LCL RESOURCES LIMITED — Capital/Financing Update 2020

Sep 16, 2020

17 September 2020 ASX Announcement

ASX: LCL

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HIGHLIGHTS

RMB settlement – debt extinguished Residual Chile assets sold

 RMB debt extinguished[1]

 Sale of residual Chilean assets nets USD$100k

Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) is pleased to advise that it has now executed a binding agreement ( RMB Agreement ) with FirstRand Investment Holdings (Pty) Ltd ( RMB ) for Los Cerros to make a one-off payment of A$2.21 million for the extinguishment of an existing debt held by RMB which would have otherwise totalled A$3.5 million[1] . The RMB agreement is subject to completion of the current capital raise placement expected to be on or around 22 September 2020. The RMB Agreement also includes the reduction of potential future royalty payments on the Quinchia Project from A$15 million to A$14 million (payable at a rate of 2% of net smelter revenue).

The Company also advises that it has sold North Hill Ovalle Inc ( NHO, a 100% BVI subsidiary of LCL); Minera Hampton Chile Limitada (a 100% subsidiary of NHO); and the Loica and Vallecillo projects held within the aforementioned vehicle, to a Chilean citizen for USD$100,000. The sale of the Company’s residual interests in Chile follows on from the sale of the Mollacas project in January 2020 for ~USD$1 million[2] .

Resolving the RMB debt and completing the asset sales are part of the broader strategic re-invention of Los Cerros which has included a critical review and prioritisation of the extensive asset portfolio, resolution of legacy issues and stream-lining of the Company structure to focus on our Colombian portfolio. In line with those objectives, the Company also advises that it has liquidated its Peruvian subsidiaries, Cerro Norte Mining Inc and North Hill Peru Inc. The two subsidiaries did not hold assets and were relics of previous Company activity.

Correction to June announcements

The Company wishes to correct an inadvertent error in the AGM presentation pack (released 23 June 2020) and related ASX release (16 June 2020) quoting a series of historical, previously released intercepts at the Miraflores gold deposit including: 10.6m @ 11.97g/t Au from 233m within 114.7m @ 1.89g/t Au from 185.9m[3] . The abovementioned June 2020 releases quoted an interval length of 1,145.7m rather than 114.7m, the result of a typographical error. All subsequent references to the historical results quote the correct value, including the information pack released 11 September 2020.

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

1 The Company announced 14 September 2020 that they had entered advanced negotiations with RMB

2 See announcement 10 February 2020

3 First released 14 March 2017. The Company confirms that it is not aware of any new information that affects the information contained in the announcements

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17 September 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.