DATELINE RESOURCES LIMITED — Capital/Financing Update 2019

Jan 21, 2019

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22 January 2019

Market Announcements Platform ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000

Renounceable Rights Issue – Increased Underwriting Commitment

• Chairman of Dateline, Mr. Mark Johnson increases underwriting from $500,000 to $1,613,472 in new funding

• Mr. Mark Johnson’s total commitment to the current rights issue is over $3,044,000

On 30 November 2018 Dateline Resources Limited (ASX: DTR) ( Company ) announced a Company transforming renounceable rights issue of new fully paid ordinary shares ( New Shares ) at an issue price of $0.002 per New Share to raise up to approximately $14.5 million (before costs) ( Rights Issue ).

As noted in the Rights Issue offer booklet ( Offer Booklet ) (which was given to ASX on 30 November 2018), the Rights Issue is partially underwritten by a number of the Company's directors, including its Chairman, Mr. Mark Johnson, as well as its new Chief Executive Officer, Mr. Glenn Dovaston.

At the time of the announcement of the Rights Issue, Mr. Johnson had committed to subscribe for up to $500,000 of any New Shares that were not subscribed for by Eligible Shareholders (as defined in the Offer Booklet) by the closing date ( Shortfall ). However, and further to these previously disclosed arrangements, the Company is pleased to announce that Mr. Johnson has agreed to increase his underwriting commitment by $1,113,472.

The table below shows the potential effect the enhanced underwriting arrangement will have on the Company should no other Shareholder (other than those who have committed to subscribe for New Shares (either via the debt-for-equity swap arrangements disclosed in the Offer Booklet or via underwriting commitments[1] )) subscribe for any of their Entitlement:

Name ofSubstantial	Shares heldbefore Rights	Percentage ofShares before	New Shares	Shares held afterRights Issue	Percentage ofShares after
holder	Issue	Rights Issue			Rights Issue
SXX	240,015,002	33.13%	2,400,150,020	2,640,165,022	54.40%
Mark Johnson	71,559,521	9.88%	1,472,331,210	1,543,890,731	31.81%
Red Star2	60,944,569	8.41%	0	60,944,569	1.26%
Mr K.D.Vinci3	60,000,000	8.28%	0	60,000,000	1.24%
Greg Hall	9,999,887	1.38%	50,000,000	59,999,887	1.24%
StephenBaghdadi	618,806	0.09%	81,188,060	81,806,866	1.69%

1 Both Southern Cross Exploration N.L. and Mr. Johnson have agreed to the debt-for-equity swap arrangements disclosed in the Offer Booklet. Mr. Johnson has also (and as noted above) agreed to subscribe for $1,613,472 worth of any Shortfall. In addition, Mr. Dovaston, Mr. Baghdadi and Mr. Hall have together committed to apply for up to $512,376.12 worth of any Shortfall.

2 It is still not known whether Red Star Developments Pte Ltd will apply for its Entitlement (noting that the scenario referred to above assumes that neither it nor any other Eligible Shareholder will apply for their Entitlement). However, should Red Star (or any other Eligible Shareholder) apply for all (or part) of their Entitlement, the above referred issuances and percentages will change accordingly. 3 It is still not known whether Mr. Vinci will apply for his Entitlement (noting that the scenario referred to above assumes that he will not apply for his Entitlement). However, should Mr. Vinci apply for all (or part) of his Entitlement, the above referred issuances and percentages will change accordingly.

Others	281,358,025	38.84%	0	281,358,025	5.8%
Glenn Dovaston	0	0.00%	125,000,000	125,000,000	2.58%

Given that existing non-related party Shareholders are able to apply for Additional New Shares (ie New Shares in excess of their Entitlement (as defined in the Offer Booklet)) and will be allocated any such Additional New Shares applied for and issued in priority to any of the above mentioned related parties, the Company encourages any existing Eligible Shareholder who wishes to apply for New Shares and Additional New Shares to do so as soon as possible and in any event before the Rights Issue closing time and date of 5pm (Sydney time) on Thursday, 31 January 2019.

Mr Stephen Baghdadi said: " the increased financial commitment from the Company's Chairman is testament to his belief in the potential and quality of the Company's 100% owned gold assets in Colorado in the United States ".

Signed 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