NGEX RESOURCES INC....other risks and uncertainties described under the heading “Risks Factors”...

NGEX RESOURCES INC. Secondary Listing on NASDAQ OMX Stockholm

NGEx RESOURCES INC. | Summary 1

IMPORTANT INFORMATION This prospectus has been prepared in conjunction with the contemplated secondary listing (the “Listing”) of common shares in NGEx Resources Inc. (the “Shares”) on NASDAQ OMX Stockholm AB (“NASDAQ OMX Stockholm”). Prior to the Listing, there was no public market for the Shares in Sweden. The “Company”, “NGEx” or “NGEx Resources” means NGEx Resources Inc. (corporation number 425318-3) and/or one or more or all of its subsidiaries, as it may apply. In this prospectus, unless otherwise specified or the context otherwise requires, all references to “Canadian dollars” and “CAD” are to Canadian dollars,

all references to “U.S. dollars” and “USD” are to United States dollars and all references to “Swedish krona” and “SEK” are to Swedish krona. Unless otherwise

stated, the financial statements and other financial information as of, and for the years ended, December 31, 2013 and December 31, 2012 and for the three months ended March 31, 2014 are in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as

issued by the International Accounting Standards Board. Certain amounts and percentages stated in this prospectus have been rounded off and may therefore

not add up correctly. Other than what is expressly stated herein, no information in this prospectus has been examined or audited by the Company’s auditors.

This prospectus has been prepared in accordance with the provisions of the Swedish Financial Instruments Trading Act (1991:980) and European Commission

Regulation (EC) No 809/2004 implementing Directive 2003/71/EC of the European Parliament and the Council. The prospectus has been approved and

registered by the Swedish Financial Supervisory Authority in accordance with the provisions of Chapter 2, Sections 25 and 26 of the Swedish Financial

Instruments Trading Act (1991:980). Approval and registration of the prospectus does not imply a guarantee by the Financial Supervisory Authority that the

facts presented in the prospectus are correct or complete.

This prospectus does not comprise any offer to purchase, subscribe for or acquire shares or other financial instruments issued by NGEx Resources. This

prospectus has been prepared only in conjunction with an application for admission to trading of the Company’s Shares on NASDAQ OMX Stockholm. The

prospectus may not be distributed, directly or indirectly, in any other country where such distribution requires additional registration or other measures than those provided for under Swedish law or that contravene applicable regulations in such country. The Company’s Shares have not been and will not be

registered under the United States Securities Act of 1933 (”Securities Act”), as amended, or under any equivalent statute in any individual state or province of the United States of America (the “U.S.”).

No person has been authorized to give any information or to make any representation not contained in this prospectus and, if given or made, such information or representation not contained herein must not be relied upon as having been authorized by the Company. In the event of any material changes to the

prospectus during the period from the date of the announcement to the first day of trading, such changes will be announced pursuant to the rules in the

Swedish Financial Instruments Trading Act (1991:980), which governs the publication of the prospectus supplements.

Any dispute concerning or relating to this prospectus shall be resolved in accordance with Swedish law and exclusively by a Swedish court of law. The

prospectus is available in paper form at NGEx Resources’ head office and in electronic form on NGEx Resources’ website, www.ngexresources.com, as well as

on the website of the Swedish Financial Supervisory Authority, www.fi.se. Pareto Securities AB (“Pareto”) has acted as adviser for the Company in connection with the Company’s application for listing on NASDAQ OMX Stockholm and in connection with the preparation of this listing prospectus. For the meaning of the terms used throughout this prospectus, please see Section “Definitions” on page 121 below.

In addition to any restrictions imposed in their country of residence, holders of Shares issued in conjunction with the Listing will be subject to a statutory hold

period that extends four (4) months plus one (1) day from the closing date in respect of re-sales to residents of Canada and/or over the facilities of the TSX.

During and after this hold period, the Shares are freely transferable on NASDAQ OMX Stockholm.

In this prospectus, the terms “Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” have the meanings ascribed to those terms by

the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended. Other than as set out below, technical disclosure for the Company’s projects included in this prospectus, with the exception of the technical disclosure related to ongoing engineering studies, has been reviewed and approved by Bob Carmichael P. Eng. (BC). Mr. Carmichael is NGEx’s Vice-

President of Exploration and a Qualified Person (“QP”) under National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). Technical disclosure related to the engineering studies has been reviewed and approved by Anthony George P. Eng. (BC). Mr. George is the Company’s Project Manager

and a QP under NI 43-101. The QP responsible for the Josemaría Project (as defined herein) and the Los Helados Project (as defined herein) Mineral Resource estimates is G. Zandonai, B.Sc., M.Sc., Registered Member of the Comisiόn Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining

Commission), Senior Associate of Behre Dolbear International Ltd.

FORWARD-LOOKING STATEMENTS This prospectus contains forward-looking statements and forward-looking statements and information. All statements, other than statements of historical

fact, are forward-looking statements. Forward-looking information includes, but is not limited to, statements with respect to the estimation of commodity

prices, Mineral Resources, potential development scenarios, potential production rates, costs and timing of the development of new deposits, the success of

exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining

activities, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,

“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain

actions, events or results “may”, “could”, “would”, “might” “potentially” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry

and markets in which the Company operates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,

level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information

including, but not limited to, risks and uncertainties relating to, among other things, changes in commodity prices, currency fluctuation, financing, unanticipated variations in Mineral Resource grades or tonnages, infrastructure, results of exploration activities, cost overruns, availability of materials and

equipment, timeliness of government approvals, taxation, political risk and related economic risk and unanticipated environmental impact on operations and

other risks and uncertainties described under the heading “Risks Factors” in this prospectus and under the heading “Risk Factors” in the Company’s annual

information form and management’s discussion and analysis for the year ended December 31, 2013, which are available under the Company’s profile at

www.sedar.com. These factors are not exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ

materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended.

There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. A potential investor should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by

this cautionary statement. These forward-looking statements, as well as other information in this prospectus are made as of the date of this prospectus. The

Company expressly disclaims any intent or obligation to update these forward-looking statements or any other information in this prospectus, unless

specifically stated otherwise and except as required by applicable law, regulation or listing agreement.

INDUSTRY DATA AND INFORMATION FROM THIRD PARTIES This prospectus contains historical market data and industry forecasts relating to the market in which the Company operates. The Company has obtained this

information from several sources, including industry publications and market surveys from third parties as well as publicly available information. Although the

industry publications state that they are based on information obtained from several different sources and using various methods that may be deemed

reliable, the information may not be correct and complete. Industry forecasts are by their nature subject to considerable uncertainty, and may prove to be

incorrect. Information from third parties has been correctly reproduced and, as far as the Board is aware and is able to warrant through comparisons with

other information published by the third party concerned, no information has been omitted in a way that would make the reproduced information incorrect or

misleading.


TABLE OF CONTENTS

Summary ................................................................................................................................................................. 3

Sammanfattning .................................................................................................................................................... 13

Risk factors ............................................................................................................................................................ 23

Background and conditions ................................................................................................................................... 32

Industry overview ................................................................................................................................................. 34

Operations of NGEx Resources ............................................................................................................................. 42

Other information about NGEx Resources ............................................................................................................ 60

Selected financial information .............................................................................................................................. 68

Comments to the financial statements ................................................................................................................. 71

Capital structure, indebtedness and related information .................................................................................... 75

Board of directors, executive officers and auditor ............................................................................................... 79

Corporate governance .......................................................................................................................................... 90

Share capital and related issues ............................................................................................................................ 94

Legal and supplementary information .................................................................................................................. 97

Tax matters ......................................................................................................................................................... 103

Summary of shareholder rights........................................................................................................................... 107

Definitions ........................................................................................................................................................... 120

Documents incorporated by reference ............................................................................................................... 123

Addresses ............................................................................................................................................................ 124

Certificate of continuance and by-laws of NGEx Resources ............................................................................... 125


SUMMARY Summaries are made up of disclosure requirements (hereinafter referred to as “Elements”). The Elements are

numbered in Sections A – E (A.1 – E.7).

This summary contains all the Elements required to be included in a summary for this type of securities and

issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering

sequence of the Elements.

Even though an Element may be required to be inserted in the summary because of the type of securities and

issuer, it is possible that no relevant information can be given regarding the Element. In this case a short

description of the Element is included in the summary with the mention of not applicable (“N/A”).

Section A – Introduction and warnings A.1 Introduction

and warnings This summary should be read as introduction to the prospectus. Any decision to invest in the securities should be based on consideration of the prospectus as a whole by the investor. Where a claim relating to the information contained in the prospectus is brought before a court, the plaintiff investor might, under the national legislation of the member states of the European Union, have to bear the costs of translating the prospectus before the legal proceedings are initiated. Civil liability attaches only to those persons who have tabled the summary including any translation thereof, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of the prospectus or it does not provide, when read together with the other parts of the prospectus, key information in order to aid investors when considering whether to invest in such securities.

