DuSolo Fertilizers Inc.

DuSolo Fertilizers Inc.

August 10, 2015 16:45 ET

DuSolo Announces Bridge Loan Facility and Board Restructuring

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 10, 2015) - DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) ("DuSolo" or "the Company") announced today that the Company has implemented an amicable reconstitution of its board of directors (the "Board") following discussions between DuSolo and its major shareholders.

DuSolo has been in discussions with shareholders regarding the Company's financing needs and its annual and special meeting of shareholders to be held on Monday, August 10th, 2015 (the "Meeting"). In connection with these discussions, Tembo Capital Mining Fund LP. ("Tembo"), the Company's largest shareholder which controls approximately 15.56% of DuSolo's issued and outstanding common shares, has agreed to provide a short-term C$750,000 bridge loan facility (the "Bridge Loan") to DuSolo to increase its cash position in the face of the Company's lower than anticipated sales revenue.

The longer than expected rainy season and the delayed government subsidies to farmers have contributed to depressed demand for agricultural fertilizers in the early part of this year's planting season. The purpose of the Bridge Loan is to provide funds for DuSolo's Bomfim Phosphate Project in Brazil and for general working capital purposes. The Bridge Loan carries an interest rate of 10% per annum and will have a term of three months.

As a result of these discussions with the Company's major shareholders and to facilitate the Bridge Loan, DuSolo's Board has been reconstituted as follows: each of Shane Brown, Matthew Hornor, Livia Mahler and Brett Sandler have resigned as directors of DuSolo effective as of today and will not stand for re-election at the Meeting as contemplated by the management information circular of the Company dated July 9, 2015 (the "Circular"). Eran Friedlander will remain as a director of DuSolo.

At the Meeting, management of the Company will put forward a resolution to reduce the size of the Board to 4 members and Peter Ruxton, Darren Bowden, David Farrell and Eran Friedlander will be the nominees proposed by management to be elected as directors of the Company for the ensuing year.

Mr. Darren Bowden has more than 22 years experience in developing and managing mines. Most recently, he was the Vice President of Operations of Nyrstar USA Inc., where his responsibilities were focused on the day to day operations, and strategic development and optimization of the company's mining portfolio, which includes 7 underground mining projects in 6 countries. Prior to Nyrstar, Mr. Bowden was with Glencore for 6 years, working in nickel, coal and prior to that spent time in silver, lead, zinc and copper/gold mines working for various companies. He has also held positions with Anglo Coal Australia. Mr. Bowden received his BE (Civil, Honours) from the University of New South Wales, Australia, and is completing his MBT from the same institution. He is also a graduate of the Australian Defense Force Academy.

Mr. David Farrell is President of Davisa Consulting, a private consulting firm working with junior to mid-tier global mining companies. He has 20 years of corporate and mining experience, and has negotiated, structured and closed more than US$25 billion worth of M&A and structured financing transactions for junior and mid-tier natural resource companies. Prior to founding Davisa, Mr. Farrell was Managing Director of Mergers & Acquisitions at Endeavour Financial, and a lawyer at Stikeman Elliott. Mr. Farrell serves as a director of both Fortuna Silver (TSX:FVI)(NYSE:FSU) where he sits on the audit, compensation, and corporate governance committees, and Northern Vertex Mining (TSX VENTURE:NEE) where he sits on the audit and compensation committees. He graduated from the University of British Columbia with a B.Comm. (Honours, Finance) and an LL.B. and was called to the bar in both British Columbia and England.

Mr. Friedlander said: "On behalf of DuSolo and all its shareholders, we wish to thank each of Mr. Brown, Mr. Horner, Ms. Mahler and Mr. Sandler for their service to the Company and its shareholders over the past years."

For further information regarding the Meeting, please refer to the Circular filed under the Company's profile on SEDAR at www.sedar.com.


DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.

The Company's shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.

On behalf of DuSolo Fertilizers Inc.

Eran Friedlander, Director

Forward-looking statements

Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of DuSolo which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and DuSolo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

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

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