DATELINE RESOURCES LIMITED — Capital/Financing Update 2017

Jul 23, 2017

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24 July 2017

Dear Option Holder

Non Renounceable Rights Issue

Dateline Resources Limited (DTR) (" Dateline " or the " Company ") is pleased to announce a non-renounceable non-underwritten rights issue on the basis of 1 ordinary share in the Company for every 2 ordinary shares held at the Record Date at an issue price of $0.02 per share ( Issue Price ). The rights issue will result in the issue of up to 200,247,902 new ordinary shares ( New Shares ) to raise a total of up to approximately $4,000,000 ( Rights Issue ). As the Rights Issue is not underwritten, there is a risk that all New Shares will not be issued.

The Company intends to use the funds raised under Rights Issue for general working capital purposes, including pursuing the Colorado Gold Project previously announced.

The Rights Issue is available to Shareholders who are, as at 7.00pm AEST Sydney time on the Record Date of 26 July 2017, registered (in accordance with the records of the Company's share registry) with a registered address in Australian or New Zealand ( Eligible Shareholders ).

Eligibility to Participate

The DTR options held by you do not give you an entitlement to participate in the Rights Issue. If you do not wish to participate in the Rights Issue (in respect of your DTR options) you do not need to take any action.

To be eligible to participate in the Rights Issue (to the extent of any shares issued to you on exercise of your DTR options), you must exercise your DTR options and be registered (in accordance with the records of the Company's share registry), with a registered address in Australian or New Zealand, as the holder of the underlying shares on or before the Record Date.

To exercise some or all of your DTR options you will need to give notice, in writing, to the Company in accordance with the terms and conditions of the DTR options, and pay the Company the relevant exercise price for each DTR option exercised.

If you do not exercise your DTR options, then after the closing date of the Rights Issue an adjustment may be made to the exercise price of your DTR options in accordance with the formula set out in the terms and conditions of your DTR options and specified by the ASX Listing Rules.

Dateline Resources Limited (ACN 149 105 653) Level 29, 2 Chifley Square, Sydney, NSW 2000

www.datelineresources.com.au info@datelineresources.com.au

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Further details of the Rights Issue are contained in an Offer Document which will be mailed to Eligible Shareholders on 31 July 2017. The Offer Document will also be available on the Company’s announcements platform at www.asx.com.au (ASX Code: DTR) on 31 July 2017.

Contact

If you have any questions regarding the exercise of your DTR options or the Rights Issue, please do not hesitate to contact John Smith, Company Secretary on +61 2 8231 6640 or contact your stockbroker or professional advisor.

We look forward to your continuing support of the Company.

For and on behalf of

Dateline Resources Limited

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John Smith Company Secretary

Dateline Resources Limited (ACN 149 105 653) Level 29 2 Chifley Square, Sydney, NSW 2000

www.datelineresources.com.au info@datelineresources.com.au