ADVANCE METALS LIMITED — Capital/Financing Update 2020

Feb 6, 2020

ASX RELEASE

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7 February 2020

SHARE PURCHASE PLAN TO RAISE A$1.0M

Highlights

• Pacific American Holdings is seeking to raise A$1.0 million through a Share Purchase Plan to be offered to Eligible Shareholders at the issue price per Share of A$0.025 each.

• Funds will primarily be used to accelerate the initiatives in the Company’s new investment into the renewable energy sector with a focus on the Australasia and South Pacific regions and progress to the next stage in the commercialisation and development of the PAK Group’s Raw Steel Materials ‐ Elko Project.

Pacific American Holdings Limited (the Company or PAK) (ASX: PAK) is pleased to announce that the Company’s Eligible Shareholders will have the opportunity to participate in a Share Purchase Plan at the issue price per Share of A$0.025 (SPP).

The Company intends to raise up to A$1.0 million under the SPP, which will not be underwritten.

The SPP provides the opportunity for Eligible Shareholders to each subscribe for up to A$30,000 worth of new Shares in the Company.

The Company’s directors have each indicated that they will participate in the SPP.

Registered holders of the Company’s shares as at 7.00pm (Sydney time) on 6 February 2020 ( Record Date ) with a registered address in Australia or New Zealand will be eligible to participate in the SPP. The Company may determine to raise a higher amount or decide to scale back applications under the SPP, at its absolute discretion.

The net funds raised under the SPP will be applied towards developing our renewable energy business focused in the Asia Pacific region, including Australia and progressing to the next stage in the commercialisation and development of the PAK Group’s metallurgical coal Elko asset.

Full details of the SPP will be contained in an offer document which is scheduled to be despatched to eligible shareholders on or around 17 Feb 2020[1] .

Set out below is the proposed timetable for the SPP. Directors reserve the right to vary the dates and times without notice.

1 Unless varied.

Pacific American Holdings Limited ABN 83 127 131 604 Suite 706, Level 7, 89 York Street, Sydney NSW 2000 GPO Box 1546, Sydney NSW 2001

P: +61 (0) 2 8964 4373 E: info@pamcoal.com W: www.pacificamerican.com.au

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TIMETABLE

Description	Date2	Activity
Record Date	Thursday 6 February 2020	Date for determining Eligible Shareholders
Offer Announcement	Friday 7 February 2020	Offer is announced to the market
Offer Date	Monday 17 February 2020	Offer opens and Offer despatched	documentation
Closing Date	Wednesday 18 March 2020	Applications must be received by time	5.00pm Sydney
Announce Results	Monday 23 March 2020	Announcement date of funds raised and shares to be issued
Allotment Date	Friday 27 March 2020	New Shares allotted
Trading Date	Monday 30 March 2020	New Shares commence trading on	the ASX
Despatch Date	Tuesday 31 March 2020	New Share Statements sent to Shareholders

For and on behalf of the Board

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Geoffrey Hill

Chairman

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices or potential growth of the Company, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward‐looking.

2 This timetable is indicative only and may be subject to change and subject to the requirements of the Corporations Act and the ASX Listing Rules.

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Renewable Energy Initiative

PAK has created a new special purpose vehicle (SPV) to invest into the renewables energy space. The first investment is being made into GP Hydro Pte Ltd, a JV company owned by Pacific American Holding and Austrian hydro power generation experts Global Hydro GmbH. The Company will focus on the implementation and development of hydro and hybrid projects in Australia and the South Pacific. The Company’s SPV will look to develop other similar businesses over the next 12‐24 months.

Industries

The Company will be looking at developing projects in the hydro space initially and will branch out into other areas such as solar once the JV has a number of projects in the pipeline.

GP Hydro Pte Ltd

GP Hydro Pte Ltd will offer Global Hydro’s smarT product suite throughout Australia and the Pacific. The Company will have its own independent management team and board comprised of people from both companies as well a newly recruited Chief Executive officer.

About the SmarT

Unlike other micro hydro plants, the smarT comes in a self‐contained shipping container unit that can be monitored from anywhere in the world. The technical team in Austria at Global Hydro can monitor the plants live and offer a range of other services. The other unique aspect of the smarT is that you can add any range of other alternate energy supplies onto the plants. The plants start at 100KW and can be built up to 2MW which is perfect for off grid solutions such as mining and remote communities.

SmarT Overview

• smarT is an economic product ideal for outputs of 100kW to 2MW per unit.

• smarT power stations are fully assembled at the factory

• Ready‐to‐use power plant delivered in a 20ft container.

• smarT can be combined with other technologies

• Solar and wind energy

• Battery storage for optimized operation

• Low operating costs and sustainable technology with no environmental impact

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Delivery pathway for implementation

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Analyse
Identify Potential Engage Potential
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Complete JV Sign head of
Set up board for Establish JV
Agreement with
JV Company Company
Partner Partner
Engage CEO
Identify Potential CEO creates
Candidates for JV
CEO Candidates business strategy
Company
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Note: Shaded area denotes activities already completed

Raw Steel Materials

The Elko Project contains a 303.1MT JORC 2012 Compliant resource that, when recovered and processed, produces coke which is turn an essential ingredient in the steel making process. Steel is used in the building of infrastructure projects, including the production of wind turbines and solar panel framing in the renewable energy sector.

The Elko Project continues to be a significant project to the Company, and funds raised through the SPP will used to continue the advancement of the Elko Project as it moves towards pre‐feasibility.

Competent Person’s Statement

Previously Released Information

These ASX announcements refer to information extracted from reports available for viewing on PAK's website www.pamcoal.com and announced on 16.01.2019 “Elko Coking Coal Project JORC Resource Increased to 303Mt”

PAK confirms it is not aware of any new information or data that materially affects the information included in the original market announcements, and, in the case of exploration targets, that all material assumptions and technical parameters underpinning the exploration targets in the relevant market announcements continue to apply and have not materially changed. PAK confirms that the form and context in which the Competent Person’s findings presented have not been materially modified from the original market announcements.

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