PATERSON RESOURCES LTD — Capital/Financing Update 2020

Sep 13, 2020

Proposed issue of securities

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Announcement Summary

Entity name

PATERSON RESOURCES LTD

Announcement Type

New announcement

Date of this announcement

Monday September 14, 2020

The Proposed issue is:

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An offer of securities under a securities purchase plan

Total number of +securities proposed to be issued for an offer of securities under a securities purchase plan

Maximum Number of ASX +security code +Security description +securities to be issued PSL ORDINARY FULLY PAID 428,571,429

+Record date

Friday September 11, 2020

Offer closing date

Friday October 9, 2020

+Issue date

Tuesday October 20, 2020

Refer to next page for full details of the announcement

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

PATERSON RESOURCES LTD

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ABN 45115593005

1.3 ASX issuer code

PSL

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Monday September 14, 2020

1.6 The Proposed issue is:

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An offer of +securities under a +securities purchase plan

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Part 4 - Details of proposed offer under securities purchase plan

Part 4A - Conditions

4A.1 - Are any of the following approvals required for the offer of +securities under the +securities purchase plan issue to be unconditional? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes

4A.1a Conditions

Approval/Condition	Date for determination	Is the date estimated or	** Approval
+Security holder approval	Tuesday December 15,	actual?	received/condition met?
	2020	Estimated	No

Comments

The free attaching options to the SPP shares will be subject to shareholder approval

Part 4B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description

PSL : ORDINARY FULLY PAID

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +security code and description

PSL : ORDINARY FULLY PAID

Maximum total number of those +securities that could be issued if all offers under the +securities purchase plan are accepted 428,571,429

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Will the offer be conditional on applications for a minimum
number of +securities being received or a minimum amount
being raised (i.e. a minimum subscription condition)?
No
Will the offer be conditional on applications for a maximum
number of +securities being received or a maximum amount
being raised (i.e. a maximum subscription condition)?
No
Will individual security holders be required to accept the offer for
a minimum number or value of +securities (i.e. a minimum
acceptance condition)?
Yes
Is the minimum acceptance unit based or dollar based?
Dollar based ($)
Please enter the minimum acceptance value
$ 2,000
Will individual security holders be limited to accepting the offer
for a maximum number or value of +securities (i.e. a maximum
acceptance condition)?
Yes
Is the maximum acceptance unit based or dollar based?
Dollar based ($)
Please enter the maximum acceptance value
$ 30,000
Describe all the applicable parcels available for this offer in number of securities or dollar value $2,000, $5,000, $10,000, $15,000, $30,000
Offer price details
Has the offer price been determined?
Yes
In what currency will the offer What is the offer price per
be made? +security?
AUD - Australian Dollar AUD 0.00350
Oversubscription & Scale back details
Will a scale back be applied if the offer is over-subscribed?
Yes
Describe the scale back arrangements Applicants will be scaled back equally on a pro-rata basis
Will these +securities rank equally in all respects from their issue date with the existing issued
+securities in that class?
Yes

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Attaching +Security

The proposed attaching security can only be of an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)

Part 4C - Timetable

4C.1 Date of announcement of +security purchase plan

Monday September 14, 2020

4C.2 +Record date

Friday September 11, 2020

4C.3 Date on which offer documents will be made available to investors

Friday September 18, 2020

4C.4 Offer open date

Tuesday September 22, 2020

4C.5 Offer closing date

Friday October 9, 2020

4C.6 Announcement of results

Wednesday October 14, 2020

4C.7 +Issue date

Tuesday October 20, 2020

Part 4D - Listing Rule requirements

4D.1 Does the offer under the +securities purchase plan meet all of the requirements of listing rule 7.2 exception 5 or do you have a waiver from those requirements?

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Yes

Part 4E - Fees and expenses

4E.1 Will there be a lead manager or broker to the proposed offer? No

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4E.2 Is the proposed offer to be underwritten? No

4E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

4E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer n/a

Part 4F - Further Information

4F.01 The purpose(s) for which the entity intends to use the cash raised by the proposed issue

The funds will be used for the Company's exploration activities on its existing projects (refer to announcement lodged with ASX on 14 September 2020 for full details), for costs of the offers and working capital.

4F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No

4F.2 Countries in which the entity has +security holders who will not be eligible to accept the proposed offer

All countries except for Australia, New Zealand and the UK

4F.3 URL on the entity's website where investors can download information about the proposed offer

The Prospectus for the SPP will be lodged on or around 18 September 2020

4F.4 Any other information the entity wishes to provide about the proposed offer

There will be a 1:1 free attaching listed option issued with the SPP shares (subject to shareholder approval to be sought at the AGM in December)

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