British Columbia · NOI

The purpose of this Report is to provide information to this Court on: (a) The background information with respect to Feronia and an overview of its business; (b) The current status of the NOI Proceedings and the Proposal Trustee’s activities to date; (c) Feronia’s cash flow projection for the period July 23, 2020 to October 16, 2020, and a summary of actual receipts and disbursements for the period July 23 to August 14, 2020; (d) Feronia’s application for Orders, among other things: (i) approving the sale transaction (the “ Sale Transaction ”) contemplated in the purchase agreement dated July 17, 2020 (as amended, the “ Purchase Agreement ”) between Feronia and Straight KKM 2 Limited (“ KKM ”) on behalf of an affiliated entity, Feronia KNM (the “ Purchaser ”); (ii) vesting all of the Purchased Assets free and clear of any security and charge other than the Permitted Encumbrance (as such terms as defined in the Purchase Agreement) to the Purchaser; (iii) authorizing Feronia to execute all other ancillary documents and agreements required to complete the Sale Transaction; (iv) waiving the requirement of the Company to satisfy certain relief from the Reporting Requirements (as discussed and defined below) under applicable securities legislation; (v) extending the time period for Feronia to file its proposal pursuant to the BIA up to and including October 6, 2020; (vi) granting the Administration Charge (as discussed and defined below); and (vii) approving this Report and the activities of the Proposal Trustee set out herein

Cash-flow statement · 14 August 2020