CENTAURUS METALS LIMITED — Capital/Financing Update 2016

Oct 13, 2016

14 October 2016

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Dear Optionholder

Notice to Optionholders 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 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 ). The Prospectus is available on the Company’s website at www.centaurus.com.au or on the ASX website (company announcements section, ASX code: CTM) at www.asx.com.au.

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.

You will not be entitled to participate in the Rights Issue unless you have a registered address in Australia and New Zealand and exercise your options and are entered onto the register as a Shareholder on or before 5.00 pm (WST) on the Record Date. Option holders who are resident outside of Australia and New Zealand will be ineligible to participate in the Rights Issue even if they exercise their options.

To exercise your options and thereby be entitled (subject to eligibility) to participate in the Rights Issue in respect of the Shares allotted upon exercise of your options, you will need to deliver to the registered office of the Company a completed Option Exercise Form specifying the number of options to be exercised together with payment of the exercise price for those options by way of a cheque made payable to the Company.

Option Exercise Forms can be obtained by contacting Advanced Share Registry on (08) 93898033.

Option Exercise Forms and cleared funds must be received by no later than 5.00 pm (WST) on 19 October 2016. The Rights Issue closing date is 8 November 2016.

If you do not wish to exercise your options you do not need to take any action.

If you choose to participate in the Rights Issue by exercising some or all of your options prior to the Record Date, you will be sent a prospectus and personalised entitlement and acceptance form.

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

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Before deciding whether to exercise all or any of your options, you should consider the terms of the Rights Issue carefully and consult with your professional adviser if necessary.

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

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