Sunkar Resources Plc. Proposes Issuance of Convertible Loan Notes to Sun Avenue Partners Corp.

Sunkar Resources Plc. (Sunkar) announced that it has published a circular (the Circular) to seek Shareholder approval for the proposed fundraising of up to USD 12.8 million through the issue of convertible loan notes to Sun Avenue Partners Corp. (Sun Avenue). A general meeting of the Company will be held on February 8, 2012 to consider the resolutions. Sunkar announced on 23 December 2011 that the Company had entered into a conditional subscription agreement with Sun Avenue, an investment and trading company registered in the British Virgin Islands, for the subscription by Sun Avenue in two tranches of up to USD 12.8 million of Convertible Loan Notes. The Convertible Loan Notes will convert in full, in accordance with their terms, into an aggregate of 174,476,283 Ordinary Shares, representing 51% of the fully diluted issued share capital of the Company. The first tranche of the Investment, comprising USD 2.8 million First Convertible Loan Notes, was completed on 17 January 2012. The second tranche of the Investment, comprising the issue of USD 10 million Second Convertible Loan Notes, is subject to certain conditions including the passing of the Resolutions at the General Meeting.