Altaley Restructures US$26 Million Debt with Trafigura and Nyrstar

Altaley Mining Corporation (“Altaley” or the “Company” (TSX-V: ATLY; OTC Pink: SOHFF; Frankfurt: TSGN) is pleased to announce that the Company has executed debt restructuring agreements with Trafigura Mexico S.A. de C.V. and Nyrstar Canada (Holdings) Ltd., to restructure debt in the amount of US$26,027,240 under the summarized terms outlined below. This debt restructuring allows Altaley to move over US$20 million of the restructured amount from short term debt to long term debt to markedly improve its financial position.

Key terms of the restructuring are outlined in the following table:

Lender	Project	Total Debt Restructured	Term	Interest Rate	Grace Period
Trafigura Mexico S.A. de C.V.	Tahuehueto	US$14,720,840	32 months	LIBOR (1Y) + 6%	8 months
Trafigura Mexico S.A. de C.V.	Campo Morado	US$4,024,678	26 months	LIBOR (3M) + 5%	8 months
Nyrstar Canada	Campo Morado	US$7,281,722	26 months	10%	N/A
Totals		US$26,027,240

The above loan restructuring agreements are subject to Altaley closing its US $12 million Accendo Banco Mid Term Loan Facility where documentation is at an advanced stage and anticipated to close within the next two weeks. See press release dated Feb 23, 2021 for additional details.

“We are extremely pleased to provide shareholders and investors this important and exciting news of achieving a negotiated US$26 million debt restructuring” states Ralph Shearing, CEO, “Within several weeks we anticipate closing the last step in our company’s recently announced Accendo Syndicate funding plan to provide Altaley a fully funded solution to complete the ongoing construction of its flagship Tahuehueto gold mine. On behalf of our Company, I want to thank the extraordinary effort of the Trafigura and Altaley teams as well as Accendo syndicate members; Endeavour Financial, Empress Royalty and Accendo Banco who all have worked tirelessly over the past months to achieve this milestone.”    

GRA Enterprises LLC
The Company would also like to announce that it has retained GRA Enterprises LLC to provide marketing and investor relations services pursuant to a consulting agreement. The Consultant shall provide marketing and investor relation services through the consultant’s “Inflation.us” email distribution lists, blog posts, and the Instagram account of Consultant’s President Gerard Adams.

In consideration of these services, the Company has agreed to pay the Consultant a fee of US$100,000 for a 12-month contract. The Consultant is an arm’s length party to the Company and currently owns 1,250,000 common shares of the Company as at the date hereof but may purchase securities in the Company from time to time for investment purposes. The consulting agreement with the Consultant is subject to acceptance by the TSX Venture Exchange. 

About Altaley Mining Corporation

Altaley Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.

Altaley’s Tahuehueto mining project is in north-western Durango State, Mexico where construction has been advanced to an estimated 60% of completion. Upon closing of the recently announced US$25 million funding package, Altaley will have funding available to finish construction of its 1,000 tonne per day processing facility and related mine infrastructure to initiate production of gold, silver, lead, and zinc in concentrates at Tahuehueto. The Company is targeting initial pre-production by end of 2021 and ramping up to full production capacity during Q1 2022.

Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of approximately 2,150 tonnes per day and is currently estimated to be Mexico’s 6th largest zinc producer.

Visit: www.altaleymining.com

On Behalf of the Board of Directors

(signed) “Ralph Shearing”

Ralph Shearing, P. Geol, President and Director

Cautionary Note Regarding Production Decisions and Forward-Looking Statements

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned recommencement of mining operations at Campo Morado; and other possible events, conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as “plans,” “expects,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that recommencement of operations at Campo Morado will proceed as planned; the continuity of the price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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

For further information about Altaley Mining Corporation, please contact:

Glen Sandwell
Corporate Communications Manager
[email protected]
Tel: +1 (604) 684-8071