PRAIRIE LITHIUM LIMITED — M&A Activity 2018

Jun 14, 2018

ASX ANNOUNCEMENT ASX:HWK

15 June 2018

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ACQUISITION OF USA LITHIUM AND SHAREHOLDER MEETING NOT TO PROCEED

Hawkstone Mining Limited (ASX:HWK) ( Hawkstone , the Company ) advises that the acquisition of USA Lithium Limited ( USA Lithium ) will not proceed and the Company and USA Lithium have mutually elected to terminate the acquisition agreement.

Details of the proposed acquisition were announced on 22 March 2018, with completion being subject to various conditions including Hawkstone shareholder approval.

The Company announced on 7 June 2018 that it was in discussions with USA Lithium and its majority vendors which were likely to result in amendments to the acquisition agreement with the intention that amendments would likely de-risk the proposed acquisition for the benefit of all shareholders. However, the parties have not been able to reach agreement and the Company and USA Lithium have now mutually agreed to terminate the acquisition agreement. USA Lithium has agreed to procure that its subsidiaries and the majority vendors who are parties to the acquisition agreement execute a termination deed.

Hawkstone will retain its interest in the Kangwane South anthracite project in South Africa and will continue to pursue a strategy to identify opportunities to create shareholder value.

Shareholder Meeting cancelled

On 7 June 2018 the Company announced that the shareholder meeting to consider the proposed acquisition of USA Lithium was adjourned to 10.00am on Thursday, 28 June 2018.

As all the resolutions to be considered at the meeting are interconditional, the Company advises the meeting has been cancelled and this announcement serves as notice to the Company's shareholders of the cancellation.

The Company is not aware of any reason why the ASX would not allow trading in the Company’s securities to recommence immediately.

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For further information, please contact:

Hawkstone - +61 8 6143 6705