Rusoro Mining Limited
TSX VENTURE : RML

Rusoro Mining Limited

June 22, 2010 15:33 ET

Rusoro Announces Second Payment of $13 Million Principal of the Restructured Senior Secured Exchangeable Loan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2010) - Rusoro Mining Ltd. ("Rusoro") (TSX VENTURE:RML) is pleased to announce that on June 22, 2010 ("Closing Date") it made the second installment of the outstanding restructured senior secured exchangeable loan which was due on July 10, 2010 (the "Loan") as per the definitive Amendment and Restatement Agreement relating to the Loan with Petropavlovsk PLC (formerly Peter Hambro Mining PLC) as lender and agent in respect of the Loan and the other lenders.  All amounts in this news release are in United States dollars unless otherwise stated.

The syndicate of lenders includes Petropavlovsk PLC, Lansdowne U.K. Equity Fund Limited, Lansdowne U.K. Equity Fund L.P., Lansdowne U.K. Strategic Investment Master Fund Limited, Endeavour Financial Corporation (formerly Endeavour Mining Capital Corp.), and BlackRock Natural Resources Hedge Fund Limited (collectively, the "Lenders").

As required by the Amendment and Restatement Agreement, Rusoro made the first principal payment of $17 million to the Lenders on June 10, 2010, together with all accrued but unpaid interest on the Loan to that date, which totaled $3 million. As further required by the Amendment and Restatement Agreement, Rusoro made the second principal payment of $13 million to the Lenders on June 22, 2010, together with all accrued, but unpaid interest. The Amendment and Restatement Agreement further provides, among other things, that:

  1. Rusoro will make a final principal payment of $30 million (the "Reduced Principal") by no later than June 10, 2011;
  2. The Reduced Principal will carry interest at the rate of 10% per annum, which will be payable in equal installments on September 10, 2010, December 10, 2010, March 10, 2011 and June 10, 2011;
  3. The Loan exchange price in respect of the Reduced Principal has been adjusted to C$0.40 per Rusoro common share (subject to certain anti-dilution adjustments); and
  4. Rusoro issued to the Lenders warrants to purchase 30 million Rusoro common shares at an exercise price of C$0.40 per share exercisable until January 10, 2012.

ON BEHALF OF THE BOARD

Andre Agapov, Chief Executive Officer and President.

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

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