INDIANA RESOURCES LIMITED — Capital/Financing Update 2021

Jan 31, 2021

ASX: IDA

1[st] February 2021

Placement and Share Purchase Plan to raise up to $1.25M

Highlights

• IDA received firm commitments for a placement to raise $1,000,000.

• IDA to undertake a Share Purchase Plan to raise up to a further $250,000.

• Capital raising proceeds will strengthen IDA’s balance sheet and provide funding to advance exploration activities at the Central Gawler Craton Gold Project in South Australia.

• Drilling recently completed at Minos to follow up previously reported high grade gold intersections, including:

  • 12m @ 10.36 g/t Au from 120 metres

  • 24m @ 2.18 g/t Au from 44 metres

  • 6m @ 12.37 g/t Au from 136 metres

  • 12.5m @ 2.12 g/t Au from 150 metres

  • 14m @ 1.51 g/t Au from 86 metres

  • 5m @ 7.32 g/t Au from 105 metres

  • 10m @ 4.64 g/t Au from 130 metres

• Minos assay results expected in February 2021

• Results are also awaited from the previous diamond drill hole from Minos discovered at the SA core library facility at Tonsley

• Additional drilling planned for Minos on a spacing to support calculation of a JORC resource

Indiana Resources Limited (ASX: IDA) ( ‘Indiana’ or the ‘Company’ ) is pleased to announce that it has received firm commitments from sophisticated and professional investors for a placement to raise $1,000,000 (before costs) to advance a number of gold targets on the Company’s strategic holding of ~5,090km[2 ] in the highly prospective Gawlor Craton Gold Province of South Australia.

In addition, the Company will undertake a Share Purchase Plan ( SPP ) to allow existing Eligible Shareholders (as defined below) an opportunity to acquire up to $5,000 worth of fully paid ordinary shares in the capital of the Company. The SPP is intended to be limited to a maximum of $250,000.

Use of Funds

The funds raised under the Placement and the SPP will be used primarily at the Company’s 100% owned Central Gawler Craton Gold Project in South Australia, with an initial focus on the Minos Prospect where an expanded drill programme is planned at a spacing to assist with the calculation of a JORC resource. The future drilling programme will also likely test targets at Ariadne and Company Well, both located within the Lake Labyrinth regional shear zone.

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014

ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au

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In addition, the Company will be progressing approvals for expanded exploration activities at Earea Dam, Double Dutch and Boomerang prospects within the Central Gawler Craton.

The Company eagerly awaits assay results from a program of 10 RC holes completed at the Minos Prospect varying in depth from 72 to 210 metres, where 9 of the 10 holes drilled ended in the mineralised shear zone and the Minos prospect appears to be open along strike and at depth.

Previous significant high grade drilling intercepts at Minos include:

• 2m @ 10.36 g/t Au from 120 metres

• 24m @ 2.18 g/t Au from 44 metres

• 6m @ 12.37 g/t Au from 136 metres

• 12.5m @ 2.12 g/t Au from 150 metres

• 14m @ 1.51 g/t Au from 86 metres

• 5m @ 7.32 g/t Au from 105 metres

• 10m @ 4.64 g/t Au from 130 metres

In addition, the Company recently located uncut and unassayed Diamond Drill core from previous drilling at Minos at the Core Reference Library located at Tonsley, South Australia. The HQ core hole (THDD-066) was drilled on the 600 Section line at Minos adjacent to existing Reverse Circulation (RC) drill holes within the Minos Prospect as outlined above. It was drilled to a depth of 63m and core is available from 15m to 63m. Previous significant drilling intercepts on Section 600 adjacent to THDD-066 include:

• 7m @ 1.74 g/t Au from 25 metres

• 18m @ 1.05 g/t Au from 74 metres

• 5m @ 7.32 g/t Au from 105 metres

• 10m @ 4.64 g/t Au from 130 metres

• 4m @ 3.32g/t Au from 54 metres

The core was cut in early January and sent for assay with results expected shortly.