A.2 Financial

intermediaries

N/A; the listing does not include any financial intermediaries.

Section B – Issuer B.1 Legal and

commercial

name

The legal and commercial name of the Company is NGEx Resources Inc.

B.2 Legal context The Company is registered and continued under the Canada Business Corporations Act

(“CBCA”) as a public company, with corporation no. 425318-3.

B.3 Operations NGEx is a Canadian mineral exploration company with exploration projects in Chile,

Argentina and Canada. The Company's focus is on advancing its projects which include

several large copper-gold systems including the Josemaría, Los Helados, and Filo del

Sol projects, located on a land package that the Company holds in Chile's Region III and

adjacent San Juan Province, Argentina.

The Company’s strategy is to create value for its shareholders by expanding and

increasing the quality of its resources as well as by advancing the engineering and

other studies that are required to prepare its projects for eventual development by


the Company and its partners or by third parties. The Company intends to increase

shareholder value through successful exploration and to eventually convert its

exploration successes into tomorrow’s development projects positioning the Company

as a top tier copper industry investment.

B.4a Tendencies The copper mining industry has seen significant changes over the past decade and

many of these trends are expected to continue to constrain the copper supply:

• Declining ore grades are increasing unit costs;

• Increasing depth of mineral deposits necessitating higher cost mining methods;

• Recent massive capital expenditure overruns have limited the appetite for investment;

• Scarcity of water and energy resources is increasing costs;

• Taxation and royalty regimes are taking a larger portion of the economic benefits – increasing risks for producers;

• Labor productivity has been decreasing; and

• Resource nationalism and political risk remain significant issues.

Additionally, future production forecasts are often optimistic as they do not account

for slower than expected ramp up of projects, pit wall failures, mechanical or other

failures, aggressive production estimates, extended equipment lead time, weather and

climate delays, legislative or environmental delays, project capital deferral, validity and

stability of fiscal policies, etc.

B.5 Group NGEx Resources Inc. is the Canadian parent company in a group of companies, which consists of approximately twenty (20) subsidiaries incorporated in Argentina,

Bermuda, British Virgin Islands, Canada, Chile, Uruguay and Peru.

B.6 Largest

shareholders

To the knowledge of the directors and officers of the Company, shareholders carrying

10 per cent or more of the voting rights attached to all outstanding Shares as of

31 March 2014 were:

i. Zebra Holdings and Investments S.à r.l.(1), 17,411,841 Shares and 10.3 per

cent of the votes; and

ii. Lorito Holdings S.à r.l.(1)

, 16,250,000 shares and 9.6 per cent of the votes.

1

Lorito Holdings S.à r.l. and Zebra Holdings and Investments S.à r.l, who report their security

holdings as joint actors, are private corporations owned by a trust whose settler is the Estate of

Adolf H. Lundin. Lorito and Zebra hold a total of 33,661,841 Shares, which represents approximately 19.93 per cent of the total amount of Shares in the Company.


B.7 Financial

summary

Income statements

Balance sheets

CAD thousands Unaudited Unaudited Audited Audited Audited

Jan-Mar 2014

Jan-Mar 2013

Jan-Dec 2013

Jan-Dec 2012

Jan-Dec 2011

Revenues 0 0 0 0 0

Exploration and project investigation 8,221 15,469 22,698 24,158 9,149

Salaries and benefits 244 192 1,068 941 425

Share-based compensation 116 363 1,038 1,422 1,220

Management fees 135 135 540 540 540

Professional fees 89 77 369 498 346

Travel 29 43 172 202 98

Promotion and public relations 199 198 356 376 287

Donation - 270 340 119 376

Office and general 120 134 321 230 189

General and Administration 932 1,412 4,204 4,328 3,481

Operating loss 9,153 16,881 26,902 28,486 12,630

Interest income (13) (60) (235) (115) (189)

Foreign exchange loss (gain) 570 (65) (148) 46 177

Other expenses - - 93 94 118

Gain on disposition of investments - - (180) - (39)

Gain on disposition of royalty interests - - - (2,782) -

Unrealized loss on investments (352) 286 660 946 -

Write-down of mineral property interests - - 1,196 - -

Other (income) expenses 205 161 1,386 (1,811) 67

Net loss from continuing operations 9,358 17,042 28,288 26,675 12,697

Net loss from discontinued operations 3 49 84 6,875 6,376

Net loss 9,361 17,091 28,372 33,550 19,073

of which is attributable to shareholders of the Company 9,361 17,091 28,372 33,550 19,073

of which is attributable to non-controlling interest - - - - -


31 Mar 2014

31 Mar 2013

31 Dec 2013

31 Dec 2012

31 Dec 2011

ASSETS

Cash and cash equivalents 10,762 35,918 21,260 17,297 41,337

Investments 658 550 326 836 -

Receivables and other assets 683 978 1,118 627 759

Current assets 12,103 37,446 22,704 18,760 42,096

Equipment 184 454 247 272 424

Mineral properties 9,797 11,876 10,439 11,566 19,442

Other non-current assets 8 8 8 8 8

Non-current assets 9,989 12,338 10,694 11,846 19,874

TOTAL ASSETS 22,092 49,784 33,398 30,606 61,970

EQUITY & LIABILITIES

Total equity 15,142 38,071 24,622 21,509 52,875

Trade payables and accrued liabilities 6,107 11,105 4,328 6,174 4,841

Due to related parties 117 203 28 45 14

Due to join exploration partners 726 406 4,101 2,878 4,240

Current liabilities 6,950 11,713 8,457 9,097 9,095

Other non-current liabilities - - 319 - -

Non-current liabilities - - 319 - -

TOTAL EQUITY & LIABILITIES 22,092 49,784 33,398 30,606 61,970

equity attributable to shareholders of the Company 15,142 38,071 24,622 21,509 52,875

equity attributable to non-controlling interest - - - - -


Cash flow statements

Key ratios

B.8 Selected pro

forma financial

information

N/A; the prospectus does not include any pro forma financial information.

B.9 Financial

forecast

N/A; the prospectus does not include any financial forecast or calculation of expected

profit.

B.10 Auditor’s

remarks

N/A; there are no auditor’s remarks.

B.11 Working capital

of the issuer

As of the date of this prospectus and subject to the closing of the private placement

announced on 5 June 2014, the Company’s working capital is, in the opinion of the

Company, sufficient for the Company’s planned business for the next twelve months.


Jan-Mar 2014

Jan-Mar 2013

Jan-Dec 2013

Jan-Dec 2012

Jan-Dec 2011

Cash flow, operating activities before changes in working

capital (9,526) (16,373) (25,270) (30,553) (14,142)

Cash flow from changes in working capital (832) 2,120 (760) 548 4,794

Cash flow, operating activities after changes in working

capital (10,358) (14,253) (26,030) (30,005) (9,348)

Cash flow from financing activities 322 33,313 33,377 508 28,361

Cash flow from investing activities (359) (588) (1,402) 4,590 (871)

Exchange rate effect on cash and cash equivalents (103) 149 (1,982) 867 (70)

Change in cash and cash equivalents (10,498) 18,621 3,963 (24,040) 18,072

Cash and cash equivalents, beginning of year 21,260 17,297 17,297 41,337 23,265

Cash and cash equivalents, end of year 10,762 35,918 21,260 17,297 41,337

Unaudited Unaudited Audited Audited Audited

Jan-Mar

2014 Jan-Mar

2013 Jan-Dec

2013 Jan-Dec

2012 Jan-Dec

2011 Basic and diluted net loss from continuing

operations (per share) 0.05 0.10 0.17 0.17 0.08

Basic and diluted net loss from discontinued operations (per share)

0.00 0.00 0.00 0.04 0.04

Basic and diluted net loss (per share) 0.05 0.10 0.17 0.21 0.12

Equity ratio end of period(1)

69% 76% 74% 70% 85%

Weighted average basic Shares outstanding 168,869,765 165,287,542 167,833,348 158,380,647 149,905,814

Weighted average diluted Shares outstanding 168,869,765 165,287,542 167,833,348 158,380,647 149,905,814

"Income from mining operations" divided by

"weighted average diluted Shares outstanding", USD

0.00 0.00 0.00 0.00 0.00

"Net loss" divided by "weighted average

diluted Shares outstanding", USD 0.05 0.10 0.17 0.21 0.12

Dividend paid per share 0 0 0 0 0

(1) "Total equity of period" divided by "total assets of period"


Section C – Securities C.1 Securities being

offered

There is no offering to purchase, subscribe for or sell Shares representing NGEx

Resources. It is intended that the Shares are listed on NASDAQ OMX Stockholm Main

Market, with ISIN code CA65339B1004. No physical share certificates shall exist with

respect to any Share in the Company and all Shares traded on the NASDAQ OMX

Stockholm Main Market will be affiliated to Euroclear.

