DEVEX RESOURCES LIMITED — Capital/Financing Update 2020

Jul 7, 2020

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8[th] July 2020

Successful A$5.5 million capital raising to fast-track exciting exploration in NSW and WA

Drilling to commence in Lachlan Fold Belt in July followed by Julimar Region in WA

HIGHLIGHTS

• Firm commitments to raise A$5.5m (before costs) at $0.10 per share by way of:

  • A placement to sophisticated and professional investors to raise approximately $4.7m (Tranche 1 Placement); and

  • Subject to shareholder approval, a placement to Directors to raise $0.81m (Tranche 2 Placement).

• Proceeds will fund upcoming exploration programs at two exciting projects in the Lachlan Fold Belt in NSW and the Julimar Region in WA.

• Contract for drilling has been signed for NSW exploration, where activity will commence in the coming weeks, including:

  • Drilling at Basin Creek (NSW) to test an extensive gold system defined at surface over +4km of strike with recent rock chips of up to 8.0g/t gold;

  • Drilling at Junee (NSW) where shallow undrilled porphyry copper gold targets supported by geochemistry and geophysics have been identified;

  • Exploration activities at the Sovereign Project (WA), where DevEx has secured strategic ground with the potential to host Ni-Cu-PGE intrusions similar to that discovered by Chalice Gold Mines Limited.

• On completion of the capital raising, DevEx will have a cash balance of ~A$7.7m.

DevEx Resources Limited (ASX: DEV “ DevEx ” or “ the Company ”) is pleased to announce a highly successful capital raising of up to $5.5 million to underpin the next phase of exploration at its gold, copper-gold and nickel-copper-PGE projects located within two of Australia’s most exciting exploration addresses in NSW and WA.

The capital raising will increase DevEx’s cash balance to A$7.7 million, putting it in a strong position to rapidly progress exploration at its Basin Creek and Junee Projects in NSW (gold and copper-gold) and its recently acquired Sovereign Nickel-Copper-PGE Project in the Julimar Region of WA.

www.devexresources.com.au

T: +61 (0) 8 9322 3990 F: +61 (0) 8 9322 5800 E: info@devexresources.com.au

DevEx Resources Limited Level 2, 1292 Hay Street, West Perth WA 6005, Australia GPO Box 2890, Perth WA 6001

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Management Comment

DevEx’s Managing Director, Brendan Bradley, said: “The strong response from investors to this capital raising reflects the quality of the exploration targets we have identified at our key projects, their location within two of Australia’s most exciting discovery addresses, and the rapid escalation in news-flow which we expect in the second half of this year . W e welcome the addition of a number of significant new investors to the DevEx register and we look forward to advancing and releasing more exploration results from our Basin Creek, Junee and Sovereign Projects in the coming weeks.”

“The Lachlan Fold Belt in NSW is currently undergoing a major exploration renaissance with several exciting new discoveries emerging in recent months. Meanwhile, the Julimar Region of WA has burst onto the scene in the past few months as one of the most sought-after exploration districts in Australia thanks to the success of Chalice Gold Mines.

“With a drill contract signed, a rig is scheduled to target beneath extensive surface gold mineralisation at Main Ridge Gold Prospect later this month with Junee and Sovereign to follow closely behind, we are looking forward to seeing what our drilling campaigns can deliver.”

Placement

The Company has accepted firm commitments for a placement of new fully-paid shares in DevEx (“New Shares”) at A$0.10 per New Share to raise approximately A$5.5 million (“Placement”). The Placement, which was strongly supported by sophisticated and professional investors, comprises the following components:

• The first tranche (“ Tranche 1 ”) of the Placement will raise approximately A$4.7 million (before costs) through the issue of 47,590,767 New Shares and will be completed using the Company’s existing 25% placement capacity under ASX Listing Rules 7.1 and 7.1A as follows:

Listing Rule	7.1–15%	28,554,460 New Shares
ListingRule	7.1A – Additional 10%	19,036,307 NewShares

Settlement of Tranche 1 is expected to occur on Tuesday 14 July 2020, with allotment to occur on Wednesday, 15 July 2020;

• The second tranche (“ Tranche 2 ”) of the Placement will raise A$0.81 million (before costs) through the issue of 8,100,000 New Shares to directors (and their associates) of the company. Tranche 2 is subject to obtaining shareholder approval at a general meeting currently scheduled for end of August 2020. The Company expects that the Tranche 2 New Shares will be settled and allotted in early September 2020.

Upon completion of the Placement, the 55,690,767 New Shares will represent approximately 22.6% of the expanded share capital of the Company, for a total of 246,053,840 ordinary shares on issue.

The issue price of A$0.10 per New Share represents a 13% discount to the last closing price of A$0.115 on Friday, 3 July 2020.

Bell Potter Securities Limited and Taylor Collison Limited acted as Joint Lead Managers and bookrunners to the Placement.

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This announcement has been authorised for release by the Board.

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Brendan Bradley Managing Director

For further information, please contact:

Brendan Bradley, Managing Director DevEx Resources Limited Telephone +61 8 9322 3990

For media inquiries, please contact:

Nicholas Read Read Corporate Telephone: +61 8 9388 1474

COMPETENT PERSON STATEMENT

The information in this announcement that relates to Exploration Results for the Basin Creek Project are extracted from the ASX announcement titled “New strong gold anomalies prioritised for upcoming drill program at the Basin Creek Project, NSW” released on 23[rd] June 2020 and “Extensive zone of gold in rockchips identified at the Basin Creek Copper-Gold Project, NSW” released on 14[th] April 2020 and “More strong gold rock chip results over a +4km strike length at the Basin Creek Copper-Gold Project, NSW” released on 6[th] May 2020, all of which are available on www.devexresources.com.au.

The information in this announcement that relates to Exploration Results for the Junee Project are extracted from the ASX announcement titled “Geophysics upgrades priority drill targets at Junee Copper-Gold Project, NSW, as new drill programme commences” released on 3[rd] March 2020, “New copper and gold mineralisation supports potential for largescale porphyry system at Junee, NSW” released on 11[th] September 2019 and “DevEx Further Expands Potential of Junee Copper-Gold Project, NSW with Identification of Additional Porphyry Targets” released on the 5th March 2019 and “Porphyry Copper-Gold Targets Identified at Junee Project, Lachlan Fold Belt, NSW” released on the 24[th] January 2018, all of which are available on www.devexresources.com.au.

The information in this announcement that relates to Exploration Results for the Julimar Applications are extracted from the ASX announcement titled “DevEx applies for exploration licences in new Julimar Nickel-Copper-PGE region, WA” released on 20[th ] April 2020 and “DevEx expands position in Julimar Nickel-Copper-PGE region with strategic farm-in agreement” released on 1[st] June 2020, all of which are available on www.devexresources.com.au.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

FORWARD LOOKING STATEMENT

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

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