Mr. Gilbert Clark reports

MERIDIAN ANNOUNCES INCREASE IN LOAN FACILITY

Meridian Mining Societas Europaea has increased the loan facility from Sentient Global Resources Funds IV LP (the lender) originally made on Aug. 17, 2018, by $1.5-million (U.S.) (the loan amendment).

The lender has agreed to increase the non-arm's-length loan facility by $1.5-million (U.S.) to $4.5-million (U.S.). All other terms remain the same. The loan bears interest at a rate of 10 per cent per annum and matures on March 31, 2020.

Gilbert Clark, interim chief executive officer and president, stated: "The extraordinary wet season has severely impacted the internal logistics of the manganese operations, supressing production and export sales. Despite this, the company has met internal Brazilian sales contracts and maintained quality. The company is confident that the financial aid provided by Sentient Global Resources Funds IV LP will contribute towards the long-term goals of profitability."

As the lender is considered to be a related party of Meridian, the loan amendment is considered to be a related-party transaction for purposes of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The loan amendment was entered into on an expedited basis for sound business reasons; however, as a result, the company did not file the material change report more than 21 days before entering into the loan amendment. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on Section 5.5(b) of MI 61-101 as no securities of Meridian are listed or quoted on the markets specified therein. Additionally, the company is exempt from minority shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(f) of MI 61-101 as the board of directors of Meridian has determined that the loan and loan amendment are on reasonable commercial terms that are not less advantageous to Meridian than if the loan and loan amendment were obtained from a person dealing at arm's length with the company, and the loan and loan amendment will not result in the debt becoming convertible or repayable as to principal or interest, directly or indirectly, in equity or voting securities of the company. The board of directors of Meridian, other than the directors with a direct or indirect interest in this transaction, has unanimously approved the loan amendment, including the company's reliance on exemptions from the formal valuation and minority approval requirements of MI 61-101.

About Meridian Mining Societas Europaea

Meridian Mining SE is focused on the acquisition, exploration, development and mining activities in Brazil. The company is currently focused on exploring and developing the Espigao manganese and gold projects, the Bom Futuro tin joint venture area, and adjacent areas in the state of Rondonia. Meridian is currently producing high-grade manganese at its project, located at Espigao do Oeste.

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