HAWTHORN RESOURCES LIMITED — Capital/Financing Update 2020

Nov 3, 2020

Notification of cash return of capital

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Announcement Summary

Entity name

HAWTHORN RESOURCES LIMITED

Applicable security for the return of capital

HAW - ORDINARY FULLY PAID

Announcement Type

New announcement

Date of this announcement

Wednesday November 4, 2020

Return of Capital amount per security

AUD 0.02460000

Trading in the re-organised +securities on an "ex return of capital" basis commences Monday November 9, 2020

Record Date

Tuesday November 10, 2020

Payment Date

Friday November 20, 2020

Refer to below for full details of the announcement

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Notification of cash return of capital

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Announcement Details

Part 1 - Entity and announcement details

1.1 Name of +Entity

HAWTHORN RESOURCES LIMITED

1.2 Registered Number Type Registration Number ABN 44009157439 1.3 ASX issuer code HAW

1.4 The announcement is New announcement

1.5 Date of this announcement

Wednesday November 4, 2020

1.6 ASX +Security Code

HAW

ASX +Security Description

ORDINARY FULLY PAID

Part 2 - Cash return of capital approval requirements and dates

• 2.1 Are any of the below approvals required for the cash return of capital before business day 0 of the timetable? Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval

  • Another approval/condition external to the entity required to be given/met before business day 0 of the timetable for the cash return of capital.

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Yes

2.1a Approvals

Approval/Condition	Date for determination	Is the date estimated or	**Approval
+Security holder approval	Friday October 30, 2020	actual?	received/condition met?
		Actual	Yes

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Notification of cash return of capital

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Comments

2.2 Is the cash return of capital a selective reduction of capital

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No

Part 3 - Cash return of capital timetable and details

3.1 +Record date

Tuesday November 10, 2020

3.1a Effective date of the cash return of capital

Thursday November 5, 2020

3.2 Does the +entity have quoted options on issue?

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No

3.2a Last day for trading in "cum return of capital" +securities. If the entity has quoted options, last day for trading in pre-return of capital quoted options

3.3 Trading in the re-organised +securities on an "ex return of capital" basis commences. If the entity has quoted options and ASX agrees, trading in the quoted options commences on a +deferred settlement basis. Monday November 9, 2020

3.4 +Record Date

Tuesday November 10, 2020

3.4a If the entity has quoted options, first day for the +entity to send holding statements to +security holders notifying them of the change in exercise price for the quoted options they hold.

3.5 Payment date for cash return of capital. If applicable and the +entity has quoted options, +deferred settlement market in options ends. Last day for entity to send holding statements to +security holders notifying them of the change in exercise price for the quoted options they hold and to notify ASX that this has occurred. Friday November 20, 2020

3.5a If the +entity has quoted options, trading in the options starts on a normal T+2 basis

3.5b If the +entity has quoted options, first settlement of trades conducted on a +deferred settlement basis and on a normal T+2 basis

3.6 Currency in which the cash return of capital is made ("primary currency")

AUD - Australian Dollar

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Notification of cash return of capital

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3.7 Cash return of capital amount per +security

AUD 0.02460000

Part 4 - Changes to option pricing as a result of the cash return of capital

4.1 Will the cash return of capital affect the exercise price of any +entity-issued options?

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No

Part 5 - Further information

5.1 Has the +entity applied for an ATO class ruling relating to this cash return of capital? Yes

5.1a Please provide further information on the ATO ruling

HAW has applied to the ATO for a class ruling. The ruling is expected to issue after the completion of the capital return;

HAW expects the ruling to confirm that the capital return is accepted as capital for shareholders' tax purposes.

5.2 Source of funds for cash return of capital

The funds for the capital return were generated from the sale of the Deep South and Yundamindera mining tenements.

5.3 Further information relating to this cash return of capital

The capital return will not involve the cancellation of any shares and will not affect the status of the shares in HAW as fully paid ordinary shares.

5.4 Additional information for inclusion in the Announcement Summary

Notification of cash return of capital

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