ENERGY TRANSITION MINERALS LTD — Capital/Financing Update 2015

Oct 13, 2015

Company Announcement – October 14[th] 2015

Successful Completion of $3M Underwritten Part of Rights Issue To Fund Permitting Phase for Kvanefjeld Project

Greenland Minerals and Energy Ltd (‘GMEL’ or ‘the Company’) is pleased to announce the successful completion of the underwritten part of the non-renounceable rights issue, announced on 9 September 2015, to raise $3M. GMEL is now well-positioned to progress the Kvanefjeld rare earth – uranium project into the permitting phase. In parallel, the company will shift greater focus to commercialising the world class Kvanefjeld opportunity.

GMEL has set the development strategy for the Kvanefjeld Project with input from a cross-section of Greenland stakeholders, as a pre-cursor to the lodgement and processing of a mining license application.

The development strategy lined up for permitting is based on just the Kvanefjeld deposit, and features an initial mine-life of 37 years, drawing on a 108 Mt ore reserve estimate. Two other substantial JORC-code compliant mineral resources have been delineated within the broader project area and remain open (Sørensen and Zone 3).

Collectively the JORC mineral resources represent one of the world’s largest undeveloped rare earth and uranium deposits, located with direct, year-round shipping access in southern Greenland. The advanced feasibility program is backed by successful pilot plant operations of both the concentrator and refinery circuits, conducted in association with the EURARE program; a collaborative research and development initiative backed by the European Union.

A total of 85,724,822 shares and 85,724,822 free attached GGGOB options have now been issued. These securities were issued for the $3M underwritten amount of the non-renounceable rights issue. The Company can, at its discretion, place the balance of the shortfall to sophisticated and strategic investors in accordance with the rights issue prospectus.

The Company would like to thank its shareholders and underwriters for support. Net proceeds from the rights issue in conjunction with existing cash reserves will be used to lodge and process the mining licence application for the Kvanefjeld project. The timeline remains as previously outlined with a guidance phase to be conducted through the remainder of 2015, with official processing to commence in early 2016. The Company continues to progress discussions with potential strategic development partners through this important period.

The rights issue was managed by Patersons Securities Limited, with CPS Capital Group Pty Ltd and RM Capital as co-managers.

-ENDS-

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Statement of Identified Mineral Resources, Kvanefjeld Project, Independently Prepared By SRK Consulting (February, 2015)

	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade					Contained Metal	Contained Metal	Contained Metal
Cut-off	Classification	M tonnes	TREO2	U3O8	LREO	HREO	REO	Y2O3	Zn	TREO	HREO	Y2O3	U3O8	Zn
(U3O8ppm)1		Mt	ppm	ppm	ppm	ppm	ppm	ppm	ppm	Mt	Mt	Mt	M lbs	Mt
Kvanefjeld - February 2015
150	Measured	143	12,100	303	10,700	432	11,100	978	2,370	1.72	0.06	0.14	95.21	0.34
150	Indicated	308	11,100	253	9,800	411	10,200	899	2,290	3.42	0.13	0.28	171.97	0.71
150	Inferred	222	10,000	205	8,800	365	9,200	793	2,180	2.22	0.08	0.18	100.45	0.48
150	Total	673	10,900	248	9,600	400	10,000	881	2,270	7.34	0.27	0.59	368.02	1.53
200	Measured	111	12,900	341	11,400	454	11,800	1,048	2,460	1.43	0.05	0.12	83.19	0.27
200	Indicated	172	12,300	318	10,900	416	11,300	970	2,510	2.11	0.07	0.17	120.44	0.43
200	Inferred	86	10,900	256	9,700	339	10,000	804	2,500	0.94	0.03	0.07	48.55	0.22
200	Total	368	12,100	310	10,700	409	11,200	955	2,490	4.46	0.15	0.35	251.83	0.92
250	Measured	93	13,300	363	11,800	474	12,200	1,105	2,480	1.24	0.04	0.10	74.56	0.23
250	Indicated	134	12,800	345	11,300	437	11,700	1,027	2,520	1.72	0.06	0.14	101.92	0.34
250	Inferred	34	12,000	306	10,800	356	11,100	869	2,650	0.41	0.01	0.03	22.91	0.09
250	Total	261	12,900	346	11,400	440	11,800	1,034	2,520	3.37	0.11	0.27	199.18	0.66
300	Measured	78	13,700	379	12,000	493	12,500	1,153	2,500	1.07	0.04	0.09	65.39	0.20
300	Indicated	100	13,300	368	11,700	465	12,200	1,095	2,540	1.34	0.05	0.11	81.52	0.26
300	Inferred	15	13,200	353	11,800	391	12,200	955	2,620	0.20	0.01	0.01	11.96	0.04
300	Total	194	13,400	371	11,900	471	12,300	1,107	2,530	2.60	0.09	0.21	158.77	0.49
350	Measured	54	14,100	403	12,400	518	12,900	1,219	2,550	0.76	0.03	0.07	47.59	0.14
350	Indicated	63	13,900	394	12,200	505	12,700	1,191	2,580	0.87	0.03	0.07	54.30	0.16
350	Inferred	6	13,900	392	12,500	424	12,900	1,037	2,650	0.09	0.00	0.01	5.51	0.02
350	Total	122	14,000	398	12,300	506	12,800	1,195	2,570	1.71	0.06	0.15	107.45	0.31

