Hartree Bridge Facility Extended to December

Mallee Resources Limited (“MYL” or “the Company”) is pleased to advise that a short-term bridging loan (“Bridging Loan”) provided by major shareholder Hartree Metals LLC (“Hartree”) in July has been extended.

The Bridging Loan which was initially for US$10 million was partially repaid by MYL on 30 September, leaving a balance of US$4 million outstanding and due for repayment on 14 October 2022.

Hartree has provided an extension to the repayment date to 15 December 2022. Hartree has also undertaken to support the Company, subject to certain conditions, if more funds are needed for ongoing operations for up to the originally available US$10 million (being a redraw of the US$6 million previously repaid) under the Bridging Loan until 15 December 2022.

This is intended to allow time to advance negotiations with Hartree, and gain any approvals required, to secure a US$10 million line of credit from Hartree as referred to in the Company’s announcement dated 30 September 2022. Additional funds are to be applied toward expenditure commitments for which MYL had allocated funds that are to be received pursuant to the agreement for its sale of BMR (refer to announcements dated 25 July and 31 August 2022). Should proceeds of the sale of BMR be received, it is anticipated that the amount to be drawn under the Bridging Loan or the line of credit, as the case may be, will be reduced proportionately.

A line of credit will be subject to the requirements of the Corporations Act and ASX Listing Rules, which may require shareholder approval or the grant of a waiver of the ASX Listing Rules in respect of any security granted in connection with the redrawn amounts or the line of credit.

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