Subscription Agreement Loan Notes

Interest rates: Convertible bonds often have zero or low interest rates, or when interest is collected, they are wound with the principal (often called “capitalized interest”) and converted into shares. In the current climate, we are starting to see interest, sometimes at interest rates of up to 10%, payable in cash (either at maturity on a coiled basis or at regular intervals), by converting only the main amounts into shares. The investor has not entered into an agreement to pay brokerage or research fees to a person in connection with this agreement or the transactions contemplated here. As noted above, convertible bonds and/or ASAs may be an alternative to equity financing, which is currently difficult to reconcile (although companies that issue convertible bonds at particularly high interest rates or contract short-term ASAs may, in any case, seek “eligible financing” within a relatively short period of time). GUERNSEY, Channel Islands, 22. January 2020 (GLOBE NEWSWIRE) — Following Serabi Gold Plc`s january 22 press release, 2020 Greenstone Resources II L.P. (“Greenstone”) announces that it has signed a subscription agreement (the “subscription decision”) that it has agreed to subscribe to $12,000,000. (equivalent to $15,684,000 using the closing price of $1.307 on January 21, 2020, published on the Bank of Canada website) Convertible Loan Notes), subject to meeting the terms of the underwriting statement (including the agreement of the required majority of the Company`s shareholders). Subject to the terms provided for this purpose, the investor will irrevocably subscribe to the debt securities in the amount set on the signing page and to be paid as indicated in Section 2.

The investor recognizes that the bonds are subject to transfer restrictions, as defined in this agreement, notes, the Securities Act and all other documents requested by the company. The explanatory references are, for the most part, attached to Appendix A and are inserted by reference. Bonds are issued during a series of closures (a “closing” each) and the deadline for issuing a number of bonds is the date the company received subscriptions from investors, including the investor, exceeding the total amount of $100,000 (the “closing date”).