ADX ENERGY LTD — Capital/Financing Update 2016

May 10, 2016

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ASX Release

11 May 2016

Placement – ASX Listing Rule 7.1A.4(b) and 3.10.5A Information

ADX Energy Ltd ( ASX:ADX ) hereby provides information in accordance with ASX Listing Rule 7.1A.4(b) and 3.10.5A relating to the placement announced on 2 May 2016:

• (a) A total of 114,286,000 ordinary fully paid shares were issued under the placement. Of this total, 65,647,827 shares were issued with security holder approval under ASX Listing Rule 7.1A. The dilutive effect of the issue under 7.1A on existing shareholders of the Company is as follows:

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7.1A on existing shareholders of the Company	is as follows:
	Shares	Dilution
Shares on issue pre issue	656,478,273
Shares issued under LR 7.1A capacity	65,647,827	8.52%
Sub-Total	722,126,100
Shares issued under LR 7.1 capacity	48,638,173
Total Shares on Issue post placement	770,764,273

Details of the Company’s issued capital following completion of the share issue held by preissue shareholders and new shareholders are as follows. Please note this information relates specifically to the 65,647,827 new shares issued under Listing Rule 7.1A.

	Shares	Percentage
Pre-issue shareholders who did not participate in the new issue	656,478,273	90.91%
Pre-issue shareholders who participated in the new issue under 7.1A	-	-
New shareholders who participated in the new issue under 7.1A	65,647,827	9.09%
Total	722,126,100	100.00%

• (b) The Company issued shares as a placement to sophisticated and professional investors as this was considered to be the most expedient mechanism for raising funds to fund the Company’s appraisal and feasibility work programs on the Nilde Area Development Project in Italy as well as to augment ongoing working capital requirements.

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• (c) The placement was not underwritten.

• (d) Fees payable to the lead manager in connection with the placement comprise a placement fee of 5% of the value of shares subscribed and an issue management fee of 1%. In addition, 5,000,000 options will be granted at an exercise price of $0.02, expiring on 28/04/2017 for ongoing financial advisory services.

Yours sincerely,

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Amanda Sparks

Company Secretary

www.adxenergy.com.au