Tellus announces successful capital raise to accelerate Sandy Ridge

Tellus Holdings Ltd (“Tellus”) is pleased to announce a successful equity capital raise of A$15 million at $0.75 per ordinary share. The capital raising was strongly supported by existing shareholders and introduced a range of new leading domestic institutional investors to Tellus’ register. The proceeds of the raising will be primarily used to advance the development of the 100% owned Sandy Ridge project in Western Australia.

“We are very pleased with the solid support of existing shareholders and we are also delighted to welcome new sophisticated high net worth and leading Australian institutional investors on to the register. This has strengthened our balance sheet and is a significant step forward in the execution of our strategy to grow our business,” Tellus Managing Director, Duncan van der Merwe said.

Tellus investors have recognised early the financial opportunities of Tellus’ assets and growth strategy, and also the importance of being part of the solution in providing much needed critical infrastructure involved in cleaning up the environment in Australia and also providing long term social and economic benefits to indigenous and local communities where we operate.

This successful capital raising has laid the foundation for the future with strong interest already received from leading institutional and infrastructure investment groups across Australasia to assist in the full development funding (debt and equity) for Sandy Ridge targeted for 2017 and for the future development of the Chandler project.

RBC Capital Markets acted as Financial Advisor and Lead Manager for the raising. Grid Investment Capital (Singapore) and Azure Capital (Perth) acted as co-managers. The Company’s share register manager Boardroom Pty Ltd has been instructed to allot the shares.

About RBC

Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC*. RBC are one of Canada's largest banks and one of the largest banks in the world, based on market capitalisation. RBC are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management, insurance, investor services and capital markets products and services on a global basis. RBC have over 80,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 37 other countries. * http://www.rbc.com/aboutus/index.html

About Grid Investment Capital

Based out of Singapore, Grid Investment Capital operates as Principal Investor holding a range of private/public equity interests globally. Along with its own investment profile, Grid Investment Capital boasts investment partnership relationships with a wide range of global institutional investors including hedge funds, private equity managers, specialist money managers, trading houses, banks, brokerages, family offices, and sophisticated investors. These relationships enable Grid investment Capital the ability to introduce third party investment opportunities on a bespoke basis to select capital partners with specialist interests across the region.

About Azure Capital

Azure Capital is a leading corporate advisory firm based in Perth, Western Australia. Established in 2004, Azure provides a range of advisory services, including in relation to mergers & acquisitions (M&A), capital markets and financing transactions. Azure also raises growth capital for earlier-stage clients through a strong network of relationships with local, national and international investors and intermediaries. Azure has the largest dedicated team of corporate finance professionals in the Western Australian market, and the senior team has extensive experience across a wide range of industries, transaction types and sizes.

About Tellus Holdings

Tellus Holdings Ltd ("Tellus") is an infrastructure development company in the business of creating economic, social and environmental value from waste, salt and clay resources. This dual revenue model involves mining the commodities salt and kaolin and backfilling the voids left from mining with equipment, archives or long term storage of waste. Tellus plans to store like-with-like materials, so as to create opportunities for the future long-term, storage, treatment and recovery of valuable materials or the permanent isolation of waste. Tellus supports releasing valuable materials back into the circular economy. Tellus’ business model mirrors world’s best practice solutions operating in the UK, Europe and North America. Tellusis developing the Chandler project in the Northern Territory (NT) and the Sandy Ridge project in Western Australia (WA). Tellus' 'Chandler Project' has been awarded Major Project Status by the NT Government.

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