Huldra Silver announced its board of directors determined that it was in the best interests of all of its stakeholders to seek creditor protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA"), and has obtained such protection pursuant to an Order from the Supreme Court of British Columbia (the "Court"). The Order and related Court documents are filed on SEDAR (www.sedar.com) under the Company's profile. While under CCAA protection, Huldra will continue attempting to restructure its financial affairs and recommence operations at its mine and mill.

While under CCAA protection, Huldra will continue attempting to restructure its financial affairs and recommence operations at its mine and mill under the supervision of the Monitor. The Monitor will also be responsible for reviewing Huldra's ongoing operations, liaising with creditors and other stakeholders and reporting to the Court.

The Court has authorized the Monitor to arrange for Waterton Global Value, L.P., the primary secured creditor of the company, to loan up to CAD$4.8 million to the company pursuant to a term sheet dated July 23, 2013.

The DIP Loan is to be drawn by the company in two tranches as follows: CAD$2.3 million (the "First Tranche") upon the request of the Company following execution of the Term Sheet; and CAD$2,500,000 (the "Second Tranche", and together with the First Tranche, the "Tranches") upon receipt by Waterton of a comprehensive plan of operations from the Company for the Treasure Mountain Property that is satisfactory to Waterton and its advisors (the "Plan"). Huldra has agreed to repay the DIP Loan in full as follows: if the First Tranche (but not the Second Tranche) is advanced, then on the date which is four months after the date the First Tranche is advanced by Waterton to the Company under the Term Sheet; and if both Tranches are advanced, then in accordance with an amortized repayment schedule to be determined by Waterton which reasonably corresponds to the Plan.