HELIX RESOURCES LIMITED — Capital/Financing Update 2020

Jun 4, 2020

ASX Announcement 5 June 2020

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Placement Completed and Entitlement Offer Commenced

Helix Resources Limited (ASX:HLX) ( Helix or the Company ) is pleased to announce a successful share placement and commencement of an Entitlement Offer to raise a combined total of up to A$2.1 million.

HIGHLIGHTS

• Helix has received firm commitments to raise approximately A$0.3 million (before costs) through the issue of approximately 42.4 million shares at A$0.007 per share ( Placement ).

• Placement attracted strong demand from existing Top 30 sophisticated and professional shareholders, and new investors who will add diversity and strength to the Helix share register.

• The Company has also launched a 1-for-2 Entitlement Offer to raise up to an additional A$1.8 million through the issue of up to a further approximately 264 million shares at A$0.007 per share ( EO ).

• The EO includes a top-up facility to allow shareholders to apply for shortfall shares in excess of their entitlement.

• Net proceeds of the Placement and EO are to be used to accelerate drilling of key targets at the Cobar Gold Project and advance initial mining studies at the Collerina Copper Project.

Commenting on the capital raising initiatives, Helix Executive Chairman, Peter Lester, said:

“We are grateful for the support received in the Placement by our existing, and new, sophisticated and professional shareholders. Importantly, we welcome all shareholders to participate in the Entitlement Offer on the same terms.

“A priority use of funds will be acceleration of drilling at the Cobar Gold Project. We have long believed that this tenure holds the potential to host a new, large-scale gold-system, with a series of quality drillready targets already identified. Critically, Helix has also recently gained ground access to the northern 50km[2] of the goldfield, believed to be the first time a tenement holder has obtained such access in decades. Preliminary reconnaissance is identifying promising new targets in this area, and drilling will be a priority.

“At the Collerina Copper Project we plan to continue progressing initial conceptual open-pit design studies alongside of new 3D implicit modelling of the mineralisation. These studies will help refine the positioning and priorities for the next phase of exploration drilling, targeting the new copper zones identified in the breakthrough drilling completed earlier this year. We continue to focus on delineating the scale of the highgrade Central Zone plus these additional lodes identified via these recent drill results.

“We look forward to updating the market on commencement of the 2020 drill programs.”

Corporate Office 78 Churchill Ave Subiaco WA 6008

T +61 8 9321 2644 F +61 8 9321 3909 E helix@helix.net.au

ABN 27 009 138 738

helix.net.au

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Placement

The Placement raised approximately A$297,000 by issuing approximately 42.4 million new fully paid ordinary shares in the Company ( New Shares ).

The New Shares will be issued on or around 5 June 2020.

The issue price of A$0.007 per ordinary share represents a discount of 31% to the Company’s 15-day VWAP of A$0.011.

The allotment of approximately 42.4 million New Shares will be issued under the additional 10% placement capacity granted under the ASX ‘Class Waiver Decision – Temporary Extra Placement Capacity’ under Listing Rule 7.1.

The New Shares will rank equally with existing fully paid shares of the Company. The Company approached all shareholders with registered contact details amongst its Top 30 shareholders to participate in the Placement on a pro rata basis.

Strong support was received from the existing shareholders, with qualifying sophisticated and professional shareholders taking up more than 20% of the New Shares to be allocated. The excess placement capacity was then placed to a number of new sophisticated, professional or exempt shareholders.

As far as the Company is aware, no New Shares were issued or agreed to be issued in the Placement to a related party, or otherwise to any person referred to in Listing Rule 10.11.

Entitlement Offer

The Company is also pleased to announce a non-renounceable Entitlement Offer on a 1:2 basis to shareholders, to raise up to an approximate A$1.85 million before costs on the same terms as the Placement.

