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PTR MINERALS LTD Capital/Financing Update 2015

Feb 15, 2015

65621_rns_2015-02-15_90df8311-8f82-494c-9fc1-e703fa6d8c03.pdf

Capital/Financing Update

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PETRATHERM�LIMITED�

ACN�106�806�884

NON�RENOUNCEABLE�� PRO�RATA�ENTITLEMENT�OFFER�

1�for�1�non�renounceable,�pro�rata�entitlement�offer�at�an�offer�price�of� $0.002�per�share�to�raise�approximately�$504,556�

The�Offer�is�fully�underwritten�by�Taylor�Collison�Limited.� Refer�to�Section�5.1�for�details�regarding�the�terms� and�conditions�of�the�Underwriting�Agreement.�

The�Entitlement�Offer�opens�on�16�February�2015.�The�Entitlement�Offer�closes�at�5:00pm� Adelaide�time�on�25�February�2015�(unless�extended).�

Important�Notice�

This�Offer�Booklet�is�an�important�document�that�should�be�read�in�its�entirety.��

This�Offer�Booklet�is�not�a�prospectus�or�other�disclosure�document�under�the�Corporations�Act�and�it�does�not� contain�all�of�the�information�an�investor�would�find�in�a�prospectus�or�other�disclosure�document,�or�which� may�be�required�to�make�an�informed�decision�regarding�or�about�the�rights�attaching�to�the�New�Shares� offered�by�this�Offer�Booklet.�

If�you�do�not�understand�the�contents�of�this�Offer�Booklet,�you�should�consult�your�financial�or�other� professional�adviser.�

Any�investment�in�Petratherm�Limited�should�be�considered�speculative.�

TABLE�OF�CONTENTS��

IMPORTANT�INFORMATION�...................................................................................................................�3� LETTER�FROM�THE�CHAIRMAN�...............................................................................................................�5� SECTION�1�–�KEY�INFORMATION�.............................................................................................................�6� SECTION�2�–�DETAILS�OF�THE�ENTITLEMENT�OFFER�...............................................................................�8� SECTION�3�–�REQUIRED�ACTIONS�.........................................................................................................�12� SECTION�4�–�RISK�FACTORS�...................................................................................................................�16� SECTION�5�–�ADDITIONAL�INFORMATION�............................................................................................�20� SECTION�6�–�DEFINITIONS�.....................................................................................................................�26� CORPORATE�DIRECTORY�.......................................................................................................................�28�

2�

IMPORTANT�INFORMATION�

This�Offer�Booklet�is�dated�5�February�2015.�

Capitalised�terms�in�this�Offer�Booklet�are�defined�in�Section�6�(Definitions).����

This�Offer�Booklet�is�issued�pursuant�to�section�708AA�of�the�Corporations�Act�for�the�offer�of�New�Shares� without�disclosure�to�investors�under�Part�6D.2�of�the�Corporations�Act.�This�Offer�Booklet�was�lodged�with�the� ASX�on�5�February�2015.�ASX�does�not�take�any�responsibility�for�the�contents�of�this�Offer�Booklet.��

This�Offer�Booklet�does�not�contain�all�of�the�information�which�a�prospective�investor�may�require�to�make�an� informed�investment�decision�or�which�would�otherwise�be�required�under�Australian�law�or�any�other�law�to� be�disclosed�in�a�prospectus.���

Eligible�Shareholders�should�rely�on�their�own�knowledge�of�the�Company,�refer�to�disclosures�made�by�the� Company�to�the�ASX�and�consult�their�professional�advisers�before�deciding�whether�to�apply�for�New�Shares.�� Announcements�made�by�the�Company�to�the�ASX�are�available�from�the�ASX�website�http://www.asx.com.au or�from�the�Company’s�website�http://www.petratherm.com.au.�

The�information�in�this�Offer�Booklet�does�not�constitute�a�securities�recommendation�or�financial�product� advice.�

Offering�Restrictions�

No�action�has�been�taken�to�register�or�qualify�the�New�Shares�or�the�Entitlement�Offer,�or�otherwise�to� permit�an�offering�of�the�New�Shares�in�any�jurisdiction�other�than�Australia�or�New�Zealand�or�to�a�person� that�is�not�an�Eligible�Shareholder.���

