GOLDEN STATE MINING LIMITED — Capital/Financing Update 2018

Nov 5, 2018

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25 October 2018

The Manager Market Announcements Office Australian Securities Exchange Exchange Centre 20 Bridge Street SYDNEY NSW 2000

STATEMENT OF COMMITMENTS (BASED ON ACTUAL FUNDS RAISED)

Golden State Mining Limited (ACN 621 105 995) (the Company ) intends to apply funds raised from its Prospectus Offer over the next two (2) years following re-admission to the Official List of the ASX as follows:

	$	%
Offer raising amount	$4,560,000	100.0%
Use of Funds
Expenses of the Offer(1)	$490,00	10.7%
Cue Option Payment	$150,000	3.3%
Cue Option acquisition costs	$40,000	0.9%
Exploration Program – Cue Project(2)	$1,310,000	28.7%
Exploration Program – Yule Project(2)	$535,000	11.7%
Exploration Program – Four Mile Well Project(2)	$175,000	3.8%
General working capital(3)	$1,860,000	40.8%
Total	$4,560,000	100.0%

Notes:

1. Refer to the Section 12.10 of the Prospectus for further details in respect of the Expenses of the Offer.

2. Refer to the Independent Technical Assessment Report in Section 5 of the Prospectus for further details in respect of the proposed exploration programs. The Company confirms that these funds are to be applied to granted, live tenements.

3. General working capital will include payment of director fees, wages, payments to contractors, rent and outgoings, insurance, accounting, audit, legal and listing fees, other items of a general administrative nature (expected to be approximately $0.8 million in each of the first and second years – approximately $1.6 million total - following the Company’s admission to the Official List of ASX) and cash reserves which may be used in connection with any project, investment or acquisition, as determined by the Board at the relevant time.

The above table is an updated statement of commitments based on actual funds received, having completed the offer outlined in the Prospectus lodged with ASIC. As with any budget, intervening events and new circumstances have the potential to affect the ultimate way funds will be applied. The Board reserves the right to alter the way funds are applied on this basis.

Actual expenditure may differ significantly from the above estimates due to a change in market conditions, the development of new opportunities and other factors (including the risk factors outlined in Section 8 of the Prospectus).

Golden State Mining Limited ACN 621 105 995 Office: Level 1, Suite 14, 19/21 Outram Street, West Perth WA 6005 Australia t: +61 (08) 6323 2344 | f: +61 (08) 9467 9114 | e: info@gsmining.com.au | w: www.goldenstatemining.com.au