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Niko's Notes to Trade on Interest Flat Basis

CALGARY, ALBERTA--(Marketwired - June 3, 2015) - Niko Resources Ltd. ("Niko" or the "Company")(NKO.TO) announces that the Toronto Stock Exchange (the "TSX") has advised Niko that its 7% senior unsecured convertible notes due December 31, 2017 (the "Notes")(NKO-NT.TO) will commence trading on an interest flat basis on June 5, 2015.

On June 1, 2015, the Company announced that it had reached an agreement with the institutional lenders of its US$340 million senior term loan facilities to further amend the terms of the facilities agreement. Under the terms of this amendment, the Company is restricted until September 30, 2015 from making any interest or other payments under the indenture governing the Notes. As a result, the Company intends to seek the consent of the holders of the Notes to defer to September 30, 2015 the interest payment due on June 30, 2015. There can be no assurance that the consent will be obtained and if not obtained, the Company would be in breach of the indenture governing the Notes.

The TSX has advised the Company that as the TSX has no assurances that the Company will be in a position to pay the interest on the Notes on the next interest payment date of June 30, 2015, all trades in the Notes will commence trading at the opening of the markets on June 5, 2015 on an interest flat basis until further notice. The TSX has advised that it will not report accrued interest regarding any trades made on an interest flat basis to its participating organizations.

The Company is committed to a strategic alternative plan to achieve the best results for the stakeholders of the Company. If the strategic alternatives plan does not result in one or more transactions, or results in one or more transactions the terms or timing of which are unacceptable to the Company or the lenders, this could have a material adverse impact on the Company. Further, the failure to effect a transaction pursuant to the strategic alternatives plan on a timely basis, as well as the results of a transaction completed pursuant to the strategic alternatives plan, could prove to be unsatisfactory for security holders, which could have a material adverse impact on the value of their interest in the Company. It is also important to note that if the strategic alternatives plan will not achieve the desired goal, the Company will seek to develop an alternative plan with the assistance of its advisors and stakeholders to enhance value. Such an alternative plan could have significant negative results on stakeholders and the value of their interests in the Company. No assurance can be made that an alternative plan if pursued can be accomplished at all or on a timely basis.

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Forward-Looking Information

Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward looking information relating to the intention of the Company to seek the consent of holders of the Notes to defer the interest payment due June 30, 2015, the ability of the Company to obtain such consent, the ability of the Company to successfully complete its strategic alternatives plan on a timely basis or, if unsuccessful, to achieve an alternative plan, the Company complying with the terms of the facilities agreement, as amended, and the ability of the Company to give effect to its business plan. Such forward-looking information is based on a number of risks, uncertainties and assumptions, which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. There can be no assurances that the Company will seek, or be able to obtain, the consent of the holders of the Notes, successfully complete its strategic alternatives plan on a timely basis or at all, or develop (or much less implement) an alternative plan, or that the Company will be able to comply with the terms of the facilities agreement, as amended, or that the Company will be able to meet the goals and purposes of its business plan. The failure to meet or satisfy any of the foregoing is likely to have a material adverse impact on the Company and the value of its outstanding securities. Undue reliance should not be placed on forward-looking information. Such forward-looking information reflects the Company's current beliefs, and assumptions and interpretation of governmental policies and is based on information currently available to the Company. These forward looking statements are based on certain key expectations and assumptions, including the state of the markets and others which are set forth in detail in the Company's annual information form for the year ended March 31, 2014. Many of these expectations and assumptions are not within the control of the Company. Further, the reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. The forward-looking information is presented as of the date of this press release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances, except as required by law or expressly provided for herein. Reference is made to the Company's annual information form for the year ended March 31, 2014 for more information on the risks and uncertainties associated with the Company and its business and affairs.