Minemakers Limited
ASX : MAK
TSX : MAK

Minemakers Limited

November 11, 2010 08:45 ET

Update on Minemakers' Loan to BCD Resources NL

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2010) -

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Minemakers Limited (TSX:MAK)(ASX:MAK)(NSX:MMS) ("Minemakers") and BCD Resources NL ("BCD") have held discussions regarding a possible restructure of the arrangements under the Loan Agreement between Minemakers' wholly-owned subsidiary, Minemakers (Gold) Pty Ltd ("MGPL"), as lender and BCD as borrower.

The Loan Agreement was for a facility of up to $15.0 million. To date, MGPL has advanced $8.5 million to BCD.

The discussions follow a period where a material adverse change had occurred in BCD's financial position and Minemakers concluded that it was not prepared to advance further loan moneys to BCD despite the prospect of being able to convert the loan amount to equity at the price of 2 cents per BCD share (subject to BCD shareholder approval).

To date, a restructure acceptable to Minemakers has not been achieved. Minemakers has given BCD until 5pm (Melbourne time) next Monday 15 November 2010 to put in place a restructure acceptable to Minemakers. If this does not occur then MGPL will be entitled to notify BCD that its obligation to provide the loan is terminated and the principal outstanding and any accrued interest and any other outstanding amounts are due and payable immediately.

Minemakers has been advised by BCD that BCD is working on various alternatives to put in place a restructure acceptable to Minemakers prior to the 15 November deadline.

MGPL's position as lender is secured by a fixed and floating charge over substantially all of the assets of the BCD Group. As first ranking secured creditor, Minemakers' anticipates a full return of all moneys advanced to BCD in due course should the Loan Agreement be terminated.

Minemakers' General Manager Projects Development, Neville Bergin, has tendered his resignation from the Board of BCD.

Andrew Drummond, Managing Director

ABN 48 116 296 541

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