ARUMA RESOURCES LIMITED — Capital/Financing Update 2020

Jun 4, 2020

Proposed issue of securities

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Announcement Summary

Entity name

ARUMA RESOURCES LIMITED

Announcement Type

New announcement

Date of this announcement

Friday June 5, 2020

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
n/a	Unlisted attaching options with an exercise price of 1 cent	66,666,667
	expiring 2 years from the date of issue
n/a	Options will have an exercise price of 1 cent each and expire	5,000,000
	2 years from the date of issue
AAJ	ORDINARY FULLY PAID	93,000,000
Proposed +issue date
Wednesday July 22, 2020

Refer to next page for full details of the announcement

Proposed issue of securities

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

ARUMA RESOURCES LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

77141335364

1.3 ASX issuer code

AAJ

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Friday June 5, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

Proposed issue of securities

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Proposed issue of securities

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval Friday July 17, 2020 Estimated

Comments

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +Security Code and Description

AAJ : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

88,000,000

Proposed issue of securities

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Proposed issue of securities

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Purpose of the issue

For ongoing exploration of Aruma¿s existing Western Australian gold projects including the newly secured Pilbara tenements; evaluation of the Capital Gold Project located in NSW (subject to completion of the acquisition); costs of the raising; and general working capital.

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00400

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms	Will the entity be seeking quotation of the 'new' class of
of the proposed +securities are appropriate and	+securities on ASX?
equitable under listing rule 6.1?	No
No
ASX +Security Code	+Security Description
New class-code to be confirmed	Unlisted attaching options with an exercise price of 1 cent
	expiring 2 years from the date of issue

+Security Type

Options

Maximum Number of +securities proposed to be issued

66,666,667

Offer price details for retail security holders

Proposed issue of securities

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Proposed issue of securities

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In what currency is the cash consideration being paid? What is the issue price per +security? AUD - Australian Dollar AUD

Oversubscription & Scale back details

May a scale back be applied to this event? No

Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

Options details

+Security Currency AUD - Australian Dollar Exercise Price Expiry date AUD 0.0100 Friday July 22, 2022 Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option AAJ : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? Existing class

Details of +securities proposed to be issued

ASX +Security Code and Description AAJ : ORDINARY FULLY PAID Maximum Number of +securities proposed to be issued 5,000,000

Proposed issue of securities

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Proposed issue of securities

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Purpose of the issue

Shares to be issued, subject to shareholder approval, for the acquisition of Augustus Mining Pty Ltd, the holder of two tenement applications comprising the Capital Gold Project in NSW.

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00400

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from Will the entity be seeking quotation ASX that the terms of the proposed of the 'new' class of +securities on +securities are appropriate and ASX? equitable under listing rule 6.1? No No ASX +Security Code +Security Description New class-code to be confirmed Options will have an exercise price of 1 cent each and expire 2 years from the date of issue

+Security Type Options Maximum Number of +securities proposed to be issued 5,000,000

Proposed issue of securities

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Proposed issue of securities

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Purpose of the issue

Subject to shareholder approval, the Company will issue up to 5 million unlisted options (Broker Options) as consideration for facilitating the Placement..

Offer price details for retail security holders In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD Will all the +securities issued in this class rank equally in all respects from their issue date? Yes Oversubscription & Scale back details May a scale back be applied to this event? No Options details +Security Currency Exercise Price Expiry date AUD - Australian Dollar AUD 0.0100 Friday July 22, 2022 Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option AAJ : ORDINARY FULLY PAID Please provide any further information relating to the principal terms of the +securities Part 7C - Timetable 7C.1 Proposed +issue date Wednesday July 22, 2020 Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? Yes

Proposed issue of securities

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Proposed issue of securities

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7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1

Friday July 17, 2020

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? Yes

7D.4a Please enter the number and +class of the +securities subject to +voluntary escrow and the date from which they will cease to be subject to +voluntary escrow

2500000 of the shares to be issued for the acquisition of Augustus Mining Pty Ltd are to be voluntarily escrowed for 3 months from the date of issue (around 22 October 2020).

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue A commission of 6% of the amount raised will be paid to brokers participating in the issue.

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

This proposed issue of 88 million shares and the attaching options is tranche 2 of a 2 tranche Placement of 200 million shares to raise $800,000.

Proposed issue of securities

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