Tiger Resources Ltd Completes Institutional Placement for A$20 million

Perth, Australia (ABN Newswire) - Tiger Resources Ltd. (ASX:TGS) ("Tiger" or "the Company") is pleased to announce a share placement to professional, sophisticated and other exempt investors at an issue price of A$0.34 per share to raise approximately A$20 million (US$18.7 million) ("Placement"), before expenses of the issue.

The Placement falls within the Company's issuing capacity under ASX Listing Rule 7.1. and therefore does not require shareholder approval. The Placement shares will on issue rank equally in all respects with all other shares in the Company.

Canaccord Genuity (Australia) Limited and UBS AG, Australia Branch acted as Joint Lead Managers and Bookrunners to the Offer.

In addition to the Placement, Tiger has sourced an additional US$25million offtake prepayment facility. The Company has signed a non-binding term sheet in relation to this facility, which it expects to be finalised over the coming weeks.

The net proceeds of the Placement and prepayment facility will be used for the following purposes:

- US$21 million to implement discretionary early works capital expenditure for Phase II and Phase III of the planned expansion programme at the Company's Kipoi Copper Project in the Democratic Republic of Congo ("DRC");

- US$10 million as a loan to Societe de Exploitation de Kipoi ("SEK"), a 60% subsidiary of Tiger and the operator of Kipoi, to settle the DRC Government's 5% interest in the Kipoi Project pursuant to the DRC Mining Code.

- The balance of funds to provide Tiger with additional working capital flexibility

The Company decided to bring forward a number of capital expenditure items currently budgeted in Phase II and Phase III of the SXEW expansion programme. These items include an upgrade to the power distribution network and site works for the installation of 30MVA electrical transformers, the early development of heap leach pads 2, 3 and 4, and the installation of a conveyor and stacker system which will replace the current 800m truck haulage requirement of ore to the heap leach operation. These initiatives are expected to materially reduce unit operating costs in Phase I as well as facilitate the implementation of the Phase II and Phase III expansion.

The working capital allocation is to provide adequate reserves against any unforeseen delays or costs during the SXEW ramp-up.


BACKGROUND

Tiger's 60%-owned Kipoi Project covers an area of 55 square km and is located 75km north-north-west of the city of Lubumbashi in the Katanga Province of the DRC. The project contains a 12km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.

The Company has reported JORC-compliant resources at four of the deposits: Kipoi Central, Kipoi North, Kileba and Judeira. The principal deposit is Kipoi Central, which contains a zone of high grade copper mineralisation within a much larger, lower grade global resource. Production targets are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.

Tiger is undertaking a phased development at Kipoi, where the Stage 1 heavy media separation (HMS) plant is in production and on the basis of recently completed grade control drilling now expects to process 3.5Mt of ore grading approximately 7% Cu to produce a total of 132,000 tonnes of copper in concentrate over its 42-month life.

Construction of the Stage 2 SXEW plant commenced in January 2013 and commenced first production of copper cathode in May 2014. The feasibility study (FS) for Stage 2 has confirmed the operation as a low-cost, high-margin project capable of producing 538,000 tonnes of copper cathode over 11 years, processing ore reserves from the Kipoi Central, Kileba and Kipoi North deposits and reject floats, slimes and medium grade ore stockpiles from the Stage 1 HMS operation.

It is envisaged that ore from Judeira and other deposits within the Kipoi Project area, as well as the Lupoto Project, will also be processed during the Stage 2 operations, providing additional returns and increasing the mineral resources available as feedstock to the Stage 2 SXEW plant.


About Tiger Resources Limited:

Tiger Resources Ltd. (ASX:TGS) has established itself as a producing copper/cobalt company with excellent growth potential after making the transition from an explorer. We have a highly-rated portfolio of properties, all strategically located on the world renowned Katanga Copperbelt in the Democratic Republic of the Congo (DRC), central Africa.



Contact:

Tiger Resources Ltd.
Brad Marwood, Managing Director
Tel: +61-8-6188-2000
Email: bmarwood@tigerez.com

Stephen Hills, Finance Director
Tel: +61-8-6188-2000
Email: shills@tigerez.com

Nathan Ryan, Investor Relations
Tel: +61-420-582-887
Email: nryan@tigerez.com