C.2 Denomination The Shares are denominated in CAD.

C.3 Total number

of shares in the

Company

The authorized share capital is an unlimited number of common Shares without par

value. As of 31 March 2014, the issued and outstanding Shares of NGEx Resources

amounted to 168,940,059.

C.4 Rights

pertaining to

the shares

The holders of Shares of the Company are entitled to receive notice of and attend all

meetings of shareholders with each Share held entitling the holder to one vote on any

resolution to be passed at such shareholder meetings. The holders of Shares are

entitled to dividends, if as and when, declared by NGEx Resources’ Board. The Shares are entitled upon liquidation, dissolution or winding up of the Company to receive the

remaining assets of the Company available for distribution to shareholders.

C.5 Limitations to

the free

transferability

N/A; there are no limitations to the free transferability of the Shares other than

holders of Shares issued in conjunction with the Listing will be subject to a statutory

hold period that extends four (4) months plus one (1) day from the closing date in

respect of re-sales to residents of Canada and/or over the facilities of the Toronto

Stock Exchange (“TSX”). During and after this hold period, the Shares are freely transferable on NASDAQ OMX Stockholm.

C.6 Trading in the

shares

The Shares are currently traded on the TSX under the symbol “NGQ”. Upon the

successful completion of the contemplated Listing, the Shares will also be traded on

the NASDAQ OMX Stockholm Main Market.

C.7 Dividend policy There are no restrictions that prevent the Company from paying dividends. The

Company has not paid dividends as of the date of this prospectus on its Shares and has

no plans to pay dividends in the near future. Any decision to pay dividends in the

future will be based on the Company’s earnings and financial requirements and other

factors that its Board may consider appropriate in the circumstances.

Section D – Risks D.1 Risks related to

the issuer

Risks relating to the business

Uncertainty of Funding – The exploration and development of mineral properties requires a substantial amount of capital and may depend on the Company’s ability to

obtain financing through joint ventures, debt financing, equity financing or other

means. The Company may not be successful in obtaining required financing on

acceptable terms when needed. Failure to obtain any necessary additional financing

may result in delaying or indefinite postponement of exploration or development or

even a loss of property interest.

Foreign Operations Risk – The Company conducts exploration activities in foreign countries, including Argentina and Chile. Each of these countries exposes the Company


to risks that may not otherwise be experienced if all operations were located in

Canada. Changes in policies that alter laws regulating the mining industry could have a

material adverse effect on the Company. The Company’s assets in these countries may

be subject to requisition or confiscation, whether legitimate or not, by an authority or

body. In addition, in the event of a dispute arising from foreign operations, the

Company may be subject to the exclusive jurisdiction of foreign courts or may not be

successful in subjecting foreign persons to the jurisdiction of courts in Canada.

Economic and Political Instability in Argentina – The Josemaría Project and the Filo del Sol Project are located in San Juan Province, Argentina. There are risks relating to

an uncertain or unpredictable political and economic environment in Argentina, especially due to social opposition to mining operations in certain parts of the country

and increasingly protectionist economic measures implemented by the National

Government. The Argentinean government may alter or impose additional

requirements or policies that may adversely affect the Company’s activities in

Argentina or in its ability to attract joint venture partners or obtain financing for its

projects in the future.

Corruption and Bribery – The Company is required to comply with anti-corruption and anti-bribery laws, including the Canadian Corruption of Foreign Public Officials Act and

the U.S. Foreign Corrupt Practices Act, as well as similar laws in the countries in which

the Company conducts its business. If the Company finds itself subject to an

enforcement action or is found to be in violation of such laws, this may result in

significant penalties, fines and/or sanctions imposed on the Company resulting in a

material adverse effect on the Company.

Environmental and Socio-Political Risks – Present or future laws and regulations relating to the environment may negatively affect the Company’s operations, and in

particular, affect the Company’s ability to develop parts of the Company’s properties in

Argentina including the Josemaría Project and the Filo del Sol Project.

Indigenous Peoples – The Company operates in some areas including parts of the Los Helados and Tamberias areas presently or previously inhabited or used by indigenous

peoples. Various international and national laws, codes, resolutions, conventions,

guidelines, and other material relate to the rights of indigenous peoples. Opposition by

indigenous peoples to the Company’s operations may require modification of or

preclude operation or development of the Company’s projects or may require the

Company to enter into agreements with indigenous people with respect to the

Company’s projects.

Title Risk – Any defects in the title to the Company’s properties could have a material and adverse effect on the Company. Further, there is a risk that applicable

governments will revoke or significantly alter the conditions of the applicable

exploration and mining authorizations and that such exploration and mining authorizations may be challenged or impugned by third parties. In addition, the

Company may not always be able to renew its licenses. Inability to renew a license

could result in the loss of any project located within that license.

Dependence on Key Personnel – The Company’s success will largely depend on the efforts and abilities of certain senior officers and key employees. Certain of these

individuals have significant experience in the mining industry and, in particular, the

mining industry in South America. If for any reason these individuals do not remain

with the Company, the Company could be adversely affected. The Company has not

purchased key employee life insurance for any of these individuals.

Internal Controls – Internal controls over financial reporting are procedures designed


to provide reasonable assurance that transactions are properly authorized, assets are

safeguarded against unauthorized or improper use, and transactions are properly

recorded and reported. A control system, no matter how well designed and operated,

can provide only reasonable, not absolute, assurance with respect to the reliability of

financial reporting and financial statement preparation.

Conflicts of Interest – Some of the directors of the Company are also directors of other companies that are similarly engaged in the business of acquiring, exploring and

developing natural resource properties. Such associations may give rise to conflicts of

interest from time to time, which may negatively affect the Company, and in

particular, one of the consequences will be that corporate opportunities presented to a director of the Company may be offered to another Company or companies with

which the director is associated, and may not be presented or made available to the

Company.

Currency Risk – The Company will transact business in a number of currencies including but not limited to the U.S. Dollar, the Argentine Peso and the Chilean Peso.

The Argentine Peso in particular has had significant fluctuations in value relative to the

U.S. and Canadian dollars. Future changes in exchange rates could materially affect the

Company’s results in either a positive or negative direction. The Company does not

currently engage in foreign currency hedging activities.

Derivative Instruments – The Company may, from time to time, manage exposure to foreign exchange rates by entering into derivative instruments approved by the

Company’s Board.

Tax – The Company runs its business in different countries and strives to run its business in as tax efficient a manner as possible. The tax systems in certain of these

countries are however complicated and subject to changes. For this reason, future

negative effects on the result of the Company due to changes in tax regulations cannot

be excluded.

Joint Exploration Properties – Certain of the Company’s properties including the Los Helados Project, the Josemaría Project, and the Filo del Sol Project are subject to joint

exploration agreements. Not all decisions of the operators under the joint exploration

agreements may achieve expected goals. The existence of such circumstances may

have a material adverse impact on the Company.

Surface Access – Surface rights in the area of the Los Helados Project are held by a local community “Comunidad Civil Ex Estancia Pulido”. The Company has signed a four

year access agreement with the community dated 26 September 2011. The agreement

allows for the construction and operation of camps and roads and the development of

exploration activities on the Properties, including drilling. This agreement must be

renewed on or before the anniversary date in 2015 and although there are no

indications that the agreement will not be renewed, there is a risk that the Company will not be able to renew the agreement. The Company does not own any surface

rights at the Los Helados Project.

The Company may not be able to obtain the required surface rights or negotiate

successfully with private landowners to allow it to develop its properties and establish

commercial mining operations on a timely basis. To the extent additional surface rights

are available, they may only be acquired at significantly increased prices, potentially

adversely impacting financial performance of the Company.

Current Global Financial Condition – Market events and conditions have caused significant volatility to commodity prices. Notwithstanding various actions by


governments, concerns about the general condition of the capital markets, financial

instruments, banks, investment banks, insurers and other financial institutions caused

the broader credit markets to further deteriorate and stock markets to decline

substantially. The Company is dependent on the equity markets as its main source of

operating working capital and the Company’s capital resources are largely determined

by the strength of the resource markets and by the status of the Company’s projects in

relation to these markets, and its ability to compete for the investor support of its

projects.

Access to public financing has been negatively impacted by concerns over global

growth rates and conditions. Consequently, equity financing may not be available to the Company in the amount required at any time or for any period or, if available, it

may not be obtained on terms satisfactory to the Company.

