Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a global subsea mineral exploration and development company, provided a corporate update.

“On Friday, we closed a registered direct offering of equity securities that will allow us to continue to deleverage our balance sheet while also providing capital for Odyssey’s ongoing operations through the next nine to 18 months, bridging us to anticipated significant cash flows. We expect this financing to carry Odyssey through a decision on our NAFTA arbitration and provide the cash to self-fund a portion of the NAFTA litigation,” stated Mark Gordon, Odyssey Chairman and Chief Executive Officer. “Additionally, the capital will provide for targeted investments in key mineral projects that will help power the Green Economy.”

The financing transaction provides approximately $15.0 million of net proceeds to Odyssey and provides the following benefits:

• Ability to self-fund some NAFTA litigation expenses versus utilizing existing litigation funders. This $2B+ claim against Mexico under NAFTA relates to the illegal denial of the environmental permit for a subsidiary’s offshore phosphate project. Having completed hearings before the NAFTA Tribunal, Odyssey management is increasingly confident in the outcome of the litigation and would prefer to self-fund expenses to maximize the amount of any award to Odyssey.

• Allows for final payment of $2.5 million to satisfy a portion of the indebtedness associated with our legacy business. As previously announced, $14.5M in principal and accrued interest outstanding under various notes were repaid with $9.5M in cash and shares of stock. The final $2.5M (included in the $9.5M total repayment) included a conversion feature that will no longer be exercisable. Even after considering the pricing associated with this transaction, the payoff is accretive to stockholders with Odyssey achieving a 34% discount on the overall retirement of $14.5M in debt.
• Proceeds from the financing will also be available to repay a portion of the indebtedness owed to Minera del Norte, S.A. de C.V.
• Provides operating capital for Odyssey through the next nine to 18 months. Within this timeframe, Odyssey expects to have a decision on our +$2B NAFTA case. Additionally, a significant cash inflow from proceeds of a salvage contract that is now progressing through the UK court where a favorable determination is expected within several months. The proceeds from this contract could provide another year or more of operating capital and/or additional deleverage of the company’s balance sheet.

• Allows Odyssey to provide targeted investment (Capex and Opex) into key mineral projects in South America and the Pacific Islands. Mineral validation is expected in these projects within the next six to twelve months, focusing on Phosphate, Cobalt, and Nickel. These investments are intended to increase the value of our mineral portfolio assets by moving the projects up the value curve. CIC, a company in which Odyssey currently holds a minority position, is expected to begin offshore exploration later this month, and current third-party investments into the project support a value for Odyssey’s equity in CIC at over $60M.

“The last time we completed a registered direct offering was 22 months ago. As forecasted, that transaction funded our operations through the completion of the NAFTA hearing, enabled us to expand our ownership in existing projects and invest in the development of new projects,” explained Gordon. “Since that last equity raise, we removed $12.5M in debt from the balance sheet, increased our equity in the ExO project from 53.5% to 56.3%, increased our equity in the Lihir project from 79.9% to 85.6%, assisted CIC in their successful exploration license application and added two new projects to our portfolio that are being primed for the offshore exploration phase. We believe that this latest transaction will allow us to continue to increase the value of our diversified mineral portfolio and deleverage our balance sheet, building additional stockholder value.”

About Odyssey Marine Exploration Odyssey Marine Exploration, Inc. (Nasdaq: OMEX) is a deep-ocean exploration pioneer engaged in the discovery, validation and development of subsea mineral deposits in a socially and environmentally responsible manner. Odyssey’s growing project portfolio includes different mineral sets in various jurisdictions around the world. Odyssey also provides marine services for private clients and governments. For additional details, please visitwww.odysseymarine.com. An investor presentation is available in the Investors section of the website.

Forward Looking Information

Odyssey Marine Exploration believes the information set forth in this Press Release may include "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission on March 31, 2021. The financial and operating projections as well as estimates of mining assets are based solely on the assumptions developed by Odyssey that it believes are reasonable based upon information available to Odyssey as of the date of this release. All projections and estimates are subject to material uncertainties and should not be viewed as a prediction or an assurance of actual future performance. The validity and accuracy of Odyssey's projections will depend upon unpredictable future events, many of which are beyond Odyssey's control and, accordingly, no assurance can be given that Odyssey's assumptions will prove true or that its projected results will be achieved.

Cautionary Note to U.S. Investors

The U.S. Securities and Exchange Commission (SEC) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured," "indicated," "inferred" and "resources," which the SEC guidelines strictly prohibit us from including in our filings with the SEC. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable, and are urged to consider closely the disclosures in our Form 10-K which may be secured from us or from the SEC's website at http://www.sec.gov/edgar.shtml.

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