Montero Signs Non-Binding Term Sheet with Strategic Investor to Develop Rare Earth Project

Montero Mining and Exploration Ltd. has signed an arm's-length, indicative, non-binding term sheet with a Strategic Investor ("Investor"), whereby the Investor has proposed to provide equity funding at project level towards the development of Montero's Wigu Hill Rare Earth Element mine and refinery ("Rare Earth Project").

The indicative non-binding term sheet sets out the terms and conditions of a potential agreement. A due diligence is still to be undertaken by the Investor, the results of which are subject to the approval by the Executive Management and Board of Directors of the Investor.

Dr. Tony Harwood, President and CEO of Montero commented, "The potential business case will be directed at developing an integrated Rare Earth Refining company. Use of proceeds from the proposed funding shall include proving up further Rare Earth Element resources at Montero's high-grade Wigu Hill Rare Earth Element project in Tanzania in conjunction with the development of a rare earth refinery subject to feasibility work".