IONIC RARE EARTHS LIMITED — Capital/Financing Update 2017

Oct 25, 2017

26 October 2017

ASX Announcement

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ORO VERDE LETTER TO SHAREHOLDERS

Oro Verde Limited (ASX: OVL) (“Oro Verde” or “the Company”) is pleased to provide a Letter to Shareholders with an update of recent activities and a reminder of the closing date for the Company’s Share Purchase Plan . This letter has been mailed to shareholders eligible to participate in the Plan.

For enquiries contact: Mr Trevor Woolfe Managing Director +61 411 127 837 +61 8 9481 2555

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About Oro Verde Limited: Oro Verde Ltd is a mineral exploration company focused on identifying and developing significant gold projects in Central America, particularly Nicaragua. Oro Verde holds an Option to Purchase Agreement to acquire 100% of the Topacio Gold Project in Nicaragua that contains a NI43-101 compliant Inferred Mineral Resource of 340,000 ounces of gold. Oro Verde also holds 100% of the early stage San Isidro Gold Project, also in Nicaragua, located adjacent to the 2.3 million ounce La India gold project.

Oro Verde Limited (ASX code: OVL) Level 1, 34 Colin St, West Perth, WA 6005 Phone: +61 8 9481 2555 Fax: +61 8 9485 1290 Email: info@oroverde.com.au

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LETTER TO SHAREHOLDERS

Dear Oro Verde Shareholder

Thank you for your ongoing support. The past 12 months have been exciting for Oro Verde Limited ( Company ) and I want to take this opportunity to provide an update on the important steps we have made at our flagship Nicaraguan project, Topacio. I also want to provide some detail on the recently announced opportunity to participate in the Company’s Share Purchase Plan ( SPP ), with funds to be directed to advancing exploration on its Topacio gold (Au) project.

RECENT ACTIVITIES REVEAL EXCITING HIGH GRADE GOLD RESULTS

Since November 2015, the Company has developed its understanding of the Topacio project in partnership with Newcrest Mining. This partnership significantly enhanced knowledge of the project and provided additional concession-wide multi-element geochemical and airborne geophysical data, as well as detailed geological mapping. Numerous new targets have subsequently been defined for drill testing.

In August 2017, the Company announced that Oro Verde had resumed total control of exploration activities at Topacio and that it would focus exploration activities on the high grade gold targets defined around the existing 340,000 ounce gold resource at the main Topacio area.

LOCATION	TRENCH orDRILL HOLENAME	SAMPLETYPE	INTERVALLENGTH	GOLDGRADES	DOWNHOLEDEPTH
Mico West	OPMW1701	Trench	7.50 m	5.39 g/t Au	At surface
		including	2.05 m	17.06 g/t Au	At surface
	TMW1702	Trench	6.20 m	5.16 g/t Au	At surface
		including	2.70 m	10.44 g/t Au	At surface
	MTD-17-013	Drill hole	0.33 m	1.51 g/t Au	From 40.97m
	MTD-17-012	Drill hole	2.85 m	15.59 g/t Au	From 21.25m
		including	1.23 m	32.30 g/t Au	From 22.87m
Dispute	RCD1701	Trench	1.10 m	53.10 g/t Au	At surface
	MTD-17-010	Drill hole	9.25 m	2.21 g/t Au	From 32.30m
		including	1.52 m	7.43 g/t Au	From 36.60m

In September 2017, Oro Verde announced the above bonanza grade gold results from initial trenching and drilling of the Mico West and Dispute Veins. This provides the Company with encouragement that further bonanza grade gold results will be forthcoming from veins and extensions around the Topacio resource area.

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CLEAR FOCUS ON EXPANDING THE HIGH GRADE GOLD TOPACIO RESOURCE

Given the historical resources and exceptional gold grades from recent trenching and drilling results, the Company believes the Topacio project area could contain at least 1 million ounces of gold, with a near-term Exploration Target expected from the upcoming programs of:

3.5 - 4.0 MT @ 3.8 – 4.0 g/t Au (427,000 – 514,000 ounces gold)

While this Exploration Target is conceptual in nature, it is based on reasonable grounds and assumptions. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Management’s dedication to cost-efficient operations continues with the recent decision to recommence surface trenching, which has proven to be a fast and economic target refining tool prior to drilling.

The Company has commenced its next phase of trenching across a number of other undrilled areas of high grade gold targets including the Mico East, Mico West, Dispute, Brazil, Little Betsy and Dos Amigos Veins. A diamond drill program commencing in November will test below the best results from this surface trenching program.

HOW YOU CAN PARTICIPATE IN THE SHARE PURCHASE PLAN

On 10 October 2017, Oro Verde announced an offer to shareholders to participate in a SPP. The plan entitles eligible shareholders to purchase up to A$15,000 worth of fully paid ordinary shares in the capital of the Company, at a price of 0.8 cents per share, subject to the provisions of the ‘ Share Purchase Plan Terms and Conditions ’ - free from brokerage and commissions.

While participation in the SPP is optional, the Company’s Directors believe that this is a great opportunity for eligible shareholders to provide important funding prior to our next drill program. In summary:

• The SPP is attractively priced at a 15.4% discount to the 5 day VWAP

• All directors of Oro Verde have committed to participating in the SPP

• The SPP will close at 5.00pm (Perth time) on Tuesday, 31 October 2017 . The Directors reserve the right to vary this date.

• Contact OVL urgently on 08 9481 2555 if you have not received your SPP documents

The next six months is expected to be an active period for the Company and we look forward to your continued support. On behalf of the Board and our team in Nicaragua.

Yours sincerely,

Trevor Woolfe Managing Director

23 October 2017

COMPETENT PERSON STATEMENTS

The information in this report that relates to previous Exploration Results and Exploration Targets, was prepared and first disclosed under the JORC Code 2012, and has been extracted from the following report: “Company Update and Future Plans” created on 11 September 2017. Oro Verde confirms that it is not aware of any new information or data that materially affects the information included in the original announcements

The information in this document that relates to Historical Mineral Resources is extracted from the report entitled “Acquisition of High Grade Gold Project” created on 11 November 2014 and available to view on www.asx.com. The Company confirms that it is not in possession of any new information or data that materially impacts on the reliability of the estimates in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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