The loan facility in the amount of Cdn$250,000 bears interest at 10% and is secured with a floating charge security on the Altiplano Plant and all of the assets of Cortez, subordinated only to the existing first priority security interest and mortgage currently held by other Cortez lenders.

The loan facility and all interest due will only be payable should the shareholders of Cortez not approve the proposed amalgamation of Starcore and Cortez, whereby Starcore would acquire all of the outstanding shares of Cortez in an all-share transaction to be completed pursuant to a court approved Plan of Arrangement under the Business Corporations Act.

Should the Cortez shareholders disapprove the transaction at their shareholders meeting on July 9, 2015, the Loan and all interest due shall be payable on demand by Starcore at any time after the Meeting Date.