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ADAVALE RESOURCES LIMITED Capital/Financing Update 2011

Dec 1, 2011

64300_rns_2011-12-01_c3f40535-360f-43b7-8d15-bad20fc38440.pdf

Capital/Financing Update

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A.B.N . 91 008 719 015

2 December 2011

Company Announcements Platform Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

Cancellation and Expiration of Options and Confirmation of Capital Structure

Further to the announcement made by Adavale Resources Limited (ASX: ADD) on 25 November, 2011, it wishes to advise that the following management options have been cancelled:

Number Unlisted Options
10,000,000 Class A Management Options – exercisable at $0.10 on or
before 1 March 2014 conditional on the volume weighted
average price of Adavale shares remaining above $0.20
for 30 consecutive days
10,000,000 Class B Management Options – exercisable at $0.10 on or
before 1 March 2014 conditional on the volume weighted
average price of Adavale shares remaining above $0.40
for 30 consecutive days
10,000,000 Class C Management Options – exercisable at $0.10 on or
before 1 March 2015 conditional on the volume weighted
average price of Adavale shares remaining above $0.60
for 30 consecutive days

The company also advises that the following unlisted options have lapsed:

Number Unlisted Options
1,428,571 Unlisted options exercisable at $0.21 on or before 30
November 2011
1,547,619 Unlisted options exercisable at $0.21 on before 1
December 2011

Address: U8-9 Forrest Street Cottesloe, Perth, Western Australia, Australia 6001 l Postal Address: PO Box 968, Cottesloe, Perth, Western Australia, Australia 6911. Telephone: (08) 9467 2049 l Facsimile: (08) 9286 2900 l Email: [email protected] l Website: www.adavaleresources.com.au

A.B.N . 91 008 719 015

The company confirms that the capital structure is:

Number Class
316,990,019 Fully Paid Ordinary Shares
65,697,897 Unlisted options exercisable at $0.04 on or before 31 July
2014 offered pursuant to the Offer and Placement
10,000,000 Class A Options – exercisable a $0.04 on or before 31 July
2014
10,000,000 Class B Options – exercisable at $0.04 on or before 31
July 2014 with vesting on that date on which Adavale
Resources Limited sells and ships its first load of coal
10,000,000 Class C Options – exercisable at $0.045 on or before 31
July 2015 with vesting on that date on which Adavale
Resources Limited sells and ships its 500,000thtonne of
coal
10,000,000 Class D Options – exercisable at $0.05 on or before 31
July 2016 with vesting on that date on which Adavale
Resources Limited sells and ships its 1,000,000thtonne of
coal
10,000,000 Arthur Phillip Options – exercisable at $0.04 on or before
31 July 2014

Adavale Resources Limited Sylvie Dimarco Company Secretary

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Address: U8-9 Forrest Street Cottesloe, Perth, Western Australia, Australia 6001 l Postal Address: PO Box 968, Cottesloe, Perth, Western Australia, Australia 6911. Telephone: (08) 9467 2049 l Facsimile: (08) 9286 2900 l Email: [email protected] l Website: www.adavaleresources.com.au