CST: 25/08/2016 16:55:24   

Early Warning Press Release of NIL Funding Corporation

219 Days ago

NORTH CHARLESTON, SOUTH CAROLINA--(Marketwired - Jan 18, 2016) - The Article 6 Marital Trust created under the First Amended And Restated Jerry Zucker Revocable Trust Dated 4-2-07 (the "Trust") issues this press release pursuant to Part 3 - Early Warning Requirements of National Instrument 62-103 - The Early Warning System and Related Takeover Bid and Insider Reporting Issues with respect to Nordex Explosives Ltd. (the "Issuer"). On January 14, 2016, NIL Funding Corporation, a wholly-owned indirect subsidiary of the Trust, acquired 1,000,000 common share purchase warrants of the Issuer (a "Warrant"), in connection with providing its consent for a loan made to Jograh Investments Inc. ("Jograh"). Each Warrant is exercisable to acquire one common share (the "Common Shares") of the Issuer at a price of $0.20 until August 26, 2017.

Immediately following the acquisition, the Trust's holdings of equity securities or securities convertible into equity securities of the Issuer consists of an aggregate of 2,930,000 Common Shares representing approximately 14.35% of the issued and outstanding Common Shares of the Issuer and NIL's holdings of equity securities or securities convertible into equity securities of the Issuer consists of 1,000,000 Warrants representing approximately 50% of the issued and outstanding warrants of the Issuer. Following the acquisition, on a partially diluted basis (assuming full exercise of the Warrants held by NIL and no other convertible securities of the Issuer held by any other person were exercised or converted into Common Shares), NIL would hold 1,000,000 Common Shares, which together with the Common Shares held by the Trust would represent approximately 18.35% of the issued and outstanding Common Shares of the Issuer.

NIL acquired the Warrants for investment purposes pursuant to a consent agreement dated January 13, 2015, which was entered into between NIL, Jograh and the Issuer. The Warrants were issued to NIL from the Issuer's treasury. The Warrants were acquired under the accredited investor exemption under National Instrument 45-106 - Prospectus and Registration Exemptions. Depending on economic or market conditions or matters relating to Issuer, NIL or the Trust may choose to either acquire additional securities or dispose of currently held securities of the Issuer.

A copy of the related Early Warning Report may be obtained by contacting Michael Bender, Corporate Secretary of NIL, by telephone at (843) 744-5174 or by written request mailed to him at 4838 Jenkins Avenue, North Charleston, South Carolina 29405.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NIL Funding Corporation
Michael Bender
Corporate Secretary
(843) 744-5174