LIVIUM LTD — Capital/Financing Update 2018

Feb 12, 2018

ACN: 126 129 413 ASX: LIT & LITCE

Level 1 675 Murray St West Perth WA 6005 PO Box 1088 West Perth WA 6872

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13 February 2018

ASX ANNOUNCEMENT

Appendix 3B – Issues of Shares at 11% premium to market

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As announced in on the 31 July 2017, Lithium Australia NL (ASX: LIT) entered into a Controlled Placement Agreement ( CPA ) with Acuity Capital Investment Management Pty Ltd as trustee for the Acuity Capital Holdings Trust ( Acuity Capital ). LIT advises that pursuant to the CPA, LIT has issued 3.25m fully paid ordinary shares in the capital of LIT ( Shares ) at $0.20 per Share to raise $650,000 (before costs) under its Listing Rule 7.1A capacity. The placement price of $0.20 is an 11% premium to the 15-day volume weighted average price ( VWAP ) of the Shares from close of trade yesterday. Further details of the CPA are listed in the Company’s release dated 31 July 2017.

The CPA currently provides LIT with up to $12.5m of standby equity capital until December 2019. To date, LIT has used the CPA to successfully raise $7.5m.

As outlined in the initial CPA announcement dated 31 July 2017, LIT retains full control of all aspects the placement process including having sole discretion as to whether or not to utilise the CPA, the quantum of Shares issued under the CPA, the minimum issue price of Shares issued under the CPA and the timing of each placement tranche (if any). There are no requirements on LIT to utilise the CPA. LIT may terminate the CPA at any time, without cost or penalty. Acuity Capital and the CPA do not place any restrictions at any time on LIT raising capital through other methods. If LIT does decide to utilise the CPA, LIT is able to set a floor price (at its sole discretion) for the Shares issued pursuant to the CPA and the final issue price will be calculated as the greater of that floor price set by LIT and a 10% discount to a VWAP over a period determined at the sole discretion of LIT.

The Company also advises the issue of 1,698,239 shares at an average price of $0.1952 per share to suppliers pursuant to Listing Rule 7.1 (606,874 shares) and the Directors and Senior Management Fee and Remuneration Sacrifice Share Plan (1,091,365 shares) respectively.

ASX Listing Rule 3.10.5A

The following information required under ASX Listing Rule 3.10.5A is now provided:

(a) Dilution Effect The issue of 3,250,000 Shares represents a dilution to the existing holders of ordinary securities as follows (and before further issues included in this Appendix 3B as listed above): Number of Shares on issue prior to the Placement: 343,570,538 Placement issue under Listing Rule 7.1A: 3,250,000 Total dilution as a result of the LR 7.1APlacement: 0.09% (the total dilution as a result of the issue of the 3,250,000 Shares is 0.09%) Number of Shares on issue following the Placement: 346,820,538

(b) Why an issue under ASX Listing Rule 7.1A? The Company issued the Shares for cash consideration pursuant to the CPA as it is of the view that this was the most efficient and expedient mechanism to raise cash in the current market.

• (c) Underwriting Agreement: This issue was not underwritten.

(d) Cost of Issue:

No commission was paid by the Company.

Notice under section 708A(5)(e) of the Corporations Act 2001

Lithium Australia NL (ASX: LIT) ( Company ) has issued and allotted 4,948,239 fully paid ordinary shares in the capital of the Company at the issue prices as outlined in the attached Appendix 3B. Accordingly, the Company gives notice under section 708A(5)(e)(i) of the Corporations Act 2001 (Cth) ( Act ) that:

1. the abovementioned shares were issued without disclosure to investors under Part 6D.2 of the Act;

2. as at the date of this notice the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company and with section 674 of the Act; and

3. as at the date of this notice there is no information to be disclosed which is “excluded information” as defined in subsection 708A(7) of the Act that is reasonable for investors and their professional advisers to find in a disclosure document.

