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Black Mountain Secures A$3M Strategic Debt Financing

Released 07:00 24-Dec-2013

Black Mountain Secures A$3M Strategic Debt Financing

24 December 2013

Black Mountain Secures A$3M Strategic Debt Financing

Highlights:

  * Strategic financing of A$3 million provided by ASX listed silver producing
    company, Alcyone Resources Limited
   
  * Secured funds will be utilised towards bringing New Departure Silver
    Project into production and facilitate ongoing development of the 
    Conjecture Silver Project
   
Black Mountain Resources Limited (ASX | AIM: BMZ) the silver focused
development company with interests in the US, is pleased to announce that the
Company has secured A$3 million strategic long term debt financing with Alcyone
Resources Limited (ASX: AYN) ("Alcyone") which will be utilised towards funding
the development of the New Departure and Conjecture Silver Projects.

Black Mountain Chairman Peter Landau said, "We are delighted to have secured
the funding and support of silver producer Alcyone Resources. Not only will
this $3million capital injection enable us to advance our high grade New
Departure Silver Project into targeted production in the first quarter of 2014
but it will also facilitate significant development of our Conjecture Silver
Project. We are fully committed to our low production cost and low capex
business model."

Key Funding Terms:

  * The A$3 million loan facility is for 36 months (bullet repayment) with
    interest payable at a rate of 12% pa payable annually
   
  * The Company may repay any funds drawn early provided a minimum of 12 months
    interest is paid
   
  * Pursuant to the facility, Alcyone will have equal first ranking security
    and will also have the right to appoint a director to the Board of Black
    Mountain subject to any required regulatory approvals
   
  * The issue of 4,675,260 fully paid ordinary shares to Alcyone (or their
    nominee) together with the issue of 4,675,260 unlisted options ($0.15;
    30 November 2016) subject to shareholder approval
   
Issue of Capital

The Company proposes to issue 4,675,260 fully paid ordinary shares pursuant to
the facility under its placement capacity and 4,675,260 unlisted options
($0.15; 30 November 2016) subject to shareholder approval. In addition the
Company also intends to issue 15,000,000 listed options ($0.20; 7 May 2015)
following shareholder approval granted at the recent AGM; 1,750,000 fully paid
ordinary shares and 3,000,000 unlisted options ($0.12; 3 years) pursuant to
existing debt facilities, 2,456,666 fully paid ordinary shares in lieu of
interest payable on existing debt facilities, 2,854,286 fully paid ordinary
shares as advisor fees, and 120,000 fully paid ordinary shares to local in
country management under its placement capacity.

Following the issue of these shares, the Company will have a total of
98,180,478 ordinary shares on issue. Application will be made for the
11,856,212 shares to be admitted to trading on the ASX and AIM. Trading in the
new shares is expected to commence on AIM on or around 3 January 2014.

For and on behalf of the Board

Peter Landau
Executive Chairman

For further information please visit www.blackmountainresources.com.au or
contact:

Black Mountain Resources Limited          Black Mountain Resources Limited       
Shannon Robinson                          Eva Bezruchko                          
Executive Director | Corporate Relations  Investor Relations       
E:shannon@blackmountainresources.com.au   E: eva@blackmountainresources.com.au   
T: +61 (8) 9488 5220                      T: +44 (0) 207 025 7040                
                                                                               
Media (Australia)                         Media (UK)                             
PPR                                       St Brides Media & Finance Limited      
David Tasker                              Elisabeth Cowell                       
T: +61 (8) 9388 0944                      T: +44 (0) 207 236 1177                

Joint Broker (UK)                         Joint Broker (UK)                      
Westhouse Securities Limited              Xcap Securities                        
Martin Davison                            Jon Belliss                            
T: +44 (0) 20 7601 6100                   T: +44 (0) 203 216 2630                
                                                                               
Nominated Advisor (UK)                                                         
RFC Ambrian Limited                                                            
Stuart Laing                                                                   
T: +61 (8) 9480 2500                                                           

About Black Mountain Resources Limited

Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and
gold focused development company focussed on the advancement of three highly
prospective previously operating assets located in two of the world's most
developed and proven silver and gold mining regions of Idaho and Montana, USA.

The Company holds a 70% interest in the New Departure Silver Project, the
Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45
year leases from Chester Mining Company, Lucky Friday Extension Mining Company
and Brush Prairie Minerals respectively. Black Mountain plans to implement low
cost production and development programmes across all three assets. It is also
implementing exploration programmes to capitalise on the exploration upside
potential apparent across its portfolio.

Black Mountain Resources Limited was incorporated on 29 October 2010 and is
listed on the Australian Securities Exchange (ASX) and London's AIM Market -
trading codes BMZ and BMZO.

Forward Looking Statement

Certain statements made during or in connection with this communication,
including, without limitation, those concerning the economic outlook for the
silver market, expectations regarding silver ore prices, production, cash costs
and other operating results growth prospects and the outlook of the Company's
operations including the likely commencement of commercial operations of the
New Departure and Conjecture Silver Projects, its liquidity and the capital
resources and expenditure, contain or comprise certain forward-looking
statements regarding the Company's development and exploration operations
economic performance and financial condition. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove to have
been correct. Accordingly, results could differ materially from those set out
in the forward-looking statements as a result of, among other factors, changes
in economic and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other government
actions, fluctuations in silver ore prices and exchange rates and business and
operational risk management. For a discussion of such factors refer to the
Company's most recent annual report and half year report. The Company
undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after today's
date or to reflect the occurrence of unanticipated events.

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