Funds from the placement and SPP will also be used to expand the Company’s technical management team, support the commencement of arbitration activities against the Government of Tanzania and for ongoing working capital.

It should be noted that all legal costs associated with the Company’s Arbitration claim against the Government of Tanzania are fully funded through a USD $4.6 million funding facility with Litigation Capital Management Limited ( LCM ) in the UK. Monies drawn from the non-recourse financing facility are only repayable to LCM in the event of a successful Claim or settlement of the Dispute that results in the recovery of any monies. If there is no settlement or award, then LCM is not entitled to any repayment of the financing facility.

Placement Details

The Company will issue up to 16,666,667 new fully paid ordinary shares ( Placement Shares ) at a price of $0.06 per share pursuant to the Company’s existing placement capacity under ASX Listing Rule 7.1.

The Company will pay a fee of up to 6% of the value of any Placement Shares placed to holders of an Australian Financial Services Licence in respect of Placement Shares placed to their clients. In addition, in connection with the Placement, the Company will issue 7.5 million unlisted options with an exercise price of $0.09 each and expiry date of 2 years from date of issue to holders of an Australian Financial Services Licence.

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014 ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au

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Share Purchase Plan Details

As noted above, the Company will offer new shares at same price as the Placement to existing Eligible Shareholders, by providing the opportunity to acquire up to $5,000 worth of fully paid ordinary shares in the capital of the Company.

Participation in the SPP is optional and will be offered to those shareholders of the Company who are registered as holders of Shares at 5.00pm (WST) on 29 January 2021 ( Record Date ) and whose registered address is in Australia or New Zealand ( Eligible Shareholders ).

The issue price of $0.06 per Share represents a 14% discount to the 5 day volume weighted average price (VWAP) as at the Record Date and no brokerage or commissions are payable in respect of new Shares applied for under the SPP.

The Company intends to raise up to $250,000 (before costs) pursuant to the SPP, however, the Company may in its absolute discretion determine to raise a higher amount or scale back applications. If less than the total amount of Shares under the Plan (being less than $250,000 worth of Shares) are applied for, any shortfall Shares will be placed by the Company at the Directors’ discretion (subject to obtaining any necessary shareholder or regulatory approvals).

Those Directors who held Shares on the Record Date have indicated that they intend to participate in the SPP.

Full details of the SPP will be set out in the SPP Offer Document which is expected to be released to ASX and despatched to Eligible Shareholders together with their personalised application form in accordance with the below timetable.

Timetable

The proposed timetable for the Placement and SPP is detailed below:

EVENT	DATE
Record Date (for identifying shareholders entitled to participate in SPP)	29 January 2021
Announce Share Purchase Plan and Placement and lodge Appendix 3B with ASX	1 February 2021
Issue of Placement Shares, lodge Appendix 2A and Cleansing Notice with ASX	10 February 2021
Cleansing Notice lodged with ASX for Share Purchase Plan	5 February 2021
Dispatch Share Purchase Plan booklet to shareholders and release Offer Letter	5 February 2021
on the ASX
Opening date for Share Purchase Plan
Closing date for Share Purchase Plan	26 February 2021
Announcement of result of Share Purchase Plan	3 March 2021
Issue of new Shares under the Share Purchase Plan and lodge Appendix 2A with	9 March 2021
ASX
Quotation on ASX of new Shares under the Share Purchase Plan	9 March 2021

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014 ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au

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The above dates are indicative only and are subject to change at the Company’s discretion. The Company reserves the right to scale back the offer, accept oversubscriptions, extend the offer or close the offer early. Ends

This announcement is authorised for release to the market by the Board of Directors. For further information, please contact :

Bronwyn Barnes Executive Chairman T: +61 417 093 256

Aida Tabakovic Company Secretary T: +61 8 9481 0389

To find out more, please visit www.indianaresources.com.au

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014 ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au