The�Company�has�determined,�having�regard�to�the�requirements�and�costs�of�compliance�with�the�securities� offering�laws�of�other�jurisdictions,�that�it�will�not�make�offers�to�Ineligible�Shareholders.�

This�Offer�Booklet�and�accompanying�Entitlement�and�Acceptance�Form�do�not,�and�are�not�intended�to,� constitute�an�offer�in�any�place�in�which,�or�to�any�person�whom,�it�would�not�be�lawful�to�make�such�an�offer.�� The�distribution�of�this�Offer�Booklet�and�accompanying�Entitlement�and�Acceptance�Form�may�be�restricted� by�law�and�persons�who�come�into�possession�of�this�Offer�Booklet�and�accompanying�Entitlement�and� Acceptance�Form�should�seek�advice�and�observe�those�restrictions.��Any�failure�to�comply�with�those� restrictions�may�constitute�a�violation�of�applicable�securities�laws.��

Information�publicly�available�

As�noted�above,�information�about�the�Company�is�publicly�available�and�can�be�obtained�from�ASIC�and�ASX� (including�its�website:� www.asx.com.au).�The�contents�of�any�website�screen,�ASIC�or�ASX�filing�by�the� Company�are�not�incorporated�into�this�Offer�Booklet�and�do�not�constitute�part�of�the�Entitlement�Offer.� Regardless,�this�Offer�Booklet�is�intended�to�be�read�in�conjunction�with�the�publicly�available�information�in� relation�to�the�Company�which�has�been�lodged�with�ASX.�Investors�should�therefore�have�regard�to�the�other� publicly�available�information�in�relation�to�the�Company�before�making�a�decision�whether�or�not�to�invest�in� New�Shares�or�the�Company.�Some�of�the�risk�factors�that�should�be�considered�by�potential�investors�are� outlined�in�Section�4�of�this�Offer�Booklet.

Disclaimer�

No�person�is�authorised�to�give�any�information�or�make�any�representation�in�connection�with�the� Entitlement�Offer�described�in�this�Offer�Booklet,�which�is�not�contained�in�this�Offer�Booklet.��Any�information� or�representation�not�contained�in�this�Offer�Booklet�may�not�be�relied�on�as�having�been�authorised�by�the� Company�in�connection�with�the�Entitlement�Offer.�

ASX�and�ASIC�do�not�take�any�responsibility�for�the�contents�of�this�Offer�Booklet.�

Entire�agreement�

The�terms�contained�in�this�Offer�Booklet�and�the�accompanying�Entitlement�and�Acceptance�Form�constitute� the�entire�agreement�between�the�Company�and�you�as�to�the�Entitlement�Offer�and�your�participation�in�the�

3�

Entitlement�Offer�to�the�exclusion�of�all�prior�representations,�understandings�and�agreements�between�the� Company�and�you.�

Governing�law�

This�Offer�Booklet,�the�Entitlement�Offer�and�the�contracts�formed�on�acceptance�of�the�Applications�are� governed�by�the�laws�applicable�in�South�Australia,�Australia.�Each�Applicant�for�New�Shares�submits�to�the� non�exclusive�jurisdiction�of�the�Courts�of�South�Australia,�Australia.��

Privacy�

If�you�complete�an�Application�for�New�Shares,�you�will�be�providing�personal�information�to�the�Company� (directly�or�via�the�Share�Registry).��The�Company�will�collect,�hold�and�will�use�that�information�to�assess�your� Application,�service�your�needs�as�a�Shareholder,�facilitate�distribution�payments�and�corporate� communications�to�you�as�a�Shareholder�and�carry�out�administration.�

The�information�may�also�be�used�from�time�to�time�and�disclosed�to�persons�inspecting�the�register,�bidders� for�your�securities�in�the�context�of�takeovers,�regulatory�bodies�(including�the�Australian�Taxation�Office),� authorised�securities�brokers,�print�service�providers,�mail�houses�and�the�Share�Registry.�

You�can�access,�correct�and�update�the�personal�information�that�we�hold�about�you.��Please�contact�the� Company�or�the�Share�Registry�if�you�wish�to�do�so�at�the�relevant�contact�numbers�set�out�in�this�Offer� Booklet.�

