LIONTOWN LIMITED — Capital/Financing Update 2016

Oct 10, 2016

ASX : LTR

ABN 39 118 153

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ASX ANNOUNCEMENT

11 October 2016

$1.4M Rights Issue Closes Heavily Oversubscribed

Proceeds from strongly supported capital raising to underpin ongoing lithium exploration programs

Liontown Resources Limited (ASX: LTR) (“the Company”) is pleased to advise that the 1-for-5 nonrenounceable entitlement issue at $0.01 per share to raise $1,398,902 (before issue costs) through the issue of 139,890,234 New Shares has closed heavily oversubscribed.

The Company advises that it received applications for a total of 339,132,308 New Shares, amounting to $3,391,323. This comprised applications for:

• 128,064,849 Entitlement Shares; and

• 211,067,459 Additional Shares (oversubscriptions).

Subject to the clearance of funds in respect to the Entitlement Shares, the shortfall is 11,825,385 shares, amounting to $118,253.00. This represents a take-up from existing shareholders of approximately 91.5 per cent.

Due to the heavy oversubscription for Additional Shares, applications will be significantly scaled back in accordance with the Prospectus.

Shareholders who applied for Additional Shares which were not able to be satisfied out of the Shortfall will receive a refund to that extent of their application monies. Refund payments will be processed and sent by cheque to shareholders’ addresses as recorded by the share registry the week commencing 17 October 2016. No interest will be paid on any application monies refunded.

The Directors would like to thank shareholders for their continued support and advise that the New Shares will be issued on or around 13 October 2016.

Liontown’s Chairman Tim Goyder said the high level of interest in the capital raising represented a strong vote of confidence in the Company’s lithium exploration and development strategy in Australia and the prospectivity of its key projects.

“ We are looking forward to the results of our drilling program which is currently underway at the Bynoe lithium project in the Northern Territory, which is located in the heart of an exciting new emerging lithium district just 50km south of Darwin. Initial assay results from Bynoe should be available within the next 1-2 weeks,” he said.

“We also have exploration programs planned at the Kathleen Valley lithium project, where we plan to commence drilling as soon as access permissions are finalised and initial ground-based exploration activities underway at the Lake Percy lithium project, located in the emerging Forrestania lithium district.”

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Leanne Stevens Company Secretary

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Liontown Resources Limited, Level 2, 1292 Hay Street, West Perth, Western Australia 6005 T: +618 9322 7431 F: +618 9322 5800 E: info@ltresources.com.au www.ltresources.com.au