ORPHEUS URANIUM LIMITED — Capital/Financing Update 2023

Jul 2, 2023

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ASX Announcement

3 July 2023

Capital Re-Organisation and Funding

The directors of Argonaut Resources NL ( Argonaut” or the “Company” ) (ASX:ARE) are pleased to announce a Placement for the issue of approximately 954.3 million new fully paid ordinary shares (“Securities”) at an issue price of $0.0005 per share (“Offer Price”) to sophisticated and professional investors (“Placement”). The Placement raised ~$477,000 (before costs).

The Company also announces its intention to seek shareholder approval for a consolidation of capital, resulting in one share held for each 100-pre-consolidation shares held (“Consolidation”).

Following the Consolidation, the Company intends to conduct a fully underwritten entitlement offer, at the same effective Offer Price as the Placement on a post consolidation basis of $0.05 per share. The Entitlement Offer will be offered on a one (1) for one (1) basis, to raise a further ~$3.65 million before costs associated with the issue (“Entitlement Offer”, together with the Placement the “Offer”).

Taylor Collison Limited (“Taylor Collison”), the Lead Manager for the Offer (“Lead Manager”), has advised the Company that it has obtained firm sub-underwriting commitments totalling~$3.65 million, representing the total amount to be raised under the Entitlement Offer. Subject to the negotiation of commercial terms, the Company intends to enter into an underwriting agreement with Taylor Collison on or before the issue of the offer booklet in respect of the Entitlement Offer. The Company will update the market in relation to proposed underwriting arrangements once they are finalised.

The Company plans to call a general meeting, to be held on or around Monday, 7th August 2023, to seek approval for the Consolidation. The Notice of Meeting and associated documents are being prepared and shall be distributed to shareholders in due course. The Entitlement Offer will launch as soon as practicable following obtaining shareholder approval to conduct the Consolidation.

Following review of exploration strategy and projects by the board of Argonaut, the Company has elected to shift its strategic direction to focus principally on its Australian uranium assets. Funds raised from the Offer will be directed towards uranium exploration, general working capital and the costs of the Offer.

Securities under the Placement are currently scheduled for allotment on Friday, 7 July 2023. Once allotted, these Securities will rank equally with existing fully paid ordinary shares. This issue of Securities utilises the Company’s available placement capacity under ASX Listing Rules 7.1 (954,280,691 ordinary shares). The Placement was conducted at an issue price of $0.0005 per share, representing a discount of 50% to Argonaut’s last traded price of $0.001 per share on 28 June 2023.

The Company directors also advise that they continue to work to secure a replacement for Managing Director, Lindsay Owler, who announced his resignation on 2 May 2023.

Authorised for release by the Board of Argonaut Resources NL

Registered Office Level 6 100 Pirie Street Adelaide, SA, 5000 Australia T +61 8 8231 0381 E info@argonaut.com.au

Argonaut Resources NL ABN 97 008 084 848