ASARA RESOURCES LIMITED — Capital/Financing Update 2020

Jun 28, 2020

Proposed issue of securities

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Update Summary

Entity name

GOLDEN RIM RESOURCES LTD

Announcement Type

Update to previous announcement

Date of this announcement

Monday June 29, 2020

Reason for update to a previous announcement

Issue date and expiry date of attaching option now known

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

GOLDEN RIM RESOURCES LTD

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

Registration Number

ACN 006710774

1.3 ASX issuer code

GMR

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Issue date and expiry date of attaching option now known

1.4b Date of previous announcement(s) to this update

Thursday June 18, 2020

1.5 Date of this announcement

Monday June 29, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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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

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No

Part 7B - Issue details

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 Yes 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

GMR : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued 166,666,667

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Purpose of the issue

Funds raised will be used for drilling at the Kouri Gold Project in Burkina Faso, new business development opportunities and 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 0.00610

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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

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 New class-code to be confirmed	+Security Description Unlisted Options Class Y
+Security Type
Options
Maximum Number of +securities proposed to be issued
83,333,333
Reason for the update of 'Maximum Number of +securities proposed to be issued' Offer price details for retail security holders
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

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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 Wednesday June 29, 2022

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option GMR : ORDINARY FULLY PAID

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

Part 7C - Timetable

7C.1 Proposed +issue date

Monday June 29, 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? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

41,666,667 Shares + 83,333,333 Options = 125,000,000 securities

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes

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7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

125,000,000 Shares

7D.1c ( ii ) Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer under a +security purchase plan in which existing ordinary +security holders would have been eligible to participate

The Company utilized its Listing Rule 7.1A placement capacity having given consideration to the expediency of a share placement, the uncertainty of the current financial environment and advice from external advisers.

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? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

LHC Mine Finance Ltd

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

5% cash fee of the funds raised by LHC Mine Finance Ltd plus options equal to 5% of the number of shares issued to parties introduced by LHC, the issue of which are subject to shareholder approval (also part of a broader mandate).

7E.2 Is the proposed issue to be underwritten?

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No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed 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

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