Wellgreen Platinum to secure $11.4 mln in funding led by RCF

Canadian mining company Wellgreen Platinum Ltd (TSX: WG) has agreed to a financing package that will provide it with gross proceeds of about $11.4 million. The investors are U.S. mining-focused private equity firm Resource Capital Funds (RCF) and Alverstoke Group. The deal comprises equity and the sale by the company of a one percent net smelter returns royalty on future production from its Wellgreen property. Based in Vancouver, Wellgreen owns 100 percent of a platinum group metals and nickel project located in the Yukon. With the agreement, it has initiated the second phase of its 2015 exploration drilling program.

PRESS RELEASE

Wellgreen Platinum Signs C$11.4 Million Financing Package led by Resource Capital Fund VI L.P.

November 4, 2015 – Vancouver, BC – Wellgreen Platinum Ltd. (“Wellgreen Platinum” or the “Company”) (TSX: WG; OTC-QX: WGPLF) is pleased to announce that it has entered into definitive agreements with investors including Resource Capital Fund VI L.P. (“RCF”) and Australind Limited (“Australind”), an affiliate of Alverstoke Group LLC (“Alverstoke”), in respect of a financing package that will provide the Company with total gross proceeds of US$8.73 million or approximately C$11.4 million1. The aggregate financing package consists of a US$2.5 million or C$3.3 million1 non-brokered equity private placement and the sale by Wellgreen Platinum of a 1.0% Net Smelter Returns Royalty on future production from the Wellgreen property (“NSR Royalty”) for proceeds of US$6.2 million or C$8.1 million1. With these agreements in place, the Company has initiated the second phase of its 2015 exploration drill program at Wellgreen and expects to undertake a comprehensive metallurgical testing program starting in Q1 2016.

Greg Johnson, Wellgreen Platinum’s President and CEO stated, “We are very pleased to be adding RCF and an affiliate of Alverstoke as shareholders of Wellgreen Platinum. This is an important development for the Company as it brings in the funding to continue to advance our pre-feasibility level studies during a period of very challenging market conditions for the mining sector. The 2015 Wellgreen PEA demonstrated that our Wellgreen project has the potential to become a low cost, mid-tier level producer of PGMs and nickel, with average annual production of over 200,000 ounces of platinum, palladium and gold along with over 120 million pounds of combined nickel and copper during its first 16 years of operation. We believe that with the financial resources and mining industry expertise that RCF and Alverstoke are able to contribute, along with the support from our existing shareholders, we can further realize the potential value of the Wellgreen deposit through continued advancement toward production.”

Pursuant to the private placement portion of the financing, 13,060,000 units of Wellgreen Platinum (the “Units”) will be issued at a price of C$0.25 per Unit, for total proceeds of C$3.3 million1 or US$2.5 million. Each Unit will consist of one common share (“Share”) of the Company and one common share purchase warrant (“Warrant”) which will entitle the holder to acquire one Share at a price of C$0.40 for a period of 36 months after the closing date. The purchase price of the Units represents approximately a 10% premium to the 10-day weighted average trading price of the Shares on the TSX prior to today’s announcement.

The terms of the agreements with RCF and Australind provide each party with the right to have one of their representatives on Wellgreen Platinum’s Board of Directors, and investors in this financing will have the right to participate in future financings to maintain their respective equity interests. In addition, the NSR Royalty contains a provision for the Company to pay any Canadian withholding tax required to be remitted by the holder of the NSR Royalty, and the Company will grant a security interest over the quartz mineral claims and quartz mining leases that are subject to the NSR Royalty. No insiders will be participating in the financing and no change of control will occur as a result of these transactions. The financing is subject to the approval of the Toronto Stock Exchange, and is expected to close on or prior to November 10, 2015.

About Resource Capital Funds

Resource Capital Funds (“RCF”) is a private equity firm established in 1998 with a mining sector specific investment mandate spanning all hard mineral commodities and geographic regions. Since inception, RCF has supported 142 mining companies, with projects located in 45 countries and across 29 commodities. RCF is currently investing its sixth fund with committed capital of $2.04 billion. Further information about RCF can be found on its website (www.resourcecapitalfunds.com).

RCF has a strong team of technically diverse investment professionals, with wide ranging industry expertise and demonstrated history of investments in mining globally. RCF’s track record is based on its ability to pick technically and commercially compelling assets and support management to achieve desired outcomes whilst remaining throughout a source of patient capital. RCF aims to partner with companies to build strong, successful and sustainable businesses and in doing so strives to earn superior returns for all shareholders.

About Alverstoke Group

Alverstoke Group is a private investment firm founded in 2003 and based in New York which, together with its affiliates, engages in diverse investment activities globally including privately negotiated investments in entrepreneurial businesses in the resource and other sectors.

1At US$/C$ exchange rate of 1.3060 using Bloomberg 5 p.m. FX fix on November 3, 2015.

About Wellgreen Platinum

Wellgreen Platinum is a Canadian mining exploration and development company focused on the active advancement of its 100% owned Wellgreen platinum group metals (PGM) and nickel project. Located in the Yukon Territory of Canada, the 2015 Preliminary Economic Assessment demonstrated that the Wellgreen PGM and nickel project has the potential to become a large, low cost, open pit producer of platinum, palladium, gold, nickel, and copper. The Wellgreen property is accessible from the paved Alaska Highway, which leads to year-round deep sea ports in southern Alaska.

The Company is led by a management team with a track record of successful large-scale project discovery, development, financing and operation. Our vision is to create value for our shareholders through development of the Wellgreen deposit into a leading North American PGM and nickel producer.

Cautionary Note Regarding Forward Looking Information: This news release includes certain information that may be deemed “forward-looking information”. Forward-looking information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology, or negative connotations thereof. All information in this release, other than information of historical facts, including, without limitation, regarding the completion of the Transactions, the use of the proceeds from the Transactions, the creation of shareholder value, results of the 2015 PEA, the size and scale of the Wellgreen deposit, future exploration and development of the Wellgreen project, realization of the potential of the Wellgreen deposit, the active advancement of the Wellgreen project, and general future plans and objectives for the Company and the Wellgreen project are forward-looking information that involve various risks and uncertainties.

Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Forward-looking information is based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from the forward-looking information include changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, the Company’s ability to maintain the support of stakeholders necessary to develop the Wellgreen project, unanticipated environmental impacts on operations and costs to remedy same, and other risks detailed herein and from time to time in the filings made by the Company with securities regulatory authorities in Canada. Mineral exploration and development of mines is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking information. For more information on the Company and the key assumptions, risks and challenges with respect to the forward looking information discussed herein, and about our business in general, investors should review the 2015 PEA technical report on the Wellgreen project, our most recently filed annual information form, and other continuous disclosure filings which are available at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.

Photo courtesy of Wellgreen Platinum Ltd