The�collection,�maintenance�and�disclosure�of�certain�personal�information�is�governed�by�legislation�including� the� Privacy�Act�1988 �(Cth)�(as�amended),�the�Corporations�Act�and�certain�rules�such�as�the�ASX�Settlement� Operating�Rules�and�Procedures.���

You�should�note�that�if�you�do�not�provide�the�information�required�on�the�Entitlement�and�Acceptance�Form,� the�Company�may�not�be�able�to�accept�or�process�your�Application.�

4�

LETTER�FROM�THE�CHAIRMAN�

5�February�2015�

Dear�Shareholder�

On�behalf�of�the�board�of�directors�of�Petratherm�Limited�( Petratherm �or�the� Company ),�I�would�like�to�invite� you�to�participate�in�the�1�for�1�non�renounceable�pro�rata�entitlement�offer�of�ordinary�shares�( New�Shares )� at�an�offer�price�of�$0.002�per�New�Share�( Offer�Price )�to�raise�gross�proceeds�of�approximately�$504,556� ( Entitlement�Offer ).��The�Entitlement�Offer�is�fully�underwritten�by�Taylor�Collison�Limited.�

The�Entitlement�Offer�closes�at�5:00pm�Adelaide�time�on�25�February�2015�( Closing�Date ).�If�you�would�like�to� participate,�you�need�to�ensure�that�either:��

  • your�completed�personalised�Entitlement�and�Acceptance�Form�and�Application�Monies�are�received�by� Computershare�Investor�Services�Pty�Limited;�or��

  • you�have�paid�your�Application�Monies�via�BPAY ® ,�

in�line�with�the�instructions�that�are�set�out�on�the�personalised�Entitlement�and�Acceptance�Form�and�in�this� Offer�Booklet,�by�5:00pm�Adelaide�time�on�25�February 2015.��

If�you�are�an�Eligible�Shareholder,�you�may�do�any�one�of�the�following�( Options ):�

  • take�up�all�of�your�Entitlement;�

  • take�up�all�of�your�Entitlement�and�also�apply�for�Additional�New�Shares�in�excess�of�your�Entitlement;��

  • take�up�part�of�your�Entitlement,�in�which�case�your�shareholding�in�the�Company�will�be�diluted�by�the� extent�to�which�you�do�not�take�up�your�full�Entitlement;�or�

  • do�nothing�and�allow�your�Entitlement�to�lapse.��If�you�do�nothing�your�percentage�holding�in�the� Company�will�be�diluted.�

Further�details�on�how�to�submit�your�Application�and�your�Options�are�set�out�in�this�Offer�Booklet.�You� should�consult�your�stockbroker,�accountant�or�other�independent�professional�adviser�to�evaluate�whether�or� not�to�participate�in�the�Entitlement�Offer.��

I�encourage�you�to�carefully�read�this�Offer�Booklet.��

Should�you�require�further�assistance,�please�contact�Petratherm�on�(08)�8274�5000�at�any�time�from�9:00am� to�5:00pm�Adelaide�time�Monday�to�Friday.�

On�behalf�of�the�Company,�I�thank�you�for�your�continued�support�of�Petratherm.�

Yours�faithfully�

==> picture [104 x 67] intentionally omitted <==

Simon�O’Loughlin� Non�Executive�Chairman�

5�

SECTION�1��� KEY�INFORMATION�

1.1 Key�details�of�Equity�Raising�

OfferPriceperNewShare $0.002
EntitlementundertheEntitlementOffer 1NewShareforevery1Existing
ShareheldasattheRecordDate
TotalnumberofSharesonissueimmediatelybeforethe 252,277,951
EntitlementOffer
Optionscurrentlyonissue 2,550,000*
NumberofNewSharesofferedundertheEntitlement 252,277,951
Offer
AmountraisedundertheEntitlementOffer $504,556(beforecosts)**
TotalnumberofSharesonissueimmediatelyafter 504,555,902***
completionoftheEntitlementOffer

