Carpathian

Carpathian Gold Inc. was the subject of a court-appointed receivership commenced April 22, 2015 in the Ontario Superior Court of Justice under BIA s. 243 and provincial Judicature Act authority. The proceeding is closed. The secured debt at its centre was owed to Brio Finance Holdings B.V., which took over Macquarie Bank Limited's position as Administrative Agent and Collateral Agent under the Facilities by credit bid at a discount of about US$41.9 million, and is not itself a commercial lender. The assignment ran through an Assignment dated February 17, 2016 and a CAARA dated March 31, 2016. The Receiver was informed that obligations under the Financial Assets Agreements and Security total approximately US$273 million. A security opinion concluded Brio held a first ranking security interest in the Limited Receivership Assets, subject to statutory and possessory liens, PMSIs and priority claims arising by operation of law, resting on an October 8, 2013 general security agreement over all of Carpathian's undertaking, property and assets other than the Romanian Project assets, together with January 11, 2013 charges over the Barbados pledged securities and the Dutch pledged memberships.