Risks relating to the mining industry

Infrastructure – Development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges and power and water

supplies are important determinants which affect the Company’s costs. Any

interference of such infrastructure could adversely affect the Company’s operations.

Mineral Resource Estimates – The Company’s reported Mineral Resources are only estimates. The estimated Mineral Resources may not be recovered. Market

fluctuations in the price of metals, as well as increases in estimated production costs

or reductions in estimated recovery rates, may render certain Mineral Resources

uneconomic and may ultimately result in a restatement of estimated resources.

Exploration and Development Risk – The Company’s properties are in early exploration stages and are without a known body of commercial ore. Exploration for

Mineral Resources involves a high degree of risk and few properties that are explored

are ultimately developed into producing mines. The commercial viability of a mineral

deposit once discovered is also dependent upon a number of factors and the exact

effect of these factors cannot be accurately predicted, but the combination of any of

these factors may adversely affect the Company’s business.

Metal Price Risk – The Company’s portfolios of properties and investments have exposure to predominantly copper, gold, and silver. Commodity prices fluctuate widely

and are affected by numerous factors beyond the Company’s control. The prices of

these metals greatly affect the value of the Company, the price of the Shares and the

potential value of its properties and investments.

Competition – There is aggressive competition within the mining industry for the discovery and acquisition of properties considered to have commercial potential, as

well as the necessary labor and supplies required to develop such properties. The

Company may not be able to maintain or acquire attractive mining properties on terms

it considers acceptable, or at all. Consequently, its financial condition could be materially adversely affected.

Uninsurable Risk – Exploration, development and production operations on mineral properties involve numerous risks, including unexpected or unusual geological

operating conditions, rock bursts, cave-ins, fires, floods, earthquakes and other

environmental occurrences, as well as political and social instability. It is not always

possible to obtain insurance against all such risks and the Company may decide not to

insure against certain risks because of high premiums or other reasons. Should

liabilities arise, they could reduce or eliminate any further profitability and result in


increasing costs and a decline in the value of the securities of the Company.

D.3 Risks related to

the shares

Market Price of Shares – Securities of mining companies have experienced substantial volatility in the past, often based on factors unrelated to the financial performance or

prospects of the companies involved. The market price of the Shares at any given point

in time may not accurately reflect the long-term value of the Company. Securities

class-action litigation often has been brought against companies following periods of

volatility in the market price of their securities. The Company may in the future be the

target of similar litigation. Securities litigation could result in substantial costs and

damages and divert management's attention and resources.

Risks related to the stock market – A prospective investor should be aware that an investment in the Company’s Shares is associated with a high degree of risk, and that

the price of the Shares may not develop favorably.

Risks related to illiquid trading and the secondary listing – It is not possible to anticipate the degree to which investors’ interest in NGEx will lead to active trading in

its Shares or how trading in the Shares will function in the future. Should active and

liquid trading not be sustained, holders of Shares may experience difficulties in selling

Shares, either momentarily, or completely. If there is not a sufficient number of

holders of Shares traded on NASDAQ OMX Stockholm, the Company may not be able

to comply with the listing requirements of NASDAQ OMX Stockholm.

Risks related to dividends – The mining and exploration industry is capital intensive and the Company’s profits may need to be accumulated and used to reinvest in the

Company’s operations. Hence, the Company may not pay dividends to its shareholders

in the future.

Exchange rate fluctuations – Should the Company pay dividends in respect of the Shares, such dividends will be paid in CAD. However, holders of Shares registered with

Euroclear will receive dividend distributions in SEK. Any depreciation of CAD in relation

to SEK could reduce the value of the investment or of any dividends.

Future offerings of debt or equity securities – NGEx may require additional funds to finance further exploration, development and production activities, or to take

advantage of unanticipated opportunities. If NGEx raises additional funds by issuing

additional equity securities, such financing would dilute the economic and voting rights

of the Company’s shareholders.

Section E – Offer E.1 Rights issue

amount and

costs

N/A; this prospectus is being issued in conjunction with a secondary listing on NASDAQ

OMX Stockholm Main Market and there is no offer by NGEx to acquire Shares.

E.2a Reasons for the

offer and use of

proceeds



E.3 Background

and terms and

conditions




E.4 Conflicts of

interest etc.

N/A; no conflicts of interest or similar exist.

E.5 Lock-up

agreement

N/A; no lock-up agreement is in place.

E.6 Dilution N/A; this prospectus is being issued in conjunction with a secondary listing on NASDAQ


E.7 Costs for the

investor

N/A; the Company does not impose any costs on the investors.

NGEx RESOURCES INC. | Sammanfattning 13

SAMMANFATTNING Nedanstående text är en översättning av den engelska originaltexten ovan.

Denna sammanfattning omfattar information som måste offentliggöras (s.k. ”Moduler”). Modulerna är

numrerade i avsnitt A.1 till E.7 nedan.

Denna sammanfattning inkluderar alla Moduler som krävs i en sammanfattning för denna typ av värdepapper

och emittent. Eftersom inte samtliga Moduler behöver vara inkluderade kan det vara luckor i numreringen av

Modulerna.

Även om en Modul måste vara inkluderad på grund av typen av värdepapper och emittent, är det möjligt att

ingen relevant information finns att ge rörande Modulen. Vid dessa fall inkluderas en kort beskrivning av

Modulen i sammanfattningen samt en hänvisning till att Modulen inte är tillämplig (”N/A”).

Avsnitt A – Introduktion och varningar

A.1 Introduktion och varningar

Denna sammanfattning bör betraktas som en introduktion till Prospektet. Varje beslut om att investera i värdepapperen ska baseras på en bedömning av prospektet i dess helhet från investerarens sida. Om yrkande avseende uppgifterna i Prospektet anförs vid domstol, kan den investerare som är kärande, i enlighet med medlemsstaterna i den europeiska unionens nationella lagstiftning, bli tvungen att svara för kostnaderna för översättning av prospektet innan de rättsliga förfarandena inleds. Civilrättsligt ansvar kan endast åläggas de personer som sammanställt sammanfattningen, inklusive översättningar därav, men endast om sammanfattningen är vilseledande, felaktig eller oförenlig med de andra delarna av Prospektet eller om den inte, tillsammans med de andra delarna av Prospektet, ger nyckelinformation för att hjälpa investerare när de överväger att investera i sådana värdepapper.

A.2 Finansiella

mellanhänder

N/A; noteringen omfattas inte av finansiella mellanhänder.

Avsnitt B – Emittent

B.1 Registrerad

firma och

handels-

beteckning

Bolagets firma och handelsbeteckning är NGEx Resources Inc. (”Bolaget”).

B.2 Säte, bolags-

form etc.

Bolaget är ett publikt aktiebolag registrerat i British Columbia, Kanada, i enlighet med

Canada Business Corporations Act. Bolagets organisationsnummer är 425318-3.

B.3 Huvudsaklig

verksamhet

NGEx Resources är ett kanadensiskt mineralprospekteringsbolag med

prospekteringsprojekt i Chile, Argentina och Kanada. Bolaget fokuserar på att utveckla

sina omfattande koppar- och guldprojekt Josemaría, Los Helados, och Filo del Sol, vilka

är lokaliserade på en landyta som Bolaget för närvarande håller i Chiles Region III och


den närliggande San Juan-provinsen i Argentina.

Bolagets strategi är att skapa värde för sina aktieägare genom att expandera och öka

kvaliteten på sina resurser, samt att utveckla den teknik och de studier som krävs för

att förbereda Bolagets projekt för eventuell utveckling, antingen av Bolagets partners

eller av utomstående tredje parter. Bolaget avser att öka värdet för sina aktieägare

genom framgångsrik prospektering, och genom att i framtiden konvertera fyndigheter

till morgondagens utvecklingsprojekt – vilket sammantaget är tänkt att göra Bolaget

till en förstklassig investering inom kopparindustrin.

B.4a Trender Marknaden för brytning och prospektering av koppar har väsentligen förändrats under

det senaste decenniet och många av dessa trender är förväntade att fortsätta att

begränsa koppartillförseln:

• malmkvaliteten sjunker och detta ökar enhetskostnaderna,

• mineralfyndigheterna hittas längre ner i marken och detta kräver gruvmetoder som är mer kostsamma,

• nya stora kapitalbudgetöverskridanden har begränsat intresset för investeringar,

• brist på vatten- och energiresurser ökar kostnaderna,

• beskattning- och royaltysystem tar en större del av de ekonomiska fördelarna – riskerna ökar då för producenterna,

• arbetsproduktiviteten har minskat, och

• patriotismen rörande resurser och politiska risker kvarstår som viktiga frågor.

