Mr. Gregory Thomas reports

REGAL RESOURCES ENTERS INTO BINDING INVESTMENT AGREEMENT FOR THE SALE OF A 20% INTEREST IN ITS PATAGONIA/SUNNYSIDE PROJECT

Regal Resources Inc. has entered into a binding investment agreement with Mansa Equity Partners LLC, whereby Mansa has agreed to invest $7.5-million (U.S.) for a 20-per-cent direct interest in the company's Patagonia/Sunnyside project in Arizona.

Highlights of the transaction include:

• Mansa's obligation to advance $300,000 (U.S.) by way of deposit within 15 business days, with closing scheduled to occur 10 business days thereafter. Regal will be entitled to retain the deposit if all conditions for the benefit of Mansa are satisfied or waived and the transaction is not completed by July 20, 2015;
• Under a shareholder agreement to be entered into at closing between Mansa and Regal, Mansa and Regal will each be granted certain rights to convert Mansa's 20-per-cent interest in the project into common shares of Regal;
• The shareholder agreement also provides that Mansa's 20-per-cent interest in the project will be a carried interest until such time as a prefeasibility study on the project is completed, and following such time, Mansa will be granted certain anti-dilution rights to maintain its interest in the project;
• In addition to certain piggyback and drag-along rights associated with Mansa's 20-per-cent interest in the project, the shareholder agreement will provide Regal with certain rights of first refusal and first offer in respect of any proposed disposition of Mansa's interest in the project.

Regal expects to use the net proceeds of the transaction to repay any outstanding secured indebtedness that remains outstanding as of closing of the transaction and to advance the exploration program at the project.

Regal's chief financial officer, Tony Louie, commented, "We are excited to welcome Mansa as a new strategic investor and expect that the proceeds of this investment will enable Regal to achieve its short- and medium-term goals for our Patagonia/Sunnyside project".

Closing of the transaction remains subject to customary closing conditions.

We seek Safe Harbor.