Inflection Management Corporation Limited - Conversion of Silver Bear Resources Promissory Notes

TORONTO, ONTARIO--(Marketwired - Aug. 30, 2017) - Inflection Management Corporation Limited ("Inflection") announces that it has delivered to Silver Bear Resources Plc ("Silver Bear") a notice of conversion under its 15% convertible promissory notes due December 31, 2017 (the "Convertible Notes") issued by Silver Bear.

In its notice of conversion, Inflection exercised the right to convert its entire C$13,515,432.53 principal amount and all of the C$3,524,116.54 accrued and unpaid interest thereon into ordinary shares of Silver Bear ("Ordinary Shares") at a conversion price equal to C$0.045 per Ordinary Share (the "Conversion"). As a result of the Conversion, Inflection will cease to hold any Convertible Notes and will acquire 378,656,649 Ordinary Shares from treasury.

The Convertible Notes, of which an aggregate principal amount of C$18,020,576.71 is outstanding on identical terms, are held by Inflection and another holder. Based on there being 163,248,351 issued and outstanding Ordinary Shares as of August 18, 2017, Inflection previously held 41,176,471 Ordinary Shares representing approximately 25.2% of such issued and outstanding Ordinary Shares, and its Convertible Notes represented 75.0% of the principal amount of the outstanding Convertible Notes.

On the basis that the other holder of Convertible Notes has announced that it will also convert all of the outstanding principal amount of its notes and the accrued and unpaid interest thereon, but assuming no other new issuances of Ordinary Shares prior to the completion of the conversions by both Inflection and such other holder, it is anticipated that Silver Bear will have an aggregate of 668,047,513 Ordinary Shares outstanding immediately thereafter. Of these, Inflection will hold 419,833,120 Ordinary Shares, representing approximately 62.8% of the then issued and outstanding Ordinary Shares. The Ordinary Shares acquired by Inflection upon the Conversion will represent approximately 56.7% of such total issued and outstanding Ordinary Shares.

The purpose of the Conversion by Inflection was to adjust its holdings of debt and shares of Silver Bear. Inflection will continue to monitor the business, prospects, financial condition and potential capital requirements of Silver Bear. Depending on its evaluation of these and other factors, Inflection may from time to time in the future increase or decrease its ownership, control or direction over the Ordinary Shares or other securities of Silver Bear through market transactions, private agreements, subscriptions from treasury or otherwise.

For further information, including a copy of the corresponding report filed with Canadian securities regulators, see contact information below.