Vidare är framtida produktionsprognoser ofta optimistiska då de inte tar höjd för en

långsammare uppstart av projekt än som förväntas, gruvväggar som fallerar,

mekaniska och andra fel, aggressiva produktionsestimat, utökade ledtider för

utrustning, fördröjningar på grund av väder och klimat, fördröjningar på grund av

lagstiftning och miljö, uppskov på projektkapital, validitet och stabilitet i den finansiella

politiken, m.m.

B.5 Koncern NGEx Resources är kanadensiskt moderbolag i en koncern, som består av cirka tjugo

(20) dotterbolag vars säte finns i Argentina, Bermuda, Brittiska Jungfruöarna, Kanada,

Chile, Uruguay och Peru.

B.6 Större aktie-

ägare

Enligt Bolagets styrelseledamöters och lednings kännedom, utgör Bolagets aktieägare

som innehar mer än 10 procent eller mer av rösterna och aktierna:

iii. Zebra Holdings and Investments S.à r.l.(1), 17 411 841 aktier och 10,3 procent

av rösterna; och

iv. Lorito Holdings S.à r.l.(1), 16 250 000 aktier och 9,6 procent av rösterna.

(1) Lorito och Zebra rapporterar deras innehav av värdepapper som en aktör och är privata bolag

som ägs av en ”trust” vars stiftare var Adolf H. Lundin. Tillsammans innehar Lorito och Zebra totalt 33 661 841 aktier, vilket representerar ca 19,93 procent av det totala antalet utestående

aktier.


B.7 Utvald historisk

information

Resultaträkning i sammandrag

Balansräkning i sammandrag

CAD tusental Oreviderat Oreviderat Reviderat Reviderat Reviderat

jan-mar 2014

jan-mar 2013

jan-dec 2013

jan-dec 2012

jan-dec 2011

Intäkter 0 0 0 0 0

Kostnader relaterade till prospektering 8 221 15 469 22 698 24 158 9 149

Löner och förmåner 244 192 1 068 941 425

Aktiebaserad kompensation 116 363 1 038 1 422 1 220

Ersättningar till ledningen 135 135 540 540 540

Ersättningar till övriga nyckelpersoner 89 77 369 498 346

Resekostnader 29 43 172 202 98

Marknadsföring och PR 199 198 356 376 287

Donationer - 270 340 119 376

Kontor och övrigt 120 134 321 230 189

Övrigt och administration 932 1 412 4 204 4 328 3 481

Rörelseförlust 9 153 16 881 26 902 28 486 12 630

Ränteintäkter (13) (60) (235) (115) (189)

Valutakursförluster (vinster) 570 (65) (148) 46 177

Övriga utgifter - - 93 94 118

Vinst från disposition av investeringar - - (180) - (39)

Vinst från disposition av royaltyintäkter - - - (2 782) -

Orealiserade förluster av investeringar (352) 286 660 946 -

Nedskrivningar av mineraltillgångar - - 1 196 - -

Övriga (inkomster) utgifter 205 161 1 386 (1 811) 67

Nettoförlust från kvarvarande verksamhet 9 358 17 042 28 288 26 675 12 697

Nettoförlust från avyttrad verksamhet 3 49 84 6 875 6 376

Nettoförlust 9 361 17 091 28 372 33 550 19 073

av vilket är hänförligt till aktieägarna i Bolaget 9 361 17 091 28 372 33 550 19 073

av vilket är hänförligt till innehav utan bestämmande

inflytande - - - - -


31 mar 2014

31 mar 2013

31 dec 2013

31 dec 2012

31 dec 2011

Tillgångar

Likvida medel 10 762 35 918 21 260 17 297 41 337

Investeringar 658 550 326 836 -

Kundfordringar och övrigt 683 978 1 118 627 759

Omsättningstillgångar 12 103 5 120 22 704 18 760 42 096

Inventarier 184 454 247 272 424

Mineraltillgångar 9 797 11 876 10 439 11 566 19 442

Övriga anläggningstillgångar 8 8 8 8 8

Anläggningstillgångar 9 989 12 338 10 694 11 846 19 874

TOTALA TILLGÅNGAR 22 092 49 784 33 398 30 606 61 970

EGET KAPITAL OCH SKULDER

Totalt eget kapital 15 142 38 071 24 622 21 509 52 875

Leverantörsskulder och upplupna kostnader 6 107 11 105 4 328 6 174 4 841

Hänförligt till relaterade parter 117 203 28 45 14

Hänförligt till partners i samriskprojekt 726 406 4 101 2 878 4 240

Kortfristiga skulder 6 950 11 713 8 457 9 097 9 095

Övriga långfristiga skulder - - 319 - -

Långfristiga skulder - - 319 - -

TOTALT EGET KAPITAL OCH SKULDER 22 092 49 784 33 398 30 606 61 970

eget kapital hänförligt till aktieägarna i Bolaget 15 142 38 071 24 622 21 509 52 875

eget kapital hänförligt till innehav utan

bestämmande inflytande

- - - - -


Kassaflödesanalyser

Nyckeltal

B.8 Utvald

proforma-

redovisning

N/A; prospektet innehåller ingen proformaredovisning.

B.9 Resultat-

prognos

N;A; prospektet innehåller ingen resultatprognos eller beräkning av förväntad vinst.

B.10 Revisors

anmärkningar

N/A; det finns inga revisorsanmärkningar.


31 mar 2014

31 mar 2013

31 dec 2013

31 dec 2012

31 dec 2011

Tillgångar

Likvida medel 10 762 35 918 21 260 17 297 41 337

Investeringar 658 550 326 836 -

Kundfordringar och övrigt 683 978 1 118 627 759

Omsättningstillgångar 12 103 5 120 22 704 18 760 42 096

Inventarier 184 454 247 272 424

Mineraltillgångar 9 797 11 876 10 439 11 566 19 442

Övriga anläggningstillgångar 8 8 8 8 8

Anläggningstillgångar 9 989 12 338 10 694 11 846 19 874

TOTALA TILLGÅNGAR 22 092 49 784 33 398 30 606 61 970

EGET KAPITAL OCH SKULDER

Totalt eget kapital 15 142 38 071 24 622 21 509 52 875

Leverantörsskulder och upplupna kostnader 6 107 11 105 4 328 6 174 4 841

Hänförligt till relaterade parter 117 203 28 45 14

Hänförligt till partners i samriskprojekt 726 406 4 101 2 878 4 240

Kortfristiga skulder 6 950 11 713 8 457 9 097 9 095

Övriga långfristiga skulder - - 319 - -

Långfristiga skulder - - 319 - -

TOTALT EGET KAPITAL OCH SKULDER 22 092 49 784 33 398 30 606 61 970

eget kapital hänförligt till aktieägarna i Bolaget 15 142 38 071 24 622 21 509 52 875

eget kapital hänförligt till innehav utan

bestämmande inflytande

- - - - -

CAD tusental om ej annat uttrycks Oreviderat Oreviderat Reviderat Reviderat Reviderat

jan-mar 2014

jan-mar 2013

jan-dec 2013

jan-dec 2012

jan-dec 2011

Nettoförlust från kvarvarande verksamhet,

efter utspädning (per aktie) 0.05 0.10 0.17 0.17 (0.08

Nettoförlust från avyttrad verksamhet, efter

utspädning (per aktie) 0.00 0.00 0.00 0.04 0.04

Nettoförlust efter utspädning (per aktie) 0.05 0.10 0.17 0.21 0.12

Soliditet1 69% 76% 74% 70% 85%

Viktat genomsnittligt antal aktier, före

utspädning 168 869 765 165 287 542 167 833 348 158 380 647 149 905 814

Viktat genomsnittligt antal aktier, efter

utspädning 168 869 765 165 287 542 167 833 348 158 380 647 149 905 814

"Resultat från gruvverksamhet" dividerat med

"viktat genomsnittligt antal aktier efter

utspädning" USD

0.00 0.00 0.00 0.00 0.00

"Nettoförlust" dividerat med "viktat genom-

snittligt antal aktier efter utspädning" USD 0.05 0.10 0.17 0.21 0.12

Vinstutdelning per aktie 0 0 0 0 0

1 "Eget kapital" dividerat med "Totala tillgångar"


B.11 Rörelsekapital Per dagen för detta prospekt, och med förbehåll för bokslut av den privata placeringen

meddelat den 5 juni 2014, är Bolagets rörelsekapital, enligt Bolagets bedömning,

tillräckligt för Bolagets planerade verksamhet under de kommande tolv månaderna.

