Balamara Resources Limited is pleased to announce that it has resolved to undertake a conditional fully underwritten renounceable pro-rata rights issue to raise approximately $5.26 million before costs to underpin ongoing exploration, feasibility and business development activities. Under the Rights Issue, all eligible shareholders on the Balamara register at the close of business on 3 June 2013, will have the right to subscribe for three (3) new shares for every eleven (11) shares held at an issue price of 7.5 cents ($0.075) per share under an offer made in a prospectus which has been lodged with ASIC today. The Rights Issue has been fully underwritten by Patersons Securities Limited and sub-underwritten by the Company’s major shareholder, Ample Skill Limited. Any short-fall will be issued in two tranches: up to $2 million within 15 business days of 24 June 2013 (the “Closing Date”), and the balance within 45 business days of the Closing Date, subject to shareholder approval (to be sought at a meeting to be held in or about early July 2013).

Holders of shares who exercise all of their rights may also also apply for additional ordinary shares in the Rights Issue if and to the extent that other shareholders do not exercise their rights. As this is a renounceable Rights Issue, the rights to be issued are tradeable on the ASX from 28 May 2013, being the Ex-Date. Further information in relation to the Rights Issue (including the timetable) is set out in the prospectus, which is available from www.asx.com.au. A copy of the Prospectus, together with a personalised entitlement and acceptance form, will be sent to eligible shareholders shortly after the Record Date.    Persons should consider the prospectus in deciding whether to acquire shares under the Rights Issue, and will need to complete the personalised entitlement and acceptance form that will accompany the prospectus.

Balamara’s Managing Director, Mr Mike Ralston, said the proceeds from the Rights Issue would put the Company in a very strong position to deliver on its growth strategy, including ongoing exploration and feasibility activities at its key base metals projects in Central Europe. “Thanks to the support of our major shareholder, Ample Skill Limited, Balamara will be in an exceptionally strong position following completion of this rights issue,” Mr Ralston said. “Against the backdrop of very difficult equity market conditions for junior explorers, this is a tremendous result and provides all shareholders with the opportunity to participate in this milestone capital raising to underpin the Company’s future growth,” he added.