CATALYST METALS LIMITED — Capital/Financing Update 2019

Feb 28, 2019

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ASX ANNOUNCEMENT

1 MARCH 2019

CATALYST SECURES $13.02 MILLION PLACEMENT WITH GOLD EXPLORATION VICTORIA PTY LTD

• Gold Exploration Victoria Pty Ltd to invest $13.02 million via a placement at $1.50 per share

• Gold Exploration Victoria Pty Ltd has the capacity to deliver project development expertise and financial support for any future mining and production developments on the Whitelaw Gold Belt

• Whitelaw Gold Belt exploration programmes are now fully funded through to 2022

• Pro-rata option issue to all shareholders within 3 months

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Catalyst Metals Limited ( Catalyst or the Company ) (ASX: CYL ) is pleased to advise that Gold Exploration Victoria Pty Ltd ( GEV ) (a wholly owned subsidiary of Hancock Prospecting Pty Ltd and Joint Venture Partner on the Four Eagles Gold Project) has agreed to subscribe for a $13.02 million placement of Catalyst shares at a subscription price of $1.50 per share. The placement comprises 8,680,000 ordinary fully paid shares at a subscription price of $1.50 per share and is being made pursuant to ASX Listing Rule 7.1. No Catalyst shareholder approval is required for the placement.

Proceeds from the share placement will strengthen the Company’s working capital position and enable it to move forward with its advanced projects at the Four Eagles Gold Project and Tandarra Gold Project and to continue to pursue aggressive exploration programmes in the Whitelaw Gold Belt north of Bendigo and adjacent belts north of the Fosterville and Inglewood goldfields.

The subscription price represents a discount of approximately 11% to the 30 day volume weighted average price of the Company’s shares prior to the date of the subscription agreement.

The placement will be completed within 30 days and as soon as reasonably practicable following receipt of any required regulatory and statutory approvals and confirmation of no material adverse change in respect of Catalyst occurring. The subscription price may be subject to adjustment if the 30 day volume weighted average price of the Company’s shares prior to the date of completion of the placement, or the 5 day volume weighted average price for the period ending immediately prior to the date the subscription conditions are satisfied, is less than $1.50.

Following the share placement, GEV will hold an equity interest of approximately 11% of Catalyst. The placement shares to be issued to GEV will rank equally with all other shares on issue in the capital of the Company and will be subject to voluntary escrow for a period ending 12 months from the date of issue.

Within 3 months following completion of the share placement, Catalyst intends to make a pro-rata option offer to all shareholders. The option offer is expected to be available to all shareholders with a registered address in Australia and New Zealand and other selected jurisdictions for a nominal subscription price with the options being exercisable during a period that is unlikely to exceed 3 years. Full details of the option offer will be provided in the prospectus to accompany the offer.

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

Mr Stephen Boston, Catalyst’s Chairman, stated “We are delighted to welcome GEV to our share register as a major shareholder. We have been working with GEV as a joint venture partner over the last five years and in that time have developed a very good working relationship with them both technically and corporately. The presence of two significant Australian mining companies, St Barbara Limited and GEV on the Catalyst share register is an endorsement of the potential of the Company to discover large high- grade gold deposits in Victoria.”

For further information contact:

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