* The�Options�have�exercise�prices�of�between�$0.13�and�$0.20.��The�Board�considers�it�reasonable�to� assume�that�none�of�the�Options�will�be�exercised�before�the�Record�Date�given�the�Company’s�share� price�as�at�close�of�trading�on�3�February�2015�of�$0.004.��

**Assuming�the�Underwriting�Agreement�is�not�terminated.�

***Assuming�none�of�the�Options�currently�on�issue�in�the�Company�are�exercised�before�the�Record� date.�

1.2 Indicative�Timetable��

The�following�are�key�dates�relating�to�the�Entitlement�Offer�that�you�need�to�be�aware�of:�

Activity Date
AnnouncementofEntitlementOfferandAppendix3Blodged
withASX
4February 2015
OfferBookletlodgedwithASX 5February2015
Shareholdernoticedespatched 6February2015
Sharestradeonan“ex”Entitlementbasis 9February2015
RecordDateforeligibilitytoparticipateintheEntitlement
Offer
11February2015at7:00pm
Adelaidetime
OfferBookletandEntitlementandAcceptanceForm
despatchedtoShareholders
16February2015
OpeningDatefortheEntitlementOffer 16February2015

6�

Activity Date
LastdaytoextendtheClosingDatefortheEntitlementOffer 20February2015
ClosingDatefortheEntitlementOffer 25February2015at5:00pm
Adelaidetime
Securitiesquotedonadeferredsettlementbasis 26February2015
NotifyASXofundersubscriptions 2March2015
AllotmentofNewSharesissuedundertheEntitlementOffer
anddeferredsettlementtradingends
4March2015
NormalASXtradingforNewSharescommences 5March2015
DespatchofholdingstatementsforNewSharesissuedunder
theEntitlementOffer
10March2015

The�above�dates�are�indicative�only�and�may�change�without�notice.��The�Directors�in�conjunction�with� the�Underwriter,�reserve�the�right�to�amend�this�indicative�timetable�at�any�time�(subject�to�the� Corporations�Act�and�the�Listing�Rules),�to�extend�the�Closing�Date,�to�accept�late�Entitlement�and� Acceptance�Forms�either�generally�or�in�particular�cases,�to�close�the�Entitlement�Offer�early�or�to� cancel�the�Entitlement�Offer�without�prior�notice�in�their�absolute�discretion.��The�commencement�of� quotation�of�the�New�Shares�is�subject�to�confirmation�from�the�ASX.�

1.3 Use�of�funds�

The�Company�is�undertaking�the�Entitlement�Offer�for�the�primary�purpose�of:�

  • (a) funding�new�projects�or�joint�ventures;�and�

(b) providing�working�capital�to�the�Company�generally.�

For�further�information,�please�see�Section�2.3.

7�

SECTION�2��� DETAILS�OF�THE�ENTITLEMENT�OFFER�

2.1 Overview�of�the�Entitlement�Offer�

Petratherm�is�undertaking�a�non�renounceable�1�for�1�pro�rata�non�renounceable�Entitlement�Offer.���

If�you�are�an�Eligible�Shareholder�you�may�apply�for�1�New�Share�for�every�1�Existing�Share�held�at� 7:00pm�Adelaide�time�on�11�February�2015�( Record�Date ).�This�is�called�your� Entitlement .�

On�Application,�the�Applicant�must�pay�the�Offer�Price�of�$0.002�for�each�New�Share�the�Applicant� wishes�to�apply�for�in�full.�

As�the�Entitlement�Offer�is�fully�underwritten,�on�completion�of�the�Entitlement�Offer�the�Company� will:�

  • (a)� issue�252,277,951�New�Shares;�and�

  • (b)� have�raised�$504,556�(before�costs).�

The�Entitlement�Offer�is�fully�underwritten�by�Taylor�Collison.��Under�the�terms�of�the�underwriting� agreement�between�the�Company�and�Taylor�Collison�( Underwriting�Agreement ),�the�Underwriter� may�in�consultation�with�the�Company�procure�sub�underwriters�to�sub�underwrite�a�portion�of�the� New�Shares�as�the�Underwriter�thinks�fit.�

Eligible�Shareholders�will�be�sent�the�Offer�Booklet�and�a�personalised�Entitlement�and�Acceptance� Form.��

