First Class Metals enters into interest-free loan note agreement for up to £1,000,000

First Class Metals PLC (FCM) has entered into an interest-free Convertible Loan Note Instrument with an international investor.

• The Investor agreed to subscribe for up to £1,000,000 of £1 notes in tranches, with twelve-month maturity from the instrument date; £350,000 is expected to be drawn shortly.
• Investor conversion is at 82% of lowest daily VWAP over five trading days before notice; mandatory at maturity, subject to statutory shareholding limits.
• The Company may redeem the notes before maturity at 125% of nominal value; a 2% commitment fee applies to each tranche and may be offset at drawdown.
• Tranche warrants equal 35% of notes, capped at 350,000; exercisable within three years at 120% of ordinary-share closing price on business day immediately preceding subscription.
• Proceeds will initiate a drill program at the Sunbeam Property in Ontario and fund general working capital; hard-frozen ground is required for safe, effective access.
• The Company will pay CAD$ 100,000 to Kerrs Gold Property option holders; upon payment, First Class Metals will hold 100% ownership of the Property.

In connection with the first tranche, the Company will issue 4,803,922 warrants exercisable at 2.55 pence per share. The Company will provide further updates on rig mobilization and program timing; the Property hosts a historical resource of approximately 386,000 ounces of gold.