CENTAURUS METALS LIMITED — Capital/Financing Update 2016

Oct 16, 2016

17 October 2016

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Dear Shareholder

Notice to Ineligible Shareholders of Renounceable Rights Issue

On 12 October 2016, Centaurus Metals Limited (ACN 009 468 099) ( Company ) announced that the Company would be conducting a renounceable rights issue. The rights issue is being made pursuant to a prospectus which was lodged with the Australian Securities and Investments Commission and the ASX on 14 October 2016 ( Prospectus ).

Pursuant to the Prospectus, the issue comprises up to 402,467,414 fully paid ordinary shares in the capital of the Company ( Shares ) on the basis of 3 Shares for every 5 Shares held at 5.00pm (WST) on 20 October 2016 ( Record Date ) at an issue price of $0.005 per New Share ( Entitlement ), together with 1 free attaching New Option for each 2 New Shares subscribed for, each exercisable into one Share at $0.01 on or before 30 April 2018, to raise approximately $2,012,337 (before issue costs) ( Rights Issue ).

The Company has applied for quotation of the New Shares and New Options but notes that the quotation of the New Options will be subject to satisfaction of the ASX Listing Rules requirements.

Ineligible Shareholders

The Company has decided that it is unreasonable to extend the Rights Issue to shareholders with a registered address outside Australia or New Zealand as at the record date ( Ineligible Shareholders ), having regard to the number of such shareholders, their holdings and the compliance costs required to extend the Rights Issue to those shareholders.

According to our records you are an Ineligible Shareholder and therefore, the Company will not be sending you a copy of the Prospectus as the Company is unable to extend to you the opportunity to participate in the Rights Issue. You should not seek to obtain a copy of the Prospectus by other means as no offer is being made to you under the Prospectus to subscribe for securities in the Company.

As the Rights Issue is renounceable, the Company has appointed a nominee to arrange for the sale of the entitlements that would have been given to you. If the entitlements are sold, the proceeds of sale will be distributed to you (after deducting the costs of the sale).

You do not need to take any action in relation to the Rights Issue.

Should you have any queries please contact the Company Secretary on +61 8 9420 4000.

Yours faithfully

CENTAURUS METALS LIMITED

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PAUL BRIDSON

Company Secretary

Australian Office Brazilian Office ASX: CTM Centaurus Metals Limited Centaurus Brasil Mineração Ltda ACN 009 468 099 Level 3, 10 Outram St Avenida Barão Homem de Melo, 4391 office@centaurus.com.au WEST PERTH WA 6005 Salas 606 e 607 ‐ Estoril Telephone: +61 8 9420 4000 Belo Horizonte ‐ MG ‐ CEP: 30.494.275 BRAZIL