BATHURST RESOURCES LIMITED. — Capital/Financing Update 2017

Jun 13, 2017

T +64 4 499 6830 F +64 4 974 5218 E wellington@bathurstresources.co.nz

Level 12, 1 Willeston Street Wellington 6011, New Zealand PO Box 5963 Lambton Quay Wellington 6145, New Zealand

14 June 2017

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Market Announcements Australian Securities Exchange Level 4, 20 Bridge Street SYDNEY NSW 200

Bathurst Resources Limited (ASX:BRL) – Acquisition progress announcement

• Bathurst to take the commercial risk and benefit of economic interest in Solid Energy Assets from 1 July 2017[1]

• Bathurst granted approval from New Zealand Petroleum and Minerals to accept transfer of mining licences[1]

• Bathurst continues to work through the Overseas Investment Office (OIO) application process[1]

Bathurst Resources Limited is pleased to announce that its joint venture with Talley’s Energy Limited, BT Mining Limited ( BT Mining ), has been granted approval by New Zealand Petroleum and Minerals ( NZP&M ) for the transfer of the key mining licences to be acquired from Solid Energy New Zealand Limited (Subject to Deed of Company Arrangement) ( Solid Energy ).

The Solid Energy assets include two mines in the Huntly Waikato region of the North Island and the Stockton mine on the West Coast of the South Island. The transaction involves the acquisition of both mining licences and exploration and mining permits and it is expected that NZP&M will approve the transfer of the exploration and mining permits from Solid Energy to BT Mining immediately prior to settlement of the transaction. These approvals are conditions precedent to settlement together with approval from the Overseas Investment Office which, along with certain other conditions precedent, remains subject to satisfaction.

In Bathurst’s Quarterly Report released on 28 April 2017, Bathurst provided an update to the market that settlement of the transaction was expected to occur in late June or July. In line with these expectations, Bathurst is pleased to announce that it has successfully agreed, through a variation to the sale and purchase agreement, that, subject to satisfaction of the remaining conditions precedent and settlement occurring, BT Mining Limited will assume economic interest, being financial risk and reward in the assets to be acquired, from 1 July 2017 (such variation to take effect from 30 June 2017). The profit or loss between 1 July 2017 and settlement will be accounted for through an adjustment to the purchase price payable on settlement. That is, a profit during this period will reduce the purchase price by the amount of the profit generated. Bathurst will provide further guidance on the transaction in its next quarterly report.

1 Via Joint Venture, BT Mining Limited, in which the company holds a 65% share

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BT Mining continues to work through the Overseas Investment Office ( OIO ) application process. BT Mining has received draft conditions of in respect of the application. No recommendation has yet been made by the OIO to the Minister.

BT Mining is now finalising the novation of several key contracts that have been dependent on receipt of approval from NZP&M. In addition, BT Mining is working with The Treasury in respect of its appointment as the “acceptable owner” of the mines to be purchased. These conditions are expected to be finalised over the coming weeks.

It is anticipated that the settlement of the transaction will occur by 31 July 2017, although that date may be later depending on satisfaction of the remaining conditions precedent.

Bathurst CEO, Richard Tacon stated “this milestone means we are a lot closer to completing the acquisition of the Solid Energy assets and an important step towards obtaining the regulatory approvals required.”

On behalf of Bathurst Resources Limited.

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Jason Hungerford Company Secretary

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