GBM RESOURCES LIMITED. — Capital/Financing Update 2019

Oct 8, 2019

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A SX Announcement

ASX Code: GBZ

9 October 2019

A$300,000 SHARE PLACEMENT COMPLETED

The Board of GBM Resources Limited (‘GBM’ or ‘the Company’) is pleased to announce that the Company has completed a $300,000 capital raising by way of a placement of 90,909,091 ordinary fully paid shares (Shares) at 0.33 cents each to professional and sophisticated investors.

The Shares will be completed pursuant to the Company’s 10% placement capacity under ASX Listing Rule 7.1A. and will rank equally with all other fully paid ordinary shares on issue. Proceeds from the issue will be used to provide working capital.

Further to this the Company is pleased to announce the appointment of Mr Peter Mullens as a Non-Executive Director.

Mr. Mullens (B.Sc, Geology, Fellow AUSIMM) has over 35 years experience in the mining industry from early exploration to development and mine production. He has been involved with major companies having worked for Rio Tinto and Mt Isa Mines at world class Broken Hill and Mt Isa Ag, Pb, Zn mines located in Australia.

Peter has been closely involved in companies raising in excess of USD $250 million since 2002. He is currently CEO of GPM Metals listed on the TSX, and Non-Executive Chairman of Royal Road Minerals (TSX-RYR) who are exploring in Colombia.

He has had a history of success with junior exploration companies over the last 20 years including:

ABN: 91 124 752 745 COMPANY DIRECTORS

Peter Thompson Managing Director/ Executive Chairman

Sunny Loh Non-Executive Deputy Chairman

Neil Norris Exploration Director – Executive

CONTACT DETAILS

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

Website www.gbmr.com.au

Email

info@gbmr.com.au

Phone

+61 (8) 9316 9100

Fax +61 (8) 9315 5475

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

• Acquiring Aquiline Resources’ Argentinean projects and the resulting sale to Pan American Silver for CAD $ 630 million in 2009.

• Chief Geologist and director for Laramide Resources, (TSX-LAM) and saw the stock rise from CAD 7 cents in 2002 to a peak of CAD $ 15.00. The number 1 company on the Toronto Venture Exchange in 2005.

• Co-Founder and director of Lydian Resources (TSX-LYD) who discovered and are developing the 4 million-ounce Amulsar Gold Deposit located in Armenia. He was involved with the company from prelisting to completion of the feasibility study.

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Mr Mullens expertise in local and global capital markets, his track record in developing significant value to early stage exploration companies and technical abilities will greatly add to the composition of the Company’s board.

In reference to the Cleansing Notice to be lodged, following the issue of Shares, the Company advises that it has entered into an exclusive dealing arrangement with an Australian private company for the period to the 25[th] November 2019. During this period the Company will conduct due diligence investigations, review a potential gold asset vend and consider potential funding options. At this stage due diligence processes and any negotiations are currently confidential, conditional and incomplete. There can be no certainty that any binding agreement or agreements will be reached.

GBM will update shareholders in respect to the progress of the above arrangements by way of further announcements via the ASX platform, should they reach a stage where the Company believes there is a reasonable chance of completion.

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

For further information please contact:

Investors: Media enquires Peter Thompson Michael Vaughan Managing Director Fivemark Partners GBM Resources Tel: +61 422 602 720 Tel: +61 8 9316 9100 Michael.vaughan@fivemark.com.au