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ORA BANDA MINING LTD Capital/Financing Update 2016

Oct 9, 2016

65475_rns_2016-10-09_f31f35f1-1e46-4344-a062-0a1989fc1bc3.pdf

Capital/Financing Update

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10 October 2016

ASX ANNOUNCEMENT

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Update on Windward Resources Subscription Agreement

Eastern Goldfields Limited (ASX: EGS) ( Eastern Goldfields or the Company ) hereby advises that it has given a notice of withdrawal ( Notice ) to Windward Resources Limited ( WIN ), releasing it from its obligation to hold a meeting of its shareholders to approve the subscription for shares in WIN in accordance with the Subscription Agreement between the Company and WIN dated 7 September 2016, details of which were announced to ASX on 8 September 2016.

On 5 October 2016 WIN announced that it had entered into a Bid Implementation Agreement with Independence Group Limited ( IGO ) recommending a takeover offer by IGO for all the issued shares in WIN ( Takeover Agreement ).

BOARD OF DIRECTORS

Mr Michael Fotios Executive Chairman

Mr Craig Readhead Non‐Executive Director

Mr Alan Still Non‐Executive Director

Ms Shannon Coates Company Secretary

After considering its position in light of the Takeover Agreement, the Company gave the Notice to WIN having determined that it was unlikely that WIN shareholders would approve the Subscription Agreement.

Eastern Goldfields remains focused on creating value for shareholders and is highly encouraged by the significant ongoing exploration success at the Company’s flagship Davyhurst Project.

Investor and media enquiries

Michael Fotios

ISSUED CAPITAL

Shares: 489m Options: 50.2m Current Share Price: $0.37 Market Capitalisation: $181m Cash as at 30/6/2016: $15.5m

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Executive Chairman T: +61 8 6241 1888 E:[email protected]

Jon Snowball FTI Consulting T: +61 477 946 068 E: [email protected]

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