BOSS ENERGY LTD — Capital/Financing Update 2013

Sep 16, 2013

17 September 2013

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Dear Shareholder

Notice to Eligible Shareholders of Entitlement Offer

We write to you as the registered holder of shares in Boss Resources Limited ( Boss or Company ) as at today's date.

As announced on 16 September 2013, Boss is undertaking a pro-rata non-renounceable entitlements offer on the basis of 1 new fully paid ordinary share ( New Shares ) for every 4 shares held at an issue price of $0.01 per New Share to raise approximately $1 million ( Entitlement Offer ).

The Entitlement Offer is available to all Boss shareholders ( Shareholders ) registered on the Record Date of 25 September 2013 whose registered address is in Australia ( Eligible Shareholders ). The Entitlement Offer is not being extended to any Shareholders whose address is outside Australia.

Purpose of the Entitlement Offer

The purpose of the Entitlement Offer is to provide funding for acquisition costs, exploration costs and future working capital.

The Entitlement Offer will provide a number of benefits to the Company including the following:

• (a) strengthening the Company’s financial position;

• (b) providing additional working capital for the Company; and

• (c) positioning the Company to take advantage of possible new acquisition opportunities as a result of its new strategy as announced to the market on 20 August 2013.

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----- Start of picture text ----- Suite 23, 513 Hay St, Subiaco WAPO Box 1311, Subiaco WA 6904P: +61 (8) 6143 6730E: admin@bossresources.com.auABN 38 118 834 336----- End of picture text -----

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Indicative Timetable

The New Shares will be offered in accordance with the following timetable:

Lodgement of Appendix 3B and Prospectus with ASX	16 September 2013
Shares quoted on an “EX” basis	19 September 2013
Record Date for determining Entitlements	25 September 2013
Prospectus and Entitlement and Acceptance Form dispatched to	27 September 2013
Eligible Shareholders
Closing Date of Entitlement Offer	14 October 2013
Shares quoted on a deferred settlement basis	15 October 2013
Notification of shortfall	16 October 2013
Anticipated date for allotment and issue of the New Shares and	22 October 2013
despatch of holder statements
Anticipated date for commencement of Securities trading	23 October 2013

All dates are indicative only. The Company reserves the right, subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules, to amend the indicative timetable without prior written notice. Any extension of the Closing Date will have a consequential effect on the date of issue of the New Shares.

Shortfall Offer

In addition to the Entitlement Offer, there may be a separate and independent shortfall offer ( Shortfall Offer ) under the Prospectus to Eligible Shareholders and other eligible investors to subscribe for Shares not otherwise taken up in the Entitlement Offer at a price of $0.01 per Share ( Shortfall Shares ).

The Directors reserve the right, subject to any restrictions imposed by the Corporations Act and the Listing Rules to issue the Shortfall Shares at their sole discretion.

Capital Structure of the Company

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The Company currently has 397,873,182 shares and 78,600,001 unlisted options (exercisable at various prices). On the basis that no unlisted options are exercised prior to the Record Date, the Entitlement Offer is for up to 99,468,295 New Shares.

Up to 119,118,295 New Shares could be issued under the Entitlement Offer if all of the existing unlisted options are exercised between the date of the Prospectus and the Record Date.

Prospectus

Details of the Entitlement Offer are contained in the prospectus lodged with ASX on 16 September 2013 ( Prospectus ) which will be available on both the ASX website (www.asx.com.au) and Boss website (www.bossresources.com.au).

A copy of the Prospectus will be sent to Eligible Shareholders on 27 September 2013.

The Directors urge you to read the Prospectus carefully and seek advice from your financial adviser if you have any queries. This notice is to inform you of the Entitlement Offer. You are not required to do anything in respect to this letter.

Yours sincerely

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Evan Cranston

Director

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