DIABLO RESOURCES LIMITED — Capital/Financing Update 2021

Oct 7, 2021

7 October 2021

PRE-QUOTATION DISCLOSURE - STATEMENT OF CONFIRMATIONS

Diablo Resources Limited (ACN 649 177 677) ( Company or DBO ) provides the following confirmations to satisfy conditions for the admission of the Company to the Official List of the ASX and quotation of the Company’s securities.

Capitalised terms in this announcement have the same meaning as given under the Company’s prospectus dated 16 August 2021 ( Prospectus ) intended to be read with the Company’s Supplementary Prospectus dated 28 September 2021 ( Supplementary Prospectus ) unless the context otherwise requires.

COMPLETION OF OFFERS

The Company confirms that all conditions to the Offers under the Prospectus have been satisfied and the Company has issued 32,500,000 fully paid ordinary shares in the capital of the Company ( Shares ) to raise $6,500,000.

The Company also confirms that:

• (a) the Minimum Subscription under the Prospectus was reached;

• (b) the Company has received conditional approval from ASX for DBO to be admitted to the Official List of the ASX; and

• (c) Hawkstone Mining Limited ( HWK ) shareholders have approved the capital reduction in HWK and the in-specie distribution of DBO shares to HWK shareholders.

COMPLETION OF ACQUISITION AGREEMENT

The Company confirms that all conditions precedent to the Acquisition Agreement entered into between DBO and HWK on 23 June 2021 have been satisfied, and the Acquisition has been completed. In accordance with the terms of the Acquisition Agreement, the Company has issued 40,000,000 Shares to HWK shareholders.

COMPLIANCE WITH LISTING RULE 1.3.2(b)

The Company confirms that there are no legal, regulatory, statutory or contractual impediments to the Company entering the Tenements comprising the Devils Canyon Project, Western Desert Project and Lone Pine Project, and carrying out exploration activities such that the Company will be able to spend its cash in accordance with its commitments for the purposes of Listing Rule 1.3.2(b).

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ASX:DBO diabloresources.com.au

T +61 (8) 6383 7837 E info@diabloresources.com.au

Level 1, 10 Outram Street West Perth WA 6005 Australia

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ISSUE OF SECURITIES

In addition to the Shares issued pursuant to the Offers, the Company confirms it has issued the following securities:

Offers	Number
Shares to PAC Partners Securities Pty Ltd (Lead Manager);	2,000,000
Performance Rights to Paul Lloyd (Non-Executive Chairman)	3,000,000
Performance Rights to Barnaby Egerton-Warburton (Non-Executive Director)	2,100,000
Performance Rights to Greg Smith (Non-Executive Director).	2,300,000

RESTRICTED SECURITIES

The Company confirms that following quotation of the Company’s securities on the ASX, the following securities will be subject to restriction pursuant to the ASX Listing Rules for the period outlined below.

Class	Number	Restriction Period
Shares	2,000,000	24 months from date of quotation
Performance Rights	7,400,000	24 months from date of quotation

STATEMENT OF CAPITAL STRUCTURE

The capital structure of the Company following completion of the Acquisition and the issue of securities pursuant to the Prospectus is set out below:

Shares

	Full Subscription ($6,500,000)
Shares on issue at the date of the Prospectus	1
Shares issued pursuant to the Offers	32,500,000
Shares issued to the Vendor	40,000,000
Shares issued to the Lead Manager	2,000,000
TOTAL	74,500,001

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ASX:DBO | diabloresources.com.au

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Performance Rights

	Minimum Subscription
Performance Rights on issue at the date of the Prospectus	Nil
Performance Rights issued to Directors	7,400,000
TOTAL	7,400,000

ENDS-

Authorised for release by: the Board of Diablo Resources Limited

For further information, contact:

Shaun Menezes

Company Secretary

+61 8 6383 7837 info@diabloresources.com.au

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ASX:DBO | diabloresources.com.au