Cygnus Metals Ltd — Capital/Financing Update 2020

Aug 17, 2020

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Share Placement

ASX ANNOUNCEMENT: 18 August 2020

ASX: CY5

CORPORATE DIRECTORY Non-Executive Chairman Michael Bohm

• Firm commitments to raise $1.2 million (before costs) by way of private placement

Cygnus Gold Limited (“Cygnus” or the “Company”) (ASX: CY5) is pleased to advise that it has received commitments from sophisticated and professional investors to raise approximately $1.2 million (before costs) through the issue of up to 9,132,692 fully paid ordinary shares in the Company ( Placement Shares ) at an issue price of $0.13 per Share ( Issue Price ) ( Placement ).

The Issue Price represents a discount of 24% to the Company's 15day VWAP of $0.171.

Non-Executive Directors

Simon Jackson Raymond Shorrocks Shaun Hardcastle

Cygnus received strong support from existing sophisticated and professional investors for the Placement, with directors of the Company also showing strong support by collectively subscribing for $300,000 worth of Placement Shares. The Placement Shares to be issued to the directors will be subject to shareholder approval at a general meeting to be convened in due course.

Company Secretary Michael Naylor

Funds raised from the Placement will be used for the Company’s exploration activities in the south-west, on tenement holding expenses, toward business development opportunities and for general working capital.

Placement Details

The Placement Shares will be issued under the Company's existing placement capacity under Listing Rule 7.1A (other than the shares to be issued to directors, which are subject to shareholder approval).

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Settlement of the Placement is expected to occur on 26 August 2020. The Placement Shares will rank equally with the Company's existing shares on issue.

Cygnus Gold Limited

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Level 2

45 Richardson Street West Perth WA 6005.

An Appendix 3B for the proposed issue of the Placement Shares will follow this announcement.

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• T: +61 8 6118 1627

• E: info@cygnusgold.com

• W: www.cygnusgold.com

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Cygnus Gold Limited

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By authority of the board of directors.

For further information please visit www.cygnusgold.com or contact:

Michael Naylor - Company Secretary

T: +61 8 6118 1627

E: info@cygnusgold.com

About Cygnus Gold

Cygnus is currently targeting the discovery of high-grade gold, nickel, and base metals deposits within the Southwest Terrane, in the Wheatbelt region of Western Australia. The Southwest Terrane is a package of high metamorphic grade rocks forming part of the well mineralised Yilgarn Craton. In addition to the wholly owned Projects, Cygnus is managing two significant joint venture agreements with ASX-listed Gold Road Resources on the Yandina and Lake Grace Projects.

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Cygnus Gold Limited

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