MAGONTEC LIMITED — Capital/Financing Update 2020

Dec 22, 2020

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23 December 2020 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street, Sydney NSW 2000

Magontec Limited Suite 1.03, Level 1 46A Macleay St Potts Point NSW 2011 Australia Ph: +61 2 8084 7813

Dear Sir/Madam

Qinghai Salt Lake Magnesium (QSLM) New Date for Submission of Restructuring/Refinancing Plan

We refer to the announcement made to shareholders on 17 December 2020.

On 14 December 2020 the Qinghai Xining Intermediate People’s Court made a determination to approve QSLM’s application for a deferral of the creditors’ meeting. The Court decision means the new date for submission of the restructuring/refinance plan to the Court is 16 January 2021. It is expected that the creditors’ meeting at which the plan will be considered will be held one month thereafter ie 16 February 2021.

We will keep shareholders informed of developments.

Yours sincerely,

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Nicholas Andrews Executive Chairman Magontec Limited

Nicholas Andrews, Executive Chairman of Magontec Limited has authorised the release of this document to the market on 23 December 2020