Barry Woodhouse

CFO & Company Secretary Mobile +61 (0) 438 674 259 Barry.Woodhouse@lithium-au.com

About Lithium Australia NL

Lithium Australia, a dedicated developer of disruptive lithium extraction technologies, owns 100% of the SiLeach® process for the recovery of lithium from all silicates. Moreover, Lithium Australia has strategic alliances with, and investments in, a number of companies that potentially provide it with access to a diversified lithium mineral inventory. Lithium Australia aims to unite resources and the best available technology and in so doing establish a global lithium processing business.

MEDIA CONTACT: Adrian Griffin Lithium Australia NL 08 6145 0288 | 0418 927 658 Kevin Skinner Field Public Relations 08 8234 9555 | 0414 822 631

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

Lithium Australia NL

ABN 29 126 129 413

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	1. Fully paid ordinary shares 2. Fully paid ordinary shares 3. Fully paid ordinaryshares
	1. 3,250,000 2. 606,874 3. 1,091,365
	1. – 3. Fully paid ordinary shares

• See chapter 19 for defined terms.

Appendix 3B Page 3

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Appendix 3B New issue announcement

4 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted+securities? If the additional+securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h_in relation to the+securities_ the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed	Yes
	1. $0.20 2. $0.1952 3.$0.1952
	1. Shares issued pursuant to placement for acquisition of new resources, assets and investments and continued exploration on the Company’s exploration assets. 2. Shares issued to suppliers 3. Shares issued under Director and Senior Management Fee and Remuneration Sacrifice Share Plan
	Yes
	30 November 2017

• See chapter 19 for defined terms.

Appendix 3B Page 4

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Appendix 3B New issue announcement

	Appendix 3B New issue announcement
6c Number of+securities issued without security holder approval under rule 7.1 6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of+securities issued under an exception in rule 7.2 6g If+securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the+issue date and both values. Include the source of the VWAP calculation. 6h If+securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements	2. 606,874
	1. 3,250,000
	3. 1,091,365
	(i) Yes (1,091,365) (ii) Issue date 13 February 2018 (iii) IRESS (iv) Issue price of $0.20 per share is an 11% premium to the 15 day VWAP of $0.1801 as at 12 February 2018
	Rule 7.1 – 35,786,922 Rule 7.1A – 12,979,906

• See chapter 19 for defined terms.

Appendix 3B Page 5

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Appendix 3B New issue announcement

7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.	13 February 2018

8 Number and+class of all +securities quoted on ASX (_including_the+securities in section 2 if applicable) 9 Number and+class of all +securities not quoted on ASX (_including_the+securities in section 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Number	+Class
	348,518,777 132,850,148	Fully paid ordinary shares Partly paid contributing shares paid to $0.0001 each ($0.2499 unpaid)
		+Class $0.15 options exercisable on or before 1 July 2019 $0.20 options exercisable on or before 1 July 2019 $0.30 options exercisable on or before 1 July 2019 Performance Rights as approved by shareholders on 15 July 2015 Performance Rights as approved by shareholders on 30 November 2016
	Number	+Class
	4,316,666 7,875,000 9,200,000 10,340,000 15,000,000	$0.15 options exercisable on or before 1 July 2019 $0.20 options exercisable on or before 1 July 2019 $0.30 options exercisable on or before 1 July 2019 Performance Rights as approved by shareholders on 15 July 2015 Performance Rights as approved by shareholders on 30 November 2016
	N/A

Part 2 - Pro rata issue

• See chapter 19 for defined terms.

