MINERAL COMMODITIES LTD — Capital/Financing Update 2013

Sep 5, 2013

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Mineral Commodities Ltd

ABN 39 008 478 653

40 Murray Road North Welshpool WA 6106, Australia PO Box 235, Welshpool DC WA 6986, Australia Telephone: 61 8 6253 1100 Facsimile: 61 8 9258 3601 Email: info@mncom.com.au Web: www.mncom.com.au

4 September 2013

Dear Shareholder

**Mineral

Commodities Limited -­ non-­renounceable entitlement issue**

As announced on 4 September 2013, Mineral Commodities Limited (ACN 008 478 653) ( MRC ) is undertaking a 1 for 4 non-­‐renounceable entitlement issue ( Entitlement Issue or Offer ) of approximately 80,988,335 fully paid ordinary shares ( New Share ) to raise approximately $6,479,066. The price of New Shares under the Offer is $0.08 each ( Issue Price ). The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 4 September 2013.

The Offer is fully underwritten by Zurich Bay Holdings Pty Ltd (ACN 009 422 093) and Au Mining Limited, a company incorporated in the British Virgin Islands ( Underwriters ). The Company must pay each of the Underwriters an underwriting fee of $98,941.68. The Company must also reimburse the Underwriters for costs incidental to the Offer.

The purpose of the Offer is to raise up to $6,479,066.

The funds raised from the Offer are planned to be used in accordance with the table set out below:

	Item	Proceeds of the Offer	Full Subscription	%
			($6,479,066)
			($)
	1	Costs to complete construction of the	2,000,000	30.87%
		facilities at the Tormin Project
	2	Costs to complete commissioning of the	3,000,000	46.30%
		facilities at the Tormin Project
	3	Expenses of the Offer1	244,669	3.77%
	4	Working capital	1,234,397	19.06%
		Total	6,479,066	100%

Notes:

1. Refer to section 4.9 of the Prospectus for further details relating to the estimated expenses of the Offer.

2. As previously disclosed, the previous capital raising undertaken by the Company was sufficient to fund the construction of the plant for the Tormin Project. With the passage of time, funds were required for general working capital which has resulted in the need to replenish those funds so that construction can be completed.

The above table is a statement of current intentions as of the date of the Prospectus. As with any budget, intervening events (including the interference of weather or strikes, or the failure of

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Contractors) and new circumstances have the potential to affect the manner in which the funds are ultimately applied. The Board reserves the right to alter the way funds are applied on this basis.

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5pm (WST) on 13 September 2013, whose registered address is in Australia or New Zealand.

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company ( Shares ) already on issue.

Following completion of the Offer, the Company will have issued approximately 80,988,335 New Shares resulting in total Shares on issue of approximately 404,941,678.

Ineligible Shareholders

A Shareholder who has a registered address outside Australia and New Zealand ( Ineligible Shareholder ) will not be eligible to participate in the Offer.

You are not eligible to participate in the Offer and you will not be sent a copy of the Prospectus. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside of Australia and New Zealand compared with the small number of Ineligible Shareholders and the number and value of New Shares to which they would otherwise be entitled.

If you have any queries concerning the Entitlement Issue, please contact your financial adviser or Peter Torre, MRC’s Company Secretary, on +61 8 6253 1100.

Yours sincerely

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Peter Torre Company Secretary MINERAL COMMODITIES LIMITED

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