CZR RESOURCES LTD — Capital/Financing Update 2020

Aug 31, 2020

Proposed issue of securities

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Update Summary

Entity name

COZIRON RESOURCES LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Tuesday September 1, 2020

Reason for update to a previous announcement

Correction to number of Managing Director Options

Refer to next page for full details of the announcement

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

COZIRON RESOURCES LIMITED

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 Registration Number ACN 112866869

1.3 ASX issuer code

CZR

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Correction to number of Managing Director Options

1.4b Date of previous announcement(s) to this update

Friday August 14, 2020

1.5 Date of this announcement

Tuesday September 1, 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 Yes 7A.1a Conditions Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval Tuesday September 15, Actual 2020

Comments

Part 7B - Issue details

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional Yes securities in a class that is already quoted or recorded by ASX)? Existing class

Details of +securities proposed to be issued

ASX +security code and description CZR : ORDINARY FULLY PAID Number of +securities proposed to be issued 10,000,000 Reason for the update of 'Maximum Number of +securities proposed to be issued' Offer price details

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Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

Repayment of loan. Details contained in the Notice of Meeting dated 13 August 2020

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities 100,000.000000

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

Attaching +Security

Is the proposed attaching 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

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

CZRAA : OPTION EXPIRING VARIOUS DATES EX VARIOUS PRICES

Number of +securities proposed to be issued

10,000,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

Options exercisable at $0.015, expiry 30 June 2022.

Repayment of loan. Details contained in the Notice of Meeting dated 13 August 2020

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities 1.000000

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

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Yes

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Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from Will the entity be seeking quotation ASX that the terms of the proposed of the 'new' class of +securities on +securities are appropriate and ASX? equitable under listing rule 6.1? No No ASX +security code +Security description New class-code to be confirmed Options. Exercise price to be 167 percent of the 5 day vwap. Expiry 48 months after issue +Security type Options

Number of +securities proposed to be issued 60,000,000

Reason for the update of 'Maximum Number of +securities proposed to be issued' Correction to number to be issued

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

To be issued to the managing director as incentive options Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities 467,173.000000 Will all the +securities issued in this class rank equally in all respects from their issue date? No

If some of the issued +securities do not rank equally

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Is the actual date from which the +securities will rank equally (non-ranking end date) known? No

Provide the estimated non-ranking end period

Options are subject to vesting conditions. It is not possible to estimate the date of satisfaction of the conditions.

Please state the extent to which the +securities do not rank equally: In relation to the next dividend, distribution or interest payment; or For any other reason

Refer page 36 of the Notice of Meeting dated 13 August 2020

Options details

+Security currency

AUD - Australian Dollar

Exercise price AUD 0.0184

Expiry date Tuesday September 15, 2026

Details of the type of +security that will be issued if the option is exercised

CZR : ORDINARY FULLY PAID

Number of securities that will be issued if the option is exercised

60000000

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

https://www.asx.com.au/asxpdf/20200813/pdf/44lh2p2gg1zwwy.pdf

Part 7C - Timetable

7C.1 Proposed +issue date

Friday September 18, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire 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? No

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

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7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? Yes 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? No 7E.2 Is the proposed issue to be underwritten? 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 7F.01 The purpose(s) for which the entity is issuing the securities Repayment of loan and issue of incentive options to managing director.

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

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