Sentient IV Acquires Convertible Debenture of Era Resources Inc.

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

MONTREAL, May 6, 2016 /CNW Telbec/ - Sentient Executive GP IV, Limited ("Sentient IV") announces that it has acquired control over a convertible unsecured debenture in a principal aggregate amount of US$4,000,000 (the "May 2016 Debenture") issued by Era Resources Inc. ("Era Resources").  The May 2016 Debenture matures on December 31, 2017 and does not bear interest.  The principal amount of the May 2016 Debenture is convertible into fully paid and non-assessable common shares of Era Resources ("Common Shares") at a conversion price of Cdn.$0.45 per share.

Sentient IV has control or direction over 293,340 Common Shares (representing approximately 2.58% of the outstanding Common Shares), convertible unsecured debentures in a principal aggregate amount of US$38,426,130 (collectively, the "2014 Debenture"), a convertible unsecured debenture in a principal aggregate amount of US$7,500,000 (the "December 2014 Debenture"), a convertible unsecured debenture in a principal aggregate amount of US$7,000,000 (the "2015 Debenture"), a convertible unsecured debenture in a principal aggregate amount of US$3,000,000 (the "April 2016 Debenture" and, together with the 2014 Debenture, the December 2014 Debenture, the 2015 Debenture and the May 2016 Debenture, collectively, the "Debentures") and the May 2016 Debenture. The Debentures do not bear interest and the principal amount thereof is convertible into fully paid and non-assessable Common Shares at a conversion price of Cdn.$0.45 per share. The 2014 Debenture matures on September 30, 2016, the December 2014 Debenture matures on June 30, 2017 and the 2015 Debenture and the April 2016 Debenture mature on December 31, 2017. Assuming the conversion in full of the principal amount of the Debentures, Sentient IV would acquire control over a maximum of 151,256,684 Common Shares (including the 293,340 Common Shares referred to above).  These combined holdings would represent approximately 93.17% of the outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of the Debentures only.

Sentient IV acquired the May 2016 Debenture for investment purposes only and not with a view to materially affecting control of Era Resources.

Sentient IV relied under section 2.3 of National Instrument 45-106 – Prospectus and Registration Exemptions for the purchase of the May 2016 Debenture as Sentient IV is an "accredited investor" under that Instrument.

SOURCE Sentient Executive GP IV, Limited

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