Eligible�Shareholders�are�invited�to�subscribe�for�all�or�part�of�their�Entitlement�under�the�Entitlement� Offer�and�may�also�apply�for�Additional�New�Shares.��To�the�extent�that�Shareholders�do�not� participate�in�the�Entitlement�Offer,�their�percentage�shareholding�in�the�Company�will�be�diluted.�

2.2 Purpose�of�the�Equity�Raising��

Petratherm’s�cash�position�at�the�end�of�December�2014�was�approximately�$260,000.��As�the�Offer�is� fully�underwritten,�and�provided�that�the�Underwriting�Agreement�is�not�terminated,�the�Entitlement� Offer�will�provide�the�Company�with�additional�funds�of�$504,556�(before�costs).�

On�this�basis,�on�completion�of�the�Entitlement�Offer�(before�costs),�the�Company�will�have� approximately�$764,556�in�cash�(made�up�of�$504,556�raised�under�the�Entitlement�Offer�and� $260,000�cash�balances�at�31�December�2014�(before�expenses�incurred�from�1�January�2015�to�the� date�of�this�Offer�Booklet)).��

2.3 Use�of�funds�

As�noted�in�Section�1,�the�Company�is�undertaking�the�Entitlement�Offer�for�the�primary�purpose�of:�

  • (a) funding�new�projects�or�joint�ventures;�and�

  • (b) providing�working�capital�to�the�Company�generally.�

The�funds�raised�under�the�Entitlement�Offer,�combined�with�those�noted�in�Section�2.2�will�be� allocated�as�set�out�in�the�table�below:��

Item Anticipatedfundsrequired
Fundingnewprojectsorjointventures $484,556
Workingcapital $280,000

8�

2.4 New�Shares�

The�Offer�Price�is�payable�in�full�by�Eligible�Shareholders�on�acceptance�of�the�Entitlement�Offer.�

The�Directors�may�at�any�time�decide�to�withdraw�this�Offer�Booklet�and�the�Entitlement�Offer�made� under�it,�in�which�case�the�Company�will�return�all�Application�Monies�(without�interest)�as�soon�as� practicable.�

(a) Rank

The�New�Shares�will�be�fully�paid�ordinary�shares�and�will�rank�equally�in�all�respects�from� the�date�of�allotment�with�the�Existing�Shares.�

(b) Allotment�

New�Shares�taken�up�under�the�Entitlement�Offer�are�expected�to�be�allotted�on�4�March� 2015�(subject�to�any�changes�in�the�timetable�set�out�in�Section�1,�at�the�discretion�of�the� Directors�and�the�Underwriter,�having�regard�to�the�Corporations�Act�and�Listing�Rules).�

It�is�the�responsibility�of�Applicants�to�determine�their�allocation�prior�to�trading�in�New� Shares.��Applicants�who�sell�New�Shares�before�they�receive�their�new�holding�statements� following�the�issue�of�New�Shares�to�them�will�do�so�at�their�own�risk.�

(c) ASX�quotation�of�New�Shares�

The�Company�will�apply�to�ASX�for�official�quotation�of�the�New�Shares.��If�ASX�does�not� grant�permission�for�official�quotation�of�the�New�Shares,�all�Application�Monies�will�be� returned,�without�interest,�as�soon�as�practicable.�

2.5 Entitlements�

The�number�of�New�Shares�to�which�Eligible�Shareholders�are�entitled�is�shown�on�the�Entitlement� and�Acceptance�Form�accompanying�this�Offer�Booklet.���

Eligible�Shareholders�may�accept�all,�all�and�Additional�New�Shares,�part�or�none�of�their�Entitlement.���

If�Eligible�Shareholders�choose�not�to�accept�any�of�their�Entitlements,�then�they�are�not�required�to� do�anything.�

To�the�extent�that�Shareholders�do�not�participate�in�the�Entitlement�Offer,�their�shareholdings�in�the� Company�will�be�diluted�by�that�portion.�

Detailed�instructions�on�how�to�accept�all�or�part�of�your�Entitlement�are�set�out�in�Section�3.�

