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GBM RESOURCES LIMITED. Capital/Financing Update 2018

Jul 31, 2018

64966_rns_2018-07-31_4efd2af2-07a0-4b59-9714-b351bf03922b.pdf

Capital/Financing Update

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ASX Announcement

1 August 2018

SHARE PLACEMENT TO RAISE $900,000 AND CLOSURE OF SPP

The Board of GBM Resources Limited (‘GBM’ or ‘the Company’) is pleased to announce that firm commitments have been received from professional and sophisticated investors and directors to raise approximately A$900,000 (Share Placement).

The issue of approximately 140,000,000 fully paid ordinary shares (Placement Shares) at 0.5 cent per share will be completed pursuant to the Company’s 15% placement capacity under ASX Listing Rules 7.1 (approximately 54 million shares) and additional 10% placement capacity under ASX Listing Rule 7.1A (approximately 86 million shares). The balance of 40 million Placement Shares to be issued on the same terms to directors or their related parties is subject to shareholder approval.

The settlement is expected to occur on or before the 14 August 2018 for the un related professional and sophisticated investors. The Company will seek approval at a general meeting of shareholders to allow directors or their related parties to participate in the Share Placement in the amount of up to A$200,000. A notice of meeting will be dispatched to shareholders in due course.

The issue price of 0.5 cents per Placement Share is the same as the issue price under the Share Purchase Plan which closed on 31 July 2018.

Funds raised from the share placement will be used to continue to advance the Mt Coolon Gold Project and provide working capital. The Placement Shares issued by GBM under the placement will rank equally with all other fully paid ordinary shares on issue.

An Appendix 3B and Section 708 Notice will be issued in due course with respect to the Share Placement.

ASX Code: GBZ

ABN: 91 124 752 745 COMPANY DIRECTORS

Peter Thompson Managing Director/ Executive Chairman

Neil Norris Exploration Director – Executive

Hun Seng Tan Non-Executive Director

CONTACT DETAILS

Principal & Registered Office Suite 8, 7 The Esplanade, Mt Pleasant, WA 6153

Exploration Office 10 Parker Street, Castlemaine, Victoria 3450

Website www.gbmr.com.au

Email

[email protected]

Phone +61 (8) 9316 9100

Fax

+61 (8) 9315 5475

Phone (Exploration Office) +61 (3) 5470 5033

Share Purchase Plan

The Board of GBM advises that the Share Purchase Plan (SPP) announced on 20 June 2018 closed on Tuesday 31 July 2018.

Under the terms of the SPP, eligible shareholders were offered the opportunity to subscribe for up to $15,000 worth of fully paid ordinary GBM shares at an issue price of 0.5 cents per share.

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The Directors would like to thank participating Shareholders for their ongoing support. An Appendix 3B will be issued in due course with respect to the SPP.

For further information please contact:

Investors: Peter Thompson Managing Director GBM Resources Tel: +61 8 9316 9100

Media enquires

Michael Vaughan Fivemark Partners Tel: +61 422 602 720 [email protected]