IONIC RARE EARTHS LIMITED — Capital/Financing Update 2017

Oct 9, 2017

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10 October 2017

SHARE PURCHASE PLAN

The Directors of Oro Verde Limited (ASX: OVL) ( Oro Verde or the Company ) are pleased to announce the details of a Share Purchase Plan ( Plan ), which will be offered to eligible shareholders on or about 16 October 2017.

The Company will offer eligible shareholders the opportunity to participate in the Plan by subscribing for up to $15,000 worth of fully paid ordinary shares in the Company ( Shares ) at an issue price of 0.8 cents per Share without having to pay brokerage or other transaction costs ( Offer ). This represents an 11.1% discount to the last traded closing price of the Company's Shares on the ASX on 9 October 2017 and a 15.4% discount to the volume weighted average price for the last 5 days on which sales in the shares were recorded prior to 10 October 2017.

The Company is seeking to raise up to $500,000 under the Offer through the issue of up to 62,500,000 Shares. However, should total demand exceed this amount, the Directors reserve the right to accept oversubscriptions (subject to the maximum number of Shares the Company can issue under the Offer, which is 30% of the Company’s pre-Offer issued capital), or to scale-back applications in their absolute discretion. The Company intends to use the funds raised under the Offer to advance the high grade Topacio Gold Project in Nicaragua as well as for general working capital.

Participation in the Plan is optional, and is open to all shareholders who were registered as a holder of Shares as at 5.00pm (WST) on 9 October 2017 ( Record Date ) and whose registered address is in Australia or New Zealand.

Managing Director of Oro Verde, Mr Trevor Woolfe said:

“Our recent drilling has revealed some exciting high grade gold results from the Topacio project. This funding will allow us to advance the project with resource expansion drilling and additional target definition.”

Timetable

Event	Date
Record Date	5.00pm (WST) on 9 October 2017
Dispatch of Offer document and ApplicationForm to Eligible Shareholders	16 October 2017
Opening date for acceptances	9.00am (WST) 16 October 2017
Closing date for acceptances (Closing Date)	5.00pm (WST) on 31 October 2017
Allotment Date	6 November 2017
Dispatch of holding statements	7 November 2017

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

The timetable above is indicative only and subject to change. The Company reserves the right to change the timetable at any time or cancel the Offer at any time before the Allotment Date, subject to applicable regulatory requirements.

Full details of the Offer will be set out in a letter to shareholders, the Plan Terms and Conditions and an Application Form for Eligible Shareholders ( Plan Documents ). A copy of the Plan Documents will also be lodged with the ASX.

If you have any enquiries in relation to the Offer, please call the Company Secretary on +61 8 9481 2555.

-ENDS

For further information, please contact:

Trevor Woolfe Managing Director Oro Verde Limited Ph: +61 411 127 837

Brett Dickson Finance Director Oro Verde Limited Ph:+61 8 9481 2555

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