2.6 Additional�New�Shares���

Eligible�Shareholders�who�apply�for�their�full�Entitlement�may�also�apply�for�Additional�New�Shares.�� Applicants�for�Additional�New�Shares�( Additional�Subscribers ) will�be�allocated�Additional�New�Shares� from�any�Shortfall,�which�comprise�New�Shares�equivalent�to�the�number�not�taken�up�by�Eligible� Shareholders�together�with�any�New�Shares�that�would�have�been�offered�to�Ineligible�Shareholders�if� they�had�been�eligible�to�participate�in�the�Entitlement�Offer�(the� Shortfall ).���

Please�note�that�Additional�New�Shares�will�only�be�allocated�to�you�if�there�are�sufficient�New�Shares� available�in�the�Shortfall,�subject�to�any�scale�back�that�the�Company�may�apply�(in�its�absolute� discretion)�in�consultation�with�the�Underwriter.�If�you�apply�for�Additional�New�Shares�there�is�no� guarantee�you�will�be�allocated�any.��The�Company�has�a�number�of�shareholders�with�less�than�a� marketable�parcel�of�shares.��In�allocating�the�Shortfall�the�Company�will�give�preference�to�these� shareholders�to�allow�them�to�achieve�a�marketable�parcel,�thus�making�their�shares�tradable.��If�you� apply�for�Additional�New�Shares�and�are�not�allocated�any�or�less�than�the�number�you�applied�for,� the�Application�Monies�in�relation�to�those�Additional�New�Shares�will�be�returned�to�you,�without� interest,�as�soon�as�practicable.�

9�

2.7 Shortfall�

If�any�Shortfall�remains�after�the�Closing�Date,�the�Directors�in�conjunction�with�the�Underwriter,� reserve�the�right�to�place�any�Shortfall�with:��

  • (a)� the�Underwriter�or�any�sub�underwriters�(as�applicable)�as�described�further�at�Section�5.1;��

  • (b)� Additional�Subscribers�in�accordance�with�Section�2.6;�or�

  • (c)� any�other�parties�selected�by�the�Directors�in�conjunction�with�the�Underwriter.���

Pursuant�to�Listing�Rule�7.2�(exception�2),�any�allocation�of�the�Shortfall�to�the�Underwriter�or�any� sub�underwriter�(if�appointed)�in�accordance�with�the�Underwriting�Agreement,�will�not�count� towards�the�Company’s�15%�threshold�under�Listing�Rule�7.1,�provided�the�Underwriter�receives�the� New�Shares�within�15�business�days�after�the�close�of�the�Entitlement�Offer.�

Pursuant�to�Listing�Rule�7.2�(exception�3),�any�allocation�of�the�Shortfall�to�persons�other�than�the� Underwriter�or�any�sub�underwriter�(if�appointed)�in�accordance�with�the�Underwriting�Agreement,� will�not�count�towards�the�Company’s�15%�threshold�under�Listing�Rule�7.1,�provided�that�the� Company�makes�the�issue�within�three�months�after�the�close�of�the�Entitlement�Offer�and�the�issue� price�is�not�less�than�the�price�at�which�the�Shares�were�offered�under�the�Entitlement�Offer.��The� Directors�in�conjunction�with�the�Underwriter�reserve�the�right�to�issue�the�Shortfall�at�their� discretion.�

2.8 Underwriting�

The�Underwriter�has�agreed�to�fully�underwrite�the�Entitlement�Offer�pursuant�to�the�Underwriting� Agreement.��A�summary�of�the�Underwriting�Agreement�is�set�out�in�Section�5.1.�

2.9 Persons�with�more�than�one�holding�

If�you�have�more�than�one�holding�of�Shares,�you�will�be�sent�more�than�one�personalised�Entitlement� and�Acceptance�Form,�and�you�will�have�separate�Entitlements�for�each�separate�holding.��

If�you�have�more�than�one�shareholding�of�Shares�and�consequently�receive�more�than�one� Entitlement�and�Acceptance�Form,�when�taking�up�your�Entitlement�in�respect�of�one�of�those� shareholdings,�only�use�the�unique�reference�number�specific�to�that�shareholding�as�set�out�on�the� applicable�Entitlement�and�Acceptance�Form.�Do�not�use�the�same�reference�number�for�more�than� one�of�your�shareholdings�as�this�can�result�in�your�Application�Monies�being�applied�to�your� Entitlement�in�respect�of�only�one�of�your�shareholdings�(with�the�result�that�any�application�in� respect�of�your�remaining�shareholdings�will�not�be�recognised�as�valid).�

