IMPACT MINERALS LIMITED — Capital/Financing Update 2016

May 12, 2016

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ASX ANNOUNCEMENT

Date: 13 May 2016 Number: 467/130516

IMPACT RAISES $1.6 MILLION

• $1,084,000 raised from oversubscribed Share Purchase Plan

• $588,200 raised from Placement to professional and sophisticated investors

• Funds to be used for major drilling campaign to commence next week at the Commonwealth gold-silver-zinc-lead-copper project 95 km north of Orange, NSW

Impact Minerals Limited ( Impact or the Company ) (ASX:IPT) is pleased to announce that it has raised $1,084,000 through the Share Purchase Plan ( SPP ) announced on 14 April, 2016. Under the SPP, each Eligible Shareholder was entitled to subscribe for up to $15,000 of new fully paid ordinary shares ( Shares ) at an issue price of 2.4 cents per Share without incurring brokerage or other transaction costs.

The Company received applications for a total of 45,166,683 new Shares from Eligible Shareholders and will issue these Shares today with quotation and dispatch of holding statements expected to take place on Monday 16 May 2016.

The SPP was underwritten to the amount of $1,000,000 by Patersons Securities Limited.

The Company is also pleased to announce that it has raised $588,200 million via a placement ( Placement ) of 24,508,334 Shares to a variety of professional and sophisticated investors also at 2.4 cents per Share.

The Placement was managed by Patersons Securities Limited.

Impact Minerals’ Managing Director, Dr Mike Jones:

“We are delighted with the response to the SPP and Placement and thank everyone for their support. We will be commencing a drill programme at the Company’s emerging Commonwealth project early next week following heavy rains in the area. Funds will also be allocated to our Broken Hill copper-nickel-PGM project. Both projects have already delivered both exceptional high grade drill results that require follow up work as well as numerous new drill targets from our ongoing work.”

26 Richardson Street West Perth Western Australia 6005 Tel +61 (8) 6454 6666 Facsimile +61 (8) 6454 6667 Email info@impactminerals.com.au www.impactminerals.com.au

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Purpose of the capital raising

New work at the Company’s 100% owned Commonwealth gold-silver-zinc-lead-copper project 95 km north of Orange in New South Wales has revealed both the potential to significantly increase the size of the known resource at the Commonwealth deposit and identified several new nearby targets for similar deposits of high grade massive sulphide (see ASX announcements dated 5, 18, 26 April and 5 May 2016).

The funds raised from the SPP and Placement will be used to help fund a drill programme of up to 3,000 metres of reverse circulation and diamond drilling to test a significant number of targets within the Commonwealth, Silica Hill, Doughnut and Welcome Jack Prospects.

The drill programme will commence early next week following a delay because of heavy rain in the area.

In addition, funds will be used for follow up work including drilling at the high grade Broken Hill copper-nickel-PGM project and to provide the Company with working capital to support its current operations

Employee Options

The Board of Impact has resolved to issue 7,000,000 unlisted options to employees of the Company pursuant to the Company’s Director and Employee Option Acquisition Plan. The Company also advises that 8,050,000 unlisted options previously issued to former employees have lapsed.

The total number of unlisted options on issue following the issue to new employees and the lapse of options is 141,828,572. Details of the terms of the options are contained in the attached Appendix 3B.

For further information please contact: Dr Mike Jones Managing Director Impact Minerals Limited +61 8 6454 6666

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

IMPACT MINERALS LIMITED

ABN

52 119 062 261

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	A. and B. Fully Paid Ordinary Shares C. Unlisted Options
	A. 45,166,683 B. 24,508,334 C. 7,000,000
	A. and B. The shares will rank equally with existing fully paid ordinary shares. C. 1,000,000 exercisable at $0.0367 on or before 29 September 2018; 3,000,000 exercisable at $0.045 on or before 29 September 2019; 3,000,000 exercisable at $0.07 on or before 29September 2020;

• See chapter 19 for defined terms.

Appendix 3B Page 1

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Appendix 3B New issue announcement

4 Do the[+] securities rank equally A. and B. - Yes in all respects from the[+] issue date with an existing[+] class of C. No- Unlisted Options quoted[+] securities? If the additional[+] securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration A. and B. – 2.4 cents per share C. Nil 6 Purpose of the issue A. (If issued as consideration for Issued pursuant to the Share Purchase Plan the acquisition of assets, clearly identify those assets) announced to ASX on 14 April 2016. B. Issued pursuant to a Placement to sophisticated investors. Funds raised under A. and B. will be used for (i) a drill programme at the Company’s Commonwealth, Silica Hill, Doughnut and Welcome Jack Prospects; (ii) follow up work at the Company’s Broken Hill Project; and (iii) working capital. C. Unlisted Options issued to employees under the Director and Employee Option Acquisition Plan approved by shareholders at the 29 September 2015 Annual General Meeting.

• See chapter 19 for defined terms.

Appendix 3B Page 2

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Appendix 3B New issue announcement

6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of+securities issued without security holder approval under rule 7.1 6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of+securities issued under an exception in rule 7.2 6g If+securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. 6h If+securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements	Yes
	29 September 2015
	B. 24,508,334
	Nil
	Nil
	A. 45,166,683 – Exception 15 C.7,000,000 – Exception9
	Not Applicable
	Not Applicable
	See Annexure 1

• See chapter 19 for defined terms.

