Appalaches Resources, Inc. announced the closing of its previously announced loan financing of USD 10 million provided by Lascaux Resource Capital Partners, LLC. A first tranche (Tranche A) of USD 2.5 million, less fees and expenses, was advanced to the company at closing and the second tranche (Tranche B) of USD 7.5 million will be advanced upon certain specific conditions being satisfied, namely an updated technical report of the Dufferin Mine including the detailed mine plan and obtaining the remaining production approval with respect thereto within the next 9 months. The loan financing of USD 10 million will provide sufficient funds to complete the refurbishment of the Dufferin Mine and advance the project to gold production. Start of commissioning is projected for 4 months after the funding of Tranche B, with another 4 months of mining & milling ramp-up operations. The targeted first stage of production stands at 300 tonnes per day (TPD). This targeted output was reviewed by MineTech International as part of the financing due diligence process and is subject to the finalization of the mine plan. A NI 43-101 compliant feasibility study has not been completed and there is no certainty the proposed operation will be economically viable. The financing of USD 10 million, is being made through an Ontario limited partnership. The financing will bear interest at a rate of 8% per annum starting the 9th month after Tranche B is advanced and is payable in cash. The financing is amortized by the delivery of a total of 10,125 ounces of gold over a period of 27 months starting the 9th month following the advance of Tranche B. Prepaid interest of USD 800,000 and structuring fees of USD 300,000 are also payable upon the advance of Tranche B.

Ressources Appalaches has completed the final payment of $75,000 in order to acquire 100% of the East Dufferin property adjacent to the Dufferin Mine in Nova Scotia. This strategic acquisition is related to the future development of the mine, located contiguous and directly to the east of Dufferin Mine. Those claims are subject to a 2% net smelter return royalty, which may be purchased for $1 million. The Dufferin project is now composed of: Dufferin North, Dufferin Mine, Dufferin East, and Chocolate Lake, which are all located on the same anticline structure of 8.4 km long of which 1.4 km along strike towards the east has been drilled to depths upwards to 400m. Miller Lake and Ecum Secum properties are located on two other parallel anticlinal structures to the north and to the south, respectively. The company is currently finalizing its review of the draft loan agreement for the funding of the $10 million two tranches gold prepayment agreement. Proceeds from the loan would be used to resume gold production at the Dufferin Mine project in Nova Scotia.

Ressources Appalaches Inc. has completed the final payment of $75,000 in order to acquire 100% of the East Dufferin property adjacent to the Dufferin Mine in Nova Scotia. This strategic acquisition is related to the future development of the mine, located contiguous and directly to the east of Dufferin Mine. Those claims are subject to a 2% net smelter return royalty, which may be purchased for $1 million. The Dufferin project is now composed of: Dufferin North, Dufferin Mine, Dufferin East, and Chocolate Lake, which are all located on the same anticline structure of 8.4 km long of which 1.4 km along strike towards the east has been drilled to depths upwards to 400m. Miller Lake and Ecum Secum properties are located on two other parallel anticlinal structures to the north and to the south, respectively.