Saxony Minerals & Exploration - SME AG: Issue of a 5.5-year corporate bond with a volume of up to EUR 30 million planned

Significant expansion of tungsten and fluorite production planned in the Ore Mountains

Halsbrücke (pta034/01.10.2019/16:45 UTC+2) Saxony Minerals & Exploration - SME AG plans to issue a 5.5-year corporate bond with a volume of up to EUR 30 million
- Significant expansion of tungsten and fluorite production planned in the Ore Mountains
- Start of the subscription phase on 17 October 2019

Halsbrücke, 1 October 2019 - Saxony Minerals & Exploration - SME AG, Halsbrücke (SME), a mineral resources company founded in 2012 with several explored deposits in Germany for supply-critical commodities such as tungsten and fluorite, plans to issue a corporate bond (ISIN: DE000A2YN7A3) with a volume of up to EUR 30 million on the basis of a securities prospectus approved on 30 September 2019. The bond will have a tenor of 5.5 years and matures on 30 April 2025. The coupon will be announced prior to the start of the public offering. The issue consists of a public offering and a private placement. In particular, private investors have the opportunity to submit subscription orders via the "DirectPlace" subscription functionality of the Frankfurt Stock Exchange from 17 October 2019 to 29 October 2019, 12:00 am (subject to early closing). At the same time, SME and BankM - Representative Office of flatex Bank AG, Frankfurt/Main, in their function as Global Coordinator and Bookrunner, will also carry out a private placement to qualified investors. GBR Financial Services GmbH acts as selling agent.

With the bond proceeds, the mining activities at the mine in Pöhla, Saxony, for tungsten and fluorite (also referred to as fluorspar) will be significantly expanded and the mine will be transferred to commercial production. SME has considerable reserves of tungsten, fluorite and tin (proven and probable according to the industrial standard NI 43-101) with a value of over EUR 700 million in the Ore Mountains mining area, which has been explored for a long time and in detail.

At the Pöhla mine, SME has access to an existing, usable infrastructure and tunnels as well as to exploration results from SDAG Wismut's tight network of drillings in this traditional ore mining area, the equivalent value of which is in the high double-digit million euro range at today's cost. In addition, SME has invested significantly in the existing mining infrastructure since 2016, in particular in a first shaft and in a pilot processing plant which has been processing raw ores since August 2019. By the beginning of 2022, the plant will be expanded and transferred to commercial production with an annual capacity of 400,000 tonnes. A good EUR 20 million is to be invested from the bond proceeds. The remainder of the proceeds will primarily serve as a liquidity buffer should, contrary to expectations, delays occur in the expansion of the mine or the processing plant. According to the company's plans, in 2025 the bond can be redeemed entirely out of free cash-flow.

Dr.-Ing. Klaus Grund, Management Board member of SME AG: "Not least because of the high raw material content, we will be among the top 25 % of tungsten mines worldwide in terms of costs and will thus be able to operate extremely competitively. Today, the German industry is one of the world's largest importers of tungsten and fluorite, mined particularly in China, Mexico, Vietnam and Russia. Here, we want and will make a contribution to reducing the dependence on imports and give the Ore Mountains back a piece of their mining tradition." SME AG concentrates its mining activities exclusively on Germany, where it operates in accordance with the highest standards and with the best possible environmental compatibility.

Further information: https://unternehmensanleihe.smeag.de

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 and, if applicable, Switzerland. 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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