AERIS RESOURCES LIMITED — Capital/Financing Update 2018

Oct 3, 2018

ASX/MEDIA RELEASE

4 OCTOBER 2018

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AERIS RESOURCES LIMITED (ASX: AIS)

Aeris reduces debt by US$20 million

HIGHLIGHTS:

• Aeris Resources makes US$20 million repayment against Tranche B debt facility

• Tranche B balance now US$10 million – avoids 3% interest rate step‐up

• Total Aeris debt now US$29 million (Tranche A – US$19 million and Tranche B – US$10 million)

• Debt reduced by more than US$100 million since 2013

Established Australian copper producer, Aeris Resources Limited (ASX:AIS) ( Aeris or the Company ), is pleased to advise that it has today made a US$20 million payment against its Tranche B debt facility with Special Portfolio Opportunity V Limited ( SPOV ), a subsidiary of a fund managed by PAG.

The US$20 million payment reduces the balance of the Tranche B facility to US$10 million and avoids a 3% interest rate step‐up, which would have been payable from 14 October 2018 on any balance of the Tranche B facility remaining above US$10 million.

Aeris’ total debt is now reduced to US$29 million (Tranche A facility – US$19 million and Tranche B facility – US$10 million) and represents a reduction in the Company’s debt of more than US$100 million since the start of 2013.

Aeris’ Executive Chairman, Andre Labuschagne said:

“Today’s US$20 million debt repayment means that we have now reduced the Company’s debt by more than US$100 million since the current management team started with Aeris at the beginning of 2013. Debt reduction has been a strategic objective for the Company in that period and now we can focus on our core objective of growing Aeris into a mid‐tier, multi‐mine company.”

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“Not only do we have a producing copper operation at Tritton, targeting 24,500 tonnes of copper for FY2019 but we also have an exciting portfolio of exploration projects, including Kurrajong and Torrens. Apart from our organic growth pipeline, we continue to assess M&A opportunities, with a strong preference for copper plays that are in or near production.

“It is also important to note that our financier, SPOV, is also our major shareholder and has supported the recent placement and non‐renounceable entitlement offer through taking up A$7 million of their entitlements whilst also sub‐underwriting the retail component.

“FY2019 is shaping up to be an exciting year for Aeris. Preparations have started for the commencement of drilling at the exciting Torrens Project (Aeris 70%) in South Australia. We will also accelerate exploration activities at the Tritton Copper Operations, including the next phase of drilling at the Kurrajong Prospect and an aerial EM programme on the northern half of our 1,800km[2] tenement package.”

ENDS

For further information, please contact:

Mr. Andre Labuschagne Executive Chairman Tel: +61 7 3034 6200, or visit our website at www.aerisresources.com.au

Media & Broker Enquiries:

Michael Cairnduff Cannings Purple Tel: 0406 775 241 mcairnduff@canningspurple.com.au

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About Aeris Resources

Aeris Resources Limited (Aeris or Company) is one of Australia’s largest independent copper producers by volume produced.

The Company’s flagship asset is the Tritton Copper Operations (Tritton) in Western NSW which operates two underground mines and a 1.8mtpa processing facility and is surrounded by an 1,800km[2] highly prospective tenement package which to date has discovered 750,000 tonnes of copper. For FY2019 Tritton is targeting copper production of 24,500 tonnes at a C1 unit cash cost of between A$2.75/lb and A$2.90/lb.

Aeris also holds a 70% interest in the exciting Torrens Project (EL5614) in South Australia through a Joint Venture with Argonaut Resources (ASX: ARE). The Torrens Project contains a regionally significant coincident magnetic and gravity anomaly (11km x 6.5km) with a footprint larger than Olympic Dam. In February 2018 the final regulatory approval was received, enabling on‐ground exploration activities, including up to 70 drill holes, to commence. The Joint Venturers are planning to commence drilling at the Torrens Project before the end of calendar 2018.

The Company recently completed a five year operational and financial turnaround and is now focused on delivering on its strategic objective to become a mid‐tier, multi‐mine copper producer – through organic growth and M&A.

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