Resource Capital Fund V L.P. and Resource Capital Fund VI L.P. Announce Extension of Maturity Date of Notes Issued by First Bauxite Corporation and Option to Acquire Common Shares and Notes from Pacific Road Resources Funds

DENVER, Aug. 2, 2017 /CNW/ - Resource Capital Fund V L.P. and Resource Capital Fund VI L.P. (collectively "RCF") announce that RCF has entered into an amending agreement (the "Amending Agreement") with the Pacific Road Resources Funds ("PRRF") and First Bauxite Corporation (the "Corporation") to extend the maturity date of RCF's and PRRF's outstanding convertible notes due August 1, 2017 (the "Notes") to June 30, 2018. In addition, RCF entered into an option agreement with PRRF, pursuant to which PRRF granted Resource Capital Fund VI L.P. ("RCF VI") an option (the "Option") to acquire all of PRRF's 13,127,984 common shares of the Corporation ("Common Shares") and all of PRRF's C$9,847,901 aggregate principal amount of Notes. The Option may be exercised at any time until June 30, 2018 for an aggregate exercise price of US$3,000,000. RCF VI paid US$750,000 to PRRF in exchange for the Option.

RCF has not acquired or disposed of any securities at this time. Upon the exercise of the Option, RCF VI would acquire all of the 13,127,984 Common Shares held by PRRF, representing approximately 11.17% of the currently issued outstanding Common Shares, and C$9,847,901 aggregate principal amount of Notes. The Notes can be converted into Common Shares at a conversion price of C$0.10. If fully converted, the principal amount of the Notes would be convertible into 98,479,010 Common Shares. Prior to entering into the Option, RCF owned and controlled 53,127,984 Common Shares, representing approximately 45.19% of the issued and outstanding Common Shares, and C$8,000,000 and US$19,422,861 aggregate principal amount of Notes. Upon exercise of the Option, RCF would hold an aggregate of 66,255,968 Common Shares, representing approximately 56.36% of the currently issued and outstanding Common Shares and C$17,847,901 and US$19,422,861 aggregate principal amount of Notes. Assuming exercise of the Option and conversion in full of the aggregate principal amount of the Notes on the date hereof at a conversion price of C$0.10, the aggregate principal amount of Notes held by RCF would be convertible into 434,577,551 Common Shares, plus accrued interest.

The Option in respect of the Notes and Common Shares was entered into for investment purposes. RCF will evaluate its investment in the Corporation from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease its shareholdings in the Corporation as circumstances require.

SOURCE Resource Capital Fund V L.P.

For further information: and to obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see the Corporation's profile on the SEDAR website www.sedar.com or contact: Resource Capital Fund V L.P, 1400 Sixteenth Street, Suite 200, Denver, CO, 80202,Telephone: (720) 946-1444, Attn: Molly Campbell; Resource Capital Fund VI L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell


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