Endomines’ sale of Kalvinit to Cove Resources enters final stage

• Endomines AB (“Endomines”) and Cove Resources Limited (“Cove”) agree terms for early payment of total acquisition consideration and execute a Deed of Variation to the Sale and Purchase Agreement for the acquisition of Kalvinit Oy (“Kalvinit”).
• Endomines and Cove have agreed that if Cove completes an equity capital raising of not less than AUD 3,000,000 by 15 May 2013, then Cove will proceed with the purchase of the Kalvinit Oy Shares by paying the acquisition price in full at Closing.
• Cove has undertaken that, in the event that the equity capital raising is not completed by 15 May 2013, it shall use its best endeavours to complete the purchase of the Shares.

Endomines entered on 5 July 2012 into an agreement with Cove whereby Endomines agreed to sell all of the shares in its wholly owned subsidiary Kalvinit to Cove, if Cove would find the results of a feasibility study to be performed before 15 April 2013 satisfactory. Cove has confirmed and acknowledged that the completion of the feasibility study, as a condition to complete the transaction, is no longer a condition for Cove’s obligation to complete the transaction.

Should Cove elect to pay to Endomines the entire outstanding purchase price at Closing, the amount will be amended to EUR 2,550,000 adjusted by the net of Company cash less any assumed external debt at Closing. Alternatively, the original purchase price of EUR 2,850,000 less any assumed external debt at Closing and adjusted by company cash will apply. Out of this EUR 850,000 is to be paid at Closing and the remaining balance in two instalments in accordance with the earlier agreed time schedule.