LOYAL METALS LTD — Capital/Financing Update 2023

Feb 19, 2023

Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Announcement Summary

Entity name

LOYAL LITHIUM LIMITED

Date of this announcement

Monday February 20, 2023

The +securities the subject of this notification are: Other

Total number of +securities to be issued/transferred

Total number of ASX +security +securities to be code Security description issued/transferred Issue date New class - code Unquoted Options Ex at $0.20 - Exp 16 Jan 2026 2,000,000 20/02/2023 to be confirmed

Refer to next page for full details of the announcement

Notification of Issue, Conversion or Payment up of Unquoted E it S iti

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Part 1 - Entity and announcement details

1.1 Name of entity

LOYAL LITHIUM LIMITED

We (the entity named above) give notice of the issue, conversion or payment up of the following unquoted +securities.

1.2 Registered number type

ACN

Registration number

644564241

1.3 ASX issuer code

LLI

1.4 The announcement is

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New announcement

1.5 Date of this announcement

20/2/2023

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Part 2 - Issue details

2.1 The +securities the subject of this notification are:

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Other

Please specify

Lead Manager Options - Refer Appendix 3B - 27 Oct 2022

2.2a This notification is given in relation to an issue of +securities in a class which is not quoted on ASX and which:

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does not have an existing ASX security code ("new class")

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Part 3C - number and type of +securities the subject of this notification (new class) where issue has not previously been notified to ASX in an Appendix 3B

New +securities
ASX +security code New class - code to be confirmed	+Security description Unquoted Options Ex at $0.20 - Exp 16 Jan 2026
+Security type	ISIN code
Options
Date the +securities the subject of this notification were issued
20/2/2023
Will all the +securities issued in this class rank equally in all respects from their issue date?
Yes

Have you received confirmation from ASX that the terms of the +securities are appropriate and equitable under listing rule 6.1? No Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities being issued. https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02597426 - refer Notice of Meeting

Options Details
+Security currency	Exercise price	Expiry date
AUD - Australian Dollar	AUD 0.20000000	16/1/2026
Details of the existing class of +security that will be issued upon exercise or conversion of this new class of
company option
Other
Description
LLI - Ordinary Shares

Any other information the entity wishes to provide about the +securities the subject of this notification Issue of the Unquoted Options approved at General Meeting on 12 Dec 2022

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Please provide any further information needed to understand the circumstances in which you are notifying the issue of these +securities to ASX, including why the issue of the +securities has not been previously announced to the market in an Appendix 3B Appendix 3B Lodged on 27 Oct 2022 - https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId =02588987

Issue details

Number of +securities

2,000,000

Were the +securities issued for a cash consideration?

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No

Please describe the consideration being provided for the +securities

Issued to Lead Manager as part of Placement announced 27 Oct 2022

Purpose of the issue

To pay for services rendered

Additional Details

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Part 4 - +Securities on issue

Following the issue, conversion or payment up of the +securities the subject of this application, the +securities of the entity will comprise:

(A discrepancy in these figures compared to your own may be due to a matter of timing if there is more than one application for quotation/issuance currently with ASX for processing.)

4.1 Quoted +Securities (Total number of each +class of +securities quoted)

	Total number of
ASX +security code and description	+securities on issue
LLI : ORDINARY FULLY PAID	52,490,000
4.2 Unquoted +Securities (Total number of each +class of +securities issued but not quoted on ASX)
	Total number of
ASX +security code and description	+securities on issue
LLIAI : OPTION EXPIRING 25-JUL-2025 EX $0.35	1,000,000
LLIAJ : PERFORMANCE RIGHTS	3,000,000
LLIAA : ORDINARY FULLY PAID RESTRICTED	3,000,001
LLIAB : OPTION EXPIRING 06-JUL-2024 RESTRICTED	21,400,000
LLIAC : OPTION EXPIRING 06-JUL-2024 EX $0.30	900,000
LLIAD : OPTION EXPIRING 02-MAY-2025 EX $0.45	500,000
New class - code to be confirmed : Unquoted Options Ex at $0.20 - Exp 16 Jan 2026	2,000,000

4.2 Unquoted +Securities (Total number of each +class of +securities issued but not quoted on ASX)

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Part 5 - Other Listing Rule requirements

5.1 Were the +securities issued under an exception in Listing Rule 7.2 and therefore the issue did not need any security holder approval under Listing Rule 7.1? No

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

5.2a Date of meeting or proposed meeting to approve the issue under listing rule 7.1

12/12/2022

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