ADAVALE RESOURCES LIMITED — Capital/Financing Update 2020

Aug 6, 2020

A.B.N . 96 008 719 015

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7 August 2020

Companies Announcement Officer Australian Securities and Exchange Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000

By Electronic Lodgement

Notification under s. 708AA(2)(f) of the Corporations Act, 2001

Adavale Resources Limited (“ Adavale ”) (ASX:ADD) gives this notice under section 708AA(2)(f) of the Corporations Act 2001 (Cth) (“ Corporations Act ”) as notionally modified by the ASIC Corporations Instruments 2016/84 and 2016/73 (“ ASIC Instruments ”).

Adavale has today announced a renounceable pro rata entitlement offer of one (1) new fully paid ordinary share in Adavale (“ New Share ”) for every one (1) ordinary share held in Adavale as at 5:00pm (AEST) on 12 August, 2020 shareholders in Adavale (“ Shareholders ”) with a registered address in Australia and New Zealand or a Shareholder that Adavale has otherwise determined (in its absolute discretion) is eligible to participate in the offer (“ Entitlement Offer ”).

Adavale advises that:

1. the New Shares will be offered without disclosure to investors under Part 6D.2 of the Corporations Act as notionally modified by the ASIC Instruments;

2. this notice is given under section 708AA(2)(f) of the Corporations Act as notionally modified by the ASIC Instruments;

• as at the date of this notice, Adavale has complied with:

• 3.1 the provisions of Chapter 2M of the Corporations Act as they apply to Adavale; and

• 3.2 section 674 of the Corporations Act;

1. as at the date of this notice, there is no excluded information of the type referred to in sections 708AA(8) and 708AA(9) of the Corporations Act, to be disclosed under section 708AA(7) of the Corporations Act as notionally modified by the ASIC Instruments; and

2. the potential effect the issue of the relevant securities will have on the control of the body and the consequences of that effect will depend on a number of factors, including investor demand and existing shareholdings. However, given the structure of the Entitlement Offer as a pro rata issue without any underwriting arrangements in place for the Entitlement Offer and the current level of holders of substantial holdings (based on substantial holding notices that have been given to ADD and lodged with ASX on or prior to the date of this notice), ADD does not expect that the Entitlement Offer will have a material effect on the control of ADD and, as such, does not expect any material consequences to flow from that.

Adavale Resources Limited C/- Cabel Partners, Level 3, James Place, North Sydney NSW 2060 Telephone: (02) 8071 0300 Website: www.adavaleresources.com.au

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Further details regarding the Entitlement Offer are set out in the Announcement to the market accompanying this Notice as well as in the Offer Booklet has been lodged with ASX today and will be mailed to all eligible shareholders on or about 17 August, 2020.

This announcement has been authorised for release by the Company Secretary.

Yours sincerely

Stuart Cameron

Company Secretary Ph: +61 404 267 365

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