ASTRAL RESOURCES NL — Capital/Financing Update 2023

Apr 27, 2023

ASX Announcement 28 April 2023

==> picture [124 x 33] intentionally omitted <==

SUCCESSFUL $3.4M PLACEMENT TO ACCELERATE RESOURCE GROWTH AT MANDILLA & FEYSVILLE GOLD PROJECTS

Well-supported capital raising will allow Astral to maintain recent exploration momentum

Astral Resources NL (ASX: AAR) (the Company ) is pleased to advise that it has secured firm commitments to raise approximately $3.4 million via a single-tranche share placement ( Placement ) comprising the issue of approximately 47.2 million shares at an issue price of A$0.072 per share to sophisticated and professional investors.

Together with the Company’s existing cash reserves, the proceeds of the Placement will primarily be used to advance resource definition drilling and technical and feasibility studies at the Company’s 100%-owned Mandilla & Feysville Gold Projects, located near Kalgoorlie in WA.

Planned activities include:

• Completion of the current diamond drilling (DD) and reverse circulation (RC) drilling at the Mandilla Gold Project, building on recent positive results

• Completion of the next Mineral Resource Update for Mandilla, scheduled for mid-2023

• Additional RC drilling and DD including:

  • Additional in-fill and extensional drilling at the Theia deposit

  • Drilling to test the bedrock mineralisation at Eos

  • Resource definition drilling at the Hestia deposit and

  • Further exploration and resource definition drilling at the Feysville Gold Project.

• Advancement of technical and feasibility studies for the Mandilla Gold Project.

Placement Details

Astral has undertaken the Placement of new fully-paid ordinary shares in the Company to eligible sophisticated, institutional and professional investors to raise approximately A$3.4 million. Shares are to be issued under the Placement at $0.072 per share ( Placement Price) , representing an 11.1% discount to the last traded price of $0.081 and a 10.1% discount to the 30-day volume weighted average price (VWAP) of $0.080 as at Tuesday 26 April 2023.

The Company will issue a total of 47,222,222 new Shares under the Placement. The shares will be issued under the Company’s placement capacity in accordance with ASX Listing Rule 7.1.

Managing Director, Marc Ducler subscribed for 694,444 shares and non-executive directors Justin Osborne and David Varcoe subscribed for 138,888 and 277,777 shares respectively under the Placement ( Related Party Participation ). As per the requirements of the ASX Listing Rules, the Related Party Participation of 1,111,109 new shares is subject to prior shareholder approval. The Company is expected to convene a shareholder meeting as soon as practicable to seek this approval.

==> picture [595 x 51] intentionally omitted <==

ASX Announcement

28 April 2023

==> picture [124 x 33] intentionally omitted <==

Following completion of the Placement, the Company’s capital structure is expected to be as follows:

	Number of Shares	Number of Options
Currentlyon Issue	672,580,833	46,615,317
Placement	46,111,113	-
Related PartyParticipation(subject to shareholder approval)	1,111,109	-
TOTAL	719,803,055	46,615,317

Astral Resources’ Managing Director Marc Ducler said : “We are very pleased with the strong level of support for this capital raising, particularly against the backdrop of a very difficult period for equity capital markets. The strong response to the placement is evidenced both by the quality of the investors who are participating and by the fact that the raising closed oversubscribed.

“This speaks volumes for the confidence that our shareholders and key investors have in the Company’s asset base and strategy. I would like to thank all participants for their support, particularly during a period of significant market volatility.”

Morgans Corporate Limited ( Morgans ) acted as Lead Manager to the Placement.

This announcement has been approved for release by the Managing Director.

For further information:

Investors:

Marc Ducler Managing Director Astral Resources +61 8 9382 8822

Media:

Nicholas Read Read Corporate +61 419 929 046

==> picture [372 x 202] intentionally omitted <==