AUDALIA RESOURCES LIMITED — Capital/Financing Update 2014

Aug 21, 2014

ANNOUNCEMENT

22 AUGUST 2014

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MARKET UPDATE

As previously reported to the market, the Board of Audalia Resources Limited ( Audalia ) (ASX: ACP) has been pursing funding alternatives given the Company’s cash position at 30 June 2014 and its estimated cash outflows for the September 2014 quarter. In order to ensure that Audalia can achieve the near-term milestones it has set, the Company has secured a short-term loan of $700,000 ( Loan ) for the purposes of supplementing existing working capital.

The Company advises the material terms of the Loan as follows:

• Repayment Date: 20 January 2015.

• Interest rate: 8% per annum, accruing on a daily basis and payable on the Repayment Date.

• Security: The Loan is unsecured.

• Fees: No fees are payable by Audalia for the establishment or provision of the Loan.

The directors are cognisant of the short-term nature of this Loan and will continue to assess all funding alternatives to ensure Audalia can achieve the near-term milestones it has set, meet its short term liabilities and commitments and progress its longer term strategic objectives.

The Company also confirms that it continues to actively review and assess other projects in the resource sector, both in Australia and overseas, by way of acquisition or investment/ joint venture.

Authorised by:

Dato Soo Kok Lim Executive Chairman

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

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