DGR GLOBAL LIMITED — Capital/Financing Update 2019

Oct 15, 2019

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DGR Global Limited

16 October 2019

Business Update

The Board of Directors of international resource company creator, DGR Global Limited ( the Company; ASX: DGR ), is pleased to provide an update with regard to various recent developments within the Company’s range of sponsored listed entities.

Interested shareholders are encouraged to read the full releases of each particular company mentioned below, as compliance with the ASX Listing Rules restricts what can be detailed by DGR Global in this announcement. Shareholders are also reminded that updates, photos and articles of relevance for each company are available via Twitter, and by registering to receive news directly via our electronic mail‐out service, available for each company on their respective websites (refer below).

SolGold plc | LSE / TSX: SOLG (11% owned by DGR)

Overnight, SolGold Plc (SolGold; LSE/TSX:SOLG) provided a market update in relation to the domestic situation in Ecuador, which stated:

“The Board of SolGold would like to update shareholders on the news that an agreement has been reached between the Government and indigenous groups for an immediate end to the recent protests in Ecuador following talks brokered by the UN and the Catholic Church.

In return for an end to the protests, the Government has agreed to immediately restore the fuel subsidies that had originally been removed as part of the economic package imposed on 1 October 2019. The agreement to repeal the subsidy cuts has come with a commitment for the Government and indigenous groups to create a commission to develop new measures to cut government costs, stop abuse of fuel subsidies and reduce the country's budget deficit. SolGold’s projects will contribute strongly to sustainable economic growth employment and the robust support of all Ecuadoreans for decades to come.

SolGold’s operations remain unaffected by the protests. The Company is on track to deliver a third Mineral Resource Estimate of the Alpala Deposit in Q4 2019 and Pre‐Feasibility Study in Q1 2020.

The Cascabel project is a key project in Ecuador's developing mining industry and a critical driver for the future of Ecuador's economy in the view of the Government of Ecuador. SolGold anticipates this significant economic contribution to be replicated on its 12 other projects across the country. SolGold continues to receive full and objective support from the Ecuadorean Government.

SolGold is committed to building an integrated explorer, project appraiser and miner in the copper and gold industry in Ecuador, and enjoys the support of its major shareholders, including Australia's largest gold miner Newcrest and the world's largest miner BHP. SolGold is committed to the country's economic development, provides growing and wide employment opportunities and conducts responsible mineral exploration programs in line with local and international laws and standards and worlds best practices.

DGR Global Limited ACN 052 354 837

street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e info@dgrglobal.com.au w www.dgrglobal.com.au

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SolGold currently employs approximately 700 people, of which 98% are Ecuadorean. This number will increase significantly as Alpala moves in to construction, and as the regional projects develop. The Cascabel project is located away from any protected areas and away from any indigenous ancestral areas. The project is strongly supported by regional and local communities and the future of Cascabel was recently strongly endorsed by these local communities and Government in public hearings at the Constitutional Court at which the legitimacy of the mining industry in Ecuador was firmly upheld.”

Copies of all of SolGold’s market releases are available on the Company’s website: www.solgold.com.au

The current value of DGR Global’s investment in SolGold is approximately $66 million.

Armour Energy Limited | ASX: AJQ (19% owned by DGR)

On 15 October 2019, Armour Energy Ltd (Armour; ASX:AJQ) released news that it had signed a binding Term Sheet with Santos in relation to a farm‐in deal on part of its Northern Australian acerage. Under the terms of the deal:

• Armour is to receive an upfront cash payment of $A15million;

• Armour is to be free carried 100% up to an exploration expenditure of $A65 million for the committed work program over 4 years;

• Armour is to receive further cash payments up to $A15 million, subject to certain conditions being satisfied; and

• Santos will acquire a 70% and operated interest in each tenement as conditions are satisfied.

Armour CEO, Roger Cressey, said “Armour is excited to be entering into a mutually beneficial partnership with one of Australia’s most recognised and capable oil and gas companies. The Binding Term Sheet with Santos paves the way for accelerated exploration of the highly‐prospective South Nicholson Basin in the best interests of both companies. This transaction represents another major milestone in Armour’s development.”

Earlier this morning, Armour Energy Ltd (Armour; ASX:AJQ) released the latest in a series of drilling updates in relation to its Myall Creek North 1 production well, located within the Kincora oil and gas project near Roma, Queensland. In this morning’s release Armour highlights that:

• Thick gross sandstones intersected with very encouraging gas log response;

• Testing indicates the Tinowon packages include gassy sands with potentially sufficient pressure & permeability for conventional production;

• Primary conventional sandstones are being targeted for production testing in the coming weeks;

• Gas to market is expected before year end.

Full details of this, and all other Armour Energy’s announcements, are available on the Company’s website: www.armourenergy.com.au

The current value of DGR Global’s investment in Armour Energy is approximately $12.3 million ($5.6m in shares at market value plus $6.7m in debt bonds at face value).

DGR Global Limited ACN 052 354 837

street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e info@dgrglobal.com.au w www.dgrglobal.com.au

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The Board of DGR Global will continue to update the market in relation to material developments within its portfolio of sponsored companies and subsidiaries.

On behalf of the Board Karl Schlobohm Company Secretary

Electronic copies and more information are available on the Company website: www.dgrglobal.com.au

Email: info@dgrglobal.com

Twitter: @DGRGlobal

For further information contact:

Mr Nicholas Mather Karl Schlobohm Sarah Schuiringa Managing Director Company Secretary Marketing / PR Ph: 07 3303 0680 Ph: 07 3303 0680 Ph: 07 3303 0680

About DGR Global Limited

DGR Global’s business is the creation of resource exploration development and mining companies.

The business uses the skills of a core team of talented geoscientists to identify resource projects capable of yielding world class discoveries of attractive commodities.

This is achieved through:

• The identification of commodities with a favorable 20 year price outlook.

• Geological terranes with:

  • A demonstrated strong endowment for that commodity;

  • An under‐explored history;

  • Opportunity for the application of recently developed exploration techniques;

  • Jurisdictions with improving socio‐economic and regulatory frameworks;

  • Extensive available tenures.

DGR provides initial seed funding and management support to secure assets in subsidiaries and develop these assets to more advanced funding stages. The Company has a pipeline of projects in daughter companies at various stages of emergence, and in 2015 crystalised a significant return through the sale of its 15% holding in Orbis Gold for $26million. Further development of its holdings in LSE and TSX‐listed SolGold and AIM‐listed IronRidge Resources, ASX‐listed AusTin Mining, Dark Horse Resources and Armour Energy, and unlisted Auburn Resources and Armour Energy Uganda, are expected over the coming years.

Get regular news from DGR Global on social media

As a valued shareholder, you can now stay up to date of forces influencing the value of your investment in DGR Global by following us on Twitter. We regularly post information about the operations of us and the DGR companies as well as what is happening in our sectors around Australia and around the world ‐ with links to documents in the media, brokers, and other authoritative sources so you can stay up to date. As well, our posts on Twitter will alert you to our latest ASX announcements. Join the hundreds who follow us on Twitter @DGRGlobal . We've also added to our website a corporate newsroom with monthly news flow concerning DGR and the DGR sponsored companies. Located under News Bank in the investor section of the DGR website: www.dgrglobal.com.au

DGR Global Limited ACN 052 354 837

street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e info@dgrglobal.com.au w www.dgrglobal.com.au