Heatherdale announces loans

Heatherdale Resources Ltd. announces a loan agreement in respect of loans being made by certain directors and officers of the Company and other unrelated lenders in the aggregate of approximately $250,000.

The Loans will be secured, will bear interest at a rate of prime plus 2% per annum and will be repayable after one year or earlier under certain circumstances. In connection with the Loans, Heatherdale will issue to the Lenders loan bonuses of approximately 5 million warrants in the aggregate (the “Bonus Warrants”) to purchase common shares in its capital at $0.05/share. The Bonus Warrants will be non-transferrable and the common shares issuable under the Bonus Warrants will be subject to a four month plus one day holding period commencing from the date of issuance of the Bonus Warrants. The Bonus Warrants will expire on the one year anniversary of the respective Loans. The Loans will be used for general working capital purposes.

Concurrently with closing of the Loans, the Company will grant a security interest in all of its assets to Hunter Dickinson Services Inc. (“HDSI”) to secure payment of present and future trade payables owing by the Company under its existing agreement with HDSI for the provision of technical, geological, corporate communications, administrative and management services. In exchange for such grant of security interest, HDSI will (i) agree to not to demand payment of a current trade payable of $2,115,138 prior to January 31, 2016, and (ii) continue providing services to the Company, notwithstanding non-payment of such current trade payable. HDSI is an existing service provider to the Company that is owned and controlled by certain of the Lenders, among other persons.

The Loans and issuance of Bonus Warrants are subject to acceptance by the TSX Venture Exchange.

Heatherdale Resources Ltd. is a Vancouver-based exploration and development company focused on advancing its copper-gold-zinc-silver mine development opportunity at the Niblack Project.

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