ENTERPRISE METALS LIMITED — Capital/Financing Update 2019

Dec 18, 2019

ACN 123 567 073

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19 December 2019

ENTITLEMENTS ISSUE RAISES $114,000 & SHORTFALL NOTIFICATION

Enterprise Metals Limited (ASX: ENT) ("Enterprise" or "the Company") advises that the recent non-renounceable pro-rata Entitlements Issue to eligible shareholders of ordinary fully paid shares in the Company at an issue price of $0.01 per share and on the basis of 1 share for every 8 shares held (New Shares) together with one Option for every two shares issued, closed on 17 December 2019.

The Board advises that, including additional shares applied for, shareholders subscribed for a total of 11,406,204 shares and 5,703,102 attaching Options for a total of $114,062.

This comprises 7,340,049 entitlement shares and 4,066,155 of additionally subscribed shares.

The maximum number of shares under the issue was 50,176,899 resulting in a shortfall of 38,770,695 shares.

Given that the company’s major shareholder, SinoTech (holding 22% of shares prior to the entitlement issue) along with other overseas shareholders, were unable to participate in the Offer, the percentage uptake of the offer was approximately 30%.

In accordance with section 4.12 of the Offer Document dated 6 November 2019, the Company may, during the three month period following the Closing Date, place the Shortfall Shares.

Enterprise Chairman Allan Trench said – “ We appreciate the support of all shareholders in the raising which allows for the initiation of exploration activity at the Perenjori sulphate of potash Project in Western Australia ”.

The quotation of New Shares and issue of Options is scheduled for Friday 27 December 2019.

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Dr Allan Trench Chairman

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Suite 9, 12-14 Thelma St, West Perth, Western Australia 6005. PO Box 1014, West Perth 6872 Tel: 08 6381 0392 Fax: 08 9321 6084 Email: admin@enterprisemetals.com.au www.enterprisemetals.com.au