GBM Resources Limited entered into an AUD 10 million loan agreement with National Federal Capital Ltd. (NFC) (Loan Agreement). Pursuant to the terms of the Loan Agreement, the AUD 10 million was to be provided in two tranches of AUD 5 million each. Tranche 1 was due to be paid on 21 November 2016 whilst Tranche 2 is due to be paid on 28 February 2017. Part payment of Tranche 1 for AUD 1.5 million was received on 7 December 2016. The balance of Tranche 1 was rescheduled to be received by 13 January 2017. However, the Board of GBM now advises that this balance has not been received. Accordingly, NFC is in breach of the terms of the Loan Agreement. The company previously advised on the 21 November 2016 that the Loan Agreement was unconditional and further confirms that it is in compliant with its obligations under the loan agreement.