AUDALIA RESOURCES LIMITED — Capital/Financing Update 2018

Mar 15, 2018

ANNOUNCEMENT

16 MARCH 2018

==> picture [286 x 113] intentionally omitted <==

UPDATE ON FUNDING

Audalia Resources Limited ( Audalia or the Company ) (ASX: ACP) advises that further to the ASX announcements of 24 March 2015, 25 September 2015 and 8 August 2016 in relation to the loan facility of A$2 million, the Company has negotiated extension of the repayment date of the loan facility from 20 November 2018 to 20 November 2019.

In addition, Audalia advises that it has secured a new loan facility of $1 million to complete regional exploration and evaluation activities at the Medcalf Project.

The Company advises the material terms of the new loan facility as follows:

• Repayment Date: 31 March 2020.

• Interest rate: 10% per annum, accruing on a daily basis and payable on the Repayment Date.

• Security: The loan facility is unsecured.

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

The Company also advises that further to the ASX announcement of 21 February 2018 in relation to the short-term loan of $500,000 advanced by director Siew Swan Ong, Audalia has negotiated extension of the repayment date of the short-term loan from 21 March 2018 to 31 May 2018.

Audalia continues to assess all funding alternatives to ensure that the Company can advance the next stage of approvals for the Medcalf Project.

Authorised by:

Brent Butler Executive Director and CEO

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

1