POLARX LIMITED — Capital/Financing Update 2018

May 9, 2018

10 May 2018

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Resource extension drilling to commence at Zackly

$2.5M capital raising to immediately drill

resource extensions at the high‐grade Zackly Cu‐Au‐Ag deposit

HIGHLIGHTS

• Approximately AUD $2.5m being raised from the issue of ~24m new shares at a price of 10.5 cents per share.

• The raising was supported by existing major shareholders in London, Hong Kong and Singapore, and several new investors from New York, Singapore, Perth and London.

• The funds will be used to undertake a program of resource extension drilling at the Zackly Cu‐Au‐ Ag skarn deposit in the Alaska Range Project.

• Drilling is scheduled to commence in June.

CAPITAL RAISING

PolarX Limited (the Company ) requested a voluntary suspension on 2 May 2018 pending the release of an announcement regarding a capital raising. The Company has to date received commitments to subscribe for approximately 24 million shares at a price of AUD $0.105 to raise approximately AUD $2.5 million ( Placement ) and is being undertaken within the Company’s existing capacity under ASX Listing Rule 7.1.

Settlement of the Placement is expected to take place on or around 15 May 2018. The net proceeds will be used for exploration and development activities on the Alaska Range Project, including resource extension drilling at Zackly, and for general working capital.

Aetas Global Markets Limited acted as lead manager and global bookrunner to the Placement. Amvest Capital Inc. (acting through Mann Mann Jensen Partners LP) acted as North American co‐manager.

RESOURCE EXTENSION DRILLING COMMENCING AT ZACKLY

In March 2018, the Company announced a maiden JORC Inferred Resource for the Zackly deposit at its Alaska Range Project which already comprises 3.4Mt @ 1.2% Cu, 2.0g/t Au and 14g/t Ag . This complements PolarX’s JORC initially defined 2.8Mt @ 3.1% Cu* at the nearby Caribou Dome deposit which similarly remains open in all directions (refer to Figure 1 for location).

The initial inferred resource at Zackly has a strike length of approximately 1,050m and remains open along‐strike and down‐dip. Additonal diamond drilling has been planned to define potential extensions to the mineralisation below the known inferred resource, and along strike to the south‐east (Figure 2). Preparations are now well advanced with drilling scheduled to commence soon in June 2018.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

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In addition to increasing the size of the resource at Zackly, PolarX aims to provide vectors towards the source porphyry intrusive centre which provided the mineralised fluids which formed the Zackly Cu‐Au‐Ag mineralisation.

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Figure 1 Location map showing main deposits and prospects at the Alaska Range Project, with regional copper geochemistry in soil sampling draped on digital elevation.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

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Figure 2. Oblique view of Zackly long‐section showing existing resource block model for the Zackly Inferred Resource (colour coded on the basis of copper grade), and planned new drilling to extend the resource at depth and along strike.

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Figure 3. Drill hole location map for Zackly, showing holes drilled by PolarX in 2017, previously drilled (historical) core and percussion drill holes, and surface trace of the inferred resource which remans open along‐strike and down‐dip.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

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Figure 4. Drill section 514,680mE showing location of mineralisation and resource envelope at the faulted contact between skarn and limestone, and showing that mineralisation remains open at depth.

For and on behalf of the Board.

For further information, please contact the Company directly on +61 8 6465 5500

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

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CAUTIONARY STATEMENTS

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code.

Information in this report relating to Exploration results is based on information compiled by Dr Frazer Tabeart (an employee and shareholder of PolarX Limited), who is a member of The Australian Institute of Geoscientists. Dr Tabeart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources for the Zackly Deposit is based on information compiled by Mr Lauritz Barnes (a consultant to and shareholder of PolarX Limited) and Dr Frazer Tabeart (an employee and shareholder of PolarX Limited). Both Mr Barnes and Dr Tabeart are members of The Australian Institute of Geoscientists. Mr Barnes and Dr Tabeart have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity undertaken to qualify as Competent Persons as defined in the JORC Code. Mr Barnes and Dr Tabeart consent to the inclusion in the announcement of the matters based on the information in the form and context in which it appears .

