IMPACT MINERALS LIMITED — Capital/Financing Update 2012

Aug 22, 2012

ASX ANNOUNCEMENT

Date: 23 August 2012

ASX: IPT

Number: 212/230812

IMPACT TO RAISE UP TO A$7 MILLION BY PLACEMENT AND PARTLY-UNDERWRITTEN ENTITLEMENT OFFER

Placement to raise A$1.5 million

Impact Minerals Limited (ASX: IPT) is pleased to announce that it has agreed to complete a private placement to raise A$1.5 million through the issue of 50 million new shares at A$0.03 per share ( Placement ).

The Placement will be completed in two tranches. The first tranche of 16,666,667 shares to raise A$500,000 ( Tranche 1 ) will be issued immediately under Impact’s 15% capacity under Listing Rule 7.1. Funds from Tranche 1 are expected within seven days.

The second tranche of 33,333,333 shares raising A$1 million ( Tranche 2 ) will be issued subject to shareholder approval. A general meeting of shareholders to approve the Placement will be held at the offices of the Company’s auditors, Bentleys (WA) Pty Ltd, on Friday 28 September 2012 ( General Meeting ).

The Placement will be made without disclosure to wholesale investors pursuant to section 708 of the Corporations Act 2001 (Cth).

Non-renounceable entitlement offer to raise up to A$5.53 million

Impact is also pleased to announce a one-for-one non-renounceable entitlement offer at A$0.03 per share to raise A$5.53 million ( Offer ). The Offer will provide the Company’s existing shareholders with the opportunity to participate in the capital raising. The Placement shares will also be eligible to participate in the Offer.

The proposed subscriber for Tranche 2 has committed to take up its entitlement of $1 million in the Offer (subject to receipt of shareholder approval of Tranche 2 at the General Meeting) and has agreed to partially underwrite the Offer for up to a further A$2.4 million (being 80,000,000 new shares at A$0.03 per share).

No fee is payable on any of the monies raised by way of the Placement or the Offer.

The terms of the Offer, to be undertaken by way of prospectus, are as follows:-

• one (1) new fully paid ordinary share for every one (1) share held;

• issue price of A$0.03 per share;

• shareholders may apply for additional shares over and above their entitlements;

• if fully subscribed, the entitlement issue will raise A$5.53 million; and

• the new shares will be fully paid and will rank equally with the existing shares on issue.

The Directors intend to take up their entitlements, either partially or in full.

Pursuant to the Offer, the Directors will have the right to place any shortfall within 3 months from the close of the Offer at a price of not less than A$0.03 per share.

Detailed information regarding the Placement and the Offer will be sent to shareholders in accordance with the following timetable:

Event	Date
Placement and Offer announced	Thursday, 23 August 2012
ASX Appendix 3B and Cleansing Notice for Placement lodged with ASX	Monday, 3 September 2012
General Meeting to approve Tranche 2	Friday, 28 September 2012
Lodgement of prospectus and ASX Appendix 3B for Offer	Tuesday, 2 October 20122012
Notice sent to Shareholders containing ASX Appendix 3B details, indicativetimetable	Thursday, 4 October 2012
Shares commence trading ex-entitlement	Friday, 5 October 2012
Record Date for the Offer	Thursday, 11 October 2012
Opening Date for the Offer	Monday, 15 October 2012
Prospectus and Entitlement and Acceptance Form sent to shareholders	Monday, 15 October 2012
Closing Date for the Offer	Monday, 29 October 2012
Securities quoted on deferred settlement basis	Tuesday, 30 October 2012
ASX notified of under-subscriptions	Thursday, 1 November 2012
Issue and allotment of New Shares	Friday, 2 November 2012
Dispatch of holding statements	Friday, 2 November 2012
Normal trading of New Shares on ASX expected to commence	Monday, 5 November 2012

Dates and times are indicative only and are subject to the ASX Listing Rules. Dates are subject to change at Impact’s absolute discretion.

Use of Funds

The funds from the Placement and the Offer will be used for:

• further exploration on the Company’s Botswana uranium project and follow up drilling at the Red Hills Prospect, Botswana Uranium Project where a very large multi-metal alteration system (U LREE, Ag-Pb-Zn-Cu) has been identified;

• maiden drill programmes at the Xade Cu-Ni-PGE Project; and

• general working capital.

Dr Michael G Jones Managing Director