CASPIN RESOURCES LIMITED — Capital/Financing Update 2023

Apr 10, 2023

ASX RELEASE 11 APRIL 2023

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Caspin $3.8m Equity Raising, Cornerstoned by Major Shareholders including Chalice Mining

HIGHLIGHTS

• Caspin has received firm commitments to raise $3.8m via an equity placement with strong ongoing support from major and long-term shareholders

• Chalice Mining Ltd (ASX: CHN, Market Cap: ~$2.7b) subscribed for ~$0.4m of shares in the Placement and will continue to hold ~9.2% of Caspin post-Placement

• Share Purchase Plan (SPP) to be undertaken to allow existing shareholders to participate in the capital raising on the same terms as the Placement

• Placement and SPP proceeds to place Caspin in a strong financial position for upcoming exploration and drilling at the Mount Squires Ni-Cu-Au Project, along with ongoing exploration at the highly prospective Yarawindah Brook PGE-Ni-Cu Project

• Exploration, including drilling, to commence at Mount Squires Project in coming weeks, with drill results still to come from Yarawindah Brook

Caspin Resources Limited (ASX: CPN) (“Caspin” or the “Company”) is pleased to announce that it has received firm commitments from existing and new strategic, institutional and sophisticated investors for a capital raising of $3.8m (before costs), to be completed via the issue of 12,666,667 new fully paid ordinary shares in Caspin (“New Shares”) at $0.30 per New Share (“Placement”).

Major Shareholder Participation

The Placement was strongly supported by Caspin’s existing major shareholders including Chalice Mining Ltd (“Chalice”) who subscribed for ~$0.4m. Chalice will maintain their shareholding of ~9.2% post-Placement.

Caspin Chief Executive Officer, Greg Miles, commented: “We are very pleased that this capital raising will enable the continued exploration of our exciting exploration projects. I’d like to thank our major shareholders for their continued support during these challenging market conditions. I’d also like to welcome new institutional and sophisticated investors to our Company for the first time. The continued support from Chalice is an endorsement of the value in the Yarawindah Brook Project as well as recognition of the exciting potential of the Mount Squires Project in the revitalised West Musgrave Province.

“The Company looks forward to receiving the remaining assays from recent drilling at the Serradella Prospect at Yarawindah Brook and commencing exploration at our Mount Squires Project over the coming weeks.”

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Capital Raising Overview

The issue price of $0.30 per New Share represents a 26.8% discount to the last closing price of $0.41 on 4 April 2023, a 21.6% discount to the 5-day VWAP, and a 24.1% discount to the 15-day VWAP up to and including 4 April 2023.

The Placement will result in the issue of 12,666,667 New Shares which will rank equally with existing Caspin shares. The New Shares (other than in respect of the Related Party Participation detailed below) will be issued utilising the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A, with 11,239,849 New Shares being issued pursuant to ASX Listing Rule 7.1 and 1,093,485 New Shares being issued pursuant to ASX Listing Rule 7.1A ("Tranche 1 Placement Shares"). The Company expects to issue the Tranche 1 Placement Shares under the Placement on or around 17 April 2023.

Atasa Holdings Pty Ltd, a major shareholder and related party of Non-Executive Director, Ms Simone Suen, subscribed for 333,333 New Shares as part of the Placement (“Related Party Participation” or "Tranche 2 Placement Shares"). As per the requirements of the ASX Listing Rules, the Related Party Participation is subject to prior shareholder approval. The Company anticipates convening a shareholder meeting in late May to seek this approval.

Bell Potter acted as Lead Manager and Bookrunner to the Placement.

Share Purchase Plan

The Company is also pleased to announce its intention to make a Share Purchase Plan Offer (SPP) to existing eligible shareholders registered on the Company’s share register at 7pm (WST) on Thursday 6 April 2023 ("Eligible Shareholders") to raise approximately $1.0m. The Company reserves the right in its sole discretion to accept oversubscriptions and/or scale back applications pursuant to the SPP. The SPP is not underwritten.

