• Non-binding term sheet signed with Gerald Group for US$50M funding
• Funding to assist with development of Kangankunde Rare Earths Project in Malawi
• Gerald to be granted offtake rights for monazite concentrate from Phase 1 and partial rights for Phase 2

Lindian Resources Limited (ASX:LIN) has executed a non-binding term sheet with Gerald Group ('Gerald') for the proposed provision of a US$50 million Stage 1 funding and offtake package to assist with the development of the Kangankunde Rare Earths Project in Malawi. The term sheet contemplates that Gerald will provide funding through a combination of equity, convertible instruments, and various prepayment loan facilities, which are intended to be partially repaid through the supply of monazite concentrate to be produced from the Project pursuant to an offtake agreement. The funding package will be used to finance capital expenditure associated with the Phase 1 Project development (estimated at US$40 million) and to assist with operational expenditure for creating the initial run-of-mine stockpile. Upon the first tranche of funding becoming effective, Gerald will have the right to nominate directors to the boards of Lindian's Malawi subsidiaries and on the board of Lindian. Lindian is continuing to progress negotiations on the binding terms of the proposed financing and offtake arrangements with Gerald, in parallel with the completion of Gerald's due diligence process.

The proposed US$50 million funding package from Gerald Group is intended to be used to fund the capital expenditure associated with the Phase 1 development of the Kangankunde Rare Earths Project, estimated at US$40 million in the feasibility study, as well as to assist with operational expenditure for creating the initial run-of-mine stockpile.