Ann: Coris Bank Settlement and Bishop Resources Funding, page-6

SCHEDULE – KEY LOAN TERMSThe key terms of the loan provided by Bishop Resources are as follows:•Loan amount: A$15 million.•Interest rate: 12% p.a (15% p.a on default).•Loan period: 36 month (early repayment permitted after 18 months) with the loan repayment to be made from production proceeds.•Loan tranches: A$3.9 million provided immediately, with the balance to be provided in subsequent tranches as required by the Company.•Security: Subject to the approval of the board of directors of MGO, the loan will be securedby a pledge of all shares held by Bassari Mauritius in MGO (comprising 63% of MGO’s issued capital), a mortgage by MGO over the mining licence and the land comprising the mining area of the Project (consisting of a land with an area of 121.83km2), together with related guarantees and pledges.•Repayment Amount: Loan balance and interest, plus the issue, subject to Bassari shareholder approval, of 20 Bassari options for each A$1 of the loan amount (each exercisable at $0.015 within 5 years of grant), totalling 300,000,000 options. The options have an indicative value of $1.5 million using the valuation methodology set out below.The Black & Scholes option pricing model and the assumptions set out below have been used to determine the indicative value of the options to be issued to Bishop Resources. Assumptions:Valuation date29 October 2021Market price of Shares$0.013 (last traded price)Exercise price$0.015Expiry date5 years from grantRisk free interest rate2%Expected volatility50%Value of each option$0.005