LIVIUM LTD — Capital/Financing Update 2019

Jun 10, 2019

==> picture [595 x 47] intentionally omitted <==

11 June 2019

RIGHTS ISSUE TO RAISE UP TO $6.5 MILLION

• 1 for 6 renounceable rights issue to raise up to $6.5 million

• Partially underwritten to $1.5 million

• Attractively priced at 6 cents per share

• Discount of 28% to the 5-day VWAP

• For every 2 new shares, shareholders will receive one new option

==> picture [84 x 102] intentionally omitted <==

• New options will be listed, have exercise price of 12 cents and expire in 2 years

• Shareholders can trade their rights and apply for additional shares from the shortfall

• Rights to commence trading from 13 June 2019

• Directors intend to participate

Lithium Australia NL (ASX:LIT, LITCE) (“Company”) is pleased to announce a renounceable rights issue offered on a 1 for 6 basis at $0.06 per share to raise up to $6.5 million (“Rights Issue”) with one attaching listed option (exercise price of $0.12 and expiring 2 years) for every two new shares subscribed for under the Rights Issue.

The Rights Issue is offered to holders of the Company’s fully and, by reason of their terms, partly paid shares on 14 June 2019 (“Record Date”) with an Australian address (“Eligible Shareholders”), and is partially underwritten to $1.5 million by CPS Capital Group Pty Ltd. Eligible shareholders can apply for shortfall in excess of their entitlement.

Funds raised will be used:

• Lithium raw materials including exploration on Youanmi & Medcalf

• Lithium chemicals including development of SiLeach® LieNA® and L-Max®

• Lithium batteries including VSPC pilot plant operations and DLG alliance

• Lithium battery re-cycling including Envirostream transaction

• Costs of the Rights Issue and working capital

The Rights Issue provides Eligible Shareholders an opportunity to take up new shares proportional to their shareholding or partly paid shareholding and avoid dilution.

Page 1

ASX ANNOUNCEMENT Lithium Australia

The indicative timetable for the Rights Issue is as follows:			13 June 201914 June 201917 June 201921 June 201928 June 20192 July 20194 July 20195 July 2019
	icative timetable for the Rights Issue is as f	ollows:
			13 June 2019
Ex daRights	te – Shares trade ex Entitlement (Ex Date)		13 June 2019
	trading commences on deferred settlemen	t basis
Recor
	d date to determine Entitlement (Record Da	te)	14 June 2019
ProspOffer	ectus with Entitlement and Acceptance For	m dispatched	17 June 2019
	opens for receipt of Applications
Rights	tradin ends		21 June 2019
	g
Closin	g date for acceptances		28 June 2019
Notify ASX of under-subscriptions			2 July 2019
Issue of New SharesDispatch of shareholding statements			4 July 2019
Normal trading of New Shares expected to commence
	al trading of New Shares expected to comm	ence	5 July 2019
	bove timetable is indicative and may changeting Rules	, subject to the Corporations Act
	.
	pectus for the offer and a personalised entitleligible holders of fully or partly paid shares	ement and acceptance form will bein accordance with the above
	le. Shareholders should consider the prospurities Anbod wantin to acuire securit	ectus in deciding whether to acquirees will need to comlete the

*The above timetable is indicative and may change, subject to the Corporations Act and Listing Rules.

A prospectus for the offer and a personalised entitlement and acceptance form will be sent to eligible holders of fully or partly paid shares in accordance with the above timetable. Shareholders should consider the prospectus in deciding whether to acquire the securities. Anybody wanting to acquire securities will need to complete the application form that will be in or will accompany the prospectus.

An Appendix 3B for the Rights Issue accompanies this announcement.

The Company has, in part consideration for partially underwriting the Rights Issue, agreed to issue 9 million options, with an exercise price of $0.12 and expiring 2 years from issue) to CPS Capital Group or its nominees. The issue is made without shareholder approval and using the Company’s existing 15% capability under Listing Rule 7.1

We request that the trading halt be lifted.

Barry Woodhouse

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

Adrian Griffin

Managing Director Mobile +61 (0) 418 927 658 Adrian.Griffin@lithium-au.com

Page 2

ASX ANNOUNCEMENT Lithium Australia

==> picture [595 x 47] intentionally omitted <==

==> picture [109 x 127] intentionally omitted <==

About Lithium Australia NL

Lithium Australia aspires to 'close the loop' on the energy-metal cycle in an ethical and sustainable manner. To that end, it has amassed a portfolio of projects and alliances and developed innovative extraction processes to convert all lithium silicates (including mine waste) to lithium chemicals. From these chemicals, the Company plans to produce advanced components for the lithium-ion battery industry. The final step for Lithium Australia involves the recycling of spent batteries and e-waste. By uniting resources and the best available technology, the Company aims to establish a vertically integrated lithium processing business.

MEDIA CONTACT:

Adrian Griffin Lithium Australia NL 08 6145 0288 | +61 (0) 418 927 658 Kevin Skinner Field Public Relations 08 8234 9555 | +61 (0) 414 822 631

Page 3

ASX ANNOUNCEMENT Lithium Australia