Avsnitt C – Värdepapper

C.1 De

värdepapper

som erbjuds

Det finns inget erbjudande att köpa, teckna, eller sälja NGEx:s aktier. Avsikten är att

aktierna ska noteras på NASDAQ OMX:s huvudlista med ISIN-nummer CA65339B1004.

Alla aktier som handlas på NASDAQ OMX:s huvudlista kommer att vara anslutna till

Euroclear och inga aktiebrev kommer att ges ut.

C.2 Denominering Aktierna är denominerade i CAD.

C.3 Antal aktier Bolagets auktoriserade aktiekapital består av ett obegränsat antal stamaktier utan

nominellt värde. Per 31 mars 2014 var 168 940 059 aktier emitterade och utestående.

C.4 Rättigheter

som

sammanhänger

med aktierna

Varje aktie ger innehavaren rätt att erhålla kallelse till, samt att delta i, samtliga

Bolagets bolagsstämmor, och att avge en röst vid sådana möten. Aktieägarna är

berättigade att erhålla vinstutdelning som beslutas av Bolagets styrelse. Aktieägarna är

berättigade till att erhålla den del pro rata som aktieägarens innehav ger upphov till i

en fördelning av tillgångar på grund av likvidation, upplösning, konkurs eller

likvidation, eller genom annan distribution av Bolagets tillgångar i syfte att avsluta

Bolagets verksamhet.

C.5 Inskränkningar

i rätten att fritt

överlåta

aktierna

N/A; det finns inga inskränkningar i rätten att fritt överlåta aktierna förutom att

innehavare av aktier i samband med noteringen kommer att omfattas av en lagstadgad

s.k hold period som sträcker sig (4) månader plus en (1) dag från balansdagen

avseende återförsäljning till invånare i Kanada och/eller över anläggningarna på

Toronto Stock Exchange (”TSX”). Under och efter denna hold period kan aktierna fritt

överlåtas på NASDAQ OMX Stockholm.

C.6 Notering av

aktierna

Aktierna handlas för närvarande under symbolen ”NGQ” på ”TSX”. Aktierna kommer hädanefter att handlas på TSX samt NASDAQ OMX Stockholms huvudlista förutsatt att

sekundärnoteringen genomförs.

C.7 Utdelnings-

politik

Det finns inte några begränsningar som hindrar Bolaget från att betala vinstutdelning.

Per dagen för detta prospekt har Bolaget inte betalat någon utdelning på sina aktier

och har inga planer på att betala vinstutdelning inom en snar framtid. Beslut om att

betala vinstutdelning i framtiden kommer att baseras på Bolagets resultat och

finansiella krav och andra faktorer som Bolagets styrelse anser vara lämpliga med

hänsyn till omständigheterna.

Avsnitt D – Risker

D.1 Risker

relaterade till

emittenten

Risker relaterade till verksamheten

Osäkerhet relaterad till finansiering – Prospektering och utveckling av

mineralfyndigheter kräver betydande kapitaltillgångar. Bolagets prospektering och

utveckling påverkas således av Bolagets möjligheter att finansiera sin verksamhet

genom samriskprojekt, anskaffning av kapital på skuld- eller aktiemarknaden eller

andra sätt. Bolaget kanske inte lyckas anskaffa nödvändigt kapital på godtagbara villkor

när det är nödvändigt. Misslyckanden att anskaffa nödvändigt kapital kan leda till


temporära eller ovissa fördröjningar av prospekterings- eller utvecklingsmöjligheter,

eller till och med en förlust av Bolagets tillgångar.

Risker relaterade till att verksamheten bedrivs utrikes – Bolaget bedriver

prospekteringsverksamhet utrikes, innefattandes Argentina och Chile. Verksamhet i

båda dessa länder utsätter Bolaget för risker som inte hade aktualiserats om all

verksamhet hade bedrivits i Kanada. Förändringar i policies kring lagändringar inom

gruvområdet kan påverka Bolaget negativt. Bolagets tillgångar i dessa länder kan bli

föremål för konfiskering eller rekvirering, lagenlig eller ej, av en myndighet eller

organisation. Vidare, om en tvist skulle uppstå som en följd av verksamhet bedriven utomlands, så skulle Bolaget kunna bli föremål för främmande domstolars jurisdiktion

och inte nå framgång att ställa utländska medborgare framför kanadensisk domstol.

Ekonomisk och politisk instabilitet i Argentina – Projekten Josemaría och Filo del Sol

är lokaliserade i San Juan-provinsen i Argentina. Det finns risker som relaterar till

osäkerheten och oförutsebarheten i den politiska och ekonomiska situationen i

Argentina, särskilt i fråga om motstånd till gruvverksamhet i vissa delar av landet samt

ökande ekonomiska protektionistiska åtgärder som implementeras av landets

regering. Den argentinska regeringen kan ändra på, eller införa ytterligare, krav och

riktlinjer som kan komma att påverka Bolagets verksamhet i Argentina negativt eller

påverka Bolagets möjligheter att attrahera partners i samriskprojekt eller anskaffa

kapital för framtida projekt.

Korruption och mutor – Det uppställs krav på Bolaget att verka i enlighet med anti-

korruption- och anti-mutlagstiftning, vilket inkluderar Canadian Corruption of Foreign

Officials Act och U.S. Foreign Corrupt Practices Act, samt liknande lagstiftning i de

länder där Bolaget bedriver verksamhet. Om Bolaget skulle bli föremål för

verkställighetsåtgärd, eller skulle anses ha brutit mot en sådan lag, så skulle detta

kunna resultera i kraftiga böter, straffavgifter eller sanktioner vilket skulle kunna

medföra väsentliga negativa effekter på Bolaget.

Miljö- och sociopolitiska risker – Nuvarande eller framtida lagar och regler relaterade

till miljö kan komma att påverka Bolagets verksamhet negativt, särskilt i fråga om

Bolagets möjligheter att utveckla delar av Bolagets tillgångar i Argentina,

inkluderandes Josemaría-projektet och Filo del Sol-projektet.

Ursprungsbefolkning – Bolaget bedriver verksamhet i områden, vilka innefattar delar

av Los Helados- och Tamberias-området, som bebos av, används av, eller tidigare har

bebotts av, ursprungsbefolkning. Det finns ett flertal internationella och nationella bestämmelser och liknande material som relaterar till rättigheter för sådan

ursprungsbefolkning. Motstånd från ursprungsbefolkning gentemot Bolagets

verksamhet kan medföra att Bolagets verksamhet måste förändras eller att den

hindras, eller att den fortsatta utvecklingen av Bolagets projekt påverkas, eller att det

krävs att Bolaget ingår avtal med ursprungsbefolkning relaterat till Bolagets projekt.

Titelrisk – Problem relaterade till Bolagets rättigheter till sina fyndigheter kan medföra

väsentliga negativa effekter på Bolagets verksamhet. Vidare finns det en risk att

regeringar drar tillbaka eller väsentligen ändrar villkoren för Bolagets tillstånd

relaterade till prospektering eller gruvdrift eller att utomstående parter bestrider

sådana tillstånd. Det finns även en risk att Bolaget inte kan förnya sina licenser, vilket

skulle kunna föranleda en förlust av det projekt som lyder under den licensen.

Beroende av nyckelpersonal – Bolagets framgång beror till stor del på den

ansträngning som görs av, och kunnande som finns i, Bolagets ledning och

nyckelanställda. Vissa av dessa individer har omfattande erfarenhet av gruvindustrin,

och särskilt av gruvindustrin i Sydamerika. Om dessa personer av någon anledning inte


skulle stanna hos Bolaget, så skulle det kunna medföra att Bolagets verksamhet skulle

påverkas negativt. Bolaget har inte någon livförsäkring för sina nyckelpersoner.

Interna kontroller – Interna kontroller inom ramen för Bolagets finansiella

rapportering är processer som syftar till att ge en skälig försäkran att transaktioner är

behörigen auktoriserade, att tillgångar är säkrade mot oberättigat eller inkorrekt

användande samt att transaktioner är registrerade och rapporterade på ett

tillfredsställande sätt. Ett system för interna kontroller, oavsett hur väl designat eller

använt det är, kan bara ge skäligt, och inte absolut, försäkran om tillförlitligheten av

finansiell rapportering samt förberedelse av därtill hörande material.

Intressekonflikter – Vissa av Bolagets styrelseledamöter är även styrelseledamöter i

andra företag, som liksom Bolaget är engagerade i verksamhet innefattandes förvärv,

prospektering och utveckling av naturtillgångsfyndigheter. Detta kan föranleda att

intressekonflikter uppstår, vilket kan påverka Bolagets verksamhet negativt. En

konsekvens som särskilt utmärker sig härav, är risken att möjligheter som presenteras

för en av Bolagets styrelseledamöter erbjuds till ett annat bolag eller andra bolag som

denna styrelseledamot associeras med, istället för ett erbjudas till Bolaget.

