EMU NL — Capital/Financing Update 2018

Dec 10, 2018

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PLACEMENT

EMU has agreed to place ~27.5 million fully paid ordinary shares (“ New Shares ”) to raise ~$1,000,000 after costs to progress the Company’s Chile gold projects.

The New Shares will be listed on ASX and will rank equally with the existing fully paid ordinary shares. EMU will seek shareholder approval to issue one (1) free option (“ Option ”) for every one (1) New Share issued. The Options will be exercisable at 20 cents each on or before 15 January 2021 and, subject to satisfying ASX listing criteria, they will be quoted.

The placement will be made at $0.04 per share with 20,000,000 New Shares to be issued from the capital raising facility recently approved by Resolution 4 at the Annual General Meeting and the balance out of Emu’s capacity under ASXLR 7.1A (10% rule).

The issue of the Options will be subject to: (i) shareholder approval which will be sought forthwith; and (ii) if required by law, an application being received by Emu in respect of the Options pursuant to the transaction specific prospectus which Emu will issue forthwith following shareholder approval being obtained.

Investor enquiries: General Manager T +61 8 9226 4266

E info@emunl.com.au

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About the Vidalita and Jotahues Gold Projects, Maricunga Belt, Chile

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----- Start of picture text ----- Maricunga Belt: Host to Very Large Gold DepositsSalares Norte (Gold Fields) 3.7 Moz Au & 50 Moz AgLa Coipa (Kinross, pre-mining) 1.3 Moz Au & 64 Moz AgCerro Maricunga (Atacama Pacific) 5.9 Moz Au & 4 Moz AgMarte-Lobo (Kinross) 6.2 Moz AuMaricunga Mine (Kinross) 6.3 Moz AuVidalita (Emu) ?? AuCaspiche project (Exeter) 19.8 Moz Au & 40Moz AgCerro Casale (Barrick/Kinross) 25.4 Moz Au & 43Moz AgAlturas (Barrick) 6.8 Moz Au----- End of picture text -----

The Vidalita and Jotahues gold projects are located in the Maricunga gold belt in the Atacama Region in northern Chile hosting numerous world class gold and silver projects. Emu’s projects cover an area of approximately 136 km[2] secured by mineral exploration concessions and host alteration and mineralisation that appear geologically similar to other high sulphidation gold deposits of the Maricunga gold belt. The projects are accessed using a network of roads that link Copiapó with the Refugio project (Kinross), Cerro Casale project (Barrick/Goldcorp) and the Caspiche project (Goldcorp). Refugio is located 30 km to the northwest of Vidalita.

The Company holds an Option to acquire a 100% interest in certain of the Vidalita and Jotahues concession packages from two Chilean companies. Prospex SpA and BLC SpA.

The Prospex area covers six concessions at Vidalita and is subject to a 2% NSR on any production. The Option may be exercised in November 2019 on payment of US$2M following expenditure of US$1M, the issue of 2.5M Emu shares. If Emu defines: (i) 0.5Moz of gold in measured resources, a further 5M ordinary shares will be issued; and (ii) 1Moz of gold in measured resources, a further 5M ordinary shares will be issued.

The BLC SpA area comprises of three concessions (Jotahues and Vidalota A&B) and is subject to a 1% NSR. There is no Option payment to be made.

In addition, Emu has pegged a concession in its own right, Arroyo Ancho. Portions of this are subject to an area of influence inclusion into the Prospex Option.

Emu continues to look for new mineral exploration, development, and mining opportunities within Australia and at various overseas jurisdictions.

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COMPETENT PERSON’S STATEMENT

Emu NL

ABN 50 127 291 927

ASX Code: EMU

10 Walker Ave West Perth, WA 6005

T +61 8 9226 4266 E info@emunl.com.au

PO Box 1112 West Perth, WA 6872

Fully paid shares (listed)

100,354,728 (inc. 4m which Emu can buy back for nil consideration)

Contributing Shares (listed)

33,668,824 paid to $0.03, $0.03 to pay, no call before 31/12/2018

Options (unlisted)

4,750,000 unlisted options, exercisable at $0.10, expiring 20 December 2018 2,000,000 unlisted options exercisable at $0.11 expiring 20 December 2018 300,000 options, exercisable at $0.25, expiring 20 December 2018

Directors:

Peter Thomas

Non-executive Chairman

Terry Streeter Non-Executive Director

Gavin Rutherford Non-Executive Director

Any details contained herein that pertain to exploration results, mineral resources or mineral reserves are based upon information compiled by Mr Marcus Flis, General Manager of Emu NL. Mr Flis is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Flis consents to the inclusion herein of the matters based upon his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

As a result of a variety of risks, uncertainties and other factors, actual events and results may differ materially from any forward looking and other statements herein not purporting to be of historical fact. Any statements concerning mining reserves, resources and exploration results are forward looking in that they involve estimates based on assumptions. Forward looking statements are based on management’s beliefs, opinions and estimates as of the respective dates they are made. The Company does not assume any obligation to update forward looking statements even where beliefs, opinions and estimates change or should do so given changed circumstances and developments.

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