MINREX RESOURCES LIMITED — Capital/Financing Update 2016

Jun 7, 2016

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8 June 2016

Dear Shareholder

RE: Non-Renounceable Rights Issue of Shares

On 1 June 2016, MinRex announced a 3 for 4 non-renounceable Rights Issue of $0.06 per new share to raise $950,906 before costs. MinRex also announced a Private Placement of 2,756,250 fully paid ordinary shares at $0.06 each to sophisticated investors that raised $165,375.

Details of Rights Issue

The Offer is being made as a non-renounceable Rights Issue of three (3) New Shares for every four (4) Shares held by Shareholders registered at the Record Date of 5pm WST on 17 June 2016. Fractional entitlements will be rounded down to the nearest whole number. A Prospectus will be mailed to all shareholders residing in Australia and New Zealand on 21 June 2016.

Based on the capital structure of the Company, including the Private placement shares noted above, and assuming all Entitlements are accepted, a maximum of 15,848,438 new fully paid ordinary shares will be issued pursuant to this Offer to raise $950,906. The Company will apply to the ASX for quotation of the New Shares.

The Private Placement and Rights Issue will provide additional funding to support further exploration work at the Deflector Extended tenement in Western Australia and the Heemskirk tenement located in Tasmania.

The funds will also assist with due diligence, deal negotiation costs and shareholder & regulatory approvals required for new corporate opportunities, as well as additional working capital for ongoing costs together with the funding of this Offer.

Prospectus

The Company has lodged a Prospectus with the Australian Securities & Investments Commission and the Australian Securities Exchange on Thursday, 2 June 2016, which sets out the material information relating to the Rights Issue.

MinRex Resources Limited ACN 151 185 867 LinQ House Level 1, 17 Ord Street West Perth WA 6005 P: +61 8 9486 8806 F: +61 9321 3559

MinRex Resources Limited

Indicative Timetable

1 June 2016 Announcement of Rights Issue 2 June 2016 Lodgement of Prospectus with the ASIC / ASX and Appendix 3B lodged with ASX 3 June 2016 Notice sent to Optionholders 8 June 2016 Notice sent to shareholders notifying them of the Rights Issue 16 June 2016 Ex-date 17 June 2016 Record Date for determining Entitlements (5:00 pm WST) 21 June 2016 Prospectus dispatched to Shareholders and Company announces dispatch has been completed 21 June 2016 Opening Date 4 July 2016 Closing Date[1 ] (5:00 pm WST) 5 July 2016 Securities will be quoted on a deferred settlement basis 7 July 2016 ASX notified of under subscriptions 11 July 2016 Dispatch of holding statements, deferred settlement trading ceases & Appendix 3 lodged with the ASX Quotation of Shares issued under the Offer 12 July 2016

Note:

1 The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to ASX prior to the Closing Date. As such the date the New Shares are expected to commence trading on ASX may vary.

This timeline is indicative only and is subject to change. The Company reserves the right to vary the dates and times of the offer, subject to compliance with the Corporations Act and the Listing Rules. Should this occur, any extension will have a consequential effect on the anticipated date of issue of the New Shares.

If you require further information, please contact Simon Durack on +61 8 9486 8806 between the hours of 8.30am and 5.30pm WST.

Yours faithfully,

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Simon Durack Executive Director

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