INOVIQ LTD — Capital/Financing Update 2014

Aug 31, 2014

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EUROGOLD

L I M I T E D

(ACN 009 070 384)

ASX ANNOUNCEMENT

1 September 2014

SALE OF SHARES IN DRAGON MINING LIMITED

Eurogold Limited (ASX:EUG) (“the Company" or "Eurogold") is pleased to announce that it intends to sell its 24.33% stake in Dragon Mining Limited ("Dragon"). The Company intends to offer its Dragon shares ("Dragon Shares") to Eurogold shareholders on a pro-rata basis. Eurogold shareholders will be able to subscribe for additional Dragon Shares in excess of their entitlement. Any Dragon Shares not purchased by Eurogold shareholders will be purchased by Allied Properties Resources Limited ("Allied") pursuant to the terms of an underwriting agreement entered into by the Company and Allied.

The sale price is $0.13 per Dragon Share and it is expected that a total of $2,811,077.10 (before costs) will be raised.

ASX has confirmed that the proposed transaction will not require shareholder approval under Chapter 11 of the Listing Rules. In addition, ASX has also provided a waiver from the operation of Listing Rule 10.1.

It is intended that the funds raised by the disposal of the Dragon Shares will be used to repay the Company's outstanding loan with AP Finance Limited. The remainder of the funds will be used by the Company to explore prospective investment opportunities for Eurogold, and working capital.

The proposed timetable for the Company' sale of the Dragon Shares is as follows:

Event	Date
Announcement	1 September 2014
Ex Date	4 September 2014
Record Date	8 September 2014
Notice of Offer sent to Shareholders and Offer Opens	11 September 2014
Closing Date	25 September 2014
Notification of Total Shortfall to ASX and Underwriter	29 September 2014
Transfer of Dragon Sale Shares	2 October 2014

Following the Record Date, the Company will dispatch a short offer document to its shareholders. The offer document will set out the key terms of the offer as well as the mechanics for Eurogold shareholders to apply for Dragon Shares. Customized application forms will be sent to Eurogold shareholders.

The Company believes that the disposal of the Dragon Shares and repayment of the AP Finance Limited debt will be an important step in the process of restoring the Company's quotation on ASX.

Following the completion of the transaction described above, the Company will give consideration to conducting a small capital raising by way of private placement or rights issue, in order to strengthen the Company's position to investigate new investment opportunities.

Peter Gunzburg Executive Chairman Eurogold Limited