AUDALIA RESOURCES LIMITED — Capital/Financing Update 2013

Sep 22, 2013

ANNOUNCEMENT

23 SEPTEMBER 2013

==> picture [322 x 126] intentionally omitted <==

CAPITAL RAISING

Audalia Resources Limited ( Audalia ) (ASX: ACP) is pleased to announce its intention (subject to shareholder approval) to raise $1.5 million by way of placement of 150,000,000 fully paid ordinary shares to sophisticated investors ( Placement ).

The Placement is proposed to be completed in two tranches, as follows:

• Tranche 1: Placement of 12,000,000 Shares to raise $120,000;

• Tranche 2: Placement of 138,000,000 Shares to raise $1,380,000.

The Placement will be completed at $0.01 per share. The directors acknowledge the issue price per share is at a deep discount to the $0.039 closing price of ACP Shares on 20 September 2013 but the Board notes that it is reflective of the challenging and limited market for fundraisings in recent times.

The issue of Tranche 1 Placement Shares is within the Company’s 15% capacity under Listing Rule 7.1 and is expected to be completed by the end of September 2013. Tranche 2 of the Placement is subject to and conditional upon shareholder approval. Audalia will seek shareholder approval at the upcoming Annual General Meeting.

The funds raised from the Placement will be used to repay the short-term loan of $500,000 due for repayment on 20 November 2013, to advance the metallurgical testwork at the Medcalf Project, to progress the Company’s ongoing exploration activities at its Medcalf and Gascoyne Projects and for general working capital.

The Company’s 2013 Annual General Meeting is expected to be held on or around 6 November 2013. Audalia expects to despatch the Notice of Meeting for consideration by Shareholders in early to midOctober 2013.

Authorised by:

Dato Soo Kok Lim Executive Chairman

ASX: ACP l Find out more at www.audalia.com.au ASX: ACP l Find out more at www.audalia.com.au

1

1 1

ASX: ACP l Find out more at www.audalia.com.au