IGO LIMITED — Capital/Financing Update 2016

Jul 27, 2016

Not for release in the United States 28/07/2016

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SUCCESSFUL COMPLETION OF $250 MILLION PLACEMENT

HIGHLIGHTS

• $250 million placement closes oversubscribed

• Strong support from existing and new institutional investors

• IGO to recommence trading on ASX on Thursday 28 July

Independence Group NL (“ IGO ” or the “ Company ”) (ASX:IGO) is pleased to announce the successful completion of its fully underwritten institutional placement to raise A$250 million, which was announced on Wednesday, 27 July 2016 (“ Placement ”).

The Placement is being conducted to strengthen IGO’s balance sheet and to provide greater financial flexibility to fund growth initiatives. Specifically, the Placement provides funding for the A$140-150 million of remaining development capital expenditure for the Nova Project reducing the requirement for further draw-down under the Company’s existing debt facilities. The Placement will also provide additional funds for the payment of residual acquisition costs (stamp duty), funding for debt repayment and general corporate purposes including working capital.

The Placement, which was significantly oversubscribed, was conducted at a fixed price of $3.75 per new share, representing an 8.1% discount to the closing price of A$4.08 per share on Wednesday, 26 July 2016 and a 6.9% discount to the 5 day VWAP of A$4.03 per share up to Wednesday, 26 July 2016.

Approximately 66.7 million new shares will be issued under the Placement, which will rank pari passu with existing shares.

IGO’s Managing Director, Peter Bradford, commented: “The Placement attracted strong interest from both existing and new institutional investors, who continue to support our operations and strategy. The Placement will ensure a strong and stable capital structure as the Company completes the development of its world-class Nova Project on time and within budget.”

Further details can be found in the investor presentation lodged with ASX on Wednesday, 27 July 2016.

The trading halt is expected to be lifted prior to market open today.

Settlement of the Placement is expected on Tuesday, 2 August 2016, with allotment expected on Wednesday, 3 August 2016.

Share Purchase Plan (“SPP”) Details

As previously announced, the SPP will be open to IGO shareholders as at 7:00pm (Sydney time) on the record date of Tuesday, 26 July 2016, and whose registered address is in Australia or New

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Zealand (“ Eligible Holders ”). Eligible Holders will be invited to invest up to a maximum of A$15,000 per shareholder in the SPP, subject to an overall cap of A$30 million.

The issue price under the SPP will be the same as the Placement price of A$3.75 per share. No brokerage will be payable by subscribing shareholders. Further details on the SPP will be distributed to Eligible Holders shortly and released on the ASX.

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This announcement has been prepared for publication in Australia and may not be released in the United States or to any US newswire service. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.

CAUTIONARY STATEMENTS AND DISCLAIMER

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Independence Group NL’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although Independence Group NL believes that its expectations reflected in these forward-looking statements are reasonable as at the date of this document, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Any production guidance in this document is subject to a number of risks specific to Independence Group NL and of a general nature, which may affect the future operating and financial performance of Independence Group NL and the value of an investment in Independence Group NL. Such risks include but are not limited to economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, native title and title risks, foreign currency fluctuations and mining development, construction and commissioning risk.

For further information contact:

Peter Bradford Managing Director Independence Group NL Telephone: 08 9238 8300

Joanne McDonald Company Secretary Independence Group NL

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