LCL RESOURCES LIMITED — Capital/Financing Update 2021

Aug 17, 2021

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18 August 2021

The Company thanks security holders for their continued support

Los Cerros directors thank option holders and shareholders for their continuing support of the Company’s Colombian strategy by the substantial conversion of options since the recently completed $20M capital raise on 16 July 2021. In that period, the exercise of options has added a further $2.3M to the Company’s cash balance, further consolidating our robust financial position. This places us in a very strong position to continue with our expanded exploration program across multiple targets ranging from project generation to advanced projects such as Miraflores and the very promising Tesorito gold porphyry discovery.

Cleansing Notice

Issue of Shares - Notice pursuant to Section 708A(5)(e) of the Corporations Act 2001

Los Cerros Limited (ASX: LCL) (“Los Cerros” or the “Company”) advises that it has issued and allotted 12,964,626 fully paid ordinary shares (“ Shares ”) upon the exercise of: 250,000 unquoted options exercisable at $0.07 per option with expiry on or before 1 July 2025; and 12,714,626 quoted options (ASX: LCLOB) exercisable at $0.16 per option with expiry on or before 16 August 2021.

The Corporations Act 2001 (“Act”) restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A of the Act. By giving this notice, the shares issued pursuant to the exercise of options (“ Shares ”), and noted in the Appendix 2A that has been lodged with the ASX on the same dated as this notice, will fall within the exemption in section 708A(5) of the Act.

Pursuant to section 708A(5)(e) of the Corporations Act 2001 (Cth) (“ Corporations Act ”), the Company gives notice that:

• (a) the Company issued the Shares without disclosure under Part 6D.2 of the Corporations Act; and

• (b) as at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and section 674 of the Corporations Act; and

• (c) As at the date of this notice there is no information:

  • i. that has been excluded from a continuous disclosure notice in accordance with the Listing Rules; and

  • ii. that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

    1. The assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

    2. The rights and liabilities attaching to the Securities.

By order of the board of directors.

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Blair Snowball

COMPANY SECRETARY