POLARX LIMITED — Capital/Financing Update 2021

Feb 9, 2021

10 February 2021

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$5 Million Placement to Advance Alaska Copper-Gold and Nevada Gold-Silver Projects

Key Points

• PolarX has received firm commitments to raise $5M before costs via a well-supported Share Placement at an issue price of 4 cents per share.

• The Share Placement closed within 24 hours of opening and was strongly supported by existing Australian and overseas shareholders.

• Funds raised under the Share Placement will be used to advance the Company’s projects in the USA, specifically to:

  • Complete due diligence and follow-up field work in Nevada to advance the Humboldt Range gold-silver project to drill-ready status by the end of Q3;

  • Conduct Technical studies (metallurgical test work at Zackly, and a subsequent scoping study) and;

  • Carry out advanced exploration drilling in Alaska.

PolarX Limited (ASX: PXX) (‘ PolarX ’ or the ‘ Company’ ) is pleased to advise that it has accepted firm commitments from sophisticated and professional investors to subscribe for 125 million shares at an issue price of $0.04 per share to raise $5 million before costs ( Placement ).

The net proceeds of the Placement will primarily be used to fund the initial exploration program at the Humboldt Range Gold-Silver Project in Nevada and for further exploration and technical studies at the Company’s Alaska Range Project.

Managing Director, Dr. Frazer Tabeart said “ We are delighted with the response to our capital raising, particularly the strong support from our existing shareholders, and we welcome the new shareholders to our register. These funds allow us to commence our exploration programs in Nevada and Alaska with a high degree of confidence, and we look forward to providing progress updates.”

The proposed use of proceeds from the Placement is set out in Table 1 below:

Table 1 Use of Proceeds	Amount ($’000)
Geological mapping, sampling and IP – Humboldt Range	1,000
Metallurgical studies – Alaska Range Project	200
Exploration and resource drilling	2,700
Scoping study – Alaska Range Project	300
Working capital and issue expenses	800
Total	5,000

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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Planned Exploration Work Program

Humboldt Range Project

The proposed program on the Humboldt Range Project comprises:

• Completion of due diligence and exercise option to acquire a Mine Lease Agreement.

• Geological mapping and channel sampling to delineate and evaluate zones of intense quartz veining and alteration (silicification) and assess bonanza vein potential and bulk mineable potential. This work will commence in April 2021.

• Ground geophysics (IP) to help map out zones of silicification (resistive zones) with bulk mining potential.

The program is aimed at generating drill ready targets by the end of Q3 2021 .

Alaska Range Project

The proposed program on the Alaska Range Project comprises:

• Metallurgical test work program in Q1/Q2 2021 to evaluate processing options for the Zackly gold-copper-silver mineralisation and the potential for co-processing with Caribou Dome copper mineralisation.

• An initial scoping study is being considered for commencement in Q3 2021 to evaluate combined mining and processing of Zackly East, Caribou Dome and Zackly Main mineralisation to help determine minimum resource size required for a viable project and whether Caribou Dome can be mined on a campaign basis and processed at Zackly.

• Drilling program in Alaska in Q2/Q3 2021:

  • Test the depth and northern down-plunge potential at Zackly Main;

  • Drill the ~500m long untested magnetic structure between previous high-grade drill intersections in holes ZX18025 (15m@ 2.2g/t Au + 2.3% Cu) and ZX18024 (47m @ 3.1g/t Au + 0.6% Cu);

  • Evaluate over 2.6km of untested strike-length at Zackly East, and

  • Deepen the discovery hole at Mars which intersected 102m @0.22% Cu and 0.1g/t Au and which ended prematurely in porphyry style mineralisation.

Placement

The Placement is being undertaken within the Company’s existing capacity under ASX Listing Rules 7.1 (71,005,822) and 7.1A (53,994,178 shares). The Placement is expected to settle on or around Wednesday, 17 February 2021.

Viriathus Capital acted as Sole Lead Manager to the Placement and were assisted by Fresh Equities as Lead Arranger. The Board would like to thank Viriathus, Fresh Equities and Aetas Global Management that provided cornerstone support in the offer.

The Company is pleased by the interest received in the Placement, demonstrating the strong support from existing and new shareholders for ongoing exploration and pre-development activities at the Alaska Range Project and the new, highly prospective Humboldt Range Project.

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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Authorised for release by Dr. Frazer Tabeart, Managing Director.

For further information contact Peter Nesveda, International Investor Relations and Corporate Affairs on +61 412 357 375 or contact the Company directly on +61 8 6465 5500

Media

For further information, please contact: Paul Armstrong Read Corporate +61 8 9388 1474

ADDITIONAL DISCLOSURE

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 announcement relating to Exploration results is based on information compiled by Dr Jason Berton (an employee and shareholder of PolarX Limited), who is a member of The Australasian Institute of Mining and Metallurgy. Dr Berton 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 Berton consents to the inclusion of the data in the form and context in which it appears.

There is information in this announcement relating to exploration results which were previously announced on 5 November 2018, 12 November 2018, 29 January 2019, 25 March 2019, 5 August 2019, 1 October 2019, 21 October 2019, 19 November 2019, 20 January 2020, 19 May 2020, 14 September 2020, 9 October 2020, 17 December 2020 and 11 January, 2 February, and 4 February 2021.

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.

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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