EAGLE MOUNTAIN MINING LIMITED — Capital/Financing Update 2021

Aug 25, 2021

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A S X A n n o u n c e m e n t | 2 6 A U G U S T 2 0 2 1

Repayment of Loan to Director Related Entity at a 10% Premium to 20 Day VWAP

The Directors and Chief Executive Officer are pleased to advise that Quartz Mountain Mining Pty Ltd as trustee for the Bass Family Trust, an entity associated with Mr Charles Bass, has agreed to accept 1,744,000 shares in Eagle Mountain Mining Ltd (“ Eagle Mountain ”, the “ Company ”) in lieu of repayment of an unsecured loan of US$1,000,000 which was due to be repaid by 31 December 2021.

The issue of shares is subject to shareholder approval and the effective issue price of 78.4 cents represents a premium to the closing price on 25 August 2021 and a 10% premium to the 20 day VWAP of Eagle Mountain shares.[1]

Eagle Mountain Chairman, Rick Crabb, said:

“On behalf of the Board, management and shareholders I sincerely thank Mr Bass for his ongoing financial support and belief in the Company by accepting shares in Eagle Mountain at an effective premium price compared to a 20 day VWAP. Mr Bass issued this unsecured loan on very attractive terms at a time when the Company was in need of funds, and the Company can now repay this loan when the share price is more than four times higher than when the loan was provided. This is a great deal for our shareholders as it allows more of our funds to be spent ‘in the ground’ at time when exploration at Oracle Ridge is accelerating.”

Background

On 20 October 2019, Quartz Mountain Mining Pty Ltd (Quartz Mountain) as trustee for the Bass Family Trust entered into an agreement for an unsecured loan of US$1,000,000 with a term of 12 months and an interest rate of 2.0% per annum with no interest for the first three months (see ASX announcement 28 October 2019). The principal of the loan was to be repaid in Australian dollars. On 21 July 2020, the Company reached agreement with Quartz Mountain to defer the repayment of the principal of the loan to 31 December 2021 (see ASX announcement 21 July 2020).

A Notice of Meeting will be sent to Shareholders shortly seeking approval for the issue of the Shares. An Appendix 3B follows this announcement in respect of the proposed issue of Shares.

For further information please contact:

Tim Mason

Mark Pitts

BEng, MBA, GAICD B.Bus, FCA, GAICD Chief Executive Officer Company Secretary tim@eaglemountain.com.au mark@eaglemountain.com.au

Jane Morgan

Investor and Media Relations jm@janemorganmanagement.com.au

This Announcement has been approved for release by the Board of Eagle Mountain Mining Limited.

Note 1:

• The 20 day VWAP of Eagle Mountain shares to close on 25 August 2021 of $0.713

• Average foreign exchange rate (AUD/USD) for the same period of $0.7315

EAGLE MOUNTAIN MINING LIMITED

Eagle Mountain is a copper-gold explorer focused on the strategic exploration and development of the Oracle Ridge Copper Mine and the highly-prospective greenfield Silver Mountain project, both located in Arizona, USA.

Arizona is at the heart of America’s mining industry and home to some of the world’s largest copper discoveries such as Bagdad, Miami and Resolution, one of the largest undeveloped copper deposits in the world.

Follow the Company developments through our website and social media channels:

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Website https://eaglemountain.com.au/

Twitter https://twitter.com/eagle_mining

LinkedIn https://www.linkedin.com/company/eagle-mountain-mining-ltd/