Statement of Identified Mineral Resources, Kvanefjeld Project, Independently Prepared By SRK Consulting (February, 2015)

	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade	Multi-Element Resources Classification, Tonnage and Grade					Contained Metal	Contained Metal	Contained Metal
Cut-off	Classification	M tonnes	TREO2	U3O8	LREO	HREO	REO	Y2O3	Zn	TREO	HREO	Y2O3	U3O8	Zn
(U3O8ppm)1		Mt	ppm	ppm	ppm	ppm	ppm	ppm	ppm	Mt	Mt	Mt	M lbs	Mt
Sørensen - March 2012
150	Inferred	242	11,000	304	9,700	398	10,100	895	2,602	2.67	0.10	0.22	162.18	0.63
200	Inferred	186	11,600	344	10,200	399	10,600	932	2,802	2.15	0.07	0.17	141.28	0.52
250	Inferred	148	11,800	375	10,500	407	10,900	961	2,932	1.75	0.06	0.14	122.55	0.43
300	Inferred	119	12,100	400	10,700	414	11,100	983	3,023	1.44	0.05	0.12	105.23	0.36
350	Inferred	92	12,400	422	11,000	422	11,400	1,004	3,080	1.14	0.04	0.09	85.48	0.28
Zone 3 - May	2012
150	Inferred	95	11,600	300	10,200	396	10,600	971	2,768	1.11	0.04	0.09	63.00	0.26
200	Inferred	89	11,700	310	10,300	400	10,700	989	2,806	1.03	0.04	0.09	60.00	0.25
250	Inferred	71	11,900	330	10,500	410	10,900	1,026	2,902	0.84	0.03	0.07	51.00	0.20
300	Inferred	47	12,400	358	10,900	433	11,300	1,087	3,008	0.58	0.02	0.05	37.00	0.14
350	Inferred	24	13,000	392	11,400	471	11,900	1,184	3,043	0.31	0.01	0.03	21.00	0.07
All Deposits –	Grand Total
150	Measured	143	12,100	303	10,700	432	11,100	978	2,370	1.72	0.06	0.14	95.21	0.34
150	Indicated	308	11,100	253	9,800	411	10,200	899	2,290	3.42	0.13	0.28	171.97	0.71
150	Inferred	559	10,700	264	9,400	384	9,800	867	2,463	6.00	0.22	0.49	325.66	1.38
150	Grand Total	1010	11,000	266	9,700	399	10,100	893	2,397	11.14	0.40	0.90	592.84	2.42

1 There is greater coverage of assays for uranium than other elements owing to historic spectral assays. U3O8 has therefore been used to define the cutoff grades to maximise the confidence in the resource calculations.

2Total Rare Earth Oxide (TREO) refers to the rare earth elements in the lanthanide series plus yttrium.

Note: Figures quoted may not sum due to rounding.

-ENDS-

ABOUT GREENLAND MINERALS AND ENERGY LTD.

Greenland Minerals and Energy Ltd (ASX: GGG) is an exploration and development company focused on developing high-quality mineral projects in Greenland. The Company’s flagship project is the Kvanefjeld multielement deposit (rare earth elements, uranium, zinc), that stands to be the world’s premier specialty metals project. A pre-feasibility study was finalised in 2012, and a comprehensive feasibility study was completed in May, 2015. The studies demonstrate the potential for a large-scale, long-life, cost-competitive, multi-element mining operation. Through 2015, GMEL is focussed on completing a mining license application in order to commence project permitting, in parallel to advancing commercial discussions with development partners. For further information on Greenland Minerals and Energy visit http://www.ggg.gl or contact:

Dr John Mair	David Tasker	Christian Olesen
Managing Director	Professional PR	Rostra Communication
+61 8 9382 2322	+61 8 9388 0944	+45 3336 0429

Greenland Minerals and Energy Ltd will continue to advance the Kvanefjeld project in a manner that is in accord with both Greenlandic Government and local community expectations, and looks forward to being part of continued stakeholder discussions on the social and economic benefits associated with the development of the Kvanefjeld Project.

Competent Person Statement – Mineral Resources and Ore Reserves

The information in this report that relates to Mineral Resources is based on information compiled by Mr Robin Simpson, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Simpson is employed by SRK Consulting (UK) Ltd (“SRK”), and was engaged by Greenland Minerals and Energy Ltd on the basis of SRK’s normal professional daily rates. SRK has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence. Mr Simpson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. Robin Simpson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in the statement that relates to the Ore Reserves Estimate is based on work completed or accepted by Mr Damien Krebs of Greenland Minerals and Energy Ltd and Mr Scott McEwing of SRK Consulting (Australasia) Pty Ltd.

Damien Krebs is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the type of metallurgy and scale of project under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears.

Scott McEwing is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears.

The mineral resource estimate for the Kvanefjeld Project was updated and released in a Company Announcement on February 12[th] , 2015. The ore reserve estimate was released in a Company Announcement on June 3[rd] , 2015. There have been no material changes to the resource estimate, or ore reserve since the release of these announcements.