Secured Notes Provide $1.32M Cash to Fund Operations

Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is pleased to announce it has received an investment of $1.32 million cash via the issue of secured notes brokered by CPS Capital Group Pty Ltd (Convertible Note) to fund its flagship Block 103 Iron Ore Project (Block 103) and the Company’s general working capital requirements.

Highlights

• $1.32 million cash investment after expenses received via secured notes issued to CPS Capital Group Pty Ltd (Note Holder);
• The notes are expected to be non-dilutive for Cyclone shareholders as they leverage securities held by Cyclone in European Lithium Limited (ASX:EUR)
• 1.34 million secured notes issued with a face value of $1.25, repayable in EUR shares at a 5% discount to the EUR VWAP share price¹.
• Cyclone owns 62.8m EUR shares valued at $4.96 million as of 13/11/23. 55m EUR shares will be used as security.
• The timing of the note repayment is at the discretion of the Note Holder after a non- repayment period of 90 days, with a maturity of 12 months.

The notes carry a face value of $1.25 and are repayable in EUR securities at the discretion of the Note Holder after a 90 days standstill period. With the exception of the options, the notes should be non- dilutive to Cyclone Shareholders².

Cyclone Executive Director and CEO, Paul Berend, said: “These notes provide us the oxygen to hit some major operational targets for project Block 103; whilst not diluting our Cyclone shareholders. They are a smart way to leverage our EUR shares; assuming that the merger between EUR and Sizzle Acquisition Corp and the subsequent NASDAQ listing is completed during the 3-month standstill period. If this happens, and if the future EUR share price reflects the current NASDAQ valuation, our Cyclone shareholders would benefit from a higher share price of EUR shares. This is a nice potential upside which explains the structure of the notes but is speculative. The most important takeaway is that we have secured the funding to achieve key operational milestones for Block 103, which could drive substantial value uplift for our shareholders.”

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