AUSTRALIAN SILICA QUARTZ GROUP LTD — M&A Activity 2018

Jun 21, 2018

Mercantile OFM Pty Limited

ABN 30 120 221 623 Level 5, 139 Macquarie Street Sydney NSW 2000 Tel 02 8014 1188 Fax 02 8084 9918

22 June 2018

BY ELECTRONIC LODGEMENT

Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000

Proportional Off Market Takeover Bid for 50% of the ordinary shares in Bauxite Resources Limited (ACN 119 699 982) (BAU)

Mercantile OFM Pty Ltd (ACN 120 221 623) ( Mercantile OFM ) refers to the offers dated 20 December 2017 ( Offers ) under its proportional takeover bid for 50% of the issued ordinary shares in Bauxite Resources Limited (ACN 119 699 982) ( BAU ), contained in the bidder’s statement issued by Mercantile OFM dated 21 November 2017 ( Bidder’s Statement ), which is supplemented by its first supplementary bidder’s statement dated 13 December 2017 and its second supplementary bidder’s statement dated 25 January 2018.

Notice of Status of Defeating Conditions

Mercantile OFM attaches a copy of a notice of status of defeating conditions dated 22 June 2018 in accordance with Section 630(5)(b) of the Corporations Act 2001 (Cth) .

The Offers are scheduled to close at 7.00pm on 30 June 2018 .

Yours sincerely,

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Gabriel Radzyminski Director

Mercantile OFM Pty Ltd (ACN 120 221 623)

Proportional Off-Market Bid for Bauxite Resources Limited (ACN 119 699 982)

Notice of Status of Defeating Conditions

To: Bauxite Resources Limited (ACN 119 699 982)

And to: ASX Limited

This notice of status of defeating conditions ( Condition Notice ) is given under Section 630(3) of the Corporations Act 2001 (Cth) by Mercantile OFM Pty Ltd (ACN 120 221 623) ( Mercantile OFM ) in relation to offers dated 20 December 2017 ( Offers ) under its proportional takeover bid for 50% of the issued ordinary shares in Bauxite Resources Limited (ACN 119 699 982) ( BAU ), contained in the bidder’s statement issued by Mercantile OFM dated 21 November 2017 ( Bidder’s Statement ), which is supplemented by its first supplementary bidder’s statement dated 13 December 2017 and its second supplementary bidder’s statement dated 25 January 2018.

Status of Defeating Conditions

On 23 April 2018 Mercantile OFM declared that each of the Offers and each contract formed by the acceptance of any of those Offers were to be freed from the condition set out in Section 9.1 of the Bidder’s Statement.

As at the date of this Condition Notice, Mercantile OFM’s voting power in BAU was 18.0% comprising 38,658,602 BAU shares.

Dated: 22 June 2018

Signed for and on behalf of Mercantile OFM Pty Ltd

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Gabriel Radzyminski Director