GENERAL INFORMATION AND Q&A 1. General Information Regarding Chapter 11 What is chapter 11? Chapter 11 is the section of the United States Bankruptcy Code that regulates corporate reorganizations. A chapter 11 filing initiates a legal and financial process designed to help companies continue to operate while they try to develop plans to reorganize their finances. Chapter 11 permits, and even encourages, daily business operations to continue as usual. What happens during the Chapter 11 process? Atna expects to continue operating in the ordinary course of business while it works to address its financial situation. More specifically, Atna expects to work with its key creditors to develop a reorganization plan that will restructure its balance sheet and provide financial flexibility after emergence from chapter 11. The goal is to develop and obtain court approval of a plan of reorganization, which will ultimately lead to Atna s emergence from chapter 11 with a restructured balance sheet. What is the purpose of the Chapter 11 Reorganization? Atna plans to utilize the Chapter 11 process to maximize its value and provide the greatest recovery to its stakeholders. We will continue to pursue a variety of potential restructuring transactions and expect to emerge as a strong, viable and profitable competitor in the gold mining sector. Will Atna continue to operate during this process? Yes, we expect that operations will continue as normal and we anticipate no interruptions in the day to day business. Is Atna going out of business? No. This event does not mean that Atna is going out of business. It will continue to operate as normal during the bankruptcy case. How long will this process take? There is no way to predict today with certainty how long the process will ultimately take. We anticipate that Atna will complete a restructuring in approximately six months. However, cases frequently range from six to eighteen months. Page 1 of 5
Where can I get more information about the case and about chapter 11? For more information, you may refer to www.upshotservices.com/atna, the Company s chapter 11 reorganization information website. In addition, you may call our Upshot Information Line at (855) 812 6112 with any further questions. Page 2 of 5
2. Information Regarding Atna s Restructuring What did Atna do on the petition date? On November 18, 2015, Atna Resources Inc. and certain of its direct and indirect subsidiaries filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Colorado. Simultaneously with the chapter 11 filings, Atna sought ancillary relief in Canada pursuant to the Companies Creditors Arrangement Act. Is Atna in control of its operations during bankruptcy? Yes, the Atna management team will be running the day to day operations of the business. Why did Atna file for bankruptcy? As you are aware, Atna has recently been facing many challenges, due to low gold prices and unusual mining challenges. This has caused a failure to having sufficient cash to operate successfully. In light of this situation, management and the Board of Directors have reviewed a wide range of strategic options to strengthen our business. After careful consideration, we have decided to voluntarily file for Chapter 11 bankruptcy protection. By filing Chapter 11, we will be able to explore alternatives to maximize value and strengthen our company, while addressing these challenges. What will happen to the Atna business? Atna will continue to operate its business as a debtor in possession under the jurisdiction of the Bankruptcy Court in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. How is Atna going to get the cash to stay in business? Atna and Waterton Precious Metals Fund II Cayman, L.P., Atna s pre petition lender under a secured facility are negotiating a consensual use of the Company s cash, as well as a debtor inpossession financing, which will allow the Company to maintain business as usual operations during the restructuring process. Atna believes its current and anticipated cash resources will be sufficient to pay its expenses and maintain its business operations during the pendency of its chapter 11 cases. What is Atna trying to achieve in filing chapter 11? Atna intends to restructure its business by attempting to sell non core assets and resolving various challenges relating to Atna s main assets, the Pinson and Briggs mine projects. Atna Page 3 of 5
believes that additional time and resources are necessary to successfully improve the value at the mines. In its restructuring, Atna will explore alternatives to strengthen the company, while addressing the challenges Atna has faced. 3. Information Regarding Specific Atna s Constituencies a. Response to Shareholders Questions Will Atna Canada stock still trade? No. At the moment, it is not possible to predict what the ultimate value of Atna Canada s common stock may be. The stock was suspended from trading on the OTCQB (US) and TSX (Canada) immediately upon announcing the filing for Chapter 11. Subsequently, both exchanges announced that the stock would be delisted and remain suspended until that time. It is possible that the stock may be traded on another market. Contact your broker to discuss your options regarding trading your stock. Are There Restrictions on the Sale of my Stock? Yes. Atna has filed a motion with the Bankruptcy Court in the United States and in Canada seeking to establish a process to ensure that the trading of its stock does not result in a change of control. Such process will allow Atna to preserve its Net Operating Losses, which are valuable tax attributes and assets of the estate. The motion established a procedure that you must follow to sell your shares. This procedure can be found at www.upshotservices.com/atna. The Bankruptcy Court granted this motion on an interim basis and will make a final ruling on the motion in the future. b. Response to Vendors Questions Can Atna pay for goods and services received before the filing? No. Now that Atna has filed for Chapter 11, it is against the law to pay invoices for goods and services received before the filing, or pre petition claims unless we receive court approval to make specific payments. Can Atna pay for goods and services received after the filing? Yes. Invoices received after the filing will be paid as usual, as long as they are for goods or services received after the filing date. Invoices for goods and services received before the date on which the company filed cannot be paid regardless of when the invoice is received, unless we receive court approval otherwise. Page 4 of 5
Can a vendor reclaim goods? Some suppliers may try to reclaim goods in the belief that this will help to reduce their losses. In fact, taking back goods from a company that has filed Chapter 11 is against the law, unless ordered by the court. Can a vendor file a claim in bankruptcy? What happens for the amount due to the vendor pre petition? Yes. The Bankruptcy Court will set a deadline for vendors and creditors in general to file claims in the Atna bankruptcy case in the near future. A vendor must file a proof of claim by the deadline, also called bar date, for any amount due to the vendor prior to the petition date. c. Response to Employees Questions How is my job affected by the bankruptcy? The bankruptcy filing will not immediately affect anyone s position. You will continue to be paid in accordance with your ordinary payroll schedule. Atna has filed a motion with the Bankruptcy Court seeking permission to pay all wages due prior to the bankruptcy filing and to require banks to honor payroll checks. Atna has also sought permission to continue in effect and make necessary payments to benefit plans including: (1) employee leave policies, (2) expense reimbursement, (3) severance programs, (4) medical, dental, life, and disability insurance, (5) workers compensation programs, and (6) other benefit programs. Atna has also sought permission to continue vacation and sick leave policies. The Bankruptcy Court granted this motion on an interim basis and will make a final ruling on the motion in the future. Therefore, your bank will honor your payroll check from Atna, your benefits will continue in effect and your accrued sick and vacation time will remain in effect. How do I know if I have a claim in bankruptcy? Since Atna has sought permission to pay all outstanding wages and continue its benefit plans, it is possible that you do not have a claim and thus may not need to file a claim in the bankruptcy case. However, you should consider carefully if you do have any claims and, if so, you should file them prior to a deadline for filing claims that the Bankruptcy Court will set in the near future. Page 5 of 5