Mr. Derek White reports

ASCOT REFINANCES EXISTING US$10 MILLION CONVERTIBLE FACILITY

Ascot Resources Ltd. has entered into a definitive credit agreement with Nebari Gold Fund 1 LP, which consists of $14-million (U.S.) subordinated convertible credit facility. The Nebari convertible facility is to refinance Ascot's existing Beedie convertible facility (as defined below). In late 2020 and as part of a larger project financing package, Ascot entered into a $25-million (U.S.) subordinated convertible credit facility with Beedie Investments Ltd. of which the company had drawn an initial advance of $10-million (U.S.) and cancelled the undrawn facility of $15-million (U.S.).

The Nebari convertible facility is bound by broadly similar terms as compared with the Beedie convertible facility, with the most notable difference being an extension of the maturity date from late 2024 to mid-2027. Closing of the Nebari convertible facility is expected to be before June 30, 2023. Closing of the Nebari convertible facility is subject to the satisfaction of customary closing conditions and the company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange (TSX).

Derek White, president and chief executive officer, commented: "We are pleased to have found a capable and aligned financing partner in Nebari to refinance our existing convertible facility. In extending the maturity date from late 2024 to mid-2027, we enhance our operating flexibility by minimizing pressure on our balance sheet or our capital structure."

Nora Pincus and Juan Alvarez, managing directors at Nebari, commented: "We are very excited to be entering into this convertible facility with Ascot Resources and helping to support the construction of the Premier gold project as it progresses into production. We are impressed with the experience and professionalism of the Ascot team and have the utmost confidence in their ability to become one of British Columbia's premier gold producers."

The Nebari convertible facility

• Principal of $14-million (U.S.) drawn in one tranche, the proceeds of which will be used to repay the Beedie convertible facility outstanding principal of $10-million (U.S.), together with all accrued and unpaid interest and prepayment fees.
• The maturity date shall occur 48 months from the date of the advance, which shall be no more than seven business days from the date of this release.
• Interest rate of 5.0 per cent plus the greater of (i) 3.0 per cent and (ii) the secured overnight financing rate for a three-month tenor per annum.
• One hundred per cent of interest costs capitalized to principal until the earlier of the company declaring commercial production at the Premier gold project (PGP) or Dec. 31, 2024.
• All or a portion of the $14-million (U.S.) principal amount can be converted into Ascot common shares at the option Nebari at a price of 72 Canadian cents which is equal to a 20-per-cent premium to the 30-day VWAP (volume-weighted average price) of Ascot common shares up to and including June 15, 2023.
• If over 20 consecutive trading days the VWAP of Ascot common shares exceeds 45 per cent of the conversion price, Ascot may convert up to 50 per cent of the outstanding principal, as applicable, to Ascot common shares, subject to certain limitations and conditions.
• Subject to the terms and conditions of the Nebari convertible facility, Ascot may prepay the outstanding principal at any time.
• As part of this prepayment condition, Ascot will issue to Nebari 25,767,777 unvested warrants on closing of the Nebari convertible facility.
• Prepayment is subject to the conditions of the senior purchase and sale agreements among Ascot, as seller, IDM Mining Ltd. and Ascot Power Ltd., as guarantors, and Sprott Resource Streaming and Royalty (B) Corp., as purchaser, 1.0-per-cent penalty on repayment of outstanding principal and interest after 24 months from the closing date, prior to 24 months from the closing date a make whole fee of 24 months of interest.
• In certain prepayment or repayment events, a number of prepayment warrants will vest that is equal to the quotient of the principal being prepaid divided by the initial $14-million (U.S.) advance, with each warrant entitling the holder to purchase one Ascot common share at an exercise price equal to the conversion price.
• The Nebari convertible facility also contains customary representations, warranties and covenants for a transaction of this nature.

About Ascot Resources Ltd.

Ascot is a Canadian junior exploration and development company focused on restarting the past producing Premier gold mine, located on Nisga'a Nation treaty lands, in British Columbia's prolific Golden Triangle. Ascot shares trade on the Toronto Stock Exchange under the ticker AOT. Concurrent with progressing the development of Premier, the company continues to successfully explore its properties for additional high-grade underground resources. Ascot is committed to the safe and responsible development of Premier in collaboration with Nisga'a Nation as outlined in the benefits agreement.

We seek Safe Harbor.