CRITICAL RESOURCES LIMITED — Capital/Financing Update 2018

Feb 20, 2018

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21 February 2018

ASX Announcements Office 152–158 St Georges Terrace Perth WA 6000 Australia

Kanuka Lithium Production Update: JV On Track to Complete in February

• All draft joint venture agreements and associated joint venture incorporation documentation prepared and circulated for finalisation, with execution and receipt of all consents and approvals expected by 28 February 2018;

• The Kanuka Lithium Project Joint Venture is located just 5km immediately south of AVZ Mineral’s ‘world-class’ Manono Lithium Project and 20km east of the Company’s Kitotolo Lithium Project;

• The Kanuka Lithium Project Joint Venture, is to be held 51% by Force and focussed on two contiguous granted Mining and Exploration Licenses that cover an area of approx. 194km[2] and where joint venture partner Mining Mineral Resources SPRL operates a wellestablished tin and tantalum mining, processing and export operation;

• Current and historic mining in the license areas has exposed a number of pegmatites, with one identified in the current main mining area being in excess of 3kms long and greater than 200 metres in width and which remains open along strike on a NE-SW trend and is typical of other pegmatites identified in the region;

• The Kanuka Lithium Project Joint Venture strategy is to seek to rapidly delineate an economic lithium resource as a stepping stone to accelerating the development of a commercial lithium mining and processing operation that will immediately benefit from the excellent infrastructure already in place of an established mining operation, with power, mine camp and offices as well as its own airstrip and proven logistics capabilities; and

• Planning has already commenced for the initial exploration and drill program which will immediately target the exposed pegmatite in the current main mining area to define the depth extensions of the exposed pegmatite and grade of lithium mineralisation in fresh rock with drilling now expected to commence by the end of March 2018.

Force Commodities Ltd ( Force or the Company ) (ASX Code: 4CE ) is pleased to confirm that establishment of the Kanuka Lithium Project Joint Venture is on track to be completed by the end of February 2018 with all draft joint venture agreements and associated documentation prepared by the Company’s lawyers and circulated for finalisation, approval and execution by the joint venture parties.

Force Commodities Ltd | 6 Cheviot Way, Burns Beach, WA, 6028 | PO Box 1024 West Leederville WA 6007 | P: +61 8 6202 6530 F: +61 8 6323 3347 | web:forcecommodities.com.au | Email: admin@forcecommodities.com.au | ABN 12 145 184 667 | ASX:4CE

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The Kanuka Lithium Project Joint Venture, is to be held 51% by Force and 49% by Mining Mineral Resources SPRL ( MMR ) and comprises two contiguous licenses: granted Mining License PE13082 and Exploration License PR4100.

These licenses cover an area of approx. 194km[2] and are located 20km east of the Company’s existing Kitotolo Lithium Project which is a joint venture with La Congolaise d’Exploitation Miniere ( Cominiere SA ). The licenses are also south (approx. 4km from the license boundaries) of AVZ Mineral’s (ASX: AVZ) ‘world-class’ Manono Lithium Project.

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Figure 1: Location of Kanuka Lithium Project Joint Venture location in(Light blue shade is PE13082 and pink shade is PR4100)

The Company’s joint venture partner, MMR, is an established tin, tantalum and tungsten mining company that was incorporated in 2008 and which operates a series of exploration, mining and processing operations throughout the DRC.

MMR is part of the VinMetals Group, a diversified mining, metals and trading group that has operated successfully in the DRC since 1997, with existing copper cathode and copper, cobalt, tantalum, tin and tungsten concentrate production from several mines and processing plants.

MMR acquired the mining and exploration licenses that make up the Kanuka Lithium Project in 2012.

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Figure 2 and 3: PE13082 which forms part of the Kanuka Lithium Project Joint Venture

The licenses are currently the subject of conventional open pit mining operations, with the alluvial sand layers that host the cassiterite and columbite (minerals that are typically coincidental with lithium mineralisation) mined by truck and shovel methods.

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Figure 4, 5, 6 and 7: Mining activity has exposed significant pegmatite exposures on the license areas

Numerous pegmatites have been exposed throughout the license areas by the current and previous mining activities.

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Figure 6 and 7: The site offices and processing plant on PE13082

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Mined material at the Kanuka tin and tantalum operations is fed into the recently expanded processing plant which produces tin and tantalum concentrates that MMR exports to the international market. MMR is one of the industry leaders in the DRC, working closely with iTRi, and has been instrumental in the on-going success of the program in the DRC, supplying ICGLRcertified conflict free “3T” minerals to the international marketplace.

The Company and its joint venture partner MMR have a clearly defined strategy for the Kanuka Lithium Project Joint Venture, with the immediate focus to commence exploration and drilling to seek to rapidly delineate an economic lithium resource.

It is the intent of the Kanuka Lithium Project Joint Venture to accelerate the development of a commercial lithium mining and processing operation, given the established infrastructure already in place at Kanuka, which includes the established tin and tantalum mining and processing operation, the power, mine camp, workshops, dedicated airstrip and offices.

In addition, MMR has proven logistics capabilities with the supply of materials to the Kanuka site and export of concentrates to the international markets well established, which is considered critical if the joint venture is to be able to successfully accelerate its development timetable as planned.

The Company’s Head of Exploration Mr James Sullivan, has already prepared the initial exploration program for the Kanuka Lithium Project Joint Venture, and agreement has been reached with MMR for the commencement of exploration activities to focus on the extensive pegmatites that have been exposed by the current and historic mining in the license areas.

This initial exploration work and associated drill program, which will immediately target the exposed pegmatite in the current main tin and tantalum mining area, is aimed at defining the depth extensions of the exposed pegmatite and grade of lithium mineralisation in fresh rock.

Work completed by the Company in November 2017 identified significant occurrences of pegmatite exposures on the Mining and Exploration Licenses, with one pegmatite identified in the current main mining area being in excess of 3kms long and greater than 200 metres in width and which remains open along strike on a NE-SW trend.

Exploration work in the field at the Kanuka Lithium Project Joint Venture will commence immediately the joint venture documentation is executed, with an initial drill program expected to commence by the end of March 2018.

END

Contact:

Michael Fry

Company Secretary Force Commodities Limited Tel: +61 (0) 8 9328 9368

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Competent Person Statement

The information in this release that relates to sampling techniques and data, exploration results, geological interpretation and Exploration Targets, Mineral Resources or Ore Reserves has been compiled by Mr James Sullivan is a member of the Australian Institute of Geoscientists. Mr Sullivan is engaged by Force Commodities as a consultant geologist.

Mr Sullivan has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Sullivan consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Forward looking statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

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