Prairie Mining Ltd. — Capital/Financing Update 2020

Jul 20, 2020

Proposed issue of securities

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Announcement Summary

Entity name

PRAIRIE MINING LIMITED

Announcement Type

New announcement

Date of this announcement

Tuesday July 21, 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 PDZ ORDINARY FULLY PAID 16,000,000

+Record date

Monday July 20, 2020

Offer closing date

Friday August 14, 2020

+Issue date

Friday August 21, 2020

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

PRAIRIE MINING LIMITED

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 23008677852

1.3 ASX issuer code

PDZ

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Tuesday July 21, 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 No

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

PDZ : ORDINARY FULLY PAID Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +Security Code and Description

PDZ : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued 16,000,000

Minimum Number of +securities Maximum Number of proposed to be offered to each +securities proposed to be individual +security holder offered to each individual +security holder 8,000 120,000

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Minimum subscription $ Maximum subscription $ amount proposed to be offered amount proposed to be offered to each individual security to each individual security holder holder AUD 2,000 AUD 30,000

Purpose of the issue

For working capital and business development opportunities

Offer price details for retail security holders

Issue Currency Offer Price per +security Estimated or Actual? Actual AUD - Australian Dollar AUD 0.25000

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? Yes

Provide the scale back details

In its absolute and sole discretion, the Company reserves the right to accept oversubscriptions (subject to compliance with ASX Listing Rules and the Corporations Act) and issue more New Shares than initially announced. The Company also reserves the right to close the Offer early and scale back applications in its absolute and sole discretion.

Part 4C - Timetable

4C.1 Date of announcement of +security purchase plan Tuesday July 21, 2020

4C.2 +Record date Monday July 20, 2020

4C.3 Date on which offer documents will be made available to investors Thursday July 23, 2020

4C.4 Offer open date Thursday July 23, 2020

4C.5 Offer closing date Friday August 14, 2020

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4C.6 Announcement of results

Wednesday August 19, 2020

4C.7 +Issue date

Friday August 21, 2020

Part 4D - Listing Rule requirements

• 4D.1 Does the offer under the +securities purchase plan meet the requirements of listing rule 7.2 exception 5 that: the number of +securities to be issued is not greater than 30% of the number of fully paid +ordinary securities already on issue; and

• the issue price of the +securities is at least 80% of the +volume weighted average market price for +securities in that +class, calculated over the last 5 days on which sales in the +securities were recorded, either before the day on which the issue was announced or before the day on which the issue was made?

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• Yes

Part 4E - Fees and expenses

4E.1 Will there be a lead manager or broker to the proposed offer? Yes

4E.1a Who is the lead manager/broker?

The Company has engaged a Polish broker to assist with the participation of shareholders based in Poland.

4E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

A fee for $15,000 will be paid to broker in Poland

4E.2 Is the proposed offer to be underwritten?

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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

The Company will incur legal costs of ~$25,000 and marketing costs of ~$25,000 for the offer in Poland.

Part 4F - Further Information

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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

Any country outside of Australia, New Zealand, the United Kingdom, Germany or Poland

4F.3 URL on the entity's website where investors can download information about the proposed offer - http://www.pdz.com.au/company reports

4F.4 Any other information the entity wishes to provide about the proposed offer Not applicable

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