FREEHILL MINING LIMITED. — Capital/Financing Update 2018

May 28, 2018

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Funding Update

Freehill Mining Limited (“Freehill” or “the company”, ASX:FHS) is pleased to announce that it is in the final stages of negotiations for procuring its next round of corporate funding. The financing is expected to come in the form of:

• Yaniv Convertible Notes: Tranche 2 of this facility providing US$1.25 million is expected to be signed this week. This funding will be directed to meeting our primary objective of establishing a JORC compliant resource in the near term. Management has received advice that the facility requires shareholders to refresh the previous approvals and therefore an Extraordinary General Meeting is expected to be held in July 2018.

• The Company has raised additional working capital of $250,000 and anticipates raising a further $350,000 to address short term needs. This funding is in the form of a Convertible Note with a maturity of 2 years.

• The Company is in discussion with existing convertible Note Holders to extend the term of their existing holdings. It is anticipated that these discussions will be successfully concluded in the short term and the revised terms will be presented at the EGM proposed for the Yaniv Tranche 2 facility approval.

The use of proceeds with focus on formally initiating an exploration program to establish the maiden JORC Resource on the Yerbes Buenas Project. Assuming funding negotiations conclude in a timely manner, the exploration program should be completed during Q4 2018.

It is expected that negotiations on the funding will be concluded over the coming 10 days.

In addition to these negotiations, the Company is in further discussions with a number of counterparts who are interested in investing in Freehill to enable an accelerated path in progressing feasibility study work in parallel with the Resource development program.

Board Update

The Board has further progressed the search for additional Board members and commenced a process to identify a CEO for the Company. A committee has been established to oversee this process and additional updates will be provided in due course.

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Freehill Mining Ltd – iron ore producers | ACN 091 608 025 |www.freehillmining.com | Tel: +61 03 86021700 Melbourne Office |88 Miller Street, West Melbourne, Vic 3003 |email: info@freehillmining.com La Serena, Chile office |Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America

Yours sincerely,

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Paul Davies Director and Chief Financial Officer

About Freehill Mining Limited

Freehill Mining Limited (ASX:FHS) is a mineral exploration company focused on creating shareholder wealth through the identification of mineral resources in Chile and development of its Yerbas Buenas magnetite project. The company has also identified copper and gold mineralisation on its tenements and plans to undertake further mineral exploration programs on these.

For further information contact:

Frank Terranova Paul Davies Frank Pirera Chairman Chief Financial Officer Company Secretary Freehill Mining Limited Freehill Mining Limited Freehill Mining Limited +61 448 187 557 +61 419 363 630 +61 418 312 851

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Freehill Mining Ltd – iron ore producers | ACN 091 608 025 |www.freehillmining.com | Tel: +61 03 86021700 Melbourne Office |88 Miller Street, West Melbourne, Vic 3003 |email: info@freehillmining.com La Serena, Chile office |Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America