CLASSIC MINERALS LTD — Capital/Financing Update 2014

May 6, 2014

==> picture [284 x 132] intentionally omitted <==

ASX ANNOUNCEMENT 7 MAY 2014

CORPORATE STRUCTURE

ASX Code: CLZ- CLZO ABN: 77 119 484 016

Shares: 239,301,999 Options: 101,137,607 Options (unlisted): 12,500,000.

Share price: $0.042(at 7/5/2014) Option price: $0.01 (at 7/5/2014)

BOARD & MANAGEMENT

Justin Doutch, Managing Director Stanislaw Procak, Non-Executive Director Kent Hunter, Non-Executive Director Jeffrey Nurse, Company Secretary

CLASSIC UNDERTAKES SHARE PURCHASE PLAN AS EXPLORATION PROGRAMME ACCELERATES ALONG FRASER RANGE DISCOVERIES

Classic Minerals Limited (ASX: CLZ ) is pleased to announce its intention to raise up to $1,000,000 via a share purchase plan (SPP) for existing shareholders as it accelerates its exploration programme across its Fraser Range tenement.

The SPP will enable existing shareholders to continue to participate in the growth of Classic Minerals as it looks to build on its early exploration successes since listing on the ASX just 12 months ago. To date Classic has:

INVESTMENT

Tenements cover an area of 178km2 in the highly-prospective Eastern Goldfields and Fraser Range provinces of WA.

Flagship Fraser Range Project in WA is 40km from Sirius Resources’ Nova and Bollinger discoveries.

Experienced board and management team.

CONTACT

Level 1 7/30 Hasler Road Osborne Park WA 6017

PO Box 487 Osborne Park WA 6917

Phone: 08 94453008 Fax: 08 9349 5103

Website: www.classicminerals.com.au Email: admin@classicminerals.com.au

• Discovered the Mammoth Nickel Copper deposit – Mammoth is a new target style of magmatic nickel-copper mineralisation on the Fraser Range. Petrology on core and rock chip samples has confirmed that Mammoth has similar rock types and sulphide mineralisation to the Nova nickel-copper deposit. Drilling at Mammoth has so far proven the extension of the mineralisation to over 240m plunging north east.

• Discovered the Alpha Copper deposit – With a discovery hole of 1m of 1.95% Cu from 104m (FRRC001), drilling has intersected up to 20% sulphides in some samples with zones up to 12m thick. The mineralisation at Alpha has now been proven to extended to over 500m long by 100m wide, remaining open to north and east.

• Identified a major regional conductive target zone – Geophysics has recently helped identify a 6km conductive target zone running south west from Mammoth and hosting 10 key targets. Initial drilling into the first of these targets – A17 – has confirmed the existence of twin conductors showing iron nickel copper sulphide mineralisation.

INVESTOR RELATIONS

Neil Le Febvre Phone: 08 9468 0255

“We’ve had a stellar first 12 months since listing and the speed of the results we have achieved has really exceeded our initial expectations,” said Classic Minerals Managing Director Justin Doutch.

“We are continuing to drive hard, through a systematic exploration programme, towards the next important discovery along our Fraser Range tenement and want to ensure our existing long term shareholders are able to continue to participate in our growth prospects.

ASX ANNOUNCEMENT 7 MAY 2014

ABOUT CLASSIC MINERALS

Classic Minerals (ASX: CLZ) is a Perthbased mineral exploration Company focused on advancing its Fraser Range project E28/1904, in Western Australia. The Fraser Range Project is approximately 40km northeast of Sirius Resources’ NL (ASX: SIR) Nova and Bollinger nickel-copper discoveries, and has historic nickel-copper-zinc soil anomalies.

Other projects include Doherty’s Gold Project in the East Murchison region of WA and Cowarna Rocks near Kalgoorlie, which has detrital iron ore potential.

The company listed on the ASX on the 24 May 2013 and is focused on increasing shareholder value through exploration success at its West Australian projects. Further details of the company’s projects can be found at: www.classicminerals.com.au

“The Alpha and Mammoth discoveries have been really important in proving that we are in the right area for copper and nickel sulphide discovery and it’s clear that they are part of a bigger system at work.

Classic Minerals is currently undertaking the first of a series of planned SAM-FLEM surveys (Sub Audio Magnetics Fixed loop EM surveys) along the 6km conductive target zone to enable it to look deep underground.

Sirius Resources NL reported a trial of this system, which uses high powered EM transmitter technology, where it confirmed that it can detect the Bollinger deposit (which was invisible to conventional EM) at 450 metres). This will help Classic direct future drilling through this area.

Mr Doutch said Classic is also turning its exploration attention to additional prospective areas further to the south of the conductive zone.

“The Fraser Range remains one of the hottest exploration stories in Australia right now and it is an exciting time for Classic Minerals to be in the heart of it,” said Mr Doutch.

Share Purchase Plan

The Company recently completed a placement of ordinary shares to sophisticated and professional investors to raise $1,500,000 ( Placement ). The SPP now provides eligible shareholders with an opportunity to acquire up to $15,000 worth of new fully paid ordinary shares ( New Shares ) at a discount to the market price.

Under the terms of the SPP, eligible shareholders, being shareholders who were recorded on the Company’s share register at 5.00pm (WST) on 6 May 2014 and who had a registered address in Australia or New Zealand ( Eligible Shareholders ), may acquire New Shares at $0.04 per New Share.

Eligible Shareholders will be entitled to acquire up to $15,000 of New Shares without paying any brokerage or other transaction costs. This is subject to Classic’s right to scale back applications if it considers it appropriate. The total number of New Shares that may be issued under the SPP is 25,000,000 New Shares, to raise a total amount of up to $1,000,000.

The price at which the New Shares are being issued under the SPP represents a discount of 33.3% to the recent placement and approximately 4.8% to the current trading price on 7 May 2014.

Contact Details

Justin Doutch Managing Director Phone: 08 94453008 justin@classicminerals.com.au

Page 2 of 2