant compared to 25.7% as at 30/8/2014G, as stated in the prospectus.

Completed 47.6% of the Phosphoric Acid Plant compared to 12.6% as at 30/8/2014G, as stated in the prospectus.

Completed 62% of the Ammonia Plant compared to 14.6% as at 30/8/2014G, as stated in the prospectus.

Completed 36.6% of the Diammonium Phosphate (DAP) Plant compared to 8.0% as at 30/8/2014G, as stated in the prospectus.

4. Maaden Bauxite and Alumina company:

As stated in the prospectus, the Company used SAR 509 million of the proceeds from the offering as at 31/03/2015, to repay amounts currently outstanding under its redrawable murabaha finance facility which had been temporarily used to fund costs incurred by Maaden Bauxite and Alumina Company and SAR 7 million to fund the balance of its equity contribution to the project.

Construction progress is fully completed for Maaden Bauxite and Alumina Company project as of 30/06/2015G compared to 94.69% completion as of 29/08/2014G as mentioned in the prospectus.

Any other material developments will be announced in due course.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.