LIVIUM LTD — Capital/Financing Update 2020

Mar 3, 2020

Proposed issue of securities

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Announcement Summary

Entity name

LITHIUM AUSTRALIA NL

Announcement Type

New announcement

Date of this announcement

Wednesday March 4, 2020

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
n/a	LITAD option expiring various dates ex various prices	33,333,333
LITAT	CONVERTIBLE NOTES	1
LIT	ORDINARY FULLY PAID	3,421,020

Proposed +issue date

Friday February 28, 2020

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

LITHIUM AUSTRALIA NL

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ACN

Registration Number

126129413

1.3 ASX issuer code

LIT

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Wednesday March 4, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

• 7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +Security Code and Description

LIT : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

3,421,020

Purpose of the issue

1. Lithium Australia Fee and Remuneration Sacrifice Share Plan

2. Consideration for consultancy fees

3. Acquisition of interest in mineral tenement

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.05010

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Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details May a scale back be applied to this event? No

Is the proposed security a 'New	Will the proposed issue of this
class' (+securities in a class that is	+security include an offer of
not yet quoted or recorded by ASX)	attaching +securities?
or an 'Existing class' (additional	No
securities in a class that is already
quoted or recorded by ASX)?
New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1? Will the entity be seeking quotation of the 'new' class of +securities on ASX? ASX +Security Code New class-code to be confirmed +Security Description LITAD option expiring various dates ex various prices No Yes	Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1? Will the entity be seeking quotation of the 'new' class of +securities on ASX? ASX +Security Code New class-code to be confirmed +Security Description LITAD option expiring various dates ex various prices No Yes
New class-code to be confirmed	LITAD option expiring various dates ex various prices

+Security Type

Options Maximum Number of +securities proposed to be issued 33,333,333 Purpose of the issue

As approved by shareholders per resolution 3 at the meeting held on 24 February 2020 as part consideration for entry into the Agreement

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security?

Will all the +securities issued in this class rank equally in all respects from their issue date? No

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Oversubscription & Scale back details

May a scale back be applied to this event? No

If some of the issued +securities do not rank equally

Is the actual date from which the +securities will rank equally (non-ranking end date) known? No

Provide the estimated non-ranking end period

On payment of the exercise price of $0.055 or 28 February 2023

Please state the extent to which the +securities do not rank equally: In relation to the next dividend, distribution or interest payment; or For any other reason

The securities do not rank equally until payment of the exercise price of $0.055 per option and conversion to fully paid ordinary shares prior to the expiry date of 28 February 2023

Options details

+Security Currency AUD - Australian Dollar

Exercise Price Expiry date AUD 0.0550 Tuesday February 28, 2023

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option

LIT : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

See Annexure C of the Notice of Meeting materials for the LIT general meeting held on 24 February 2020

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +Security Code and Description LITAT : CONVERTIBLE NOTES

Maximum Number of +securities proposed to be issued

1

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Purpose of the issue

Issue of Replacement Convertible Note to Lind as approved by shareholders on 24 February 2020

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security?

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Part 7C - Timetable

7C.1 Proposed +issue date

Friday February 28, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? Yes

7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1 Monday February 24, 2020

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

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Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No 7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

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