Adamus Resources Limited - Credit-Approved Finance Package

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /

PERTH , Western Australia , Dec. 21 /CNW/ - Adamus Resources Limited (ASX andTSXV: ADU) ("Adamus" or "the Company") is pleased to announce it has accepted a credit approved offer from Macquarie Bank to provide debt, bonding and hedging facilities ("the Facility") for the development of its Southern Ashanti Gold Project ("Southern Ashanti") in Ghana .

The Facility completes the debt financing requirements for Southern Ashanti, and will lead to Adamus becoming a 100,000+ ounce p.a. gold producer by early 2011. The offer incorporates the following components:

    
    Project Loan:      US$60M or US$70M at Adamus' option

    Hedge Requirement: Minimum 252,000 ozs (US$60M loan)
                       Maximum 290,000 ozs (US$70M loan)

    Bonding Facility:  US$6M
    

Formal documentation is expected to be completed in January 2010 .

The Facility proceeds will be applied towards the development cost of the Southern Ashanti Project which is currently forecast at US$105M. This closely compares to Adamus' earlier estimates after allowing for exchange rate variations.

Drawdown of the Facility is not expected to be required until the June 2010 quarter. The loan amortisation schedule requires full repayment of the Facility by 30 September 2014 .

The Facility has been structured so that Adamus can, having now received credit approval, take advantage of the current strong gold price as it has the ability to lock in its hedging at any time prior to completion of formal loan documentation or drawdown of the Facility.

Drawdown of the Facility is subject to usual conditions precedent including the completion of a minimum gold hedging programme of 252,000 ounces representing 24% of the 1,068,000 currently Proved and Probable Ore Reserve ounces.

Development of the Project is on schedule with plant construction set to commence in January 2010 .

    
    Selection Process
    -----------------
    

Adamus engaged independent consultant Optimum Capital to conduct a tendering process to ensure that the Company was provided with a competitive and suitably structured debt financing package. Proposals were received from a number of banks and non-bank financiers.

The Company is pleased with the outcome of this process. Commenting on the debt financing Managing Director Mark Bojanjac said:

"The debt financing selection process was rigorous and saw many options provided to Adamus. The competitive nature of the financing resulted in Adamus securing finance at considerably better terms than were offered earlier in the year."

"We believe the facility offered by Macquarie Bank is provided on attractive terms and is appropriately covenanted. There are no additional equity participation rights in relation to the Facility. This preserves the potential upside from Southern Ashanti for our shareholders."

"Adamus is also encouraged by Macquarie Bank's considerable experience in funding West African gold projects. Their debt financing support has provided Adamus with an independent stamp of approval for our project."

"Having achieved the debt financing milestone, Adamus is well positioned to becoming a mid-tier gold producer in early 2011."

About Adamus

Adamus Resources Limited is a Perth-based mineral exploration company, listed on Australian Securities Exchange (ASX), TSX Venture Exchange (TSX-V) and Frankfurt Stock Exchange Open Market (FSE).

The Company's primary focus is on exploring, realising and expanding the economic potential of the Southern Ashanti Gold Project in Ghana , West Africa . The Project encompasses approximately 665km(2) of tenure in the Ashanti Gold Belt - host to over 100moz of gold and the Project boasts excellent access to port and road infrastructure. Ghana is a stable West African country with a long history and some of the world's largest gold mining operations. Gold production is vital to the national economy. Members of the Adamus Board and management team have proven records in mineral exploration, project development and project financing.

    
    Kind regards
    ADAMUS RESOURCES LIMITED

    (signed)

    Mark Bojanjac
    Managing Director/CEO
    

Information in this announcement pertaining to ore reserves was compiled by Glenn Williamson an employee of Mining Resources Pty Ltd, who is a Member of The Australasian Institute of Mining and Metallurgy. He qualifies as a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Glenn Williamson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code. Glenn Williamson consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward Looking Information.

Certain statements included in this announcement, including information regarding Adamus' plans with respect to its mineral properties, constitute forward-looking information. Forward-looking information includes, among other things, statements regarding expected operations. Forward-looking information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable by the Company, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Investors are cautioned that forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.

For further information: please see our website: www.adamusresources.com.au or contact: Mark Bojanjac - Managing Director/CEO, [phone], email: [email protected]; Mark Connelly - Executive Director/COO, [phone], email: [email protected]; For media enquiries contact: Brian Thornton - Farrington National, [phone], email: [email protected]