There is information in this announcement relating to:

• (i) exploration results which were previously announced on 7 February and 20 March 2018;

• (ii) the Mineral Resource Estimate for the Caribou Dome Deposit (Alaska Range Project), which was previously announced on 5 April 2017; and

(iii) the Mineral Resource Estimate for the Zackly Deposit (Alaska Range Project), which was previously announced on 20 March 2018.

Other than as disclosed in those announcements, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and that all material assumptions and technical parameters have not materially changed. The Company also confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

*As detailed in the announcement of 5 April 2017, the Mineral Resource Estimate for the Caribou Dome Deposit includes Measured (569kt @ 3.6% Cu), Indicated (593kt@ 2.2% Cu) and Inferred (1.634Mt @ 3.2% Cu) resource categories.

Forward Looking Statements:

Any forward‐looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, PolarX does not intend, and does not assume any obligation, to update this forward‐looking information. Any forward‐looking information contained in this news release is based on numerous assumptions and is subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward‐looking information. Readers are cautioned not to place undue reliance on forward‐looking information due to the inherent uncertainty thereof.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

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10 May 2018

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Company Overview

PolarX is an advanced ASX‐listed mineral explorer and developer (ASX: PXX). The recently formed PolarX brings together exciting Alaskan assets the “ Alaska Range Project ”, covering 241km[2 ] of State Mining Claims. High‐Grade existing resources and numerous large unexplored advanced targets are within this impressive 35km mineralised belt now under PolarX’s control.

IMPRESSIVE HIGH‐GRADES

Current Copper and Copper equivalent grades of 4% and 5.5% respectively compare favourably with some of the world’s highest grade operating mines. This allows an initially small‐scale highly profitable development. One of the Company’s greatest advantages is the high‐ grade nature of its deposits. The JORC resource grade at Caribou Dome is 3.1% Cu and the JORC resource grade at Zackly is 1.2% Cu and 2.0 g/t Au. Both the Zackly and Caribou‐Dome deposits remain open in all directions. No targets outside the existing resources have ever been drill‐tested to date.

Exploration and development programs are designed to initially bring the 100% owned Zackly Deposit and 80% controlled Caribou‐Dome Deposit into early production whilst much larger new targets such as Senator (90%) and Mars (100%), are tested and if successful, advanced to resource/reserve status.

Both existing deposits are expected to progress to feasibility assessment in the near future whilst they continue to rapidly expand. Early environmental baseline surveys are underway and specialists have been engaged to assist in the future mine permitting process.

MASSIVE UPSIDE

Early soil sampling demonstrates almost the ENTIRE 35km belt is mineralised with Copper, Gold and Silver from surface in various geological forms.

PROVEN MANAGEMENT

PolarX has consolidated this entire region and has assembled an accomplished technical and commercial team in Australia with a proven record of delivering projects into production and a well‐established technical and operational team in Alaska, USA. Shareholders, Mitchell River Group in Perth and Millrock Resources Inc. in Alaska each provide technical and on‐ ground operational assistance as required.

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	Tonnes (Mt)	Continaed Cu (t)	Contained Au (ox)
ZACKLY	3.4	41,200	213,000
CARIBOU DOME	3.1	85,800	‐
	TOTAL	127,000	213,000

REGIONAL CONTROL

For the first time, PolarX’s integration will allow fully integrated regional exploration and development of the consolidated Alaska Range Project. It immediately combines existing substantial high‐grade resources and provides exploration upside potential in one of the world’s best mining regions with road access and excellent nearby infrastructure.

Alaska already hosts many of the world’s largest and highest grade gold and copper mines with similar geology to PolarX’s package. Members of the team have operated in Alaska for over 20 years and have been directly involved in 2 of more recent large discoveries at Pebble and at Donlin Creek.

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PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au

Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

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