ALBION RESOURCES LIMITED — Capital/Financing Update 2021

Aug 12, 2021

13 August 2021

Entitlement Issue of Loyalty Options

Albion Resources Limited (ASX: ALB) ("Albion" or the "Company") is pleased to announce a non-renounceable entitlement issue of options to eligible shareholders on the basis one (1) option (“Loyalty Option”) for every two (2) ordinary shares held by eligible shareholders at 5pm (WST) on the Record Date of 18 August 2021 (“Record Date”) at an issue price of A$0.001 (0.1 cents) per Loyalty Option (“Entitlement Offer”).

Each Loyalty Option will be exercisable for one fully paid ordinary share, at the exercise price of $0.25 (25 cents) per option on or before 29 September 2023.

The primary purpose of the Entitlement Offer is to recognise the support and loyalty the Company has received from its shareholders to date.

Under the Entitlement Offer, the Company will also be raising capital of up to $22,000 before costs, which will be used to fund the costs of the Entitlement Offer.

Details of the Entitlement Offer

The Entitlement Offer will be only made to Shareholders who hold shares in the Company at 5pm (WST) on the Record Date and have a registered address in Australia or New Zealand (“Eligible Shareholders”). Shareholders who are not Eligible Shareholders will not be eligible to participate in the Entitlement Offer.

Holders of existing Options issued in the capital of the Company will need to exercise their Options and be Eligible Shareholders as recorded in the Company’s register of members as at 5pm (WST) on the Record Date if they wish to participate in the Entitlement Offer.

The entitlements to Loyalty Options under the Entitlement Offer (“Entitlements”) are non-renounceable and will not be tradable on the ASX. The Entitlement Offer will not be underwritten.

Eligible Shareholders cannot apply for additional Loyalty Options via the Entitlement and Acceptance Form. However, the Albion Board retains the right to place any Shortfall to any person at their absolute discretion within 3 months after the closing date of the Entitlement Offer, at the same issue price of $0.001 (0.1 cents) per option.

The Company will apply to the ASX for the quotation of the Loyalty Options issued under the Entitlement Offer, subject to compliance with the requirements under the ASX Listing Rules. Full details of the Entitlement Offer will be set out in the Prospectus, which will be lodged by the Company with ASX today and will be despatched to the Eligible Shareholders on 23 August 2021.

The anticipated timetable for the Entitlement Offer is as follows:

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Event	Date
Company lodges Prospectus with ASX and announces the	Friday, 13 August 2021
Entitlement Offer to the market
Ex-date	Tuesday, 17 August 2021
Record Date	Wednesday, 18 August 2021
Intended date to dispatch Prospectus and personalised	Monday, 23 August 2021
Entitlement and Acceptance Form
Offers open	Monday 23 August 2021
Last day to extend the closing date of the Entitlement Offer	Tuesday, 31 August 2021
Closing Date of Entitlement Offer (5pm WST)*	5.00 pm WST
	Friday, 3 September 2021
Quoted Options quoted on a deferred settlement basis	Monday, 6 September 2021
Intended date for Company to announce the results of the	Wednesday, 8 September 2021
Entitlement Offer and notification of shortfall
Anticipated date for issue of the Quoted Options.	Friday, 10 September 2021
Deferred settlement trading ends	Friday, 10 September 2021

• The Directors may extend the Closing Dates by giving at least three (3) Business Days' notice to ASX prior to the relevant Closing Date. As such the date the Quoted Options issued under the Offers are expected to commence trading on ASX may vary.

This announcement has been approved for release by the Board.

FOR FURTHER INFORMATION:

Colin Locke Executive Chairman +61 457 289 582 colin.locke@albionresources.com.au

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