Drawdown of Greenstone Second Tranche of Funding

North River Resources plc / Ticker: NRRP / Index: AIM / Sector: Mining

31 October 2014

North River Resources plc

('North River' or 'the Company')

Drawdown of Greenstone Second Tranche of Funding

North River is pleased to announce that, further to its announcement on 4 July 2014 regarding the signing of a US$12.0m investment agreement with Greenstone Resources LP ("Greenstone Resources") (the "Agreement), the Company has now completed a number of key operational objectives at its flagship Namib Lead-Lead-Silver Project in Namibia ('Namib') and therefore satisfied the conditions precedent to draw down the second tranche of equity funds ('the Second Tranche') from Greenstone Resources.

The Second Tranche was pre-priced in the Agreement, at a price of 0.7 pence per ordinary share in the Company, and will raise proceeds of US$2,875,000 for the Company. The funds will be used to further advance the development of Namib, as the Company looks to re-commence production at its brownfield underground mine. Namib is located 25km from the town of Swakopmund and 55km from the port of Walvis Bay.

The exact number of shares to be issued to Greenstone Resources (the "Second Tranche Shares") will be determined by the exchange rate at the time of payment, which is expected to occur in approximately two weeks. Application for the Second Tranche Shares to be admitted to trading on AIM will occur shortly thereafter. Following the issuance of the Second Tranche Shares, and based on current exchange rates, Greenstone Resources is expected to have a 29.3 per cent. interest in the enlarged share capital of the Company. A further announcement will be made to the market to confirm Greenstone Resources' holding at the appropriate time.

The operational milestones which have been completed include a detailed mine design, completion of 3,585 metres of underground drilling, and approval of the environmental impact assessment. The Company will use the proceeds of the Second Tranche to work on further operational objectives required for the drawdown of the third tranche of funding under the Agreement, which will include a construction execution plan, detailed engineering design, debt financing and the award of construction contracts. The Company is also awaiting the grant of a Mining Licence from the Department for Mines & Energy for Namib.

Martin French, Managing Director of North River, said, "We are very pleased to have reached this series of project milestones and continue to work with our strategic partner Greenstone Resources. Project planning remains on track and there will be further news regarding this shortly."

**ENDS**

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