The SPP entitles Eligible Shareholders in the Company, irrespective of the size of their shareholding, to purchase up to $30,000 worth of new fully paid ordinary shares in Caspin ("SPP Shares") at an issue price of $0.30 cents per share free of brokerage and commission. The SPP allows the Company’s many minor shareholders to participate in the capital raising at the same issue price as New Shares issued under the Placement. Allotment of SPP Shares will be subject to shareholder approval, and the Company will seek a waiver from ASX Listing Rule 7.3.9 to the extent necessary not to include a voting exclusion statement in relation to the SPP participation. The SPP Shares will rank equally with existing Caspin Shares.

Further details of the SPP will be contained in an SPP offer booklet to be announced shortly.

Indicative Timetable

Set out below is an indicative timetable for the Placement and SPP:

Key Event	Date
Record Date for Eligibility to participate in SPP	7:00pm AEST 6 April 2023
Announcement of Placement	11 April 2023
Settlement of Tranche 1 Placement Shares	14 April 2023
Allotment of Tranche 1 Placement Shares	17 April 2023
Dispatch SPP Offer Documents	18 April 2023
SPP Opening Date	18 April 2023

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Shareholder Meeting to approve Tranche 2 Placement and SPP	23 May 2023
SPP Closing Date	25 May 2023
Announcement of SPP Results	1 June 2023
Issue of SPP Shares	1 June 2023
Settlement and Allotment of Tranche 2 Placement Shares	1 June 2023

The timetable is indicative only and remains subject to change at the Company’s discretion, subject to compliance with applicable laws and the ASX Listing Rules.

Upcoming Work Program

The capital raising will enable the Company to continue its exploration programs at the flagship Yarawindah Brook PGE-Ni-Cu Project as well as continue preparations for the upcoming field season at the Mount Squires Ni-Cu-Au Project. The Company has received the requisite approvals to commence ground-based electromagnetic and soil geochemistry surveys, followed by reconnaissance drilling across a range of targets at the Mount Squires Project. Further details about the upcoming programs will be released in the coming weeks.

Meanwhile, the Company expects the remaining assays from the recently completed drilling program at the Serradella Prospect at Yarawindah to be returned over the coming weeks.

For further details of the Yarawindah Brook PGE-Ni-Cu Project and the Mount Squires Ni-Cu-Au Project, please refer to the company presentation released on the ASX platform on 11 April 2023.

This announcement is authorised for release by the Board of Caspin Resources Limited.

-ENDS-

For further details, please contact:

Greg Miles

Chief Executive Officer admin@caspin.com.au Tel: +61 8 6373 2000

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Forward Looking Statements

Some statements in this announcement regarding estimates or future events are forward-looking statements. Forward-looking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”, “may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar expressions. Forward-looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice. Statements regarding plans with respect to the Company’s mineral properties may also contain forward looking statements.

Forward-looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance or actions. Forward-looking statements may be affected by a range of variables that could cause actual results to differ from estimated results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be correct.

ABOUT CASPIN

Caspin Resources Limited (ASX Code: CPN) is a new mineral exploration company based in Perth, Western Australia. Caspin has extensive skills and experience in early-stage exploration and development. The Company is actively exploring the Yarawindah Brook Project in Australia’s exciting new PGE-Ni-Cu West Yilgarn province and the Mount Squires Project in the West Musgrave region, one of Australia’s last mineral exploration frontiers.

At the Company’s flagship Yarawindah Brook Project, recent drilling campaigns at Yarabrook Hill have made new discoveries of PGE, nickel and copper sulphide mineralisation. Meanwhile, the Company continues to bring new targets to drill readiness by collecting geophysical and geochemical data across the project.

At the Mount Squires Project, Caspin has identified a 40+km structural corridor with significant gold mineralisation as well as a 17km extension of the West Musgrave Ni-Cu corridor which hosts the One Tree Hill Prospect and Nebo-Babel Deposits along strike. The Company is conducting further soil sampling, geophysics and reconnaissance drilling along both mineralisation trends.

FOLLOW US

LinkedIn: https://www.linkedin.com/company/caspin-resources-limited https://twitter.com/CaspinRes

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