EQ RESOURCES LIMITED — Capital/Financing Update 2019

Jul 1, 2019

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2 July 2019

To: Australian Securities Exchange

ABN: 77 115 009 106 (ASX: SEI)

Registered Office: Level 17 500 Collins Street Melbourne VIC 3000 Ph: (03) 9614 0600 Fax: (03) 9614 0550 www.specialitymetalsintl.com.au Postal: PO Box 1496 Mareeba QLD 4880

Cleansing Statement

NOTICE UNDER SECTION 708AA(2)(f) OF THE CORPORATIONS ACT 2001

Speciality Metals International Limited (the Company ) has today announced a fully underwritten nonrenounceable pro-rata entitlement offer to raise approximately $2.9 million, before offer costs ( Entitlement Offer ).

Under the Entitlement Offer, Eligible Shareholders can subscribe for 1 fully paid ordinary share ( New Share ) for every 5 existing shares in the Company held as at 7.00pm (Sydney time) on Friday, 5 July 2019 ( Record Date ) at an issue price of $0.018 per New Share.

The Company advises that it will offer the New Shares for issue to Eligible Shareholders under Part 6D.2 of the Corporations Act 2001 ( Act ) and states that this notice is given to ASX under paragraph 708AA(2)(f) of the Act.

Accordingly the Company advises:

1. The Company will offer the New Shares under the Entitlement Offer without disclosure to Eligible Shareholders under Part 6D.2 of the Act.

2. As at the date of this notice, the Company has complied with:

   • a. the provisions of Chapter 2M of the Act as they apply to the Company; and

   • b. section 674 of the Act.

3. As at the date of this notice, there is no excluded information as defined in section 708AA(8) and section 708AA(9) of the Act which is required to be disclosed by the Company.

The potential effect the Entitlement Offer will have on the control of the Company, and the consequences of that effect will depend on the level of participation by Eligible Shareholders. However, given the structure of the Entitlement Offer as a pro-rata issue, the Entitlement Offer is not expected to have any material effect or consequences on the control of the Company.

For and on behalf of Speciality Metals International Ltd

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Adrien Wing Company Secretary

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