trading halt, page-24

European Bonds

The €10 million funding is being made against future cash flows of the Marianas Magnetite Tailings Project and full production at Marianas will be financed out of the debt.

As part of the transaction, Condor has taken delivery of financial instruments able to act as additional collateral.

Pace

See below:

The Link: http://www.proactiveinvestors.com.au/companies/news/53664/condor-blanco-mines-edges-closer-to-10-million-funding-for-debt-issue-53664.html

"This allows a lower interest rate to be achieved relative to similar un-enhanced project finance.

Masafin Clearing Financial Company has now transferred €10 million in face value of Deutsche Bank AG Euro Bonds to Condor’s account.

These bonds have been transferred to Condor to act as additional security for the €10 million loan being made against upcoming cash flow from Marianas. The bonds have a current principal value of €10,618,200.

Phase 2 of the financing is to monetise the instrument backed borrowing. This will be done through a European bank with an existing portfolio of similar loans and is expected to happen in the next 30 days."

Article dated 13 March 2014