CAULDRON ENERGY LIMITED — Capital/Financing Update 2021

Sep 6, 2021

ASX Announcement

7 September 2021

Commitments Received for $1.20 million Placement

Highlights

• Commitments received for a placement raising $1.20 million

• Placement managed by 180 Markets Pty Ltd

• Placement heavily oversubscribed, with 180 Markets having received applications totalling in excess of $2.70 million

• Placement ensures that Cauldron is well funded to advance its exciting suite of uranium, sand and gold projects.

Cauldron Energy Limited (ASX Code: CXU (“ the Company ”) is pleased to announce the successful undertaking of a placement of 35,294,118 new fully paid ordinary shares (Shares) to sophisticated and professional investor clients of 180 Markets Pty Ltd ( Placement ).

The Shares under the Placement will be issued at a price of $0.034 (3.4 cents) per Share, with 180 Markets as Lead Manager to the Placement, raising a total of $1.2 million before costs.

In addition, participants in the Placement will be issued free attaching unlisted options exercisable on or before 30 November 2023, at an exercise price of $0.05 (5 cents) (Options). The Options will be issued on the basis of 1 Option for every 2 new Shares subscribed for under the Placement.

The price for the Placement represents a discount of:

• a 15% to the 5- day VWAP of $0.0386 (3.86 cents);

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ABN

22 102 912 783

Address

Unit 47, Level 1 1008 Wellington Street WEST PERTH WA 6005

PO BOX 1024 West Leederville WA 6007

ASX Code CXU

Securities on Issue

455,999,512 shares

6,833,395 Options ( exercise price: $0.03; expiry 31 Dec 2021 )

16,666,666 Options ( exercise price: $0.03; expiry 31 Mar 2022 ) 10,000,0000 Unlisted Options ( exercise: $0.03; expiry 16-Sep-22 )

6,000,0000 Unlisted Options ( exercise: $0.05; expiry 16-Sep-23 )

45,354,839 Options ( exercise price: $0.05; expiry 30 Nov 2023 ) 9,000,000 Performance Rights (expiring 10 August 2025)

• a 10% to the 15-day VWAP of $0.0365 (3.65 cents);

• a 4% to the 30-day VWAP of $0.0343 (3.43 cents); and

• a 20% to the last closing price of $0.041 (4.1 cents) on 6 September 2021.

The Company will use the funds to undertake passive seismic work at its Yanrey Uranium Project (existing mineral resource in situ – 38.9 Mt @ 360 ppm eU308 for 30.9 Mlb uranium oxide [i] ) to identify potential extensions of the Bennett Well Uranium Deposit, for rents and rates associated with the Yanrey Uranium Project, to complete the current exploration program at the Company’s Blackwood Gold Project in Victoria where drilling commenced in mid-August and on advancing its sand project. Remaining funds will be applied for general working capital purposes.

Commenting on the success of the Placement, Cauldron Executive Chairman stated:

Cauldron is delighted with the strong response to the Placement and strong support for the Company’s strategic direction to simultaneously advance its uranium, gold and sand project interests. The Company’s Yanrey Uranium Project is world class and has the potential to grow, and the Company’s Blackwood Gold Project in Victoria is located in Victoria’s ‘golden triangle’, a province that has clusters of high-grade gold mines; including Fosterville, Bendigo and Ballarat amongst many others. Victoria has produced an incredible 70 million ounces of gold to date, comprising 30% of all gold mined in Australia, and the Blackwood Gold Project is nestled in a highly prospective region with historic high-grade production. Sand is a highly sought-after commodity and the Company’s sand project provides it with exposure to this burgeoning industry.”

Board of Directors

Simon Youds Executive Chairman

Jess Oram Non-Executive Director

Qiu Derong Non-executive Director

Judy Li Non-executive Director

Chenchong Zhou Non-executive Director

Michael Fry Company Secretary

WWW.CAULDRONENERGY.COM.AU

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Details of the Placement

Pursuant to the terms of the Placement, Cauldron will issue 35,294,118 Shares at an issue price of $0.034 (3.4 cents) to raise $1.2 million before costs. The Shares will be placed to sophisticated and professional investors, none of whom will be related parties, without shareholder approval within the Company’s LR7.1 capacity (as detailed below). Completion of the Placement is expected to occur on 10 September 2021, with trading of the new Shares expected to occur the following day.

In addition, the participants in the Placement will be issued with a total of 17,647,059 Options.

The Lead Manager is entitled to a placement fee of 6%.

The Shares and Options will be issued pursuant to the Company’s existing LR7.1 and 7.1A capacity as follows:

follows:
Shares on Issue	451,999,512
LR 7.1 15% Capacity	67,799,926
Sharespreviouslyissued under 7.1 capacity
1/06/2021	4,000,000
To be issued
Total FPO Shares to be issued	35,294,118
Total unlisted options to be issued	17,647,059
	52,941,177
Under ListingRule 7.1	52,941,177
Excess capacity	10,858,749

Authorised for release by Cauldron’s Executive Chairman Simon Youds.

END

For further information please contact:

Simon Youds Executive Chairman Cauldron Energy Limited T: (08) 6270 4693

Michael Fry Company Secretary Cauldron Energy Limited T: (08) 6260 4693 M: +61 417 996 454 michael.fry@cauldronenergy.com.au

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Competent Person Statement

• The information in this announcement that relates to the Exploration Results for the Blackwood Gold Project is based on information compiled by Mr Jess Oram, a Competent Person who is a Member of the Australasian Institute of Geoscientists. Mr Oram is the Executive Director of Cauldron Energy.

• Mr Oram has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves (JORC Code 2012). Mr Oram consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Mineral Resource Estimates

• The information in this report that relates to Mineral Resources is extracted from a report released to the Australian Securities Exchange (ASX) on 17 December 2015 titled “Substantial Increase in Tonnes and Grade Confirms Bennet Well as Globally Significant ISR Project” and available to view at www.cauldronenergy.com.au and for which Competent Persons’ consents were obtained. Each Competent Person’s consent remains in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.

• The Company confirms that is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 17 December 2015 and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original ASX announcement.

i Source: ASX announcement dated 17 December 2015 titled “Substantial Increase in Tonnes and Grade Confirms Bennet Well as Globally Significant ISR Project”