Sentient IV acquires convertible note of Andover Mining Corp.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Sept. 10, 2012 /CNW Telbec/ - Sentient Executive GP IV, Limited ("Sentient IV") announces that, in connection with a private placement with Andover Mining Corp. ("Andover"), it has acquired control over a US$1.5 million principal amount convertible note (the "August Note") of Andover. The August Note matures on September 1, 2014, does not bear interest and can be converted into Andover shares at $0.235 per share at the discretion of Sentient IV.

Assuming the conversion in full of the principal amount of the August Note, Sentient IV would acquire control over 6,303,191 Andover shares, representing approximately 5.40% of the outstanding Andover shares, calculated on a partially diluted basis assuming the full conversion of the principal amount of the August Note only at an exchange rate of Cdn$1.00=US$1.0127 (Bank of Canada noon rate on August 29, 2012).

The acquisition of the August Note, together with Andover shares acquired since May 1, 2012, represents an increase of approximately 7.06% in Sentient IV's holdings of Andover shares since that date.

In addition to the August Note, Sentient IV has control over 4,097,500 Andover shares, a US$2.5 million principal amount convertible note (the "April Note") and an additional US$2.5 million principal amount convertible note (the "September Note") issued by Andover. The April Note and the September Note mature on May 1, 2014 and October 1, 2012 respectively, do not bear interest and can be converted into Andover shares at $0.32 and $0.50 per share respectively, at the discretion of Sentient IV.

Assuming the conversion in full of the principal amount of the September Note, the April Note and the August Note, Sentient IV would acquire control over 23,053,035 Andover shares (including the 4,097,500 Andover shares over which Sentient IV has control), representing approximately 17.81% of the outstanding Andover shares, calculated on a partially diluted basis assuming the full conversion of the principal amount of the September Note, the April Note and the August Note only at an exchange rate of Cdn$1.00=US$1.0127 (Bank of Canada noon rate on August 29, 2012).

Sentient IV acquired the August Note for investment purposes only and not with a view to materially affecting control of Andover.


SOURCE: Davies Ward Philips & Vineberg LLP

For further information:

Please contact Sue Bjuro at (345) 946-0933.

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Davies Ward Philips & Vineberg LLP

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