KGL RESOURCES LIMITED — Capital/Financing Update 2019

Nov 17, 2019

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18 November 2019

Entitlement Offer cleansing notice under section 708AA(2)(f) Corporations Act – KGL Resources Limited (ASX Code: KGL)

KGL Resources Limited ( KGL Resources ) announced on Monday, 18 November 2019 that it will undertake a 1 for 8 pro rata non-renounceable entitlement offer of fully paid ordinary shares in KGL Resources at an issue price of $0.23 ( New Shares ) to raise approximately $8,221,496 ( Entitlement Offer ).

The offer price for the Entitlement Offer will be $0.23 per share ( Offer Price ).

Under the Entitlement Offer, eligible shareholders will be able to subscribe for 1 new ordinary share in KGL Resources for every 8 existing shares held at 7.00pm (AEDT) on Thursday, 21 November 2019 ( Record Date ) at the Offer Price ( Entitlements ).

KGL Resources will offer the New Shares for issue without disclosure to investors under section 708AA(2)(f) Corporations Act 2001 (Cth) ( Corporations Act ) as notionally modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84 ( Instrument 2016/84 ).

Further details of the Entitlement Offer are set out in the Information Booklet and Investor Update lodged with ASX today. The Information Booklet will be dispatched to eligible shareholders on or about Tuesday, 26 November 2019.

Details of the securities issued

Class of securities: Fully paid ordinary shares ASX Code of the securities: KGL

Date of the issue or expected issue of the Thursday, 12 December 2019 securities under the Entitlement Offer:

Total number of securities expected to be issued (subject to rounding of fractional 35,745,636 New Shares entitlements):

For the purposes of section 708AA(7) Corporations Act, KGL Resources advises:

1. the New Shares will be issued without disclosure under part 6D.2 Corporations Act as notionally modified by Instrument 2016/84;

2. this notice is given under section 708AA(2)(f) Corporations Act as notionally modified by Instrument 2016/84;

3. as at the date of this notice, KGL Resources has complied with:

   • a. the provisions of chapter 2M Corporations Act as they apply to KGL Resources; and

   • b. section 674 Corporations Act;

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1. as at the date of this notice, there is no excluded information of the type referred to in sections 708AA(8) and 708AA(9) Corporations Act as notionally modified by Instrument 2016/84;

2. the issue of New Shares under the Entitlement Offer is not expected to have any material effect or consequence on the control of KGL Resources.

Signed for and on behalf of KGL Resources:

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Kylie Anderson

Company Secretary

KGL Resources Limited

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