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 Shareholder,

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 Resources 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 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.

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

You will receive a copy of the prospectus and (if eligible) an entitlement and acceptance form shortly.

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

Summary of key information	Summary of key information
Type of offer	Non-renounceable pro rata offer to eligible shareholders to acquire up to61,827,966 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 theRecord Date. Fractional entitlements will be rounded up.
Termsoffree-attaching options	Free-attaching options have an exercise price of $0.0325 (3.25 cents), expirydate of 31 August 2020 and will, upon exercise, entitle the holder to oneordinary fully paid share in the Company.
Shortfall participationrights	Eligible shareholders will have the opportunity to apply for Shortfall Shares.
Rankingofnewshares	New shares issued under the Rights Issue will be fully paid and will rankequally in all respects with the Company’s existing issued ordinary shares.
Eligible shareholders	In accordance with the ASX Listing Rule, the directors of the Company havedetermined the following shareholders will be eligible to participate in theRights Issue:-holders of shares on the Company’s register of shareholders at theRecord Date-who reside in Australia, New Zealand or Singapore.

Indicative Timetable

EventAnnouncement of Rights Issuelodgement of the following with ASX:Appendix 3B;Prospectus.EXdateRecordDateProspectus dispatched andRightsIssue opensClosingDateShares quoted ona deferred settlement basisQUR notifies ofundersubscriptionsIssue date and dispatchof holdings statements	31 October 201631 October 20163November 20164 November 20169November 201618November 201621 November 201623November 201625November 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 are eligible and wish to participate in the Rights Issue it will be necessary for you to complete your personalised entitlement and acceptance form which will accompany your copy of the prospectus and return it, with the appropriate application monies, to the Company’s share register before 5:00pm on the Closing Date.

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