The key dates for the EO are as follows:

Action	Date
Lodgement of Prospectus with the ASIC and ASX	5 June 2020
Companyannounces Offer and lodges Appendix 3B with ASX	5 June 2020
Issue of Placement Shares and Appendix 2A	5 June 2020
“Ex” date	10 June 2020
Record Date for determiningEntitlements	11 June 2020
Prospectus sent to Shareholders & Company announces this has been completed. Offer opens	15 June 2020
ClosingDate of the Offer(5pm WST)*	3 July2020
Announcement of results of the Offer*	8 July2020
Issue date of Shares under the Offer*	10 July2020
Shares issued under the Offer commence trading on ASX on a normal basis*	13 July 2020

• The dates above are indicative only and are subject to change. The Directors may vary these dates subject to any applicable requirements of the Corporations Act or the Listing Rules. The Directors may extend the Closing Date by giving at least three (3) Business Days’ notice to ASX prior to the Closing Date. As such the date the Securities are expected to commence trading on ASX may vary.

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Use of Funds

1. Cobar Gold Project

• Map, sample and prioritise untested gold targets in recently accessed northern 50km[2 ] of goldfield (underway).

• Phase 1 drilling - test 8 priority historic workings with minimum 2 holes per prospect (Lone Hand, Girl in Blue, Homeward Bound, Reward, Republic, Battery Tank West, Battery Tank North, & Baal Gammon)

• Phase 2 drilling - auger soil sampling program over areas returning promising rock chip gold assays from northern portion of goldfield field

• Phase 3 - Follow-up drilling of best priority historic workings from Phase 1 drilling, followed by initial RC drilling of best priority new regional prospects

2. Collerina Copper Project

• Initial desktop mine studies (underway)

• Pit designs, 3D re-modelling of exploration target including 2020 drilling

• Strategic drilling, followed by DHEM surveys (minimum 4 holes) in new lodes positions

3. Working Capital and Costs of the Issue

Cobar Gold Project background

The Cobar Gold Project comprises a landholding of ~600km² within 50km of the mining hub of Cobar in central NSW. The Project encompasses the entire historic Battery Tank gold field within a prospective geological setting and hosts regionally significant structures. The geological and structural setting is analogous to the nearby multiple-mine Peak Trend (over 4 million ounce gold endowment).

Key Features

• Potential for the delineation of substantial gold deposits as evidenced from previous drilling

• Drilling to date has returned intersections including:

• 20m @ 25.5g/t Au and 39m @ 2.4g/t Au[1] – Good Friday,

• 45m at 3.4g/t Au, and 70m at 1.1g/t Au[1] - Boundary Prospect,

• 28m @ 2.3 g/t Au[1] - Sunrise Prospect and

• 43m at 2.3g/t Au[1] - Battery Tank.

• All prospects remain open in several directions

• An Inferred 100,000 oz gold JORC2012 oxide gold resource – derived from these four prospects, with opportunity to significantly expand with further drilling. (refer appendix 1)

• Resource grade intersections from near surface in first-pass drilling, and high-grade rockchips at new prospects requiring immediate follow-up drilling.

• 20m at 1.1g/t Au[1] near surface and completely open at Reward Prospect;

• 17.7g/t Au[1] rockchip from historically mined lode at Lone Hand Prospect (no drilling); and

• 2.2g/t Au[1] from grab sample of spoil at the Girl in Blue Prospect (no drilling).

• Several other historic prospects exist with shafts, pits and dry blowing activity evident across the goldfield.

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Figure 1: Regional Setting: Cobar Gold Project cover the entire Battery Tank Goldfield with a geological and structural setting analogous to the nearby multiple-mine 4 million ounce Peak Gold Trend

Collerina Copper Project background

The primary objective of the RC drilling program completed at the Collerina Central Zone earlier this year was to test for further high-grade copper mineralisation in the Exploration Target zone immediately surrounding the initial Central Zone resource.

The drilling program successfully identified two new plunge extensive zones of high-grade copper well outside the current Central Zone resource envelope. These results represent significant extensional success and clear validation of the broader Collerina Deposit Exploration Target. Importantly, they provide an opportunity to substantially grow the high-grade copper resource at Collerina.

