DISCOVERY ALASKA LIMITED — Capital/Financing Update 2020

May 6, 2020

Proposed issue of securities

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Announcement Summary

Entity name

DISCOVERY AFRICA LIMITED

Announcement Type

New announcement

Date of this announcement

Thursday May 7, 2020

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
n/a	Unquoted options with an exercise price of AUD$0.032	11,000,000
	expiring 30 April 2023.
DAF	ORDINARY FULLY PAID	10,000,000
Proposed +issue date
Monday May 11, 2020

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

DISCOVERY AFRICA LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

50147324847

1.3 ASX issuer code

DAF

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Thursday May 7, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +Security Code and Description

DAF : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

10,000,000

Purpose of the issue

Private placement to sophisticated and professional investors.

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security?

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

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Oversubscription & Scale back details

May a scale back be applied to this event? No

Is the proposed security a 'New	Will the proposed issue of this
class' (+securities in a class that is	+security include an offer of
not yet quoted or recorded by ASX)	attaching +securities?
or an 'Existing class' (additional	No
securities in a class that is already
quoted or recorded by ASX)?
New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from	Will the entity be seeking quotation
ASX that the terms of the proposed	of the 'new' class of +securities on
+securities are appropriate and	ASX?
equitable under listing rule 6.1?	No
Yes
ASX +Security Code	+Security Description
New class-code to be confirmed	Unquoted options with an exercise price of AUD$0.032 expiring 30 April 2023.
+Security Type
Options
Maximum Number of +securities
proposed to be issued
11,000,000
Purpose of the issue Of the maximum number of securities proposed to be issued, 10,000,000 unlisted options relate to the private placement to sophisticated and professional investors. The remaining balance of 1,000,000 unlisted options are to be issued to a consultant in consideration of consulting services provided.
Offer price details for retail security holders
In what currency is the cash	What is the issue price per
consideration being paid?	+security?

Will all the +securities issued in this class rank equally in all respects from their issue date? No

Oversubscription & Scale back details

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May a scale back be applied to this event? No

If some of the issued +securities do not rank equally

Is the actual date from which the +securities will rank equally (non-ranking Provide the actual non-ranking end end date) known? date Yes Sunday April 30, 2023

Please state the extent to which the +securities do not rank equally: In relation to the next dividend, distribution or interest payment; or For any other reason

The options will be unlisted however upon exercise of the options into fully paid ordinary shares, they will rank equally with ordinary fully paid shares on issue.

Options details

+Security Currency Exercise Price Expiry date AUD - Australian Dollar AUD 0.0320 Sunday April 30, 2023

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option

DAF : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

Part 7C - Timetable

7C.1 Proposed +issue date

Monday May 11, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

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7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1? 17,335,205 7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes 7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

3,664,795

7D.1c ( ii ) Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer under a +security purchase plan in which existing ordinary +security holders would have been eligible to participate

DAF has elected to undertake a private placement as it was considered to be the most cost efficient and expedient method available to raise capital at an appropriate price.

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No 7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No Part 7E - Fees and expenses 7E.1 Will there be a lead manager or broker to the proposed issue? No 7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information 7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

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7F.2 Any other information the entity wishes to provide about the proposed issue

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