AUREKA LIMITED — Capital/Financing Update 2018

Apr 4, 2018

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ASX ANNOUNCEMENT

5 APRIL 2018

CATALYST SECURES TEN YEAR RETENTION LICENCE FOR FOUR EAGLES GOLD PROJECT

• Retention Licence RL6422 granted for ten years over Four Eagles Gold Project

• Diamond drilling currently in progress at Four Eagles Gold Project

• RC blade/hammer drilling to commence on Boyd’s Dam and Hayanmi at Four Eagles Gold Project

• Diamond drilling completed at Tandarra Gold Project, RC and Air Core drilling continues

• Expenditure at Tandarra Gold Project to end March 2018 is $2.8 million and on track for Catalyst to earn 51% interest by mid-2018

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Catalyst Metals Limited ( Catalyst or the Company ) (ASX: CYL ) is pleased to advise that a Retention Licence (RL6422), with a ten year term, for the Four Eagles Gold Project has been granted and registered by the Victorian Department of Economic Development, Jobs, Transport and Resources (DEDJTR) . This provides the Company with security of tenure to conduct advanced drilling and assessment programmes aimed at progressing the project to resource estimation, scoping studies and possible feasibility and mining. The Retention Licence replaces Exploration Licence EL4525.

The Company has been working towards the conversion of the existing Exploration Licence EL4525 into a Retention License (RL) for over twelve months and was required to submit a detailed Mineralisation Report showing the presence of potentially economic gold mineralisation. The acceptance of the Mineralisation Report by DEDJTR was reported on 2 March 2018.

The Company had commenced a diamond drilling programme and this programme will now be accelerated by double shifting the current drill rig and possibly contracting a second unit. Subject to grain sowing and wet weather, this programme could continue until June 2018. One diamond drill hole (FEDD009) has already been completed at Boyd’s Dam to a depth of 327 metres with the objective of testing for structural repetitions of high grade gold zones.

The commencement of the RC drill programme had been delayed due to rig availability, however, a contract has now been executed for this programme to commence immediately. The RC drilling programme will test the top 120 metres depth at a traverse spacing of 25 metres in order to define possible mineralised shapes for resource estimation.

FOUR EAGLES JOINT VENTURE (RL6422, EL5295, EL5508)

The Four Eagles Gold Project is situated along the Whitelaw Fault Corridor which is considered to be a major structural control of gold mineralisation north of Bendigo. Catalyst manages the entire Whitelaw Gold Belt and has interests in eight Exploration Licences which extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo in Victoria (Figure 1).

44 Kings Park Road, West Perth WA 6005 PO Box 778, Claremont WA 6910 Telephone: (61-8) 6263 4423 Facsimile: (61-8) 9284 5426 www.catalystmetals.com.au ABN 54 118 912 495

Catalyst has retained a 50% interest in the Four Eagles Gold Project whilst Gold Exploration Victoria Pty Ltd ( GEV ) (a wholly-owned subsidiary of Hancock Prospecting Pty Ltd) has earned a 50% interest by spending $4.2 million on exploration. All future exploration expenditure will be jointly funded by Catalyst and GEV.

The Four Eagles Gold Project covers an envelope of gold mineralisation about 6 kilometres long and 2.5 kilometres wide. Three prospects have produced high grade gold mineralisation (Hayanmi, Boyd’s Dam and Discovery).

The grant of the Retention Licence enables advanced exploration at the Four Eagles Gold Project to continue and will enable the joint venturers to carry out detailed drilling on the known gold mineralised zones at Hayanmi, Boyd’s Dam and Discovery as well as to progress the many regional targets generated by gravity surveying or geochemical air core drilling (Eagle 1 Structure, Boyd North). Deeper diamond drilling will test for repeat gold bearing structures below the high-grade zones encountered in 2017 and will be funded jointly by the Victorian Government under the TARGET co-funding scheme. The potential for high grade shoots of gold mineralisation below a vertical depth of 100 metres has not been previously tested at Four Eagles but these stacked ore zones are the basis of mining at the nearby Fosterville mine and were also a characteristic of mining at Bendigo which historically produced 22 million ounces of gold at a grade of 15g/t Au.

