FOCUSED ON EXPLORATION AND DEVELOPMENT PROJECTS

Convertible Note Terms Agreed $2.0m Private Funding Committed

A1 Consolidated Gold Limited (ASX:AYC) (A1 Consolidated Gold or the Company) is pleased to announce it has reached agreement with Minderoo Resources Pty Ltd (Minderoo) to provide $2m out of the total of the recently announced $2.5m convertible note placement.

The introduction of this major Australian resource house will also see the appointment of Dr John Clout as a technical advisor to the board of the Company. Dr Clout will provide support as the A1 Mine moves towards cash flow in the second half of this year. Once cash flow is achieved, he will assist in maximising the potential of the A1 Mine, Maldon Gold Operations and the Company’s tenement holdings.

Managing Director, Dennis Clark commented, “The cash injection from a well-funded and highly respected group in Minderoo should be welcomed by all Shareholders. It is a significant vote of confidence in the Company and our assets. More importantly, it brings extremely well-credentialed people to the table as we look towards a much bigger future for the Company”.

Legal, binding and formal documentation in respect of the convertible notes has been executed following site visits, technical and data reviews and other due diligence and is a welcome outcome to A1 Consolidated Gold’s funding requirements.

The completion of the convertible note issue, which is subject to various conditions precedent including shareholder approval, will allow A1 Consolidated Gold to meet the funding condition precedent of the Share Sale Agreement with Octagonal Resources Ltd.

The additional technical knowledge will provide the resources to develop the group’s strategic thinking around the existing Maldon mineral interests (Maldon Gold operations), to be acquired as a result of the Octagonal transaction. The Union Hill Mine has the potential to be a significant source of additional gold production supplementing the production scheduled from the A1 Mine.