outstandingwww.585ccc.com

TSX-V:EOXwww.
euromaxresources.
comEUROMAXANNOUNCESCOMPLETIONOFCONVERTIBLEDEBTFINANCINGSWITHEBRDANDCCCFORAGGREGATEGROSSPROCEEDSOFAPPROXIMATELYUSD$10,000,000EuromaxResourcesLtd.
–Vancouver,May20,2016(TSX-V:EOX):("Euromax"orthe"Company"),ispleasedtoannouncethat,furthertoitsannouncementonApril29,2016,theCompanyhastodaysatisfiedtherequireddisbursementconditionsunderaconvertibleloanagreement(the"ConvertibleLoanAgreement")withtheEuropeanBankforReconstructionandDevelopment(the"EBRD"),andthegrossloanproceedsofUSD$5,000,000(the"LoanDisbursement")havebeendisbursedbytheEBRDandareexpectedtobereceivedbytheCompanynextweek.
Inaddition,theCompanyisalsopleasedtoconfirmthatithastodaycompleteditspreviouslyannouncedprivateplacementofconvertibledebentures(the"ConvertibleDebentures")pursuanttoaconvertibledebenturesubscriptionandinvestorrightsagreementdatedApril29,2016(the"SubscriptionAgreement").
TheConvertibleDebentureswereissuedtoanaffiliateofConsolidatedContractorsCompanyGroup("CCCGroup").
TheConvertibleLoan,theConvertibleDebenturesandanysecuritiesconvertedintothereunderaresubjecttothecustomaryfourmonthholdperiodforaprivateplacement.
TheLoanDisbursementandtheproceedsfromtheConvertibleDebentureswillbeusedtofundtheon-goingpre-developmentwork,includingfeasibility,capex,optimisationandthepreparationofthefront-endengineeringdesignfortheIlovicaprojectintheFYRMacedonia.
ImmediatelypriortothecompletionoftheLoanDisbursement,theEBRDhadownershipandcontroloveratotalof23,368,547commonsharesoftheCompany,representing19.
99%oftheissuedandoutstandingcommonshares.
AssumingaconversionbytheEBRDofalloftheamountsowingorpotentiallyowingundertheConvertibleLoanAgreement,aconversionpriceforallamountsundertheConvertibleLoanAgreementofC$0.
40pershare,usingaBankofCanadanoonrateon19May2016,theEBRDwouldacquireownershipandcontroloveratotalof23,302,395commonsharesofEuromax,representing16.
63%oftheissuedandoutstandingcommonshares.
Immediatelyfollowingsuchaconversion,togetherwiththecommonsharesalreadyownedbyEBRDandassumingconversionofthewarrantsoftheCompanyheldbytheEBRD,theEBRDwouldhaveownershipandcontrolover52,585,942commonsharesofEuromax,representing36.
00%oftheissuedandoutstandingcommonshares.
TheEBRD,OneExchangeSquare,London,EC2A2JN.
UnitedKingdom,enteredintotheConvertibleLoanAgreementforinvestmentpurposes.
Dependingonmarketconditionsandotherfactors,theEBRDmayfromtimetotimeacquireand/ordisposeofsecuritiesofEuromaxorcontinuetoholditscurrentposition.
AcopyoftheearlywarningreportrequiredtobefiledwiththeapplicablesecuritiescommissionsinconnectionwiththistransactionwillbeavailableonSEDARatwww.
sedar.
comandcanbeobtainedbycontactingUlmasMusalievat+442073387224.
Forfurtherinformationregardingtheforegoingtransactions,pleaseseethematerialchangereportoftheCompanydatedMay9,2016,preparedandfiledpursuanttoCanadiansecuritieslawsundertheCompany'sSEDARprofileatwww.
sedar.
com.
CopiesoftheConvertibleLoanAgreementandtheSubscriptionAgreementarealsoavailableundertheCompany'sSEDARprofileatwww.
sedar.
com.
TSX-V:EOXwww.
euromaxresources.
comAboutEuromaxResourcesLtd.
EuromaxhasamajordevelopmentprojectinMacedoniaandanexplorationservicescompanyinBulgaria.
WearefocusedonbuildingandoperatingtheIlovitzacopper/goldprojectinMacedonia,aswellprofitablydeployingthewealthofexplorationexperiencewithinourBulgarianExplorationServicessubsidiary.
Forward-LookingInformationThisnewsreleasecontainsforward-lookingstatementsincludingbutnotlimitedtostatementsregardingtheexpecteduseofproceedsoftheLoanDisbursementandtheConvertibleDebentures.
Incertaincases,forward-lookinginformationmaybeidentifiedbysuchtermsas"proposed","expects","may","shall","will",or"would'.
Inmakingtheforward-lookingstatementsinthisrelease,theCompanyhasappliedcertainfactorsandassumptionsthatarebasedoninformationcurrentlyavailabletotheCompanyaswellastheCompany'scurrentbeliefsandassumptionsmadebytheCompanyincluding,withrespecttomineralresourceestimates,thatthekeyassumptionsandparametersonwhichsuchgeologicalinterpretationsarebasedarereasonable,thattheCompanywillbeabletoobtainthenecessarysupplies,equipment,personnelandanyfinancingrequiredtocarryoutitsplannedactivities,thattheCompany'sobjectivesconcerningtheIlovicaprojectcanbeachievedandthattheCompany'sactivitieswillproceedasexpected.
AlthoughtheCompanyconsiderstheseassumptionstobereasonablebasedoninformationcurrentlyavailabletoit,theymayprovetobeincorrect,andtheforward-lookingstatementsinthisreleasearesubjecttonumerousrisks,uncertaintiesandotherfactorsthatmaycausefutureresultstodiffermateriallyfromthoseexpressedorimpliedinsuchforward-lookingstatements.
Suchriskfactorsmayinclude,amongothers,thatthatmineralresourcesarenotasestimated,unexpectedvariationsinmineralresources,gradeorrecoveryrates,actualresultsofexplorationactivitieswillbedifferentthananticipated,dataandassumptionsunderlyingthegeologicalinterpretationsmayprovetobeinaccurate,incompleteortohavebeenincorrectlyinterpreted,thattheCompanywillnotbeabletoobtainthenecessarysupplies,equipment,personnelandanyadditionalfinancingrequiredtocarryoutitsplannedactivities.
ReadersarealsoencouragedtoreviewallCompanydocumentsfiledwiththesecuritiesauthoritiesinCanada,includingtheManagementDiscussionandAnalysisinrespectoftheCompany'srecentfinancialstatementsundertheheading"OperationalandOtherBusinessRisks",whichdocumentsdescribematerialfactorsandassumptionsandrisksthatapplytotheforwardlookingstatementsinthisrelease.
Readersarecautionednottoplaceunduerelianceonforward-lookingstatements.
TheCompanydoesnotintend,andexpresslydisclaimsanyintentionorobligationto,updateorreviseanyforward-lookingstatementswhetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbylaw.
NeitherTSXVentureExchangenoritsRegulationServicesProvider(asthattermisdefinedinthepoliciesoftheTSXVentureExchange)hasreviewedoracceptsresponsibilityfortheadequacyoraccuracyofthisrelease.
Formoreinformation,pleasevisitwww.
euromaxresources.
comorcontact:SteveSharpe,President&CEOT:+44(0)2036672970E:ssharpe@euromaxresources.
co.
ukEuromaxResourcesLtd.
10thFloor,595HoweStreetVancouver,BCV6C2T5,CanadaCorrespondenceAddress:5thFloor,12BerkeleyStreet,London,UnitedKingdomW1J8DT