Dundee Sustainable Technologies Completes $5 Million Financing With Investissement Québec

MONTREAL, QUEBEC, May 15, 2015 – Dundee Sustainable Technologies Inc. (“DST”) (CSE: DST) is pleased to announce that it has completed a $5 million financing with Investissement Québec (the “Financing”), consisting of a secured convertible loan in an amount of up to $4 million (the “Loan”) and the issuance of 15,384,615 subordinate voting shares at a price of $0.065 per share, for proceeds to DST of $1 million (the “Private Placement”). The Financing will be used by DST to fund completion and operation of its demonstration plant, the installation of a concentrator and for working capital purposes.

The Loan, which is evidenced by a secured convertible debenture, will mature in five years, bears interest at a rate of 8% per annum, payable quarterly, and can be converted after one year at the holder’s option into subordinate voting shares of DST at a conversion price equal to the closing market price of the shares on the day prior to conversion. After the first anniversary of the Loan, DST has the right to redeem the Loan subject to a 10% premium.

Investissement Québec will advance the Loan to DST in a maximum of four instalments, during the construction and operation by DST of its demonstration plant, based on DST’s liquidity needs, subject to a number of conditions.

The Loan is secured by a hypothec over all of DST’s property other than its intellectual property and is guaranteed by Dundee Corporation, DST’s principal shareholder, in an amount of up to $1.5 million.

In connection with the Financing, DST has entered into an agreement with Investissement Québec granting Investissement Québec the right to appoint one member of the Board of Directors of DST.

Following the Private Placement, there are 247,090,816 subordinate voting shares and 50 million multiple voting shares of DST issued and outstanding. Under applicable securities legislation, the debenture and subordinate voting shares issued by DST are subject to a four-month hold period, expiring on September 16, 2015.

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