Regency Mines PNG joint venture agreement

Regency will agree to sell a 100% interest in its wholly owned subsidiary Canopus No 83 Limited, to a wholly owned subsidiary of DNi ("JVCo"), for a consideration consisting of redeemable convertible shares which will convert, on achievement of the objective of the JV, into a 50% interest in JVCo.

The objective of the JV is to achieve directly or indirectly a listing of JVCo on a stock market to fund ongoing resource delineation and the piloting of the DNi Process.

JVCo will hold a licence for production of up to 60,000 tpa nickel in concentrate using the DNi technology, and the right to a second licence for an approved second project of up to 30,000 tpa of nickel in concentrate.

Regency will enter into a sale and purchase agreement in agreed form with JVCo, and subsequently will agree with DNi an operating agreement under which they will work together in the management of JVCo company, with primary responsibility for operations resting with the DNi team.

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