Appendix 3B Page 3

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Appendix 3B New issue announcement

7 +Issue dates 13 May 2016 Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B. Number +Class 8 Number and +class of all +securities quoted on ASX 778,354,418 Fully paid ordinary shares ( including the +securities in section 2 if applicable)

• See chapter 19 for defined terms.

Appendix 3B Page 4

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Appendix 3B New issue announcement

9 Number and +class of all +securities not quoted on ASX (_including_the +securities in section 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Number	+Class
	12,400,000 45,000,000 27,000,000 15,500,000 15,500,000 26,428,572 2,000,000	Options exercisable at: $0.10 on or before 30 Nov 2016 $0.0325 on or before 7 Aug 2018 $0.0367 on or before 29 Sep 2018 $0.045 on or before 29 Sep 2019 $0.07 on or before 29 Sep 2020 $0.0325 on or before 21 Oct 2018 $1.00 Convertible Notes maturing 7 Aug 2018
	No dividend policy is currently in place as the Company is involved only in exploration

Part 2 - Pro rata issue

11 Is security holder approval Not Applicable required? 12 Is the issue renounceable or nonNot Applicable renounceable? 13 Ratio in which the[+] securities Not Applicable will be offered 14 +Class of +securities to which the Not Applicable offer relates 15 +Record date to determine Not Applicable entitlements 16 Will holdings on different Not Applicable registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements Not Applicable in relation to fractions

• See chapter 19 for defined terms.

Appendix 3B Page 5

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Appendix 3B New issue announcement

18 Names of countries in which the entity has security holders who will not be sent new offer documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders 25 If the issue is contingent on security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and offer documents will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable)	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

30 How do security holders sell their entitlements in full through a broker?

Not Applicable

31 How do security holders sell part Not Applicable of their entitlements through a broker and accept for the balance? 32 How do security holders dispose Not Applicable of their entitlements (except by sale through a broker)?

33 +Issue date

Not Applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of[+] securities ( tick one ) (a) +Securities described in Part 1

(b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or Not Applicable documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories

1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• See chapter 19 for defined terms.

Appendix 3B Page 7

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Appendix 3B New issue announcement

37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of +quotation is sought[+] securities for which Not Applicable 39 +Class of +securities for which Not Applicable quotation is sought 40 Do the[+] securities rank equally in Not Applicable all respects from the[+] issue date with an existing[+] class of quoted +securities? If the additional[+] securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation Not Applicable now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another[+] security, clearly identify that other[+] security) Number +Class 42 Number +securities and quoted +class on of ASX all Not Applicable ( including the[+] securities in clause 38)

• See chapter 19 for defined terms.

Appendix 3B Page 8

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Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

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Sign here: ............................................................ ( ~~Director~~ /Company Secretary)

Date: 13 May 2016

Print name: Bernard Crawford

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• See chapter 19 for defined terms.

Appendix 3B Page 9

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Appendix 3B New issue announcement

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

• Insert number of fully paid[+] ordinary 566,339,070 securities on issue 12 months before the + issue date or date of agreement to issue Add the following: • Number of fully paid[+] ordinary securities 94,437,193 issued in that 12 month period under an exception in rule 7.2

• • Number of fully paid[+] ordinary securities 47,903,138 issued in that 12 month period with shareholder approval

• • Number of partly paid[+] ordinary Nil securities that became fully paid in that 12 month period

• Note:

• Include only ordinary securities here – other classes of equity securities cannot be added

• • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed

• • It may be useful to set out issues of securities on different dates as separate line items

• Subtract the number of fully paid[+] ordinary Nil securities cancelled during that 12 month period “A” 708,679,401

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Step 2: Calculate 15% of “A”

Step 2: Calculate 15% of “A”	Step 2: Calculate 15% of “A”
“B”	0.15 [Note: this value cannot be changed]
Multiply“A” by 0.15	106,301,910
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period_not counting_those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	Nil Nil 24,508,334
“C”	24,508,334
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	106,301,910
Subtract“C” Note: number must be same as shown in Step 3	24,508,334
Total[“A” x 0.15] – “C”	81,793,576 [Note: this is the remaining placement capacity under rule 7.1]

• See chapter 19 for defined terms.

Appendix 3B Page 11

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Appendix 3B New issue announcement

Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

“A” 708,679,401 Note: number must be same as shown in Step 1 of Part 1

Step 2: Calculate 10% of “A”

“D” 0.10 Note: this value cannot be changed Multiply “A” by 0.10 70,867,940

Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used

Insert number of[+] equity securities issued or agreed to be issued in that 12 month period under rule 7.1A

Nil

Notes:

• This applies to equity securities – not just ordinary securities

• Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed

• Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained

• It may be useful to set out issues of securities on different dates as separate line items

“E” Nil

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A	Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	70,867,940
Subtract“E” Note: number must be same as shown in Step 3	Nil
Total[“A” x 0.10] – “E”	70,867,940 Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

Appendix 3B Page 13

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