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Figure 2: Collerina’s Central Zone Deposit: Thick oxide, and plunge extensive high-grade copper open at depth[2 ]

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Figure 3: Location Map of Helix’s quality mineral assets in the Cobar District

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This ASX release was authorised on behalf of the Helix Board by: Peter Lester, Executive Chairman

CONTACT DETAILS:

Investors Media Peter Lester Michael Vaughan Executive Chairman Fivemark Partners +61 8 9321 2644 +61 422 602 720 helix@helix.net.au michael.vaughan@fivemark.com.au

¹ For full details of exploration results refer to the ASX announcements 25 Nov 2010, 22 Feb 2011, 24 May 2011, 13 July 2011, 17 Aug 2011, 4 Oct 2012, 24 Jan 2017, 26 Apr 2017, 17 Jul 2017, 23 Aug 2017 and 6 November 2019. Helix Resources is not aware of any new information or data that materially effects the information in these announcements.

2 For full details of exploration results refer to Helix ASX releases dated 4 February 2015, 29 June 2016, 1 December 2016, 3 August 2017, 8 November 2017, 14 February 2018, 27 February 2018, 5 April 2018, 14 May 2108, 13 June 2018, 18 July 2018, 16 November 2018, 10 December 2018, 11 June 2019, 17 November 2019,4 December 2019,14 January 2020, 24 March 2020 and 2 April 2020. Helix is not aware of any new information or data that materially effects the information in these announcements.

The Information in this report that relates to Exploration Results is based on information compiled by Mr Michael Wilson, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Wilson is a full-time employee and shareholder of Helix Resources Limited. Mr Wilson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Helix Resources Ltd.’s current expectations, estimates and assumptions about the industry in which Helix Resources Ltd operates, and beliefs and assumptions regarding Helix Resources Ltd.’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward- looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Helix Resources Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward- looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Helix Resources Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

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Appendix 1

Cobar Gold Project Context

The Cobar Gold Project is 30km east-southeast of Aurelia’s Peak Gold Operations and only 16km from the privately owned Mt Boppy Gold Mine (historic production 500,000oz at 10g/t average grade). The project shares similar geological and structural controls to the nearby Peak Trend deposits, being relatively short strike sediment hosted and structure related gold deposits. The Cobar Gold project resource estimate was defined below historic prospects (Sunrise, Good Friday and Battery Tank) and an internally generated greenfield discovery (Boundary).

Whilst a high-level mining study assessment is yet to be conducted, the “from surface” nature of the gold mineralisation suggests that if deposits of sufficient size are delineated they maybe amenable to initial open cut mining methods. There remains significant potential for locating additional gold mineralisation throughout the broader goldfield .

The deposits were mostly delineated by Helix with RC and diamond drilling completed in drilling campaigns between 2011 and 2017.The Mineral Resource is defined by a total of 135 RC and diamond drill holes for 15,390m for a total discovery cost per ounce of approx A$25 per oz.

The Mineral Resources have been classified as Inferred Mineral Resources in accordance with the JORC Code, 2012 Edition and are shown in Table A. This table represents the total resource from deposits and is reported using a cut-off grade of 0.4 g/t Au and a higher cut-off grade of 1.2g/t Au.

Resource interpretations and wireframes were prepared using a nominal 0.3g/t Au cut-off grade. The boundaries were generally modelled as sharp for this resource.

