CLASSIC MINERALS LTD — Capital/Financing Update 2020

May 10, 2020

Proposed issue of securities

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Announcement Summary

Entity name

CLASSIC MINERALS LTD

Announcement Type

New announcement

Date of this announcement

Monday May 11, 2020

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
CLZ	ORDINARY FULLY PAID	806,000,000
CLZAB	OPTION EXPIRING 01-MAR-2022 EX 0.2C	403,000,000

Proposed +issue date

Monday May 11, 2020

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

CLASSIC MINERALS LTD

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ACN

Registration Number

119484016

1.3 ASX issuer code

CLZ

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Monday May 11, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +Security Code and Description

CLZ : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

806,000,000

Purpose of the issue

Capital raising

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00100

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

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Oversubscription & Scale back details

May a scale back be applied to this event? No

Attaching +Security

Oversubscription & Scale back details	Oversubscription & Scale back details	Oversubscription & Scale back details
May a scale back be applied to this event?No
Attaching +Security
Is the proposed attaching security a 'New class' (+securities in
	a class th	at is not yet quoted	or recorded by ASX)
or an 'Existing class' (additional +securities in a class that is aEiti l	lready quo	ted or recorded by	ASX)?
xsng cass
Attaching +Security - Existing class (additional +securities in a class that	is already	quoted or recorded by	ASX)
Details of attaching +securities proposed to be issued
ASX +Security Code and Description
CLZAB : OPTION EXPIRING 01-MAR-2022 EX 0.2C
Maximum Number of +securities proposed to be issued
403,000,000
Offer price details for retail security holders
In what currency is the cash consideration being paid? Wh	at is the is	sue price per +secu	rity?
AUD - Australian DollarAU	D 000010
	.
Oversubscription & Scale back details
May a scale back be applied to this event?
No
Will these +securities rank equally in all respects from their is	sue date w	ith the existing issu	ed +securities in that
class?Yes

Part 7C - Timetable 7C.1 Proposed +issue date Monday May 11, 2020

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Part 7D - Listing Rule requirements

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7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

806,000,000

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

Raisebook Pty Ltd, a corporate authorised representative of LeMessurier Securities Pty Ltd.

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

3.50%

7E.2 Is the proposed issue to be underwritten?

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No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

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7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

The issue of Options will be subject to shareholder approval at the next General Meeting of the Company

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