Valutarisk – Bolaget bedriver affärsverksamhet i ett flertal valutor, inklusive, men inte

enbart, amerikanska dollar, argentinska pesos samt chilenska pesos. Den argentinska

pesons värde har fluktuerat kraftigt gentemot amerikanska och kanadensiska dollar.

Framtida förändringar i valutakurser kan väsentligen påverka Bolagets resultat, i såväl

positiv som negativ riktning. Bolaget ägnar sig för närvarande inte åt några

valutasäkringsåtgärder.

Derivatinstrument – Bolaget kan, från tid till annan och föremål för styrelsens

godkännande, begränsa sina valutarisker genom att köpa derivatinstrument.

Skatter – Bolaget bedriver verksamhet i flera länder och strävar efter att göra detta så

skatteeffektivt som möjligt. Skattesystemet i vissa länder är dock komplicerat och är i

vissa fall föremål för förändringar. På grund av denna anledning så kan det inte

uteslutas att sådana förändringar inte i någon mån kommer att negativt påverka

Bolaget.

Samriskprojekt – Vissa av Bolagets projekt, inkluderandes Los Helados, Josemaría och

Filo del Sol, drivs som samriskprojekt (Eng. joint exloration agreements). Det finns en

risk att inte alla beslut som tas av partners i samriskprojekt leder till att uppsatta mål

nås, vilket kan medföra väsentliga negativa effekter på Bolagets verksamhet.

Rättigheter till ytområden – Rättigheter till ytområden vid Los Helados innehas av ett

lokalt samhälle; “Comunidad Civil Ex Estancia Pulido”. Bolaget har ingått ett fyraårigt

avtal med det lokala samhället om tillträde till detta område, daterat 26 september

2011. I enlighet med villkoren i detta avtal tillåts Bolaget att bygga och driva

gruvanläggningar och vägar och att bedriva prospekteringsaktiviteter, inklusive

borrning. Avtalet måste förnyas under, eller innan, 26 september 2015. Om Bolaget av

någon anledning inte skulle kunna förnya avtalet, trots att inga sådana indikationer

föreligger, skulle Bolaget påverkas negativt. Bolaget äger inga rättigheter till ytområdet

vid Los Helados.

Bolaget kanske inte kommer att kunna erhålla nödvändiga yträttigheter eller förhandla

framgångsrikt med privata markägare för att därigenom kunna utveckla sina

fyndigheter eller etablera kommersiell gruvdrift enligt tidplan. I den utsträckning

ytterligare yträttigheter är tillgängliga så kan det tänkas att dessa blir dyrare att

förvärva, vilket väsentligen kan påverka Bolagets resultat.


Nuvarande global finansiell situation – Marknadshändelser- och förhållanden har orsakat omfattande volatilitet i råvarupriser. Oaktat diverse regeringars

ansträngningar, har bekymmer relaterat till det generella tillståndet på

kapitalmarknader, finansiella instrument, banker, investmentbanker, försäkringsbolag

och andra finansiella institutioner medfört att kreditmarknader och aktiemarknader

har försämras kraftigt. Bolaget är beroende av aktiemarknaden som sin primära källa

till rörelsekapital, och Bolagets kapitalresurser styrs till stor del av styrkan på dessa

marknader och statusen av Bolagets projekt i relation till dessa marknader.

Tillgången till offentlig finansiering har påverkats negativt av oron över den globala tillväxttakten. Därmed kanske inte finansiering genom aktiemarknaden är möjlig för de

belopp som behövs vid en given tidpunkt eller för en given period, eller om sådan

finansiering är tillgänglig så kanske den inte är det på villkor som är acceptabla för

Bolaget.

Risker relaterade till gruvindustrin Infrastruktur – Utvecklings- och prospekteringsaktiviteters framgång är till stor del

beroende av tillgång till adekvat infrastruktur. Tillförlitliga vägar, broar samt el- och

vattennät är viktiga och kostnadspåverkande aspekter i detta avseende. Störningar

eller brister i infrastruktur kan komma att påverka Bolagets verksamhet negativt.

Uppskattade mineralresurser – Bolagets rapporterade mineralresurser är endast

estimat. Det finns en risk att de uppskattade mineralresurserna aldrig kan utvinnas.

Fluktuationer på marknaden i priset på metaller, liksom ökningar av uppskattade

produktionskostnader eller minskningar i uppskattade återvinningsnivåer, kan göra

vissa mineraltillgångar oekonomiska och kan i slutändan leda till en omräkning av

uppskattade resurser.

Risker relaterade till prospektering och utveckling – Bolagets tillgångar är i ett tidigt

prospekteringsskede och utgör inte i detta stadium en bekräftad sammansättning av

kommersiell malm. Prospektering av mineralresurser innefattar en hög risk och få

fyndigheter utvecklas slutligen till producerande gruvor. Den kommersiella bärkraften

av en upptäckt mineralfyndighet är också beroende av ett antal faktorer och den

exakta effekten av dessa faktorer kan inte exakt förutspås, men kombinationen av

någon av dessa faktorer kan inverka negativt på Bolagets verksamhet.

Risker relaterade till metallpriser – Värdet på Bolagets tillgångar och investeringar är i

hög utsträckning beroende av priset på metaller såsom koppar, guld och silver.

Råvarupriser fluktuerar kraftigt och är beroende av otaliga faktorer utanför Bolagets

kontroll. Priset på dessa metaller påverkar Bolagets värde i hög utsträckning, priset av

Bolagets aktier, det potentiella värdet på dess tillgångar och investeringar.

Konkurrens – Det råder en aggressiv konkurrenssituation i gruvindustrin, både i fråga

om lokaliserande och förvärv av fyndigheter med kommersiell potential, såväl som

rekrytering av arbetskraft och anskaffning av material för att kunna utveckla sådana

fyndigheter. Bolaget kanske inte kan behålla eller förvärva attraktiva fyndigheter på

villkor som anses acceptabla, eller överhuvudtaget. Följaktligen, så kan Bolagets

finansiella ställning väsentligt kunna påverkas negativt.

Risker som det inte kan tecknas försäkring för – Prospektering, utveckling och

produktion av mineralfyndigheter innefattar otaliga risker, såsom ovanliga och ej

förväntande geologiska driftsförhållanden, bergssprickor, ras, bränder, över-

svämningar, jordbävningar och andra naturkatastrofer, såväl som politisk och

samhällelig instabilitet. Det är inte alltid möjligt att teckna försäkring för alla sådana

risker och det finns en risk att Bolaget väljer att inte teckna försäkring gentemot


sådana risker på grund av höga premier eller andra anledningar. Skulle förpliktelser

uppstå, så kan de minska eller eliminera ytterligare lönsamhet i Bolaget och leda till

ökade kostnader och en minskning av Bolagets värde.

D.3 Risker

relaterade till

aktierna

Marknadspris på Bolagets aktier – Värdepapper i gruvbolag har tidigare varit föremål

för omfattande volatilitet, ofta på grund av faktorer som inte är relaterade till

resultatet eller möjligheterna förknippade med bolagen ifråga. Marknadspriset på

Bolagets aktier vid en given tidpunkt kanske inte reflekterar det korrekta långsiktiga

värdet på Bolaget. Grupptalan har ofta förts mot bolag efter långa perioder av

volatilitet i marknadspriset på dessas aktier. Bolaget kan i framtiden bli föremål för en

liknande rättsprocess. Processer rörande värdepapperna kan medföra betydande

kostnader för Bolaget och avleda ledningens uppmärksamhet och resurser från annat.

Risker relaterade till aktiemarknaden – En person som vid något tillfälle vill förvärva

aktier i Bolaget bör vara medveten om att detta är förenat med hög risk, och att värdet

på aktierna kan komma att utvecklas negativt.

Risker relaterade till illikvid handel och sekundärnoteringen – Det är inte möjligt att

förutse huruvida investerares intresse i NGEx kommer att leda till en aktiv handel i

aktierna eller hur handeln i aktierna kommer att fungera i framtiden. För det fall att

aktiv och likvid handel inte åstadkoms, kan innehavare av Bolagets aktier få problem

att sälja sina aktier, tillfälligt eller permanent. Om det inte finns ett tillräckligt antal

aktier som handlas på NASDAQ OMX Stockholm så finns risken att Bolaget inte

uppfyller kraven som NASDAQ OMX Stockholm ställer för värdepappers upptagande

till handel.

Risker relaterade till utdelning – Gruv- och prospekteringsindustrin är kapitalintensiv

och Bolagets intäkter kan komma att behövas ackumuleras och återinvesteras i

Bolagets verksamhet. Således finns det en risk att Bolaget inte kommer att betala

utdelning på sina aktier i framtiden.

