ADVANCE METALS LIMITED — Capital/Financing Update 2016

Oct 20, 2016

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2 1 October 2016

A S X Market A n nounceme n ts A u stralian Sec u rities Exch a nge

Non‐renounceable Entitlement Offer to raise approximately $1.8 million

P a cific Americ a n Coal Lim i ted ABN 83 127 131 604 (ASX: PAK) ( PAK or Company ) anno u nces that it intends to u n dertake a o n e for eight p ro rata non ‐ renouncea b le entitlem e nt offer of f u lly paid ord i nary shares in PAK ( New Shares ) to raise approxim a tely $1.8 million ( Entitlement Offer ) .

T h e offer pric e of the Entitlement Offe r will be $0. 1 0 per New S hare ( Issue Price ). The E ntitlement O ffer repres e nts a 1 3.0% disco u nt to the cl o sing price o f PAK shares on Thursda y 20 October 2016 (the l a st trading d a y before this a n nouncement).

U n der the Ent i tlement Off e r, eligible s h areholders w ill be able t o subscribe for one Ne w Share for e v ery eight E x isting Share s held at 7.0 0 pm (Sydne y time) on M o nday 7 Nov e mber 2016 ( Record Date ) (together with one at t aching Ne w Option for e very two N e w Shares subscribed for) at the Issu e Price ( Entitlements ). T h e proceeds o f the Entitl e ment Offer will be appli e d principall y to fund th e ongoing de v elopment o f the Elko C o king Coal P r oject.

T h e Entitleme n ts are non‐ r enounceable and will n o t be tradea b le on ASX o r otherwise transferable. Shareholde r s w h o do not ta k e up their Entitlements will not receive any valu e for those Entitlements t hat they do not take up . S h areholders w ho are not eligible to r e ceive Entitl e ments will not receive a n y value for t he Entitlem e nts they w o uld have received had they been eli g ible.

It is expected t hat approxi m ately 18 m i llion New S h ares and 9 m illion New O ptions will b e issued as part of the E n titlement O f fer. New Sh a res and Ne w Options is s ued under the Entitlem e nt Offer wil l rank equall y with existi n g s h ares and op t ions.

El i gible Share h olders will b e invited to participate i n the Entitle m ent Offer. T he Entitle m ent Offer will open on T h ursday 10 N ovember 2016 and clos e at 5.00pm (Sydney tim e ) on Wedne s day 30 Nov e mber 2016. The E n titlement O f fer will incl u de a top‐up facility und e r which Eligible Shareholders who take up their full Entitlem e nt w i ll be invited to apply for additional s h ares in the E ntitlement O ffer from a pool of tho s e not taken up by other El i gible Share h olders. There is no guarantee that applicants un d er this top‐up facility w i ll receive all or any of th e N e w Shares a n d New Opti o ns they ap p ly for under the facility.

P A K will notif y shareholde r s as to whe t her they ar e eligible to p articipate in the Entitle m ent Offer. E ligible S h areholders w ill be sent, o n or aroun d Thursday 10 Novembe r 2016, an in f ormation b o oklet including a p e rsonalised e ntitlement a nd accepta n ce form which will provi d e further d e tails of ho w to participate in the E n titlement O f fer. A copy of the Infor m ation Book l et will also b e lodged wi t h the ASX on or about Thursday 10 N o vember 2016. Those sh a reholders w ho PAK det e rmines to b e ineligible s h areholders w ill also be n otified.

Pacific American Coal Limited A BN 83 127 131 604 L e vel 14, 52 Phillip Street, Sydney NSW 2000. G PO Box 3486, Sydney NSW 2 0 01 www.pamcoal.com

Far East Capital Limited has agreed to act as Lead Manager.

Proposed timetable[1]

PAK expects that the Entitlement Offer will be conducted according to the following timetable:

Event	Date
Market Announcement of the Entitlement Offer and cleansing notice lodged	Friday 21 October 2016
Notice to option holders that they cannot participate in the Entitlement Offer without first exercising their options	Wednesday 2 November 2016
Notice containing Appendix 3B details and indicative timetable sent to shareholders	Thursday 3 November 2016
Shares trade on an"ex Entitlement”basis	Friday 4 November 2016
Record Date for determining eligibility to participate in the Entitlement Offer (7.00 pm AEDT)	Monday 7 November 2016
Offer Document and Entitlement and Acceptance Forms despatched to Eligible Shareholders and announce despatch has occurred	Thursday 10 November 2016
Entitlement Offer opens	Thursday 10 November 2016
Last day to extend the closing date	Friday 25 November 2016
Entitlement Offer closes – last date for lodgement of Entitlement and Acceptance Forms and payment of application money in full (5.00 pm Sydney time)	Wednesday 30 November 2016
Deferred settlement trading of New Shares commences	Thursday 1 December 2016
Announcement of Entitlement Offer shortfall	Monday 5 December 2016
Allotment of New Shares and New Options issued under Entitlement Offer and dispatch of holding statements for New Shares. Deferred settlement trading ends	Wednesday 7 December 2016
Commencement of trading of New Shares and New Options on ASX on a normal basis	Thursday 8 December 2016

1 This timetable is indicative only and subject to change. The Company reserves the right to change the dates, including the Closing Date without prior notice, subject to the ASX Listing Rules. Any extension of the Closing Date will have a consequential effect on the anticipated date for allotment and issue of the New Shares and New Options.

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For further information please contact:

Pacific American Coal Limited Mark Sykes Chief Executive Officer Tel: +61 (2) 9252‐5300 Fax: +61 (2) 9252‐8400 Ian Morgan More details are available on PAK‘s website Company Secretary www.pamcoal.com

Important information

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to in this document have not been and will not be registered under the United States Securities Act of 1933 (the ‘US Securities Act’), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the US Securities Act or an exemption from the registration requirements of the US Securities Act is available.

This document may not be distributed or released in the United States.

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