POLARX LIMITED — Capital/Financing Update 2019

Jul 1, 2019

2 July 2019

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Rights Issue raises $3.4m from eligible subscribers

PolarX Limited (ASX: PXX; the Company or PolarX ) advises that it has raised a total of $3.4m from eligible subscribers in the non‐renounceable rights issue ( Entitlement Offer ) which closed on 27 June 2019 ( Closing Date ). This amount complements the recent $4.3m placement to Lundin Mining Corporation announced in June 2019. With treasury now exceeding $7.5m, PolarX is fully funded for its exploration programs to include drilling planned at its Saturn, Zackly and potentially Mars prospects.

The Entitlement Offer was undertaken on the basis of one (1) share ( New Share ) for every seven (7) existing shares held by eligible shareholders registered at 5:00pm (WST) on the record date (13 June 2019) at an issue price of $0.08 per New Share. The Company has to date received applications for entitlements totalling 30,557,307 New Shares (representing $2,444,585 in subscription funds) from eligible shareholders. In addition, the Company intends to issue a further 11,837,600 New Shares (representing an additional $947,008 in subscription funds) under the Shortfall Offer as a result of applications for additional New Shares received from eligible shareholders ( Additional New Shares ).

Pursuant to the ASX Listing Rules, the Company gives notice of an estimated shortfall in subscriptions of 10,849,390 New Shares ( Shortfall Shares ). These amounts are subject to the final reconciliation of applications and proceeds received.

The following table sets out the number of New Shares for which entitlement applications were received, the number of Additional New Shares to be issued to eligible shareholders and the resultant number of Shortfall Shares.

	Number of New	Gross Proceeds
	Shares
Total number of New Shares available under the	53,244,297	$4,259,544
Entitlement Offer
New Shares to be issued under the Entitlement	30,557,307	$2,444,585
Offer
Additional New Shares to be issued under the	11,837,600	$947,008
Shortfall Offer
Estimated Remaining Shortfall Shares*	10,849,390	$867,951

*Calculated by subtracting New Shares to be issued under the Entitlement Offer and Shortfall Offer from total Entitlements

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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As per the Company’s announcement of 26 June 2019, the Company has the right to place any of all of the remaining Shortfall Shares within three months following the Closing Date (i.e. by 27 September 2019) on the same terms as the Entitlement Offer and may be extended to investors in addition to eligible shareholders.

The New Shares to be issued pursuant to the Entitlement Offer are expected to be issued by the Company on or about 4 July 2019.

For further information please contact:

Ian Cunningham Company Secretary +61 8 9226 1356

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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