CADOUX LIMITED — Capital/Financing Update 2020

Aug 12, 2020

ASX RELEASE (ASX: FYI)

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13 August 2020

FYI RAISES $2.7M TO PROGRESS HPA PROJECT

Highlights

• FYI to raises $2.7m via a placement to sophisticated and professional investors

• FYI will issue up to 45m shares at $0.06/share

• Placement supported by major shareholder Regal Funds Management and new a cornerstone investor

• FYI will use funds to progress its HPA project in WA

FYI Resources Ltd (ASX: FYI) (FYI or the Company) is pleased to announce it has received firm commitments to raise up to $2.7 million through a two-tranche placement to sophisticated and professional investors, pursuant to section 708 of the Corporations Act 2001 (Cth). FYI will issue up to a total of 45.0 million fully paid ordinary shares at $0.06 per share (Placement).

The Placement received strong support from local and international investors as well as several existing major shareholders including Regal Funds Management who has materially increased its 11.5% stake in the Company. FYI welcomes a new cornerstone investor, Ken Hall (formerly of Pacific Energy), who has subscribed for $500,000 worth of shares. The Placement was priced at a 12% discount to the 15-day VWAP.

Proceeds from the Placement will be used to advance FYI’s strategy to produce high purity alumina (HPA) (i.e. 99.99% purityAl2O3) from the Company’s innovative and fully integrated HPA project in Western Australia, including additional HPA product marketing, ongoing test work and refinement of the production process, further trial production, as well as working capital and costs of the issue.

Placement details

Tranche 1: 21.67 million shares will be issued under the Company’s current ASX Listing Rule 7.1A (21,200,000 shares) and 7.1 (466,667 shares) placement capacity to raise gross proceeds of $1,300,000. Settlement is expected to occur on Wednesday, 19 August 2020 with quotation of the shares expected on Thursday, 20 August 2020.

Tranche 2 : 23.33 million shares will be issued to raise a further $1.4 million. The completion of Tranche 2 is subject to obtaining shareholder approval at a General Meeting of shareholders, at a date to be confirmed.

Foster Stockbroking are lead manager to the Placement.

Unit 8-9, 88 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

Tel: +61 8 6313 3920 Email: info@fyiresources.com.au

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ASX RELEASE (ASX: FYI)

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13 August 2020

FYI HPA key project milestones September quarter

• Progress project partner development discussions

• Further pilot plant R&D trial operation and HPA production for continuing customer qualification

• R&D on HPA specialty product finishing to potential off-take party specifications

• Continued customer engagement and follow up on product qualification assessment

• Continue off-take discussions with potential customers

• Respond to customer feedback enquiries for HPA product development

• Advance the project final engineering decision ( FED )

• Progress Final Investment Decision ( FID )

Benchmark Mineral Intelligence Webinar

FYI Resources Managing Director, Mr Roland Hill will be presenting at the Benchmark Minerals online conference titled World Tour Eastern hemisphere - high purity alumina special on Fri 28th August - commencing at 8am British Summer Time (BST) / 3pm WST. Please check the Benchmark website for further details.

For more information please contact:

Roland Hill Simon Hinsley Managing Director Investor & Media Relations Tel: +61 414 666 178 Tel: 0401 809 653 roland.hill@fyiresources.com.au simon@nwrcommunications.com.au

About FYI Resources Limited

HPA is increasingly becoming the primary sought-after input material for certain high-tech products principally for its unique properties, characteristics and chemical properties that address that applications high specification requirements such as LED’s and other sapphire glass products.

The longer-term driver for HPA, with forecasts of >17% CAGR, is the outlook for the burgeoning electric vehicle and static energy storage markets where the primary function is in the use as a separator material between the anode and cathode in batteries to increase power, functionality and safety of the battery cells.

FYI’s is positioning itself to be a significant producer of 4N and 5N HPA in the rapidly developing hightech product markets.

The foundation of the HPA strategy is the superior quality aluminous clay (kaolin) deposit at Cadoux and positive response that the feedstock has to the Company’s moderate temperature, atmospheric pressure HCl flowsheet. The strategy’s quality attributes combine resulting in world class HPA project potential.

Unit 8-9, 88 Forrest St, COTTESLOE, WA 6011 ACN 061 289 218 www.fyiresources.com.au

Tel: +61 8 6313 3920 Email: info@fyiresources.com.au

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