Tata Implementation, page-6

On the 8^th of March, 1 month after the initial agreement was signed with Tata, the following was announced.

ACCELERATED REVENUE AND SALES PIPELINE RESULTS IN REDUCED CAPITAL REQUIREMENT

Highlights:
* Syntonic has now received the first revenue from its partnership with Tata Communications.
* In addition, accelerated business opportunities generated at the Consumer Electronics Show (Las Vegas) and Mobile World Congress (Barcelona) has resulted in anticipated future cash flows significantly beyond initial expectations.
* As a result, the previously proposed capital raising requirement of A$7,000,000 has been cancelled. The Company will now raise the minimum amount required by ASX for recompliance which will reduce dilution and remove any need for a share consolidation.
* Pacific has set the offer price at A$0.02 each for Pacific shares to be issued under the
capital raising.
* Transaction fees associated with the acquisition have also been substantially reduced.

Pacific Ore Limited (“Pacific” or “Company”) (ASXSF) is pleased to advise that it will now only undertake the minimum required capital raising at A$0.02 per share to meet the re‐compliance requirements of Chapters 1 and 2 of the ASX listing rules. The previously announced capital raising of A$7,000,000 has been cancelled. Additionally, Pacific will not undertake any consolidation of its issued share capital in relation to the acquisition of Syntonic.

As previously announced, Pacific has entered into an agreement to acquire 100% of the issued share capital of US-based Syntonic Wireless, Inc. (“Syntonic”), a leader in mobile connected services with the market leading solutions, Freeway by Syntonic® and Syntonic DataFlex®.

The changes to the capital raising requirements have been facilitated by sooner than expected revenues from recent business activities including Syntonic’s distribution and license agreement with Tata Communications, Inc. (“Tata Communications”) and Freeway by Syntonic’s service launch in Southeast Asia. In addition, Syntonic’s participation at the Consumer Electronics Show (Las Vegas) in January and at the Mobile World Congress (Barcelona) in February has accelerated Syntonic’s business engagements with global tier-1 mobile carriers and major content providers seeking to expand their audience reach with sponsored data.

With the sooner than expected revenues and utilizing Pacific’s existing cash reserves (A$2.3 million at 31 December 2015) and other net tangible assets (A$0.4 million at 31 December 2015), Syntonic will have sufficient funding for its business expansion in Europe, Southeast Asia, and Latin America.

“Cash flows from within the business have been realized earlier than anticipated”, said Gary Greenbaum, co-founder and CEO, Syntonic. “We had positive business discussions at Mobile World Congress confirming significant opportunities globally for our sponsored data services, Freeway by Syntonic, and our cost effective mobile split billing solution, Syntonic DataFlex.

“With reduced capital requirements to move the business forward, we believe it was in the best interest of Pacific and Syntonic to minimize respective shareholder dilution at current levels. We are in process of completing commercial discussions based on the overwhelming level of demand from operator customers in Europe, Southeast Asia, and Latin America”.