ABX GROUP LIMITED — Capital/Financing Update 2021

Sep 30, 2021

ASX ANNOUNCEMENT 1 October 2021

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ASX: ABX

ABx Group Launches SPP on Same Terms as Capital Raising

• Fully Underwritten SPP to be offered to eligible shareholders at last placement price to raise up to $500,000

• SPP participants to be offered one free option for every share subscribed under the SPP Offer

• Proceeds to advance ABx Group’s Rare Earth Element program

ABx Group (ASX: ABX) ( ABx Group ) is pleased to announce that Shareholders have the opportunity to participate in a Share Purchase Plan to raise up to $500,000 ( SPP Offer ) at the same price as the Placement completed in July 2021.

The Offer price will be 10 cents. Shareholders can purchase shares totalling up to $30,000. Shareholders will also be able to apply for one Free-Attaching Option for every share applied for by them under the SPP Offer.

The SPP is underwritten up to $500,000 by CPS Capital Group Pty Ltd ( CPS Capital ). CPS Capital may appoint sub-underwriters. An underwriting fee of 6% of the underwritten amount is payable to CPS Capital by ABX Group (from which CPS Capital will pay any fees or commissions due to any sub-underwriters appointed), along with a management fee of $20,000 (exclusive of GST). Shareholder approval will not be sought for the issue of any shortfall shares to CPS Capital as underwriter of the SPP (or to any sub-underwriters), as these will be issued under the Company’s existing ASX Listing Rule 7.1 and 7.1A capacity.

The SPP follows ABX Group’s successful institutional placement completed in July of 32,500,000 Shares at $0.10 per Share with attaching options on a 1 for 1 basis, exercisable at $0.20 before 31 May 2023 ( Placement ) which raised $3.25 million before costs of the Placement. This represented a 12.64% discount to the 5-day trading VWAP to 19 May 2021.

Eligible Holders who participate in the SPP will also be offered the opportunity to apply for one free attaching unlisted Option for every one Share applied for under the SPP exercisable at $0.20 per option on or before 31 May 2023 ( Free-Attaching Option ), for nil consideration.

The offer of the Free-Attaching to Eligible Holders will be made separately to the SPP Offer under a prospectus ( Prospectus ) that will be made available when the offer for the Free-Attaching Options are made. A copy of the Prospectus will be made available online, and sent via email or post (as applicable) to Eligible Holders who have participated in the SPP. Any Eligible Holder who participates in the SPP and wishes to apply for Free-Attaching Options will need to complete the application form that will be in or accompany the Prospectus.

Shares issued under the SPP will rank equally with existing shares.

The funds raised from the Share Purchase Plan will be applied to support development of the ABX Group’s rare earth elements project and for Working Capital. The rare earths project is at an exciting stage because of two developments:

1. Our laboratory test work suggests we have in fact discovered the “Ionic Adsorption Clay” type of rare earths which are loosely attached to clays and can be recovered cheaply to create a valuable concentrate of rare earth metal compounds; and

Australian Bauxite Limited t/a ABx Group ABN 14 139 494 885

Level 5 52 Phillip Street Sydney NSW 2000 P: +61 2 9251 7177 F: +61 2 9251 7500

ASX Announcement 13 September 2021 page 2

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1. ABx Group has been introduced to a new geophysical method that appears ideal for mapping the extent of the clay channels that can host these ionic adsorption clay rare earth element deposits. ABx Group hopes to secure access to an expert team that can rapidly map the rare earth province discovered by ABx in northern Tasmania and “hit the ground running” immediately that Covid travel restrictions are eased.

Full details of the SPP Offer will be included in the SPP offer documents to be sent to eligible shareholders on 7 October 2021.

Indicative Dates

Record Date	Thursday, 30 September 2021
Announcement of the Share Purchase Plan	Friday, 1 October 2021
Offer Date	Thursday, 7 October 2021
Documents mailed to Eligible Shareholders	Thursday, 7 October 2021
Opening date for acceptances	Thursday, 7 October 2021
Closing date for acceptances	Friday, 29 October 2021
Shortfall Applications and funds received fromUnderwriter (in the event of a Shortfall)	Wednesday, 3 November 2021
Allotment and issue of New Shares	Friday 5 November 2021
Quotation of New Shares on ASX	Friday, 12 November 2021
*Dates are indicative only and subject to change

This announcement is authorised by the Board of Australian Bauxite Limited.

For further information please contact:

Ian Levy, CEO ABx Group Mobile: +61 (0) 407 189 122 Email: ilevy@australianbauxite.com.au