LOYAL METALS LTD — Capital/Financing Update 2023

Feb 19, 2023

==> picture [596 x 102] intentionally omitted <==

----- Start of picture text ----- ASX:LLI----- End of picture text -----

ASX Announcement | 20 February 2023

Cleansing Statement - Notice Pursuant to Section 708A(5)(e) of the Corporations Act

Loyal Lithium Limited ( ASX:LLI ) ( Loyal Lithium or the Company ) gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) (Corporations Act) as follows:

• a) The Company has issued:

  • (a) 7,000,000 fully ordinary paid shares ( Shares ) in the Company at a deemed issue price of $0.45 per Share, in consideration for the purchase of the remaining 20% of the Scotty Lithium Project as announced to the ASX on 16 February 2023. The Shares will be subject to a voluntary ESCROW (3,499,999 Shares expiring 3 months from the date of their issue and 3,500,001 Shares expiring 6 months from the date of their issue).

• b) The Shares rank pari passu with existing Loyal Lithium ordinary shares.

• c) The Shares were issued without disclosure to investors under Part 6D.2 of the Corporations Act.

• d) As at the date of this notice, the Company has complied with:

  • the provisions of Chapter 2M of the Corporations Act, as they apply to the Company; and

  • Section 674 of the Corporation Act.

• e) As at the date of this notice, there is no 'excluded information' (within the meaning of sections 708A(7) and 708A(8) of the Corporations Act) required to be disclosed under section 708A(6)(e) of the Corporations Act.

The Appendix 2A’s reflecting the revised capital structure following the issue of the above securities were released on 16 December 2022.

For and on behalf of Loyal Lithium Limited

Ian Pamensky Company Secretary

Approved by the board of Loyal Lithium Limited.

For more information:

Adam Ritchie

Chief Executive Officer aritchie@loyallithium.com +61 (0) 403 462 383

Jane Morgan

Investor & Media Relations jm@janemorganmanagement.com.au + 61 (0) 405 555 618

A: 5/10 Johnston St,

ASX Code: LLI

Peppermint Grove WA, 6011 P: (08) 6245 2490

ACN : 644 564 241 www.loyallithium.com

E: info@loyallithium.com

==> picture [596 x 102] intentionally omitted <==

----- Start of picture text ----- ASX:LLI----- End of picture text -----

About Loyal Lithium

Loyal Lithium Limited (ASX: LLI) is a well-structured listed resource exploration company with projects in Tier 1 North American mining jurisdictions in Nevada, USA and the James Bay Lithium District in Quebec, Canada. Through the systematic exploration of its projects, the Company aims to delineate JORC compliant resources.

A: 5/10 Johnston St,

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

Peppermint Grove WA, 6011 P: (08) 6245 2490

E: info@loyallithium.com