ORA BANDA MINING LTD — Capital/Financing Update 2016

Mar 22, 2016

ASX ANNOUNCEMENT

23 MARCH 2016

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ADDITIONAL $2.5 MILLION PLACEMENT AND EXTENSION TO CLEANSING OFFER

Eastern Goldfields Limited ( Company ) (ASX:EGS) refers to its recently closed oversubscribed capital raising pursuant to the prospectus dated 24 December 2015 (as supplemented) ( Prospectus ) which closed on 29 February 2016 raising $25 million before costs.

The Company is pleased to announce that as a result of the strong demand received under the capital raising and as foreshadowed in the ASX announcement of 29 February 2016, the Directors have resolved to place up to an additional 16,666,667 shares at an issue price of $0.15 per Share to raise a further $2.5 million (before costs) ( Additional Placement ).

The Additional Placement shares will be issued to professional and sophisticated investors pursuant to section 708 of the Corporations Act and will utilise the Company’s current placement capacity under Listing Rule 7.1.

Settlement of the Additional Placement is expected to occur on 31 March 2016 and the new shares are expected to be allotted and begin trading on 1 April 2016.

Funds raised pursuant to the Additional Placement will be applied towards reserve definition drilling, plant refurbishment and general working capital.

The Company refers to the Cleansing Offer contained in the Prospectus and notes that the close of the Cleansing Offer has been extended to 5pm WST on 2 April 2016.

END

Michael Fotios Executive Chairman T: +61 8 6241 1888 E: michael@deltaman.com.au

Michael Jardine General Manager Corporate & Investor Relations T: +61 424 615047 E: michael.jardine@deltaman.com.au

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