Mr. William Sheriff reports

AMERICAS BULLION AGREES TO CASH SETTLEMENT WITH MF INVESTMENT AND COMPLETES SALE OF ROYALTIES TO ORION ROYALTY COMPANY LLC

Americas Bullion Royalty Corp. has reached a settlement with MF Investment Holding Company 1 (Cayman) Ltd. with respect to the senior secured facility agreement dated Sept. 25, 2012, whereby the full amount owing under the facility agreement will be applied to the purchase price of certain royalties. After giving effect to the transaction, the debt with MF Investment is retired and the company will receive $22.8-million in cash.

Background

On June 24, 2013, Americas Bullion announced that MF Investment, part of Orion Resource Partners and the Red Kite Group, indicated that it had or intended on issuing notices alleging an event of default under the secured facility agreement and asserting rights to exercise an option to purchase 26 royalty interests, including the Pan and Bald Mountain interests, by paying Americas Bullion $35-million (U.S.).

Terms of the settlement

Following amicable discussions, Americas Bullion has entered into an amendment to the senior secured facility agreement with MF Investment, pursuant to which a nominee of MF Investment exercised an option to purchase 18 royalties, including the Pan and the Bald Mountain royalty interests.

In connection with the option exercise, Nevada Royalty Corp. (NRC), a wholly owned subsidiary of Americas Bullion, has entered into an agreement of purchase and sale with Orion Royalty Company LLC pursuant to which NRC has completed the sale of certain royalties to Orion. Pursuant to the agreement, AMB retired its debt to MF Investments and NRC received an initial payment of $8.8-million (U.S.). NRC will receive a further $14-million (U.S.) upon certain postclosing deliveries being satisfied.

For a complete list of assets to be retained by Americas Bullion please visit the company's website.

"I am pleased to have reached a mutually beneficial agreement with Red Kite and Orion where their interests have been met while our shareholders clearly benefit from having received market value for certain of our royalty interests," said William M. Sheriff, chairman and chief executive officer. "Americas Bullion, in addition to retiring the Red Kite debt and netting approximately $22-million (U.S.) cash from this transaction, continues to hold 14 royalty interests, other significant Nevada assets, and its Yukon holdings including the Brewery Creek project. The board sees great opportunity to build from this cash position in the current market."

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