CATALYST METALS LIMITED — Capital/Financing Update 2019

Oct 13, 2019

14 OCTOBER 2019

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ASX ANNOUNCEMENT

CATALYST FORMS JOINT VENTURES WITH GOLD EXPLORATION VICTORIA (SUBSIDIARY OF HANCOCK PROSPECTING)

• Catalyst and Gold Exploration Victoria Pty Ltd to form joint ventures at Boort EL006670 and Macorna Bore EL5521 and EL006894

• Catalyst will share the risk on this large 850 sq kms greenfield area north west of the Four Eagles Gold Project

• Catalyst through subsidiaries Silkfield Holdings Pty Ltd and Kite Operations Pty Ltd will be the initial managers of the joint ventures

• Exploration to continue on the Four Eagles Joint Venture, with an exploration program being developed for future consideration by the participants

• Exploration will benefit from technical and financial strength of Catalyst and Hancock Prospecting

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Catalyst Metals Limited ( Catalyst or the Company ) (ASX: CYL ) is pleased to advise that it has finalised the terms of joint ventures with Gold Exploration Victoria Pty Ltd ( GEV ) (a wholly owned subsidiary of Hancock Prospecting Pty Ltd) (HPPL) and Joint Venture Partner on the Four Eagles Gold Project) to carry out exploration on the Boort Exploration Licence EL006670 and the Macorna Bore Exploration Licences EL5521 and EL006894. The joint venture arrangements further strengthen the relationship with HPPL within the “designated area” of the Four Eagles Joint Venture that was agreed as an area of cooperation in the March 2015 farm-in agreement. This relationship was further enhanced by the subsequent placement to GEV in March 2019 who invested $13.02 million in Catalyst to gain an 11% shareholding.

The Boort Exploration Licence EL006670 is situated north west of the Four Eagles Gold Project and north east of the town of Boort (Figure 1). It is a large area of 730 square kilometres with very little previous exploration but appears to lie on the interpreted northern extension of the Sebastian, Muckleford and Inglewood Faults. Depth of Murray Basin cover is quite variable and is predicted to range from 50 metres to 150 metres in depth. Catalyst has carried out preliminary regional evaluations and targeting in the area but detailed gravity surveying will provide more clarification of the structures and basement depths. The Company has commenced discussions with landowners in preparation for this gravity survey to commence within the next four months. GEV will refund 50% of the expenditure incurred by Catalyst to date on the Boort Exploration Licence EL006670. The licence was granted on 16 March 2018 for a five-year period with annual work commitments ranging from $124,000 to $234,000.

Boort is a greenfield exploration area at a very early stage. The joint venture with GEV will enable Catalyst to focus its resources on the more advanced gold projects at Four Eagles and Tandarra which each have development potential.

44 Kings Park Road, West Perth WA 6005 PO Box 778, Claremont WA 6910 Telephone: (61-8) 6263 4423 Facsimile: (61-8) 9284 5426 www.catalystmetals.com.au ABN 54 118 912 495

The Macorna Bore Exploration Licences EL5521 and EL006894 are contiguous with EL5508 which is already held within the Four Eagles Joint Venture (Figure 2). Gravity surveying and air core drilling has been carried out in the interpreted Whitelaw Gold Corridor and has shown some trends of anomalous arsenic geochemistry with weakly anomalous gold values. The new Macorna Bore joint venture will mean that the same ownership entity will be exploring the prospective corridor. GEV will pay Catalyst $250,000 in cash (inclusive of reimbursement for previous expenditure by Catalyst on Macorna Bore) and spend a further $250,000 on exploration on the tenements during a two-year period to earn its 50% interest. A condition precedent for the agreement will be the renewal of exploration licence EL5521 for a second term.

Catalyst and GEV also intend to continue to advance project exploration and development of the Four Eagles Joint Venture, with an exploration program being developed for future consideration by the participants for consideration. It is anticipated that any future exploration program will focus on a significant drilling campaign across a range of targets and resource modelling of the Boyd’s Dam zone. Catalyst and GEV are committed to advancing the Four Eagles Joint Venture in a timely and thorough manner.

Mr Bruce Kay, Catalyst’s Technical Director stated “We are pleased to have finalised the terms of these two joint ventures with GEV on the Boort and Macorna Bore projects which will draw on the success that the joint venture partners have had at Four Eagles. This is a continuation of the Catalyst strategy over the last six years to share exploration risk with other companies and thus provide the best return on our shareholder funds.”

For further information contact:

Steve Boston Bruce Kay Chairman Technical Director Telephone: +61 409 574 515 +61 400 613 180

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Figure 1: Catalyst-managed tenements in the Whitelaw and adjacent gold belt showing the location of the Boort Project (EL006670)

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Figure 2: Macorna Bore Project showing Exploration Licences EL5521, EL5508 and EL006894