INFINITY METALS LIMITED — Capital/Financing Update 2020

Jun 17, 2020

Proposed issue of securities

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Announcement Summary

Entity name

INFINITY LITHIUM CORPORATION LIMITED

Announcement Type

New announcement

Date of this announcement

Thursday June 18, 2020

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
n/a	Zero Exercise Price Options	13,182,938

Proposed +issue date Tuesday August 4, 2020

Refer to next page for full details of the announcement

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

INFINITY LITHIUM CORPORATION LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ACN

Registration Number

147413956

1.3 ASX issuer code

INF

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Thursday June 18, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval Thursday July 30, 2020 Estimated

Comments

Part 7B - Issue details

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from Will the entity be seeking quotation ASX that the terms of the proposed of the 'new' class of +securities on +securities are appropriate and ASX? equitable under listing rule 6.1? No Yes ASX +Security Code +Security Description New class-code to be confirmed Zero Exercise Price Options

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+Security Type

Options

Maximum Number of +securities proposed to be issued

13,182,938

Purpose of the issue

The securities proposed to be issued are in consideration for the funds advanced by InnoEnergy to the Company's project partner Dorfner Anzaplan, under the multi-level investment agreement detailed in the ASX announcement released on 18 June 2020.

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security?

Will all the +securities issued in this class rank equally in all respects from their issue date?

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Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Options details

+Security Currency AUD - Australian Dollar

Exercise Price AUD 0.0000

Expiry date

Thursday July 31, 2025

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option

INF : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

Refer to the ASX announcement dated 18 June 2020. The full terms of the securities will be detailed in the Notice of Meeting to be sent out to shareholders and released to ASX in due course. Note that shareholder approval is being sought for the Tranche 1 Options, and the maximum number of securities stated above is for the Tranche 1 Options, being that number of options that is equal to EUR 400,000, being AUD $659,147 - based on the 12 month average exchange rate of 0.606845 in accordance with the Warrant Deed, divided by AUD$0.05).

Full details of the three tranches of Options proposed to be issued are included in the Notice of Meeting.

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Part 7C - Timetable

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7C.1 Proposed +issue date

Tuesday August 4, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? Yes

7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1 Thursday July 30, 2020

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

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7F.2 Any other information the entity wishes to provide about the proposed issue

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