Anatolias Copler senior debt facility approved at US$62.5 million

Anatolias Copler senior debt facility approved at US$62.5 million

Anatolia Minerals Development Limited announces that Bayerische Hypo- und Vereinsbank AG, a member of UniCredit Group has received final credit approval to fully underwrite and provide US$62.5 million in senior project debt for the Company’s Copler Gold Project in Turkey.

The Debt Facility has a six year term. There is no penalty for early repayment. Interest is variable based on the U.S. Dollar LIBOR rate plus margin. The Company may elect to fix the interest rate through an interest rate swap facilitated by HVB.

Closing of the Debt Facility will occur upon finalization of documentation, which is largely complete. Drawdown of the Debt Facility is contingent upon customary conditions precedent. Management anticipates all conditions precedent should be completed by the second quarter 2009, clearing the way for drawdown. Among the required conditions precedent, the Company will be required to fully fund the project equity component and provide limited gold price protection during the initial ramp-up year of production. Management estimates that purchasing gold put options for approximately 40,000 ounces of gold at a price of US$750/ounce will meet the price protection requirements. This represents price protections on about 35% of the initial year’s estimated production of 113,000 ounces. No forward sales or other forms of fixed delivery obligations are anticipated under current market conditions.

The approved debt facility is slightly smaller than the US$70 million anticipated at the time HVB was mandated. Management evaluated the additional costs and risks associated with a recently requested hedging program that would have been required by the bank to extend the facility above US$62.5 million and concluded it was in the best interest of the Company’s shareholders to limit the size of the facility to the approved amount.

Edward Dowling, President and CEO of Anatolia stated, “Receiving HVB’s approval for this fully underwritten Debt Facility is excellent news and an extraordinary financial milestone for Anatolia. This speaks to the highly compelling economic potential at Copler. We are very pleased with HVB’s partnership to arrange this facility.”

Cutfield Freeman & Co Limited, London, England, has been acting as advisors to Anatolia on the transaction.

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