Because of the approaching wet season when grain sowing commences, it may not be possible to conduct Air Core drilling at Boyd North, Hayanmi and previously interpreted gravity targets. The location of the proposed drilling at Four Eagles is shown on Figure 2.

TANDARRA GOLD PROJECT (EL4897) (CATALYST EARNING 51% FROM NAVARRE MINERALS LIMITED)

The Tandarra Gold Project is comprised of Exploration Licence 4897, which is owned by Navarre Minerals Limited ( Navarre ) (ASX: NML ). Under a farm-in arrangement with Navarre, Catalyst is earning a 51% equity interest in EL4897 by spending $3 million on exploration over a four-year period. At the end of March 2018, Catalyst had spent approximately $2.8 million on the Tandarra Gold Project and anticipates that it will reach the 51% target by mid-2018. Funding after that date would be shared 51:49 with Navarre.

DIAMOND DRILLING: TOMORROW ZONE

The 2017-18 Diamond Drilling program at the Tandarra Gold Project concluded during March 2018 with eleven holes completed for a total metreage of 3,135 metres (including RC pre-collars). RC drilling is continuing along the Tomorrow Trend to test for further gold mineralisation in the top 100 metres and a total of fourteen (14) holes have been completed for 1,609 metres. Logging, sawing into half core, and sampling of the diamond drill holes is expected to be completed by mid-April 2018 and a full interpretation should be available once all of the assays have been received. The location of the current and proposed holes is shown on Figure 3.

AIR CORE DRILLING OF REGIONAL TANDARRA GRAVITY TARGETS

Air Core drilling is currently in progress to test regional targets generated from the interpretation of previous gravity geophysical data and other structural interpretation (see Figure 4). At the end of March 2018, 38 Air Core holes had been drilled for a total metreage of 3,869 metres. The programme is approximately 70% complete and five (5) of the eight (8) gravity targets have been tested. Samples will be tested by the portable XRF machine and will define any trends of anomalous arsenic geochemistry that may represent corridors of gold mineralisation and gold assays will be undertaken by Australian Laboratory Services Pty Ltd (ALS).

For further information contact:

Steve Boston Bruce Kay Chairman Technical Director Telephone: +61 409 574 515 +61 400 613 180

JORC Reporting of Historic Navarre Exploration Results

Although Catalyst was not involved in previous exploration at the Tandarra Gold Project, it has elected to update the information to comply with the JORC 2012 Code. The results had been publicly reported by Leviathan Resources Pty Ltd (ASX code LVR) (December 2004 to January 2007), Perseverance Corporation Limited (ASX code PSV) (January 2008 to March 2011) and Navarre Minerals Limited (ASX code NML) (March 2011 to September 2014) in numerous announcements during the stated periods under the JORC 2004 Code. Catalyst has limited knowledge on how the data was collected but has had to make assumptions based on the available historic data generated by these companies.

Full location data on the Tandarra drill holes and a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition were included in the Company’s ASX announcements dated 1 September 2014 and 29 July 2015.

Competent person’s statement

The information in this report that relates to exploration results is based on information compiled by Mr Bruce Kay, a Competent Person, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kay is a nonexecutive director of the Company and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Kay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Much of the historical information relating to the Four Eagles project was prepared and first disclosed under the JORC Code 2004. This information has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was reported.

Information relating to the Tandarra project was first disclosed by previous tenement holders under the JORC Code 2004. This information has been subsequently reported by the Company in accordance with the JORC Code 2012, refer to announcements dated 1 September 2014, the quarterly activities report dated 31 July 2014, and for other Tandarra drilling on 29 July 2015.

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Figure 1: Catalyst-managed tenements in the Whitelaw Gold Belt showing location of the Four Eagles Gold Project (RL6422)

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Figure 2: Four Eagles Gold Project showing areas of drilling in 2018
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Figure 3: Tandarra Gold Project longitudinal projection showing location of
completed and proposed Diamond and RC drill holes.
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Figure 4: Gravity Geophysical Interpretation of the Tandarra Gold Project showing targets for proposed Air Core drilling