ORA BANDA MINING LTD — Capital/Financing Update 2021

Feb 11, 2021

ASX Announcement (ASX: OBM)

12 February 2021

Commonwealth Bank to Provide Hedging and Working Capital Facilities

HIGHLIGHTS:

• Ø Credit approved offer of $15 million signed with Commonwealth Bank of Australia for hedging and working capital

• Ø The facilities provide Ora Banda with prudent risk and capital management capability during ramp up to full production at the Davyhurst Gold Project

Ora Banda Mining Limited (ASX: OBM) (“Ora Banda”, “Company”) is pleased to announce that it has signed a credit approved offer of $15 million with the Commonwealth Bank for hedging and working capital purposes (“ Facilities ”). The Facilities will support prudent risk and capital management during the ramp up phase, subsequent to the first gold pour at Davyhurst which occurred on 7 February 2021 ( refer ASX announcement dated 8 February 2021 ).

The offer has two components:

• $5 million for the purchase of put options; and

• $10 million for development expenditure and general working capital.

Maturity date is the earlier of 12 months from financial close or 28 February 2022, with repayment via a bullet payment.

The hedging facility enables management to undertake discretionary gold hedging. A minimum hedge requirement of 20% of forecast gold production for an 11-month period applies where the working capital facility is drawn.

The working capital and hedging facilities are both subject to the execution of formal documentation and conditions precedent customary for a financing of this nature.

Managing Director Comment

Ora Banda Managing Director, David Quinlivan, said:

“As was foreshadowed in the Definitive Feasibility Study announced in June 2020, the Company sees the addition of these credit facilities as a prudent step in the management of risk and working capital.

We see this as a significant step given the Company’s recent transition from developer to a producer with significant exploration upside.

We are pleased to have the support of Australia’s largest bank, the Commonwealth Bank, as the Company ramps up production.”

This announcement was authorised for release to ASX by David Quinlivan, Managing Director. For further information about Ora Banda Mining Ltd and its projects please visit the Company’s website at www.orabandamining.com.au.

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Investor & Media Queries: David Quinlivan Managing Director +61 8 6365 4548 admin@orabandamining.com.au

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