EMU NL — Capital/Financing Update 2019

Sep 23, 2019

24 September 2019

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Dear Foreign Shareholder

NOTICE OF NON-RENOUNCEABLE RIGHTS ISSUE

We are writing to you in relation to your shareholding in Emu NL ( Company ) ( ASX:EMU and EMUCA ).

Please let us have your email address and mobile telephone contact details immediately (send to info@emunl.com.au) so that we may better serve you.

The Company provides you with the following information about a pro rata non renounceable rights issue of fully paid ordinary shares at $0.035 each on the basis of three (3) shares offered for every four (4) shares held at the Record Date, plus one option for every two new shares applied for under the prospectus with one cent ($0.01) to pay on application and exercisable at two cents ($0.02) each option (to acquire a partly paid share with three cents ($0.03) unpaid).

The primary purpose of the Offer is (and the funds raised from the Offer are intended to be used) to provide the Company with additional funding to continue drilling the Vidalita epithermal discovery, initiate drill testing of other prospects in the Elevado Project, undertake geochemical sampling for prospect evaluation, assess, and if applicable, acquire further prospects and provide working capital.

As at the date of the prospectus and assuming no additional Shares are issued before the Record Date, up to approximately 156,487,779 new Fully Paid Shares and 78,243,890 new Options may be issued pursuant to the Offer, raising up to approximately $6,259,511 (before the expenses of the Offer).

Strategic Bank International Corp ( SBIC ) has underwritten the issue to the extent of ~AU$4M (being the current approximate value equivalent to EMU of US$2.67M which is the currency and amount of the underwriting exposure). The underwriting commitment is conditional upon SBIC satisfying itself (on or before 30 September 2019) that it can structure, implement and discharge its duties in a lawful manner. If the condition is not met an announcement will be made via the ASX market announcements office on or about 1 October 2019.

In accordance with ASX listing rules and Australian corporations and securities law, the Company has decided that the offer will not be extended to shareholders with registered addresses outside of Australia and New Zealand ( Ineligible Shareholders ) as the Company has formed the view that it would be unreasonable to extend the offer to all such shareholders in such a way having regard to certain factors prescribed by Australian law.

Accordingly, as you are a shareholder whose registered address is not in Australia or New Zealand, you are an Ineligible Shareholder and you will not be automatically entitled to participate in the Offer. Importantly however, the Company will consider making exceptions with respect to individual shortfall applications on a case-bycase basis. If this interests you, please contact the Company as soon as possible using the contact details at the bottom of this letter .

If you change your registered address to within Australia before the record date, you will be entitled to participate.

The Offer will be available to all eligible shareholders registered on the Company’s register of members at 5.00pm (Australian Western Standard time) on 26 September 2019 and is presently scheduled to close on 10 October 2019 (these dates are indicative only and may change without notice).

If you have any questions concerning this letter please contact the Company’s share registry on 1300 992 916 or if calling from overseas +61 3 9628 2200, or contact your stockbroker or professional advisor.

Yours faithfully,

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Peter S Thomas Chairman

Emu NL | Office: 10 Walker Avenue, West Perth WA 6005 Australia t: +61 (08) 9226 4266 | e: info@emunl.com.au | w: www.emunl.com.au