Nova Minerals Ltd — Capital/Financing Update 2016

Oct 30, 2016

Quantum Resources Limited ABN 84 006 690 348

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Level 17, 500 Collins Street Melbourne, Victoria 3000, Australia T + 61 3 9614 0600 | F + 61 3 9614 0550

Monday, 31 October 2016

Dear Optionholder,

QUANTUM RESOURCES LIMITED – RIGHTS ISSUE

Quantum Resources Limited (ASX:QUR) ( Quantum or the Company ) announced to ASX on 31 October 2016 a non-renounceable pro rata offer to acquire 1 new fully paid ordinary share in Quantum for every 5 shares held as at 4 November 2016 ( Record Date ) at an offer price of $0.016 (1.6 cents) per share, each with 1 free-attaching unlisted option ( Rights Issue ) to raise approximately $989,247 (before costs of the Rights Issue).

Each free-attaching option will have an exercise price of $0.0325 (3.25 cents), expiry date of 31 August 2020 and will, upon exercise, entitle the holder to one ordinary fully paid share in the Company.

The ASX Listing Rules requires Quantum to provide you notification of your right to participate in the Rights Issue and of the Record Date.

Your options do not entitle you to participate in the Rights Issue. You are entitled to participate in the Rights Issue in respect of your options only if you exercise your options (in accordance with the terms of such options) and are entered into the Company’s share register as a shareholder on or before the Record Date.

The purpose of this letter is to give you notice prior to the Record Date that you may exercise your options should you wish to participate in the Rights Issue.

If you exercise your options and are entered in the Company’s share register as a shareholder on or before the Record Date, and have a registered address in Australia, New Zealand or Singapore, you will be sent a copy of the prospectus and an entitlement and acceptance form in respect of the Rights Issue.

Details of the Rights Issue are set out in the prospectus and Appendix 3B that has been lodged with ASX.

Shares not taken up by eligible shareholders will form part of the shortfall ( Shortfall Shares ). Eligible shareholders who take up their entitlement in full will be able to apply for Shortfall Shares.

The Company will use the proceeds of the Rights issue for the purposes set out in the prospectus lodged with ASX.

Summary of key information	Summary of key information
Type of offer	Non-renounceable pro rata offer to eligible shareholders to acquire up to 61,827,966 fully paid ordinary shares each with 1 free-attaching option.
Offer price	$0.016 (1.6 cents).
Offer ratio	1 new share under the Rights Issue for every 5 existing shares held as at the Record Date. Fractional entitlements will be rounded up.
Terms of free- attaching options	Free-attaching options have an exercise price of $0.0325 (3.25 cents), expiry date of 31 August 2020 and will, upon exercise, entitle the holder to one ordinary fully paid share in the Company.
Shortfall participation rights	Eligible shareholders will have the opportunity to apply for Shortfall Shares
Ranking of new shares	New shares issued under the Rights Issue will be fully paid and will rank equallyinall respectswiththe Company’s existingissued ordinary shares.

Eligible shareholders	In accordance with the ASX Listing Rule, the directors of the Company have determined the following shareholders will be eligible to participate in the Rights Issue: - holders of shares on the Company’s register of shareholders at the Record Date - who reside in Australia, New Zealand or Singapore.

Indicative Timetable

Event
Announcement of Rights Issue	31 October 2016
lodgement of the following with ASX:  Appendix 3B;  Prospectus.	31 October 2016
EX date	3 November 2016
Record Date	4 November 2016
Prospectus dispatched and Rights Issue opens	9 November 2016
ClosingDate	18 November 2016
Sharesquoted on a deferred settlement basis	21 November 2016
QUR notifies of undersubscriptions	23 November 2016
Issue date and dispatch of holdings statements	25 November 2016

The dates contained in the indicative timetable are subject to change. Subject to compliance with the ASX Listing Rules, Quantum reserves the right to:

• (i) not proceed with the Rights Issue and return any application moneys received without interest; or

(ii) vary the dates and times above including close the offer under the Rights Issue earlier or later.

If you have any questions in relation to the Rights Issue, please do not hesitate to contact the Company on +61 3 9614 0600.

Yours sincerely,

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Adrien Wing Company Secretary