MINDAX LIMITED — Capital/Financing Update 2011

Jun 30, 2011

PRINCIPAL OFFICE

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Level 2, 25 Richardson Street, West Perth Western Australia PO Box 92, West Perth, WA, 6872 Telephone 08 9485 2600 Facsimile 08 9485 2500 Website www.mindax.com.au

ABN 28 106 866 442

1 July 2011

Company Announcements Platform ASX Limited

Via Electronic Lodgement

Dear Sir/ Madam

ENTITLEMENTS ISSUE – NOTIFICATION TO OPTIONHOLDERS

Please find following a notification letter to existing optionholders advising them of the material terms of the recently announced pro-rata renounceable entitlements issue (“offer”) and the need to exercise their options by the record date in order to participate in the offer.

The Company‟s share registry will attach the relevant „Option Exercise Notice‟ to each letter upon despatch.

Yours sincerely

Angelo Francesca Company Secretary

PRINCIPAL OFFICE

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Level 2, 25 Richardson Street, West Perth Western Australia PO Box 92, West Perth, WA, 6872 Telephone 08 9485 2600 Facsimile 08 9485 2500 Website www.mindax.com.au

ABN 28 106 866 442

1 July 2011

[Optionholder details] Optionholder address]

Dear Optionholder

RENOUNCEABLE ENTITLEMENTS ISSUE

On 30 June 2011 Mindax Limited (“Mindax” or “the Company”) announced details of a pro-rata renounceable entitlements issue (“Rights Issue”) to eligible shareholders on the basis of one (1) new share (“New Share”) for every five (5) shares held on the record date of 18 July 2011 (“ Record Date ”) at an issue price of 25 cents per New Share, together with one (1) free attaching new „piggyback‟ option (“New Option”) for every New Share issued. The Rights Issue is partially underwritten by Patersons Securities Limited (“Underwriter”) to the extent of $4.75 million and will seek to raise gross proceeds of approximately $7,575,000 (assuming no existing options presently on issue are exercised prior to the Record Date).

The New Shares will rank equally in all respect from the date of allotment with the existing class of quoted ordinary shares. The New Options will represent a new class of options and will comprise a primary option with an exercise price of 30 cents each that will be exercisable during April 2012, expiring on 30 April 2012. The New Option is exercisable into one (1) ordinary share and a secondary option with an exercise price of 35 cents and an expiry date of 31 May 2015.

The Rights Issue has been resolved under the Company's capital management strategy and will seek to raise funds principally to progress exploration and development of the Company‟s Mt Forrest Iron Ore Project in Western Australia. Your Directors consider that the potential funding offered by the Rights Issue is a prudent capital raising mechanism and in the best interests of the Company. Under the terms of the options that you currently hold, to be eligible to participate in the Rights Issue, you will need to exercise your existing options and ensure you are registered as a shareholder by 5.00pm WST on the Record Date. To facilitate the exercise of your options, please find at the back of this letter an „application for shares upon exercise notice‟ (“Option Exercise Notice”). Please ensure the Option Exercise Notice, accompanied by a cheque for the exercise monies, is completed and returned in sufficient time for the Company to issue the shares on or prior to the Record Date.

It should be noted that the exercise of your options is not compulsory. However, failure to exercise your options before the Record Date will result in you not being eligible for participation in the proposed Rights Issue.

Should you have any further queries please do not hesitate to contact the undersigned or alternatively, the Company Secretary, Mr Angelo Francesca on (61 8) 9486 2333.

Yours sincerely

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Gregory J Bromley Managing Director