Fluktuationer i valutakurs – Om Bolaget skulle betala utdelning på sina aktier så skulle

sådan utdelning betalas i CAD. Dock skulle sådana aktieägare vars innehav är

registrerat via Euroclear få utdelningar i SEK. Värdeminskning av CAD i förhållande till

SEK skulle kunna reducera värdet av investeringen i aktierna eller av eventuell

utdelning.

Framtida erbjudanden av skuldbaserade värdepapper eller aktier – NGEx kan komma

att behöva ytterligare kapital för att finansiera vidare prospektering, utveckling,

kommande produktion eller andra oförutsedda möjligheter. Om NGEx anskaffar

ytterligare kapital genom utgivande av aktier så skulle en sådan finansiering späda ut

nuvarande aktieägares rösträtt och rätt till utdelning.

Avsnitt E – Erbjudande

E.1 Emissions-

belopp och

emissions-

kostnader

N/A; detta prospekt utfärdas i samband med en sekundärnotering på NASDAQ OMX

Stockholms huvudlista och NGEx riktar inget erbjudande att förvärva aktier.

E.2a Motiv till

erbjudandet

och användning

av medel




E.3 Erbjudandets

former och

villkor



E.4 Intresse-

konflikter etc.

N/A; inga intressekonflikter eller liknande existerar.

E.5 Lock-up-avtal N/A; det finns inget lock-up-avtal.

E.6 Utspädning N/A; detta prospekt utfärdas i samband med en sekundärnotering på NASDAQ OMX


E.7 Kostnader för

investerare

N/A; NGEx Resources ålägger inte några kostnader på investerarna.

NGEx RESOURCES INC. | Risk factors 23

RISK FACTORS An investment in securities involves a significant degree of risk. The Company’s business, operating results or

financial position may be adversely affected by a number of risk factors which are beyond the control of the

Company. The Company is exposed to a number of risks inherent in mining exploration and development. Risk

factors deemed to be of particular significance to the future prospects of the Company are described below. The

risk factors described below are not exhaustive. The Company’s business, operating results and financial

position may also be materially adversely affected by other risks and uncertainties which are currently unknown

to the Company, or which are currently not viewed as material. Further, risks are not ranked according to

degree of importance. Nor do they indicate how significant the impact could be on the Company’s operations.

The risk described herein should also be considered in connection with the other information included in the

prospectus and the macroeconomic environment, as well as the cautionary statement regarding forward-

looking information set forth in the Section “Important information” above.

Risks relating to NGEx Resources The operations of the Company are speculative due to the high risk nature of its business. Material risk factors

and uncertainties, which should be taken into account in assessing the Company’s activities, include, but are

not necessarily limited to, those set out below. Any one or more of these risks and others could have a material

adverse effect on the Company.

RISKS RELATING TO THE BUSINESS

Uncertainty of Funding

The exploration and development of mineral properties requires a substantial amount of capital and may

depend on the Company’s ability to obtain financing through joint ventures, debt financing, equity financing or

other means. General market conditions, volatile metal prices, a claim against the Company, a significant

disruption to the Company’s business, or other factors, may make it difficult to secure the necessary financing.

The Company may not be successful in obtaining required financing on acceptable terms when needed. Failure

to obtain any necessary additional financing may result in delaying or indefinite postponement of exploration

or development or even a loss of property interest. If the Company needs to raise additional funds, such

financing may substantially dilute the interests of shareholders of NGEx and reduce the value of their

investment.

Foreign Operations Risk

The Company conducts exploration activities in foreign countries, including Argentina and Chile. Each of these

countries exposes the Company to risks that may not otherwise be experienced if all operations were located in

Canada. The risks vary from country to country and can include, but are not limited to: civil unrest or war,

terrorism, illegal mining, changing political conditions, fluctuations in currency exchange rates, expropriation or

nationalization without adequate compensation, changes to royalty and tax regimes, high rates of inflation,

labor unrest and difficulty in understanding and complying with the regulatory and legal framework respecting

ownership and maintenance of mineral properties. Changes in mining or investment policies or shifts in

political attitudes may also adversely affect the Company’s existing assets and operations. Real and perceived

political risk may also affect the Company’s ability to finance exploration programs and attract joint venture or

option partners, and future mine development opportunities.

Numerous countries have introduced changes to mining regimes that reflect increased government control or

participation in the mining sector, including, but not limited to: changes of law affecting foreign ownership,

mandatory government participation, taxation and royalties, exploration licensing, export duties and

repatriation of income or return of capital. Moreover, there is a risk that industries which are deemed to be of

national or strategic importance in countries in which the Company has assets, including mineral exploration,


will be subject to nationalization. The risk also exist that further government limitations, restrictions or

requirements, not presently foreseen, will be implemented. Changes in policies that alter laws regulating the

mining industry could have a material adverse effect on the Company. The Company’s assets in these countries

may be subject to requisition or confiscation, whether legitimate or not, by an authority or body.

In addition, in the event of a dispute arising from foreign operations, the Company may be subject to the

exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction

of courts in Canada. The Company may also be hindered or prevented from enforcing its rights with respect to

a governmental instrumentality because of the doctrine of sovereign immunity. It is not possible for the

Company to accurately predict such developments or changes in laws or policy or to what extent any such

developments or changes may have a material adverse effect on the Company.

Economic and Political Instability in Argentina

The Josemaría Project and the Filo del Sol Project are located in San Juan Province, Argentina. There are risks

relating to an uncertain or unpredictable political and economic environment in Argentina, especially as social

opposition to mining operations in certain parts of the country and increasingly protectionist economic

measures are implemented by the National Government. During an economic crisis in 2001 to 2003, Argentina

defaulted on foreign debt repayments and on the repayment on a number of official loans to multinational

organizations. In addition, the government has renegotiated or defaulted on contractual arrangements. More

recently, the Argentinean government placed currency controls on the ability of companies and its citizens to

obtain USD, in each case requiring Central Bank approval (resulting in, at times, a limitation on the ability of

multi-national companies to distribute dividends abroad in USD) and revoked exemptions previously granted to

companies in the oil and gas and mining sectors from the obligation to repatriate 100 per cent of their export

revenues to Argentina for conversion in the local foreign exchange markets, prior to transferring funds locally

or overseas. Similarly, the government adopted a requirement that importers provide notice to the

government and obtain approval for importation before placing orders for certain goods. These actions

indicate that the Argentinean government may alter or impose additional requirements or policies that may

adversely affect the Company’s activities in Argentina or in its ability to attract joint venture partners or obtain

financing for its projects in the future.

Corruption and Bribery

The Company is required to comply with anti-corruption and anti-bribery laws, including the Canadian

Corruption of Foreign Public Officials Act and the U.S. Foreign Corrupt Practices Act, as well as similar laws in

the countries in which the Company conducts its business. If the Company finds itself subject to an

enforcement action or is found to be in violation of such laws, this may result in significant penalties, fines

and/or sanctions imposed on the Company resulting in a material adverse effect on the Company.

Environmental and Socio-Political Risks

The Company seeks to operate within environmental protection standards that meet or exceed existing

requirements in the countries in which the Company conducts its activities. The Company also aims to conduct

its activities in accordance with high corporate social responsibility principles. Present or future laws and

regulations, however, may affect the Company’s operations. Future environmental costs may increase due to

changing requirements or costs associated with exploration and the developing, operating and closing of

mines. The Company is subject to environmental regulation in the various jurisdictions in which it operates.

Failure to comply with these laws, regulations and permitting requirements may result in enforcement actions,

including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and

may include corrective measures requiring capital expenditures, installation of additional equipment, or

remedial actions. Parties engaged in mining operations or in the exploration or development of mineral

properties may also be required to compensate those suffering loss or damage by reason of the mining

activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or

regulations. Furthermore, environmental hazards may exist on the properties on which the Company holds


interests which are unknown to the Company at present and which have been caused by previous or existing

owners or operators of the properties.

Programs may also be delayed or prohibited in some areas due to technical factors, new legislative constraints,

social opposition or local government capacity or willingness to issue permits to explore in a timely manner.

In parts of Argentina, there is significant environmental opposition to both mineral exploration and mining. This

has affected properties in some of the provinces where the Company works, in particular in Mendoza where

the Company has two drill ready projects, Paramillos and Papagallos. In certain other Argentine provinces

including La Rioja there is a significant degree of anti-mining sentiment which affects the risk of successfully

NGEX RESOURCES INC....other risks and uncertainties described under the heading “Risks Factors”...

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Transcript of NGEX RESOURCES INC....other risks and uncertainties described under the heading “Risks Factors”...