GREENVALE ENERGY LTD — Capital/Financing Update 2021

Feb 18, 2021

ASX ANNOUNCEMENT

19 February 2021

GREENVALE LAUNCHES SHARE PURCHASE PLAN TO RAISE UP TO $3 MILLION[1 ]

Proceeds to be used to underpin fast-track development strategy for Alpha Torbanite Project in central Queensland

Highlights

• SPP to be offered at $0.13/share provides existing holders with the opportunity to further invest in the Company’s development at an attractive price.

• Proceeds will ensure that Greenvale is fully-funded to complete the resource evaluation and pilot-scale processing program announced earlier this week for the Alpha Torbanite Project.

• Three-stage drilling program now underway and initial pilot-scale retort testing program to begin next week.

• Program to underpin a maiden JORC 2012 Mineral Resource/Ore Reserve and a Pre-Feasibility Study due by the end of June 2021.

Greenvale Mining Limited (ASX: GRV ; “ Greenvale ” or “ the Company ”) is pleased to announce that it intends to offer eligible shareholders the opportunity to participate in a Share Purchase Plan (“SPP” ) to raise up to $3 million[1] before costs.

The proceeds will further strengthen the Company’s balance sheet (cash reserves of $3.8 million at the end of the December 2020 Quarter), ensuring that it is in a very strong position to advance its fast-track development and commercialisation strategy for the Alpha Torbanite Project in central Queensland.

The Company recently embarked on a multi-pronged work program at the Alpha Project (see ASX announcement, 15 February 2021) aimed at delivering a JORC compliant Resource/Reserve and Pre-Feasibility Study by mid-year.

SPP Details

Under the SPP, a total of 23,076,923 fully-paid ordinary shares will be offered at a price of $0.13 per share to eligible shareholders who have a registered address in Australia and New Zealand on the record date being 5.00pm (WST) on Thursday 18 February 2021. The SPP offer will not be underwritten.

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Eligible shareholders will be able to acquire up to $30,000 worth of shares under the SPP.

The SPP issue price equates to a 19.63% discount to the 5-day volume weighted average market price of the Company’s shares over the last 5 trading days on which sales in shares were recorded prior to the announcement of the SPP.

Participation in the SPP is optional but will provide eligible shareholders with an opportunity to increase their shareholding without paying brokerage fees or other transaction costs, irrespective of the size of their shareholding.

The Company has a significant number of shareholders (around 30%) who do not hold marketable parcels (market value of less than $500) and significant costs are incurred in servicing these shareholders.

Accordingly, the Company intends to initiate a process of the sale of such small holdings following the closure of the SPP. For eligible shareholders holding an unmarketable parcel of shares, participation in the SPP will enable them to continue to retain and transact their shares.

Full details of the SPP, including offer letters and the application form, will be dispatched to eligible shareholders on or about Friday, 26 February 2021. A copy of the SPP documentation will also be lodged on the ASX announcement platform.

The directors of the Company intend to participate in the SPP.

Use of Funds

The net proceeds of the SPP will be used to progress exploration, technical and financial evaluation of the Company’s Alpha Torbanite project, exploration at its Georgina Basin IOCG Project and for general working capital purposes.

The Company outlined a multi-stage, $1.5 million program at the Alpha Project in its announcement of 15 February 2021. This program will:

• Underpin a JORC compliant Resource and Reserve for the Alpha Project;

• Provide samples for pilot-scale processing work to facilitate process flowsheet design;

• Facilitate marketing and off-take discussions, as well as discussions with potential strategic partners; and

• Underpin a Pre-Feasibility Study, targeted for completion by the end of June 2021.

Greenvale’s Managing Director, Mr Neil Biddle, said: “We are very pleased to offer our supportive shareholder base the opportunity to increase their investment in the Company at this exciting stage of its development through this SPP. We believe that Greenvale is about to move quickly up the value curve as we execute our plans at the Alpha Torbanite Project.”

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“The proceeds will put us in a very strong position to complete the PFS, engage with customers, secure off-take agreements and move rapidly to Final Investment Decision on what we believe will be an exceptional development opportunity with low capital intensity and outstanding financial and economic returns.”

Share Purchase Plan Timetable[2 ]

SPP Event	Date
Record Date	5.00pm (WST) Thursday, 18 February 2021
Announcement of SPP	Friday, 19 February 2021
Lodgement of Appendix 3B on ASX
Lodgement of Cleansing Notice	Thursday, 25 February 2021
Dispatch of SPP Offer Booklet and release	Friday, 26 February 2021
to ASX
Opening of SPP Offer	Friday, 26 February 2021
Closing Date	5.00pm (WST) Monday 15 March 2021
Announcement of Results	Thursday, 18 March 2021
Expected date of issue of Shares	Monday, 22 March 2021
Lodgement of Appendix 2 A on ASX

Notes

• (1) As the SPP is not underwritten, The Company may raise more or less than this amount. Subject to compliance with ASX Listing Rules, if the SPP raises more than $3,000,000, the Board of Greenvale may decide in their absolute discretion to accept applications (in whole or in part) that result in the SPP raising more than $3,000,000. If Greenvale decides to conduct a scaleback of applications, for example because the aggregate amount exceeds GRV’s requirements, the scale back would be applied equitably at the Board’s absolute discretion. In the event that less than $3,000,00 is applied for under the SPP, the full amount of the shortfall may be placed at the discretion of the Board, subject to the compliance of all necessary legal requirements.

• (2) The above timetable is indicative only and subject to change. The commencement and quotation of shares on ASX issued under the SPP is subject to confirmation from the ASX. Subject to the requirements of the Corporations Act, the ASX Listing Rules and other applicable rules, GRV reserves the right to amend this timetable at any time including extending the period for the SPP, closing the offer early or accepting late applications either generally or in particular cases, without notice.

Authorised for Release

This announcement has been approved by the Board for release to the ASX.

Alan Boys

Company Secretary

Contact

For further details, contact: Neil Biddle Executive Director 0418 915 752

Media Inquiries

For further details, contact: Nicholas Read – Read Corporate 0419 929 046 Nicholas@readcorporate.com.au

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