Appendix 3B Page 6

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Appendix 3B New issue announcement

11	Is security holder approval
	required?
12	Is the issue renounceable or
	non-renounceable?
13	Ratio in which the+securities
	will be offered
14	+Class of +securities to which
	the offer relates
15	+Record date to determine
	entitlements
16	Will holdings on different
	registers (or subregisters) be
	aggregated for calculating
	entitlements?
17	Policy for deciding entitlements
	in relation to fractions
18	Names of countries in which the
	entity has security holders who
	will not be sent new offer
	documents
	Note: Security holders must be
	told how their entitlements are
	to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of
	acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee
	or commission
22	Names of any brokers to the
	issue
23	Fee or commission payable to
	the broker to the issue

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

24	Amount of any handling fee
	payable to brokers who lodge
	acceptances or renunciations on
	behalf of security holders
25	If the issue is contingent on
	security holders’ approval, the
	date of the meeting
26	Date entitlement and
	acceptance form and offer
	documents will be sent to
	persons entitled
27	If the entity has issued options,
	and the terms entitle option
	holders to participate on
	exercise, the date on which
	notices will be sent to option
	holders
28	Date rights trading will begin (if
	applicable)
29	Date rights trading will end (if
	applicable)
30	How do security holders sell
	their entitlements_in full_through
	a broker?
31	How do security holders sell_part_
	of their entitlements through a
	broker and accept for the
	balance?
32	How do security holders dispose
	of their entitlements (except by
	sale through a broker)?
33	+Issue date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of[+] securities ( tick one )

• See chapter 19 for defined terms.

Appendix 3B Page 8

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Appendix 3B New issue announcement

• (a) +Securities described in Part 1

• (b) All other[+] securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional +securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of[+] securities for which +quotation is sought

• 39 +Class of +securities for which quotation is sought

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

	Appendix 3B New issue announcement
40 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted +securities? If the additional+securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another+security, clearly identify that other+security)	Yes
	Placement of shares

Number +Class 42 Number and +class of all 348,518,777 Fully paid ordinary shares 132,850,148 Partly paid contributing +securities quoted on ASX shares paid to $0.0001 each ( including the[+] securities in ($0.2499 unpaid) clause 38)

• See chapter 19 for defined terms.

Appendix 3B Page 10

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Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from

subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any

• applications received by us in relation to any[+] securities to be quoted and

that no-one has any right to return any[+] securities to be quoted under

sections 737, 738 or 1016F of the Corporations Act at the time that we

request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: “Barry Woodhouse” Date: 13 February 2018 Company Secretary

Print name: Barry Woodhouse

• See chapter 19 for defined terms.

Appendix 3B Page 11

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Appendix 3B New issue announcement

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities ( Introduced 01/08/12 Amended 04/03/13)

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

Rule 7.1 – Issues exceeding 15% of capital	Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insertnumber of fully paid+ordinary securities on issue 12 months before the +issue date or date of agreement to issue	257,832,829
Addthe following: • Number of fully paid+ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid+ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid+ordinary securities that became fully paid in that 12 month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	28,932,199 28,302,284
Subtractthe number of fully paid +ordinary securities cancelled during that 12 month period	Nil
“A”	315,067,312

Step 2: Calculate 15% of “A”

Step 2: Calculate 15% of “A”	Step 2: Calculate 15% of “A”
“B”	0.15 [Note: this value cannot be changed]
Multiply“A” by 0.15	47,260,097

• See chapter 19 for defined terms.

Appendix 3B Page 12

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Appendix 3B New issue announcement

Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used

Appendix 3B New issue announcement	Appendix 3B New issue announcement
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period_not counting_those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	11,473,175
“C”	11,473,175
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	47,260,097
Subtract“C” Note: number must be same as shown in Step 3	11,473,175
Total[“A” x 0.15] – “C”	35,786,922 [Note: this is the remaining placement capacity under rule 7.1]

• See chapter 19 for defined terms.

Appendix 3B Page 13

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Appendix 3B New issue announcement

Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Part 2	Part 2
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1	315,067,312
Step 2: Calculate 10% of “A”
“D”	0.10 Note: this value cannot be changed
Multiply“A” by 0.10	31,506,731
Step 3: Calculate “E”, the amount of placement capacity	under rule 7.1A that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items	18,526,825
“E”	18,526,825

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A	Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	31,506,731
Subtract“E” Note: number must be same as shown in Step 3	18,526,825
Total[“A” x 0.10] – “E”	12,979,906 Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

Appendix 3B Page 14

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