ADAVALE RESOURCES LIMITED — Capital/Financing Update 2017

Jan 4, 2017

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**ASX

ANNOUNCEMENT**

05 January 2017

_**UPDATE

ON STATUS WITH NEW STRATEGIC INVESTOR**_

Adavale Resources Limited (ASX: ADD) ( Adavale or Company ) is pleased to advise that MOU pursuant to the Memorandum of Understanding ( ) between the Company and Jun Moon Limited, documents to effect the following have now been executed between relevant parties:

• -­‐ Extinguish the existing convertible note facility from Mr Haryono Eddyarto and a new convertible note facility with Jun Moon Limited established;

• -­‐ Acquisition of 12 million shares by Jun Moon Limited from existing Adavale shareholders;

• -­‐ Issue of 7 million shares to Jun Moon Limited; and -­‐ Escrow agreements signed.

As previously advised, completion of the transaction is subject to Adavale shareholder approval.

Further details on the transaction will be provided in the Notice of Meeting expected to be dispatched to shareholders end January 2017.

**For

and on behalf of Adavale Resources Limited**

Leanne Ralph Company Secretary

Adavale Resources Limited C/- Boardworx Australia Pty Ltd, Level 9, 115 Pitt Street, Sydney NSW 2000 Postal address: GPO Box 3720, Sydney NSW 2001 Telephone: (02) 8263 0515 Website: www.adavaleresources.com.au