GROUP 6 METALS LIMITED — Capital/Financing Update 2021

Aug 4, 2021

5 August 2021

Options Exercise Raises $5.45M

Highlights:

• 98.5% of Listed Options Exercised Raising $5.45 million

• APT Price Rotterdam increases to US$303/metric Tonne Unit – an increase of over 30% this year

King Island Scheelite Limited ( ASX: KIS ) (“ KIS ” or “ the Company ”) is pleased to advise on the exercise of the Company’s $0.10 options which expired on 1 August 2021, in addition to providing an update on the international APT price.

Executive Chairman Johann Jacobs said,

“The Board of KIS wishes to thank our loyal shareholders for their continuing support of the Company as we progress the Dolphin Tungsten Mine back into production. The fact that 98.5% of the options were exercised is a clear indication of the confidence our shareholders have in the KIS team, for which we are truly very grateful.”

Listed Options (Expired on 1 August 2021)

The Company’s 55.3 million listed options were issued as part of previous capital raisings undertaken between August 2018 and May 2021, when participants were issued an attaching $0.10 option, expiring on 1 August 2021, for every two shares subscribed for.

The Company is pleased to report that over recent months, option holders have exercised 54.5 million options, 98.5% of the total options, raising A$5.45 million.

APT Price Update

Despite market analysts forecasting the APT price to only break through the US$300/metric tonne unit price towards the end of 2021, the price on 30 July 2021 reached a range of between US$300 to US$305/mtu.

Applying today’s exchange rate (US$/A$0.74) and factoring the payability factors in KIS’s concentrate sales contracts, would result in KIS receiving approximately A$320 per mtu of concentrate shipped, thereby delivering a profit margin of around 59% based on KIS’s cash operating costs of circa A$126/mtu (open cut) and A$134/mtu (underground).[1]

The increase in price reflects strong demand for hard metal tools, higher freight levels and delayed shipping schedules, in addition to a shortage of scrap metals. Demand is forecast to remain strong, despite the lowest average count of oil rigs, heavy users of hard metal tools, in the last 7 years.

This announcement has been authorised for release by the Directors of King Island Scheelite Ltd.

For further information, please contact:

Executive Chairman Johann Jacobs King Island Scheelite Limited E: kis@kisltd.com.au T: +61 416 125 449

Investor Relations Tim Dohrmann NWR Communications E: tim@nwrcommunications.com.au T: +61 468 420 846

W: www.kingislandscheelite.com.au

1 Refer KIS’s market announcement dated 16 December 2020 and titled “Dolphin Project Significant Increase in NPV and Mine Life”.

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