CAULDRON ENERGY LIMITED — Capital/Financing Update 2022

Mar 13, 2022

14 March 2022

ASX Announcement

Commitments Received for $0.75 million Placement

Highlights

• Commitments received for a placement raising $0.75 million.

• Placement managed by Everblu Capital.

• Placement oversubscribed, with Everblu having received applications totalling significantly in excess of $0.75 million.

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

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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

Cauldron Energy Limited (ASX Code: CXU (“ the Company ”) is pleased to announce the successful undertaking of a placement of 44,117,647 new fully paid ordinary shares (Shares) to sophisticated and professional investor clients of Everblu Capital Pty Ltd ( Placement ).

The Shares under the Placement will be issued at a price of $0.017 (1.7 cents) per Share, with Everblu Capital as Lead Manager to the Placement, raising a total of $0.75 million before costs.

In addition, participants in the Placement will be issued free attaching unlisted options exercisable on or before 15 March 2024, at an exercise price of $0.34 (3.4 cents) (Options). The Options will be issued on the basis of 1 Option for every 3 new Shares subscribed for under the Placement.

Securities on Issue

491,293,630 shares

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 )

61,001,898 Options ( exercise price: $0.05; expiry 30 Nov 2023 ) 9,000,000 Performance Rights (expiring 10 August 2025)

The price for the Placement represents a discount of:

• a 11% to the 5- day VWAP of $0.0192 (1.92 cents);

• a 12% to the 14-day VWAP of $0.0194 (1.94 cents);

• a 16% to the 28-day VWAP of $0.0202 (2.02 cents); and

Board of Directors

Simon Youds Executive Chairman

• a 19% to the last closing price of $0.021 (2.1 cents) on 10 March 2022.

The Company will use the funds primarily to complete the current exploration program at the Company’s Blackwood Gold Project in Victoria where drilling is in progress and is presently targeting historical high-grade zones of the interpreted south-plunging Western Leader Reef. 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 unique commodity mix and strategic direction to simultaneously advance its gold, uranium and sand project interests. 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. The Company’s Yanrey Uranium Project is world class and has the potential to grow, and the Sand is a highly sought-after commodity and the Company’s sand project provides it with exposure to this burgeoning industry.”

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 44,117,647 Shares at an issue price of $0.017 (1.74 cents) to raise $0.75 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 15 March 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 14,705,882 Options.

The Lead Manager is entitled to a placement fee of 6% plus 10 million Options.

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

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Shares on Issue 491,293,630
LR7.1 15% Capacity 73,094,044
Securities issued previously under LR7.1 capacity
31-May-21 4,000,000
Available under LR7.1 69,094,044
To be issued
Total FPO Shares to be issued 44,117,647
Total unlisted options to be issued 24,705,882
68,823,529
Excess capacity 270,515
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Authorised for release by Cauldron’s Executive Chairman Simon Youds.

END

For further information please contact:

Simon Youds Michael Fry Executive Chairman Company Secretary Cauldron Energy Limited Cauldron Energy Limited T: (08) 6270 4693 T: (08) 6260 4693 M: +61 408 937 928 M: +61 417 996 454 Simon.youds@cauldronenergy.com.au michael.fry@cauldronenergy.com.au

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The historical exploration results referred to in this announcement were reported by the Company in accordance with listing rule 5.7 and 5.7.2 on 4 March 2022. The Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcements referred to herein and that all material assumptions and technical parameters underpinning the historical exploration results in the previous announcements continue to apply and have not materially changed.

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• This market update has been prepared by Cauldron Energy Limited (“Company”). The material contained in this market update is for information purposes only. This market update is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company. Neither this market update, nor anything contained therein, shall form the basis of any contract or commitment.

• The market update may contain forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Cauldron Energy Limited’s business plans, intentions, opportunities, expectations, capabilities and other statements that are not historical facts. Forward-looking statements include those containing such words as could-plan-target-estimate-forecast-anticipate-indicate-expect-intend-may-potential-should or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which could cause actual results to differ from those expressed in this market update. Since actual results might differ materially to the information in this market update, the Company does not make ( nor should this report be relied upon as) any representation or warranty as to the accuracy, or reasonableness, of the underlying assumptions and uncertainties. Investors are cautioned to view all forward-looking statements with caution and to not place undue reliance on such statements.