FIRST AU LIMITED — Capital/Financing Update 2021

Feb 7, 2021

Proposed issue of securities

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Announcement Summary

Entity name

FIRST AU LIMITED

Announcement Type

New announcement

Date of this announcement

Monday February 8, 2021

The Proposed issue is:

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A standard pro rata issue (including non-renounceable or renounceable) A placement or other type of issue

Total number of +securities proposed to be issued for a standard pro rata issue (including non-renounceable or renounceable)

ASX +security code

+Security description

Maximum Number of +securities to be issued

n/a Options, 2.8 cents exercise

490,703,003

Ex date

Wednesday February 17, 2021

+Record date

Thursday February 18, 2021

Offer closing date

Tuesday March 23, 2021

Issue date

Tuesday March 30, 2021

Total number of +securities proposed to be issued for a placement or other type of issue

Maximum Number of ASX +security code +Security description +securities to be issued FAU ORDINARY FULLY PAID 75,294,118

Proposed +issue date

Friday February 12, 2021

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Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

FIRST AU LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ACN 000332918

1.3 ASX issuer code

FAU

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Monday February 8, 2021

1.6 The Proposed issue is:

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A standard +pro rata issue (non-renounceable or renounceable) A placement or other type of issue

1.6a The proposed standard +pro rata issue is:

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• Non-renounceable

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Part 3 - Details of proposed entitlement offer issue

Part 3A - Conditions

3A.1 - Are any of the following approvals required for the entitlement offer to be unconditional? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity No

Part 3B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description

FAU : ORDINARY FULLY PAID

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? New class

Will the proposed issue of this If the entity has quoted company +security include an offer of options, do the terms entitle option attaching +securities? holders to participate on exercise? No No

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

ISIN Code for the entitlement or right to participate in a non-renounceable issue (if Issuer is foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1? No

Will the entity be seeking quotation of the 'new' class of +securities on ASX? Yes

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----- Start of picture text -----

ASX +security code +Security description
New class-code to be confirmed Options, 2.8 cents exercise
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ASX +security code New class-code to be confirmed	+Security description Options, 2.8 cents exercise
+Security type
Options
Offer ratio (ratio to existing holdings at which the proposed +securities will be issued)
The quantity of additional +securities	For a given quantity of +securities
to be issued	held
4	5
What will be done with fractional	Maximum number of +securities
entitlements?	proposed to be issued (subject to
	rounding)
Fractions rounded up to the next	490,703,003
whole number
Offer price details for retail security holders
In what currency will the offer be	What is the offer price per +security
made?	for the retail offer?
AUD - Australian Dollar	AUD 0.00500

Oversubscription & Scale back details

Will individual +security holders be permitted to apply for more than their entitlement (i.e. to over-subscribe)? Yes

Describe the limits on over-subscription

Scale back will be applied at the discretion of the Board in the event that entitlement applications and shortfall subscriptions exceed the maximum raising amount (see below).

Will a scale back be applied if the offer is over-subscribed? Yes

Describe the scale back arrangements

Scale back will be applied at the discretion of the Board having regard for factors which include the pro-rata entitlement of shortfall applicants.

Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

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Options details

+Security currency AUD - Australian Dollar

Exercise price AUD 0.0280

Expiry date Saturday July 1, 2023

Details of the type of +security that will be issued if the option is exercised

FAU : ORDINARY FULLY PAID

Number of securities that will be issued if the option is exercised

One fully paid ordinary share (ASX: FAU)

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

Refer Announcement lodged 8 February 2021

Part 3C - Timetable

3C.1 +Record date

Thursday February 18, 2021

3C.2 Ex date

Wednesday February 17, 2021

3C.4 Record date

Thursday February 18, 2021

3C.5 Date on which offer documents will be sent to +security holders entitled to participate in the +pro rata issue

Monday February 22, 2021

3C.6 Offer closing date

Tuesday March 23, 2021

3C.7 Last day to extend the offer closing date

Thursday March 18, 2021

3C.9 Trading in new +securities commences on a deferred settlement basis

Wednesday March 24, 2021

3C.10 Last day for entity to announce the results of the offer to ASX, including the number and percentage of +securities taken up by existing +security holders and any shortfall taken up by underwriters or other investors

Friday March 26, 2021

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3C.11 +Issue date Tuesday March 30, 2021 3C.12 Date trading starts on a normal T+2 basis Wednesday March 31, 2021 3C.13 First settlement date of trades conducted on a +deferred settlement basis and on a normal T+2 basis Tuesday April 6, 2021 Part 3E - Fees and expenses 3E.1 Will there be a lead manager or broker to the proposed offer? No 3E.2 Is the proposed offer to be underwritten? No 3E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No 3E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer Part 3F - Further Information 3F.1 The purpose(s) for which the entity intends to use the cash raised by the proposed issue Drilling at Haunted Stream to test for potentially multi-ounce, high grade deposit in the Vic Gold project; exploration and drilling at Gimlet gold project WA; general working capital 3F.2 Will holdings on different registers or subregisters be aggregated for the purposes of determining entitlements to the issue? No 3F.3 Will the entity be changing its dividend/distribution policy if the proposed issue is successful? No 3F.4 Countries in which the entity has +security holders who will not be eligible to participate in the proposed issue All other than Australia and New Zealand

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3F.5 Will the offer be made to eligible beneficiaries on whose behalf eligible nominees or custodians hold existing +securities Yes

3F.5a Please provide further details of the offer to eligible beneficiaries

Custodians may affect the entitlement offer on behalf of beneficiaries provided those beneficiaries are eligible recipients, further details provided in the offer documents

3F.6 URL on the entity's website where investors can download information about the proposed issue

To be provided at time of lodgement of offer documents.

3F.7 Any other information the entity wishes to provide about the proposed issue

Calculations of maximum number of securities to be issued are prepared on the basis that the placement announced in conjunction with the entitlement issue is completed prior to the record date.

3F.8 Will the offer of rights under the rights issue be made under a disclosure document or product disclosure statement under Chapter 6D or Part 7.9 of the Corporations Act (as applicable)? Yes

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +security code and description

FAU : ORDINARY FULLY PAID

Number of +securities proposed to be issued

75,294,118

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? Yes

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.01700

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

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Part 7C - Timetable

7C.1 Proposed +issue date

Friday February 12, 2021

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

21,485,654 ordinary shares

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes

7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

53,808,464 ordinary shares

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

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7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue Placement fees of 6% to be paid on funds raised.

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

To raise capital to fund the activities described earlier in the Appendix 3B, further details in the Company's ASX release dated 8 February 2021.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

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