LCL RESOURCES LIMITED — Capital/Financing Update 2020

Oct 4, 2020

5 October 2020

ASX Announcement

ASX: LCL

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HIGHLIGHTS

Company secures 100% of Chuscal through deal with AngloGold

 Formal contract executed with AngloGold Ashanti

o AngloGold to become a shareholder of Los Cerros

o Los Cerros secures 100% of Chuscal

Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) is pleased to advise that it has executed an agreement ( Agreement ) to exchange AngloGold Ashanti Colombia’s ( AGA ) interests in the Chuscal JV for LCL shares and options.

AGA is an entity owned by AngloGold Ashanti Limited. The Agreement is the conclusion of negotiations with AGA, the material terms of which were first announced 20 April 2020. The Agreement will take Los Cerros’ ownership of Chuscal to 100% and results in the Company holding 100% of the Quinchia Project of which Chuscal is a part, and also includes Tesorito, Miraflores, Dosquebradas and other less developed but interesting gold targets.

Los Cerros Managing Director, Jason Stirbinskis said:

“We look forward to AGA becoming a shareholder. They have proved to be supportive JV partners at Chuscal and we look forward to their ongoing support as a shareholder of Los Cerros. In addition to their vast knowledge of Colombian geology and gold discoveries, they also have direct experience in the Quinchia region and some of our highest priority targets in the extensive Andes portfolio were also once AGA assets”.

Key terms of the Agreement include:

• issue of 10,476,597 fully paid ordinary Los Cerros shares ( LCL Shares ) to AGA[1] ;

• issue of 15,430,648[1] options ( Options ) to AGA, with an exercise price of $0.16 and an expiry date 12 months from the date of issue;

• termination of the Chuscal Joint Venture Agreement ( CJVA ) and associated obligations such as minimum spend requirements. Under the current CJVA, Los Cerros can earn a 51% interest through expenditure of US$2.5m to 2022. Under the Agreement, Los Cerros now has a 100% interest in Chuscal, with no further earn-in obligations; and

• usual warranties and conditions typical of a transaction of this nature.

For the purpose of ASX Listing Rule 15.5, the Board has authorised this announcement to be released.

1 Pursuant to Shareholder Resolution #9 at the LCL AGM of 23 June 2020. See Notice of Annual General Meeting released 12 May 2020. The Company has been granted a waiver by the ASX from Listing Rule 14.7 to permit the Company to issue the Vendor Consideration later than three months following the date of the AGM to allow sufficient time for AGA to secure SARB approval, which has now been provided.

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5 October 2020

ASX Announcement ASX: LCL

For further enquiries contact:

Jason Stirbinskis

Managing Director Los Cerros Limited 12/11 Ventnor Avenue WEST PERTH WA 6005 jason@loscerros.com.au

FORWARD LOOKING STATEMENTS This document contains forward looking statements concerning Los Cerros. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Los Cerros’ beliefs, opinions and estimates of Los Cerros as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur.