ASTRON LIMITED — Capital/Financing Update 2022

Jan 31, 2022

1 February 2022

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Astron Secures Convertible Note Funding to Advance Donald Project

Astron Corporation Limited (Astron, ASX:ATR) advises that it has agreed to issue Convertible Notes ( Notes ) to Collins Street Asset Management Pty Ltd (CSAM) to raise the principal amount of A$5 million, plus A$1 million to pay interest on the Notes, to be used in progressing the Donald Mineral Sands and Rare Earths Project, located in regional Victoria. The Notes issuance is subject to shareholder approval and other customary conditions precedent.

The Notes have a term of two years and are convertible into ordinary shares of the Company at A$0.54 per share (representing a 24% premium over the trailing 60-day VWAP). The Notes carry a 10% p.a. coupon with the full amount capitalised to the loan balance.

The Donald Project is planned as an integrated mining and processing operation and is expected to become a major new global source of mineral sands production, especially zircon and valuable rare earths.

The funds will be used to advance the definitive feasibility study (DFS) of the Project, including feasibility level engineering design of the work site and process plant; additional exploration drilling, which is expected to lead to a refined resource model and ore reserves; continuing environmental studies and regulatory engagement. The DFS completion is planned for the second half of 2022.

Collins Street Asset Management is an Australian wholesale investment management company with an orientation to value-based investment. Founded by Michael Goldberg and Vas Piperoglou, the Collins Street Value Fund is a concentrated portfolio of their team’s highest conviction ideas.

Vas Piperoglou, the Chief Financial Officer and Co-Founder of Collins Street Value Fund stated:

"Having studied various mineral sands and rare earth deposits on a global scale, the team at Collins Street is proud to back Astron with a very shareholder friendly convertible note. It is our opinion that Astron is a little gem that ticks all the boxes to hopefully become a major market capitalisation company with its tier 1 Donald Mineral Sands Project.”

The main terms of the Convertible Note Deed are set out in the appendix to this release.

This is authorised for release by the Managing Director of Astron.

About Astron

Astron Corporation Limited (ASX: ATR) is an ASX listed company, with over 30 years’ experience in mineral sands processing technology and downstream product development, as well as the marketing and sales of zircon and titanium dioxide products. Astron’s prime focus is on the development of its large, long-life and attractive zircon assemblage Donald Mineral Sands and Rare Earth Project in regional Victoria. Donald has the ability to represent a new major source of global supply in mineral sands. The company also conducts a mineral sands trading operation based in Shenyang, China; operates a zircon and titanium chemicals and metals research and development facility in Yingkou, China; and is the owner of the Niafarang mineral sands project in Senegal. Niafarang is a high-grade coastal mineral sands deposit, planned to be developed using dredge mining and processing methodology.

Registered Office: 31/F., 148 Electric Road North Point, Hong Kong

www.astronlimited.com

About Collins Street Asset Management

Collins Street Asset Management is a value-based institutional investment management company, based in Melbourne, Australia. Since it opened its Value Fund to the public in 2016, the fund has regularly featured among the best performing Australian equity funds over numerous reporting periods. The fund is currently ranked No.1 by Morningstar in its category over 1, 3 and 5 years, and ranked No.1 by Mercer across all Australian equity mandates for 2020 and ranked second in financial year 2021. https://www.csvf.com.au

Appendix A. Terms of the Convertible Note

1. Issuer Astron Corporation Limited 2. Subscriber Collins St Value Fund (CSVF) 3. Total Amount A$5,000,000 4. Conversion Price 0.54c 5. Duration 2 Years 6. Interest 10% p.a. capitalised upfront 7. Use of Funds For the development of Donald Project and project related working capital 8. Security Donald Mineral Sands Pty Ltd is providing a first ranking general security agreement, guarantee and registered mortgage over real property

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