Table A: Cobar Gold Project 2019 Mineral Resource Estimate (0.4 g/t Au Cut-off)[ 1]

Deposit	Classification	**Type **	Million Tonnes	Aug/t	Au oz
Sunrise	Inferred	Oxide/Trans	1.58	1.1	56,400
Good Friday	Inferred	Oxide/Trans	0.45	0.9	13,700
Boundary	Inferred	Oxide/Trans	1.54	0.9	42,800
BatteryTank	Inferred	Oxide/Trans	0.18	1.0	5,900
Total			3.75	1.0	118,800

(Rounding discrepancies may occur in summary tables)

Table B: Cobar Gold Project 2019 Mineral Resource Estimate (1.2g/t Au Cut-off)[ 1]

Deposit	Classification	**Type **	Million Tonnes	Aug/t	Au oz
Sunrise	Inferred	Oxide/Trans	0.50	2.1	33,100
Good Friday	Inferred	Oxide/Trans	0.10	1.7	5,300
Boundary	Inferred	Oxide/Trans	0.22	1.8	12,900
BatteryTank	Inferred	Oxide/Trans	0.05	1.9	3,000
Total			0.87	2.0	54,300

(Rounding discrepancies may occur in summary tables)

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Collerina Copper Project context

Helix’s 100%-owned Collerina Copper Project is located in the highly active copper/gold mining and exploration district known as the Cobar Basin, within central NSW, Australia.

The Collerina Copper Project comprises a tenement package in excess of 1,500km[2] , including over 85km of copper-prospective trend. It is surrounded by multiple operating base metal and gold mines within the broader Cobar Basin (Tritton, Hera, Peak, CSA; refer Figure 3).

The Central Zone deposit is an internally generated, high-grade copper discovery within the Collerina Copper Project. High-grade results from previous drilling of the Central Zone deposit include: 11m at 6.6% Cu, 12m at 5.0% Cu, 14m at 4.0% Cu and 10m at 3.7% Cu[2] .

In June 2019, Helix announced a maiden resource estimate for the Central Zone deposit of 2.02 Mt at 2.03% Cu and 0.1g/t Au for 40kt copper and 9.4koz gold (Indicated and Inferred) (refer Table C). Almost 50% of that resource tonnage sits in the Indicated categorisation, with the remainder classified as Inferred.

Table C: Central Zone Mineral Resource Estimate (June 2019) (0.5% Cu Cut-off)

Classification	Type	Tonnes	Cu	Au	Cu	Au
		Mt	%	g/t	t	oz
Indicated	Oxide / Transitional	0.17	1.1	0.0	1,900	200
Inferred	Oxide / Transitional	0.46	0.6	0.0	2,700	100
Total	Oxide / Transitional	0.63	0.7	0.0	4,600	300
Indicated	Fresh	0.83	2.6	0.2	21,800	6,600
Inferred	Fresh	0.57	2.5	0.1	14,100	2,500
Total	Fresh	1.40	2.6	0.2	35,800	9,100
Indicated	Oxide / Transitional	0.17	1.1	0.0	1,900	200
Indicated	Fresh	0.83	2.6	0.2	21,800	6,600
Inferred	Oxide / Transitional	0.46	0.6	0.0	2,700	100
Inferred	Fresh	0.57	2.5	0.1	14,100	2,500
Total	Combined	2.02	2.0	0.1	40,400	9,400

Other than results contained in this ASX release, Helix confirms that it is not aware of any new information or data that materially affects the Mineral Resource information included in Helix ASX release dated 11 June 2019, Interim Maiden Resource at Collerina Copper Project . All material assumptions and technical parameters underpinning the estimates in that release continue to apply and have not materially changed.

The Central Zone resource lies within a larger Exploration Target envelope (which has been constrained between interpreted cross-cutting faults, coincident with the strike of the surface geochemical footprint and shallow copper oxide drilling). The Exploration Target consists of an additional 2 – 5Mt at similar grades of approximately 1.5 – 3.0% Cu (representing a potential additional 30 – 150kt contained copper)[2] .

• While the near-surface strike continuity of the Collerina mineralisation is now well understood, the potential quantity and grade of the Exploration Target remains conceptual until drill tested. Geophysical and structural evidence provides confidence in the geometry and dimensions, however there has been insufficient drilling within these new plunge extensions to estimate Mineral Resources in the broader shape. It should be considered uncertain as to whether further exploration drilling will result in the definition of additional Mineral Resources within or beyond the Exploration Target envelope.

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