CDB provides $100 million loan to Perilya to facilitate its acquisition of Globestar Mining Corporation

In 2010, China Development Bank and Perilya, Ltd. signed a $100 million long-term facility (loan) agreement. The loan carried the following borrowing terms: a 5-year maturity and an interest rate of 3-month LIBOR plus a margin of 3.3%. It was secured by (i.e. collateralized against) the assets of Cerro de Maimón copper and gold mine operations in the Dominican Republic. The proceeds of the loan were to be used by the borrower to facilitate its acquisition of Globestar Mining Corporation, a company responsible for the Cerro de Maimón copper-gold mine in the Dominican Republic. By the end of 2010, the CDB loan had achieved a 91.2% disbursement rate ($91.2 million out of $100 million). Perilya made its first principal repayment of US$4.6 million in January 2011. The loan’s outstanding amount was $86.6 million as of December 31, 2011. Perilya, Ltd.’s acquisition of Globestar Mining Corporation was completed in December 2010. Cerro de Maimón, is an operating copper/gold mine in the Dominican Republic. Cerro de Maimón hosts approximately 6 million tonnes of open-pit copper/gold reserves, as reported in a National Instrument 43-101 compliant technical report dated August 2007 by independent consultants. The Cerro de Maimón property, and surrounding 3,391 hectare exploitation concession, was acquired from Falconbridge Dominicana (Falcondo) in April 2002. Falcondo retained a 2% NSR of which Perilya purchased 50% in 2008. The company owns 100% of the deposit, subject to the remaining 1% NSR retained by Falcondo. The Dominican Secretary of State of Environment and Natural Resources granted the Environmental License to Perilya to mine the Cerro de Maimón mineral deposit in 2004. There is potential for expanding the reserve base of the operation from satellite deposits in Perilya's 100% owned Maimón Concession surrounding the Cerro de Maimón deposit. The Maimón Concession covers approximately 85% of the Maimón massive sulphide belt. operationsOpen pit mining operations Construction of the approximately $69 million open pit mine, processing facilities and related infrastructure began in December 2006 and was completed in October 2008. The operation has separate processing facilities for the sulphide and oxide ores. Copper is recovered from the sulphide ores with co-product gold and silver. The oxide ore is treated to recover gold-silver doré. Mining is done by a contractor using a fleet of articulated trucks, rigid body trucks and hydraulic excavators. The mined ore is sent to the appropriate sulphide or oxide ore stockpiles and waste rock to one of the several waste rock disposal piles on the property. Both the sulphide and oxide plants use the same crushing and conveying system. The two-stage crushing system reduces the ore to minus ¾ inch. The sulphide ore is processed through a 1,300 tonne per day flotation circuit using large capacity circular flotation cells followed by a re-cleaner flotation column. Primary grinding is done with a 12' x 14' ball mill with 80% passing 150 microns. A second 11' x 13' regrind mill grinds the rougher flotation concentrate to 80% passing 35 microns. The overflow from the regrind cyclone passes directly to the cleaner cells before going to the flotation column. The concentrate from the flotation column is then thickened and filtered in order to reduce the final moisture content of the concentrate to about 6%. View of processing facilities at Cerro de Maimón Concentrate is trucked to the port of Río Haina on the southern coast of the Dominican Republic where it is loaded and shipped to customers overseas. The oxide ore is processed via grinding in an 8' x 15' ball mill followed by conventional agitated cyanide leaching, counter current decantation thickening and Merrill-Crowe gold and silver recovery at a rate of 700 tonnes per day. Tailings and potentially acid generating (PAG) waste rock are deposited in a co-disposal facility designed by Golder Associates. Perilya practices concurrent reclamation at the Cerro de Maimón property. As soon as an affected area is ready for reclamation, previously reserved topsoil is replaced and the area is re-planted with native species grown in the Company's nursery. At mine closure all infrastructure will be removed and affected areas covered with topsoil and re-vegetated. At Cerro de Maimón, Perilya has been working with local government and communities since 2005 in order to meet the Company's environmental and sustainable development objectives. Activities undertaken by Perilya include: Over 80% percent of employees at Cerro de Maimón come from within Monseñor Nouel Province. Perilya is committed to Interior view of sulphide flotation plant building employment and training of people from local communities. The Fundación Mina Cerro de Maimón (the Cerro de Maimón Mine Foundation) has been established as a non-profit foundation dedicated to improving education and healthcare in the nearby villages of El Copey and Las Martinez. Perilya will provide funding for this foundation and the communities will participate in decisions on distribution of the funds. Improvements to the main access road through the villages of El Copey and Los Martinez. Sponsorship of classes in agriculture, accounting, computer skills, concrete block-laying and cookery and nutrition in the local communities. Provision of direct support to churches and schools in El Copey and Los Martinez.

Additional details

1. Perilya Limited is an Australian base and precious metals mining and exploration company, which owns and operates the iconic Broken Hill zinc, lead, silver mine in NSW Australia and, with the successful takeover of GlobeStar Mining Corporation in December 2010, the Cerro de Maimón copper, gold & silver mine in the Dominican Republic. The Company’s operations at the Broken Hill mine went through a resizing in 2008 which has resulted in significant improvement in productivity, profitability and cashflows resulting in an extension to the life of mine to approximately 10 years. In addition to its mining operations, Perilya Limited has an active exploration and development program which includes exploration and development programs in the Broken Hill region NSW Australia and in the Flinders region of South Australia in the vicinity of its Beltana zinc silicate project. Perilya Limited also has extensive exploration programs underway on its Dominican Republic mining and exploration concessions that include a laterite nickel project and highly prospective copper, gold & silver targets near its Cerro de Maimón mine. Perilya Limited is reviewing options for the development of the Mount Oxide Copper Project in the Mount Isa region in Queensland. In addition, Perilya Limited has a 60% interest in the Moblan lithium project located in Quebec, Canada, which is currently undergoing a development study (the remaining 40% is held by SOQUEM, which is an investment company owned by the Quebec Government in Canada). Perilya Limited is owned 53.37% by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, China’s third largest zinc producer. 2. Globestar Mining Corporation is a copper and gold producer with operations in the Dominican Republic. GlobeStar’s Cerro de Maimón operation is the first copper-gold mine in the Dominican Republic and the Caribbean Islands. Globestar Mining Corporation is engaged in the exploration and development of copper, gold and nickel deposits in the Dominican Republic and in the acquisition of copper and gold properties in major Latin American mining districts. 3. AidData has estimated the all-in interest rate by adding 3.3% to average 3-month LIBOR in 2010 (0.34%).

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