DATELINE RESOURCES LIMITED — Capital/Financing Update 2016

Oct 18, 2016

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Southern Cross Exploration N.L. ACN : 000 716 012

Level 29, 2 Chifley Square, Sydney NSW 2001 Phone : +61 2 9375 2337

email : sxx@sxxgroup.com www: sxxgroup.com

19 October 2016

Company Announcements Office Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000

Southern Cross to Invest $1,000,000 in Dateline Resources Limited

• SXX to take a placement of 100,000,000 Dateline Resources Limited (ASX: DTR) Fully Paid Ordinary Shares at $0.01 per share

• Transaction in line with SXX’s strategy of building a portfolio of investments in the resources sector including equity investments and direct asset ownership

• Gives SXX continued financial flexibility to pursue other resource sector investments and preserve and strengthen cash reserves through its existing cash-generating investments

• Other precious metals investments under consideration to strengthen asset base

• SXX remains well funded and has a growing pipeline of pre-sales from its Fiji investment

The Board of Southern Cross Exploration Limited (ASX: SXX) (Southern Cross, or the Company) is pleased to announce a transaction where the Company will secure approximately a 43% shareholding in Dateline Resources Limited (ASX: DTR) (Dateline) on the following terms:

Transaction Terms

As per the ASX announcement made by DTR today, Dateline has agreed to take assignment of Gunnison Gold Pty Ltd from SXX on the following terms, which are subject to approval by the shareholders of DTR:

• A finder’s fee of A$250,000 to SXX and the grant of 25 million options at a strike price of $0.04 and DTR reimbursing SXX's costs;

• The repair of DTR's balance sheet by:

  • I. The issue of DTR shares at $0.01 per share to SXX to satisfy repayment of approximately $400,000 owed to SXX by DTR;

  • II. The placement of 100,000,000 shares in DTR at $0.01 per share to SXX for consideration of $1,000,000;

  • III. DTR completing a subsequent $850,000 capital raising at a price of at least $0.01 per share.

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Southern Cross Exploration N.L.

ACN : 000 716 012

Level 29, 2 Chifley Square, Sydney NSW 2001 Phone : +61 2 9375 2337

email : sxx@sxxgroup.com www: sxxgroup.com

Southern Cross’ Executive Director Stephen Baghdadi commented: “This investment is in line with our strategy of pursuing equity investments in precious metals projects and companies, and investing in projects directly.”

“The shareholding in Dateline gives Southern Cross very meaningful exposure to a near-term producing gold mine with immediate expansion capacity, and in a proven mining district in Colorado. Significant value can be added by Dateline scaling up production and undertaking an aggressive exploration program across the property.”

“Southern Cross’ near-term objective is to continue to build its cash reserves through its investment in Fiji which will help fund its growing exposure to the precious metals sector. Other opportunities are under consideration and Southern Cross is looking to build a portfolio of precious metals equity investments and to also own precious metals assets directly.”

“As previously stated, the Board is committed to investing in the resources sector and will consider opportunities that generate meaningful returns for shareholders and have near-term cash generation characteristics. The transaction with Dateline is in line with these investment parameters.”

For more information, contact:

John Smith Company Secretary Ph: +61 2 8231 6640 Fax +61 2 8231 6487 Email: mail@sxxgroup.com