Mr. Mazen Haddad reports

ARGEX TITANIUM DEFERS PAYMENT ON ITS CONVERTIBLE DEBENTURES

Argex Titanium Inc. had insufficient funds to meet the interest payment due on Dec. 31, 2015, on the $7.5-million principal amount of its 8 per cent unsecured convertible debentures. The debentures are scheduled to mature on June 30, 2019.

Argex is required to make quarterly interest payments of $150,000 on the debentures due on each of March 31, June 30, Sept. 30 and Dec. 31 until June 30, 2019. The corporation has 15 days after the interest due date within which to pay the interest under the debentures before triggering an event of default. Failure to pay the interest within this time period allows the debentureholders to declare the $7.5-million principal amount and all accrued interest on the debentures immediately due and payable. At Dec. 31, 2015, the debentures are outstanding in the principal amount of $7.5-million and no interest was accrued and unpaid up to that date.

The corporation wishes to advise that the majority holders of 52.7 per cent, or an aggregate of $3,955,000, of the principal amount owing under the debentures have agreed to waive the event of default and to defer payment of the quarterly interest payments until further notice, including the March 31 interest payment, in order to allow the corporation to pursue and consider all strategic and financial alternatives to recapitalize the corporation, and to obtain additional financing necessary to finance operations. Argex can provide no assurance that financing alternatives will be successful or available on satisfactory terms.