CLARA RESOURCES AUSTRALIA LTD — Capital/Financing Update 2016

Sep 21, 2016

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22 September 2016

Dear Shareholder

Aus Tin Mining Limited – Non‐Renounceable Entitlement Offer ‐ Notice to Eligible Shareholders

Aus Tin Mining Limited ( Aus Tin Mining or the Company ) is pleased to announce a non‐renounceable entitlement offer ( Offer ) to eligible shareholders on the basis of 1 new fully paid ordinary share for every 10 shares held ( New Shares ), at an issue price of $0.011 per share ( Issue Price ).

The Offer is underwritten as to the sum of $828,829 by DGR Global Limited. Fiscus Capital Pty Ltd has been appointed as Lead Manager to the Offer.

Assuming no existing options on issue in the Company are exercised, approximately 150,696,181 New Shares will be made available under the Offer. New Shares issued pursuant to the Offer will rank equally with all existing shares on issue.

The Offer is seeking to raise approximately $1,657,658 (before costs). The Company intends that the funds raised will be used to progress development of its Granville and Taronga Tin Projects, carry‐out work across the Company’s exploration portfolio, provide working capital and pay the costs of the Offer.

The Offer is being made without a disclosure document pursuant to 708AA of the Corporations Act 2001 (Cth) ( Corporations Act ). A copy of the Offer Booklet (including an Investor Presentation) was lodged with the ASX today (and is available on the Company’s website www.austinmining.com.au) and will be sent to eligible shareholders on or about 29 September 2016, as set out in the timetable below.

The Offer will be available to all registered shareholders at 7pm Sydney time on 26 September 2016 ( Record Date ) with registered addresses in Australia, New Zealand and Hong Kong ( Prescribed Jurisdictions ) or any other jurisdiction in which the Company subsequently determines it may extend the Offer ( Eligible Shareholders ).

In accordance with the Listing Rules of the ASX, the Company has considered the number of shareholders with registered addresses in various jurisdictions outside of Australia, New Zealand and Hong Kong and the size of the shareholdings held by those shareholders. Taking this into consideration, as well as the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to the shareholders with registered addresses in various jurisdictions outside of Australia, New Zealand and Hong Kong, the Company has formed the view that it is unreasonable to extend the Offer to those shareholders. Accordingly, shareholders outside of Australia, New Zealand and Hong Kong will not be entitled to participate in the Offer.

If an Eligible Shareholder takes up their full entitlement, they can also apply for additional New Shares ( Additional New Shares ) under the Offer at the price of $0.011 each. Any Additional New Shares must be allocated from that pool of New Shares which remain available for allocation, after the allocation of all entitlements to each Eligible Shareholder who has applied for their entitlements ( Shortfall Shares ). Related Parties of the Company and their associates who are Eligible Shareholders must not apply for, and will not be issued, Additional New Shares.

Aus Tin Mining Limited Level 27, 111 Eagle Street, Brisbane, Qld 4000 (GPO Box 5261) Phone: 07 3303 0611, Fax: 07‐3303 0681

The Board of Directors reserves the right to place any Shortfall Shares from the Entitlement Offer to third parties within three (3) months of the close of the Offer at a price no lower than the Offer Price.

The proposed timetable for the Offer is set out in the table below:

Announcement of Entitlement Offer andOffer Booklet and Appendix 3B lodged with ASX	21 September 2016
Notice of Entitlement Offer sent to Option Holders	21 September 2016
Notice of Entitlement Offer sent to Shareholders	22 September 2016
Trading on Ex basis	23 September 2016
Record Datefor the Entitlement Offer (7:00pm Sydney time)	26 September 2016
Despatch of Offer Booklet and notice to Ineligible Holders	29 September 2016
Opening Date of Entitlement Offer (9:00am Sydney time)	29 September 2016
Closing Date of Entitlement Offer (5:00pm Sydney time)	14 October 2016
Trading on deferred settlement basis commences	17 October 2016
ASX notified of under subscriptions (no more than 3 business days afterClosing Date)	19 October 2016
Allotment Date ‐ expected date of allotment of the New Shares issuedunder the Entitlement Offer	21 October 2016
Normal trading begins	22 October 2016
Despatch Date ‐ expected date of despatch of New Shares holdingstatements, and deferred settlement trading ends	23 October 2016

This timetable is indicative only and may be subject to change subject to the requirements of the Corporations Act and the ASX Listing Rules.

Excluded information

The Company advises that as at the date of this notice there is no information:

1. that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

2. that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

   • (a) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

   • (b) the rights and liabilities attaching to the New Shares.

Further information – Appendix 3B

An Appendix 3B applying for quotation of the New Shares has been lodged with the ASX.

The Company anticipates that approximately 150,696,181 New Shares will be issued (this number may have to be increased by 31,455,603 New Shares if existing option holders exercise their options prior to the Record Date). The New Shares will be issued for $0.011 each. Upon completion of the Offer, and assuming it is fully subscribed and that existing options are not exercised, the issued capital of the Company will comprise approximately 1,657,657,986 shares and 314,556,032 unlisted options exercisable at 2 cents each through to 30 June 2017.

Aus Tin Mining Limited Level 27, 111 Eagle Street, Brisbane, Qld 4000 (GPO Box 5261) Phone: 07 3303 0611, Fax: 07‐3303 0681

The New Shares will rank equally in all respects with Aus Tin Mining’s existing shares. If an Eligible Shareholder's entitlement results in a fraction of a New Share, the entitlement will be rounded down to the nearest whole number. Allotment of New Shares is expected to occur on 21 October 2016 and trading in the New Shares is expected to commence on 22 October 2016.

The Directors of Aus Tin Mining encourage all Eligible Shareholders to participate in the capital raising.

Yours faithfully

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Karl Schlobohm Company Secretary Aus Tin Mining Ltd

Aus Tin Mining Limited Level 27, 111 Eagle Street, Brisbane, Qld 4000 (GPO Box 5261) Phone: 07 3303 0611, Fax: 07‐3303 0681