Mr. Gordon Bogden reports

AVANTI MINING SIGNS MANDATE LETTER FOR US$612 MILLION DEBT FINANCE FACILITY

Avanti Mining Inc. has entered into a debt financing mandate letter with a syndicate of six lenders pursuant to which the lenders are proposing to provide secured debt finance facilities for $612-million (U.S.) to develop the Kitsault molybdenum mine. The lenders consist of BNP Paribas, Caterpillar Financial Services Corp., Export Development Canada, Korea Development Bank, Mizuho Bank Ltd. and UniCredit Bank AG.

The mandate letter and the related term sheet establish the terms under which the banks have been appointed to deliver a project finance facility of $612-million (U.S.), and are subject to due diligence, loan documentation, and credit and certain other approvals. Final credit approval for the facility is expected in September, 2014.

The facility set out in the term sheet comprises $500-million (U.S.) of senior debt for a term of 10.5 years, $42-million (U.S.) in equipment finance for a term of five years and $70-million (U.S.) in the form of standby cost-overrun facilities for a term of eight years. The interest rate is based on LIBOR (London interbank offered rate), loan repayments are semi-annual or quarterly (for equipment finance), and there are mandatory prepayment provisions of a portion of excess free cash flow. The facility will include customary provisions for a financing of this type, including fees, representations and warranties, covenants, events of default, and security customary for this type of financing.

The financing under this facility will be subject to the customary conditions precedent for a financing of this type, including an equity financing component arranged by Avanti, which the company continues to pursue through various options, including the sale of a silver stream and/or investment by a strategic partner.

"The project finance facility is a major component of Avanti's financing strategy. We welcome the financial support of our banking partners and we can now focus on advancing equity funding options to complete our $818-million initial construction capital requirement for Kitsault. With the execution of off-take agreements with ThyssenKrupp Metallurgical Products GMBH and SeAH M&S, the conclusion of a benefits agreement with the Nisga'a Nation, the receipt of construction and environmental approvals for the Kitsault project, commencement of construction activities at site, and now the pending agreement on the cornerstone project financing component, the Kitsault project moves significantly closer to a positive production decision," stated Gordon J. Bogden, president and chief executive officer.

Avanti's financial adviser in relation to the debt financing is Northcott Capital.

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