• Braveheart Resources Inc.

Braveheart Resources Inc. Eliminates $2.4 Million in Debt

August 14, 2020

Calgary, Alberta--(Newsfile Corp. – August 14, 2020) – Braveheart Resources Inc. (TSXV: BHT) (OTCQB:RIINF) ("Braveheart" or the "Company") hereby announces that it has reduced its debt by $2.4 million through the early conversion of 40% of its $6.0 million Series A Convertible Debenture (the “Debenture”) into shares of the Company.  Effectively the Company will issue 12 million shares of Braveheart at a conversion price of $0.20 per share to 2166687 Alberta Ltd. (“2166687”) as resolution of a portion of its convertible debt.  2166687 is a holding entity for approximately 90 underlying note holders.

Previously, on March 11, 2020, the Company announced the restructuring of its Debenture that was originally negotiated with CuVeras LLC and the Secured Debenture Holders of CuVeras, operating through 2166687.  Under the restructured agreement with 2166687, the maturity date of the original Debenture was extended for an additional two years and will now mature on January 21, 2024.  The Debenture will continue to accrue annual interest of 1% and 2% respectively in the second and third year of the Debenture.  The Debenture will accrue annual interest of 5% for each of the fourth and fifth years of the Debenture.  The conversion price was amended such that immediately, up to 40% of the principal amount of the Debenture can be converted into shares of Braveheart at a price of $0.20 per share.  After 48 months from the original date of issuance, or January 21, 2023, the balance of the principal amount of the Debenture can be converted into shares of Braveheart at a price of $0.30 per share.  If the remaining 60% of the Debenture is fully converted into common shares of Braveheart, an additional 12,000,000 common shares will be issuable to the underlying note holders of 2166687. The amendments to the original Debenture have been approved by the TSX Venture Exchange.

Peter Lacey, a Director of 2166687, stated “We are pleased with the progress that Braveheart is making towards the restart of the Bull River Mine project.  Many of our note holders have been involved with the project from as early as 2011.  The early conversion of a portion of the Debenture reflects our belief that Braveheart is undervalued in the current market and the Company has the potential for share price appreciation through the elimination of debt and further advancement of the project”.

Ian Berzins, President and CEO, commented “I am extremely pleased that we have been able to work closely with our Debenture note holders to restructure the original Debenture and now agree to an early conversion of 40% of the Debenture, thereby reducing our debt by $2.4 million.  The fact that the note holders have committed to an early conversion at a price that is above our current trading levels, demonstrates their strong support for the project and their confidence in management”. 

About Braveheart Resources Inc.
Braveheart is a Canadian based junior mining company focused on building shareholder value through exploration and development in the favourable and proven mining jurisdictions of the East and West Kootenays of British Columbia. Braveheart's main asset is the Bull River Mine project which has a current mineral resource containing copper, gold and silver. The property is fully developed with 21,000 metres of underground developments in terms of ramps, raises and drifting on mineralized structures on seven levels. The surface infrastructure includes a 750 tonne per day conventional mill with adjoining crushing facilities as well as offices and mine maintenance facilities. The property is connected to grid power and there is year-round access to the site by paved and all-weather roads.

Contact Information
Braveheart Resources Inc.
Ian Berzins
President & Chief Executive Officer
403-512-8202
admin@braveheartresources.com
Website: www.braveheartresources.com

Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.