Tantalus Rare Earths : Update on outstanding payment by investor in rights issue

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Tantalus Rare Earths AG: Update on outstanding payment by investor in rights issue

- Investor did not remedied his payment default

- The Company has appointed Doonbeg Capital Ltd. London as adviser to arrange new funding

Grünwald, Germany, 8 July 2015 - As announced on 2 July 2015, one investor who has provided the Company with a subscription deed signed on 25 April 2015 containing the subscription of 750,000 new shares from the latest capital increase had not made the respective payment of EUR 6 million in time.

As the Company still has not received the outstanding amounts it has become necessary to recognize the risk that the investor will not voluntarily pay the subscription fee. The Company will now claim the investor for damages resulting from this non-payment.

To secure the financing for the project the Company has appointed Doonbeg Capital Ltd London as its financial advisor to arrange further financing and as part of that to place the 750,000 new shares to other investors in a form of a private placement. Next major milestone of the Company's rare earths project in Madagascar is to obtain the permit for the pilot mining plant which is estimated to be reached later this year.
Considering the Company's current cash position and the lack of the EUR 6 million from the one investor mentioned above, the Company is of the opinion that it can continue with its ongoing operations as planned, however new funding should be secured before the end of August 2015.
About Tantalus Rare Earths AG

Tantalus Rare Earths AG (ISIN DE000A1MMFF4) is a Germany-based exploration company, engaged in the development of rare earths in Madagascar. Tantalus's shares are quoted on the 'Primärmarkt' of the Düsseldorf Stock Exchange.

For further information please visit our website http://www.tre-ag.com or contact:

Thomas Hoyer, CEO, Tantalus Rare Earths AG
Tel.: + 49 1512 4017229
[e-mail]

Markus Kivimäki, EVP, Tantalus Rare Earths AG
Tel.: [phone]
[e-mail]

German media contact:
rikutis consulting
Falk v. Kriegsheim
Tel.: [phone]

London media contact:
Bell Pottinger
Charles Vivian
Marianna Bowes
Tel.: [phone]

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