METGASCO LTD — Capital/Financing Update 2020

Jul 19, 2020

Proposed issue of securities

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Announcement Summary

Entity name

METGASCO LTD

Announcement Type

New announcement

Date of this announcement

Monday July 20, 2020

The Proposed issue is:

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An offer of securities under a securities purchase plan A placement or other type of issue

Total number of +securities proposed to be issued for an offer of securities under a securities purchase plan

Maximum Number of ASX +Security Code +Security Description +securities to be issued MEL ORDINARY FULLY PAID 106,666,666

+Record date

Friday July 17, 2020

Offer closing date

Wednesday August 19, 2020

+Issue date

Friday August 28, 2020

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
MEL	ORDINARY FULLY PAID	58,000,000

Proposed +issue date

Tuesday July 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

METGASCO LTD

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

ABN

Registration Number

24088196383

1.3 ASX issuer code

MEL

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Monday July 20, 2020

1.6 The Proposed issue is:

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An offer of +securities under a +securities purchase plan A placement or other type of issue

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Part 4 - Details of proposed offer under securities purchase plan

Part 4A - Conditions

4A.1 - Are any of the following approvals required for the offer of +securities under the +securities purchase plan issue to be unconditional? +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 4B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +Security Code and Description

MEL : ORDINARY FULLY PAID

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +Security Code and Description

MEL : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued 80,000,000

Minimum Number of +securities Maximum Number of proposed to be offered to each +securities proposed to be individual +security holder offered to each individual +security holder 100,000 1,200,000

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Minimum subscription $ Maximum subscription $ amount proposed to be offered amount proposed to be offered to each individual security to each individual security holder holder AUD 2,500 AUD 30,000

Purpose of the issue

Funds will be used to develop and commercialise the Vali discovery, advance Metgasco¿s portfolio in the Cooper and Perth basins, and for general working capital

Offer price details for retail security holders

Issue Currency Offer Price per +security Estimated or Actual? Actual AUD - Australian Dollar AUD 0.02500

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? Yes

Provide the scale back details

Pro-rata scale back

Attaching +Security

Is the proposed attaching 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

Attaching +Security - Existing class (additional +securities in a class that is already quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ASX +Security Code and Description

MEL : ORDINARY FULLY PAID

Offer ratio (ratio of attaching securities at which the new +securities will be issued)

The quantity of attaching +securities For a given quantity of the to be issued new +securities issued 1 3

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What will be done with fractional Maximum Number of +securities entitlements? proposed to be issued Fractions rounded down to the nearest 26,666,666 whole number or fractions disregarded

Offer price details for retail security holders

Issue Currency Offer Price per +security AUD - Australian Dollar AUD 0.05000 Estimated or Actual? Estimated

Oversubscription & Scale back details

May a scale back be applied to this event? Yes

Provide the scale back details Pro-rota scale back

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

Part 4C - Timetable

4C.1 Date of announcement of +security purchase plan

Monday July 20, 2020

4C.2 +Record date

Friday July 17, 2020

4C.3 Date on which offer documents will be made available to investors

Friday July 24, 2020

4C.4 Offer open date

Monday July 27, 2020

4C.5 Offer closing date

Wednesday August 19, 2020

4C.6 Announcement of results

Monday August 24, 2020

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4C.7 +Issue date

Friday August 28, 2020

Part 4D - Listing Rule requirements

• 4D.1 Does the offer under the +securities purchase plan meet the requirements of listing rule 7.2 exception 5 that: the number of +securities to be issued is not greater than 30% of the number of fully paid +ordinary securities already on issue; and

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the issue price of the +securities is at least 80% of the +volume weighted average market price for +securities in that +class, calculated over the last 5 days on which sales in the +securities were recorded, either before the day on which the issue was announced or before the day on which the issue was made? Yes

Part 4E - Fees and expenses

4E.1 Will there be a lead manager or broker to the proposed offer? No 4E.2 Is the proposed offer to be underwritten? No

4E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

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

Part 4F - Further Information 4F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No 4F.2 Countries in which the entity has security holders who will not be eligible to accept the proposed offer United States, UK, Hong Kong and Singapore

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4F.3 URL on the entity's website where investors can download information about the proposed offer

http://www.metgasco.com.au/

4F.4 Any other information the entity wishes to provide about the proposed offer

No

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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? Yes

Details of +securities proposed to be issued

ASX +Security Code and Description

MEL : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

55,000,000

Purpose of the issue

Funds will be used to develop and commercialise the Vali discovery, advance Metgasco's portfolio in the Cooper and Perth basins, and for general working capital

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 0.02500

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	Proposed issue of securities
	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
Attaching +Security
	Is the proposed attaching 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
Attaching +Security - Existing class (additional +securities in a class		that is already quoted or recorded by ASX)
	Details of attaching +securities proposed to be issued
	ASX +Security Code and Description
	MEL : ORDINARY FULLY PAID
	Maximum Number of +securities proposed to be issued
	3,000,000
	Offer price details for retail security holders
	In what currency is the cash consideration being paid?	What is the issue price per +security?
	AUD - Australian Dollar
		AUD 0.05000
	Oversubscription & Scale back details
	May a scale back be applied to this event?
	No
	Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that
	class?
	Yes
Part	7C - Timetable

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7C.1 Proposed +issue date Tuesday July 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? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

58,000,000

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

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

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker? Blue Ocean Equities 7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker? 3% Management Fee 3% Selling Fee 7E.2 Is the proposed issue to be underwritten? No

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

The Company will be issuing to Blue Ocean Equities 3,000,000 equity options with a strike price of $0.05 and expiry of 30 September 2021

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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