AUSTRALIAN SILICA QUARTZ GROUP LTD — M&A Activity 2018

May 10, 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

11 May 2018

BY ELECTRONIC LODGEMENT

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

EXTENSION OF OFFER PERIOD

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

Mercantile OFM Pty Ltd (ACN 120 221 623) ( Mercantile OFM ), attaches a copy of a notice of variation ( Notice of Variation ) in accordance with section 650D(1) of the Corporations Act.

BAU Shareholders are encouraged to read the Notice of Variation in full as it provides that:

1. Mercantile OFM has extended the Offer Period to 7:00pm (Sydney time) 30 June 2018 ( Extension of the Offer Period ); and

2. as a result of the Extension of the Offer Period, the new date for giving of the notice of the status of the conditions to Mercantile OFM’s takeover offer is now 22 June 2018.

BAU Shareholders should note that:

1. on 23 April 2018 Mercantile OFM declared in accordance with Section 650F of the Corporations Act 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; and

2. Mercantile OFM will not extend the Offer Period beyond 30 June 2018.

• A copy of the Notice of Variation is dated 11 May 2018 and was lodged with ASIC on that date.

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 Variation under s650D(1) of the Corporations Act 2001 (Cth): Extension of Offer Period

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To: Bauxite Resources Limited (ACN 119 699 982) ( BAU ) And to: Australian Securities & Investments Commission ( ASIC ) And to: Each holders of ordinary shares in BAU And to: ASX Limited

This notice of variation ( Notice of Variation ) is given under section 650D(1) of the Corporations Act 2001 (Cth) ( Corporations Act ) by Mercantile OFM Pty Ltd (ACN 120 221 623) ( Mercantile OFM ) in relation 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.

Words defined in the Bidder’s Statement have the same meaning in this notice, unless the context requires otherwise.

Extension of the Offer Period

Mercantile OFM gives notice that it varies its Offers by extending the Offer Period until 7.00pm (Sydney time) on Saturday, 30 June 2018 ( Extension of the Offer Period ).

As a result of the Extension of the Offer Period, Mercantile OFM gives notice under section 630(2)(b) of the Corporations Act that the new date that Mercantile OFM is required to give notice as to the status of the conditions, as required by section 630(1) of the Corporations Act, is Friday, 22 June 2018.

Authorisation

This Notice of Variation is dated 11 May 2018, the date it was lodged with ASIC. Neither ASIC nor any of its officers takes any responsibility for the contents of this Notice of Variation.

This Notice of Variation has been approved by a resolution passed by the directors of Mercantile OFM.

Dated: 11 May 2018

Signed for and on behalf of Mercantile OFM Pty Ltd

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Gabriel Radzyminski Director