Amortization of the remaining debt regarding Viscaria

Danderyd October 9, 2019

The Copperstone Board has today decided to amortize the remaining debt to Sunstone Metals Ltd of 5.2 MSEK including interest regarding the initial purchasing price for Avalon Minerals Viscaria AB. The initial purchasing price originally was 160m B-shares and 40 MSEK in cash. From today, only additional purchasing price remains, payable upon an approved environmental permit.

The amortization ahead of due date is made based on the fact that the Company’s financial position has been significantly improved since the end of the second quarter. The theoretical net debt position has decreased by approximately 50 MSEK and Copperstone today stands with sufficient cash at hand to administrate the going concern as well as the current drill program.

The most important milestones regarding the financial position since the end of the second quarter are:

Norrlandsfonden invests in a convertible debenture of 2 MSEK (5.1 MSEK by the end of the second quarter).

Sunstone, current short-term debt 0 (20 MSEK by the end of the second quarter).

Yorkville Advisors, current convertibles of 10 MSEK (16.5 MSEK by the end of the second quarter).

Bridge loan facilities and others, currently 7.5 MSEK (12.3 MSEK by the end of the second quarter).

Theoretical value on potential additional purchasing price to Sunstone regarding Viscaria (in the accounting estimated with a probability of 80% for an environmental permit) has decreased by almost 17 MSEK, based on the current share price of less than 50% of the corresponding price at Closing of Viscaria as per March 8, 2019.

Cash at hand (subsequent to the amortization of the Sunstone debt, yet prior to additional 2 MSEK funds from Norrlandsfonden) has increased from 6 MSEK to approximately 10 MSEK.

Thus, in total, Copperstone’s financial position has theoretically improved by approximately 50 MSEK since the end of the second quarter.*

* Please note: There is no guarantee that any write-down of the additional purchase price regarding Viscaria will be made in Business Review regarding the third quarter or any future quarterly report. This based on prudence concept.

For further information, please contact Michael Mattsson (CEO) at +46(0)580-88890, or info@copperstone.se or refer to Copperstone webpage: www.copperstone.se.

This press release contains insider information which Copperstone Resources AB (publ) is obliged to publish according to the EU market abuse regulation (MAR). The information was delivered by the above-mentioned contact for publishing October 9, 2019 at 16:15 CET.

Om Copperstone

Copperstone is a public company trading as COPP B on Nasdaq First North Growth Market in Stockholm, Sweden. The Certified Adviser is Augment Partners AB, info@augment.se, +46 8 505 65 172. The Company is focused on base and precious metal exploration in the vicinity of the internationally recognized mining districts of Kiruna and the Skellefte-field in northern Sweden. In addition, the Company also owns an exploitation concession in the Bergslagen mining region, in central Sweden.

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