Saxony Minerals & Exploration - SME AG: interest coupon for new corporate bond to expand German tungsten and fluorite production set at 7.75% p.a.

Subscription phase from 17 to presumably 29 October 2019

Halsbrücke (pta030/10.10.2019/14:40 UTC+2) Saxony Minerals & Exploration - SME AG: interest coupon for new corporate bond to expand German tungsten and fluorite production set at 7.75% p.a.
- Subscription phase from 17 to presumably 29 October 2019
- Equity base strengthened parallel to bond issue

Halsbrücke, 10 October 2019 - Saxony Minerals & Exploration - SME AG (SME AG), Halsbrücke, a mineral resources company founded in 2012 with several explored deposits in Germany for supply-critical commodities such as tungsten and fluorite, has set the interest coupon for the planned corporate bond (ISIN: DE000A2YN7A3) at 7.75% p.a. based on investor feedback. The bond issue with a volume of up to EUR 30 million and a tenor of 5.5 years is based on the securities prospectus approved on 30 September 2019.

Along with the issue of the bond, the company's equity was increased by around EUR 1.7 million by both existing and new shareholders. As a result of the capital increase, the number of shares rose by 129,771 to 3,475,383 shares with a nominal value of EUR 1 each. The capital increase is expected to be notarized on 10 October 2019 and entered in the commercial register shortly thereafter.

Dr.-Ing. Klaus Grund, Management Board member of SME AG: "Our company has the only tungsten mine in Germany, while the German industry is one of the world's largest importers of this supply-critical commodity. In the mine in Pöhla-Globenstein (Ore Mountains) alone, we have significant proven reserves of tungsten, fluorite and tin. Thanks to our lean cost structure, we can operate very competitively in international comparison. We will use the bond proceeds to significantly expand production there."

With the issue of the 7.75% corporate bond, SME AG also wants to give private investors the opportunity to invest in commodities made in Germany. Therefore, subscription orders can be submitted via the "DirectPlace" subscription functionality of the Frankfurt Stock Exchange from 17 October 2019 to presumably 29 October 2019, 12:00 am (subject to early closing). At the same time, SME AG and the BankM - Representative Office of flatex Bank AG, Frankfurt/Main, will also carry out a private placement. GBR Financial Services GmbH acts as selling agent.

Important note:
This publication is neither an offer to sell nor a solicitation to make an offer to purchase any securities and is not for distribution, transmission or publication, directly or indirectly, in whole or in part, in or into the United States of America, Canada, Australia and Japan or any country in which the distribution of this publication is illegal.

The securities which are the subject of this publication will be offered by the Issuer exclusively in the Federal Republic of Germany and the Grand Duchy of Luxembourg by way of a public offer on the basis of the securities prospectus approved by the Commission de Surveillance du Secteur Financier ("CSSF") on 30 September 2019 as well as by way of a private placement with qualified investors in Germany and in certain jurisdictions in the European Economic Area. There will be no public offering outside the Federal Republic of Germany and the Grand Duchy of Luxembourg.

In particular, the securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration requirements.

This publication does not constitute a prospectus. The investment decision of interested investors with regard to the securities mentioned in this publication should be made solely on the basis of the securities prospectus prepared by the Issuer in connection with the public offering of these securities and approved by the CSSF and the terms and conditions of the Bonds, which can be viewed on the website of the Issuer at https://unternehmensanleihe.smeag.de in each case.

The German version of this disclaimer in the according press release is deemed to be legally binding.

Contact:
Frank Ostermair, Linh Chung
Better Orange IR & HV AG
Phone: +49 89 8896906 14
Email: frank.ostermair@better-orange.de

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