ARUMA RESOURCES LIMITED — Capital/Financing Update 2016

Oct 12, 2016

ABN 77 141 335 364 ASX: AAJ

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Aruma Resources Limited

13 October 2016

Dear Shareholder,

PRO-RATA NON-RENOUNCEABLE RIGHTS OFFER

As announced on 11 October 2016, Aruma Resources Limited (" Company ") is seeking to raise up to approximately $562,912 by a pro-rata non-renounceable rights offer (" Offer ") of up to approximately 70,364,063 shares on the basis of 1 new share (" New Share ") for every 4 shares held at an issue price of 0.8 cents per New Share. The Company will lodge an offer document for the Offer (" Offer Document ") with the ASX on 20 October 2016.

The funds raised under the Offer will be used to explore existing resource projects, identify and evaluate new resource projects , for working capital and to meet Offer expenses.

The Offer is fully underwritten by DJ Carmichael Pty Limited to the sum of $562,912. Minimum Subscription under the Offer is $562,912.

The timetable for the Offer is as follows:

Pro-rata Offer announced	11 October 2016
New Shares quoted on an "ex" basis(date from which the New Shares commence trading without theentitlement to participate in the Offer).	14 October 2016
Record Date(date for identifying Shareholders entitled to participate in the Offer).	17 October 2016
Offer Document with Entitlement Form sent to Eligible Shareholders	20 October 2016
Offer opens	20 October 2016
Closing Date(last date for lodgement of Entitlement Forms and Application Money)	7 November 2016
Trading of New Shares commence on a deferred settlement basis	8 November 2016
Company to notify ASX notified of the Shortfall (if any)	10 November 2016
Issue of New Shares and end of deferred settlement trading	14 November 2016
Normal trading of New Shares on ASX	15 November 2016

Subject to the Listing Rules, the above dates may be changed without notice.

Aruma Resources Limited

ABN 77 141 335 364 ASX: AAJ Level 1, 6 Thelma Street, West Perth WA 6005 Locked Bag 2000, Nedlands WA 6909, Australia T +61 8 6389 1799 I F +61 8 9226 3764 I W www.arumaresources.com

The Offer will be made to the Company's shareholders with a registered address in Australia or New Zealand on the Record Date (" Eligible Shareholders ").

Assuming that no Options are exercised before the Record Date, the effect of the Offer on the Company’s issued share capital at Full Subscription is shown in the following table:

Shares	Full Subscription
Existing SharesNew Shares issued under Rights IssueTotal Shares on issue after completion of the Rights Issue	281,456,25470,364,063
	351,820,317

It is anticipated that the Offer Document offering New Shares for subscription will be mailed to Eligible Shareholders on 20 October 2016. The Offer Document may be viewed on the ASX's website at www.asx.com.au or alternatively on the Company's website at www.arumaresources.com.

Application will be made to ASX for official quotation of the New Shares. No shareholder approval is required to the Offer.

Overseas shareholders

The offer is only made to Eligible Shareholders (shareholders with a registered address in Australia or New Zealand at the Record Date). Therefore, if you are a shareholder with a registered address other than Australia or New Zealand, no offer will be made to you. In making this decision, the directors have taken into account the small number of overseas shareholders and the costs and administrative complexity of complying with applicable regulations in jurisdictions outside Australia and New Zealand.

If you have any questions please do not hesitate to contact the Company.

Yours faithfully

Paul Boyatzis Chairman Aruma Resources Limited

Aruma Resources Limited

ABN 77 141 335 364 ASX: AAJ Level 1, 6 Thelma Street, West Perth WA 6005 Locked Bag 2000, Nedlands WA 6909, Australia T +61 8 6389 1799 I F +61 8 9226 3764 I W www.arumaresources.com

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