LIONTOWN LIMITED — Capital/Financing Update 2017

Oct 9, 2017

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10 October 2017

Australian Securities Exchange Limited Level 40 Central Park 152-158 St Georges Terrace PERTH WA 6000

Dear Sir

Proposed Issue of Unlisted Options and Notification of Change to Managing Directors Salary

Liontown Resources Limited (ASX: LTR) (‘Liontown’ or the ‘Company’) advises that the Board has resolved to issue a total of 18,700,000 unlisted options to directors and employees of the Company under the terms and conditions of the Liontown Employee Share Option Plan and as set out below.

The issue of options to directors, is subject to shareholder approval at the Company’s upcoming AGM in November 2017. The Company provides the following information in relation to the proposed issue:

Number proposed to be issued to Directors(subject to shareholder approval)	16,000,000
Number to be issued to employees	2,700,000
Principle terms	The unlisted Share Options will be issuedunder the terms and conditions of theCompany’s Employee Share Option Plan
Exercise price	2.0 cents (representing a premium of 150% tothe Company’s closing 5 day volume averageweighted price (‘VWAP’) of 0.8 cents up toand including 9 October 2017).
Vesting	Immediately
Expiry date	31 October 2022

If all options to directors are approved by shareholders, the total number of outstanding options issued under the ESOP will equate to approximately 2.9% of the fully diluted share capital of the Company.

Furthermore, the Company advises that the Board has approved an increase in the salary of Managing Director David Richards from $220,000 per annum (including superannuation) to $225,000 (including superannuation).

Yours faithfully,

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Kym Verheyen Company Secretary

Liontown Resources Limited ABN 39 118 153 825 Level 2, 1292 Hay Street, West Perth, Western Australia GPO Box 2890, Perth WA 6001 I T: +618 9322 7431 I F: +618 9322 5800 I www.ltresources.com.au