LCL RESOURCES LIMITED — Capital/Financing Update 2021

Jul 18, 2021

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16 July 2021

Dear Option Holder

EXPIRY OF LISTED OPTIONS (ASX CODE: LCLOB)

This letter is to notify you of the impending expiry of your LCLOB Options in Los Cerros Limited (ASX: LCL) (“Los Cerros” or the “Company”) at 5:00pm AWST on Monday, 16 August 2021 ( Expiry Date ).

The number of Options you hold is included in the enclosed option exercise notification.

In accordance with ASX Listing Rules, Los Cerros provides you with the following information:

(a) Each Option entitles you to apply for one fully paid ordinary share in the capital of Los Cerros;

(b) The exercise price payable to exercise your Options by the Expiry Date is $0.16 per Option;

(c) If you fail to exercise your Options prior to the Expiry Date, those Options will lapse, and you shall have no further right or entitlement to those Options;

(d) Pursuant to ASX Listing Rule 6.24, quotation of the Options on the Australian Securities Exchange ( ASX ) will end at the close of trading Tuesday, 10 August 2021;

(e) The last available closing price of the listed shares in Los Cerros prior to the date of this letter was $0.18;

(f) The last available closing price of the Options prior to the date of this letter was $0.033;

(g) The highest and lowest market sale price of Los Cerros shares on ASX during the 3 months immediately preceding the date of this letter and the respective dates of those sales were:

Highest: $0.21 on 6 July 2021;

Lowest: $0.16 on 21 June 2021;

(h) The highest and lowest market sale price of Options on ASX during the 3 months immediately preceding the date of this letter and the respective dates of those sales were:

Highest: $0.07 on 19 April 2021;

Lowest: $0.03 on 30 June 2021;

(i) The exercise price of the Options is not underwritten;

(j) You can exercise all or part of your Options prior to the Expiry Date by providing the Company your completed written exercise notice specifying the number of Options being exercised (Exercise Notice) (as attached to this letter) and a payment of funds for the total exercise price for the number of Options being exercised by 5:00pm AWST on Monday, 16 August 2021. The Exercise Notice will

Los Cerros Limited ASX Code: LCL ABN 43 119 759 349

Level 3, 35 Outram Street, West Perth WA 6005 Tel No: 61 8 6245 2050

PO Box 1240, West Perth WA 6872 www.loscerros.com.au

only be effective when the Company has received the full amount of the exercise price by close of business on 16 August 2021.

Instructions regarding the methods of payment are included in the enclosed option exercise notification.

If you choose to exercise your Options, within 10 business days of receipt of the Exercise Notice and full amount of the exercise price, Los Cerros will issue to you the number of Shares specified in the Exercise Notice.

If you have any questions in relation to any of the above, please contact the Joint Company Secretary, Blair Snowball, on +61 8 6245 2050 or via email blair@loscerros.com.au.

Yours faithfully,

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Jason Stirbinskis MANAGING DIRECTOR

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Los Cerros Limited | ACN 119 759 349

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SRN/HIN: Security Code: LCLOB Number of Options Held: Option Expiry Date: 16/08/2021 Exercise Price: $0.16

NOTICE OF EXERCISE OF OPTIONS

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BY MAIL BY EMAIL

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