2.10 Opening�and�Closing�dates�

The�Entitlement�Offer�will�open�for�receipt�of�acceptances�on�16�February�2015.���

The�Closing�Date�and�time�for�acceptances�and�payments�under�the�Entitlement�Offer�is�25�February� 2015�at�5:00pm�Adelaide�time,�subject�to�the�Directors,�in�conjunction�with�the�Underwriter,�varying� these�dates�(in�accordance�with�the�Corporations�Act�and�the�Listing�Rules).��The�Company�must� receive�your�Entitlement�and�Acceptance�Form�and�payment�before�the�Closing�Date�otherwise�the� Entitlement�Offer�as�it�applies�to�you�as�an�Eligible�Shareholder�will�lapse.��Further�details�on�the� timetable�for�the�Entitlement�Offer�are�set�out�in�Section�1�of�this�Offer�Booklet.�

2.11 Market�Prices�for�Shares�on�ASX�

The�lowest�and�highest�market�prices�of�the�Shares�of�the�Company�on�ASX�during�the�3�months� immediately�preceding�the�date�of�this�Offer�Booklet�were�$0.003�and�$0.007�respectively.��

The�volume�weighted�average�price�for�Shares�on�the�ASX�over�the�30�trading�days�preceding�the�date� of�announcement�of�the�Entitlement�Offer�was�$0.004.��The�Issue�Price�therefore�represents�a� discount�of�approximately�50%�to�the�30�day�volume�weighted�average�price�for�Shares.�

10�

2.12 Application�Monies�

Pending�the�allotment�of�the�New�Shares�or�return�of�Application�Monies,�the�Application�Monies�will� be�held�in�trust�for�Applicants.��No�interest�will�be�paid�on�any�Application�Monies�received�or� refunded.��

2.13 Foreign�Shareholders�

The�New�Shares�being�offered�under�this�Offer�Booklet�are�being�offered�to�Eligible�Shareholders�only� and�will�not�be�offered�to�shareholders�resident�outside�of�Australia�or�New�Zealand.��

The�Company�has�determined�that�it�is�not�economically�viable�and�it�is�unreasonable�for�it�to�make� offers�to�Shareholders�resident�outside�of�Australia�or�New�Zealand,�having�regard�to�the�amount� seeking�to�be�raised�under�the�Entitlement�Offer�and�the�substantial�costs�involved�in�complying�with� the�legal�and�regulatory�requirements�in�those�jurisdictions.�

In�compliance�with�Listing�Rule�7.7,�the�Company�will�send�each�Ineligible�Shareholder�details�of�this� Entitlement�Offer�and�advise�them�that�the�Company�will�not�offer�New�Shares�to�them.�

New�Shares�to�which�any�Ineligible�Shareholder�would�otherwise�be�entitled�will�form�part�of�the� Shortfall�(if�any)�and�will�be�dealt�with�by�the�Underwriter�and�the�Company�in�accordance�with�the� Underwriting�Agreement.��

2.14 Regular�Reporting�and�disclosure�

The�Company�is�a�disclosing�entity�for�the�purposes�of�the�Corporations�Act�and�as�such�is�subject�to� regular�reporting�and�disclosure�obligations�under�the�Corporations�Act�and�the�Listing�Rules.�These� obligations�require�the�Company�to�notify�ASX�of�information�about�specific�events�and�matters�as� they�arise�for�the�purposes�of�ASX�making�that�information�available�to�the�market.��

In�particular,�the�Company�has�an�obligation�(subject�to�certain�limited�exceptions)�to�notify�ASX�once� it�is,�or�becomes,�aware�of�information�concerning�the�Company�which�a�reasonable�person�would� expect�to�have�a�material�effect�on�the�price�or�value�of�the�Company’s�securities.��All�announcements� made�by�the�Company�are�available�from�the�ASX�website� asx.com.au or�the�Company’s�website� http://www.petratherm.com.au.��

2.15 No�rights�trading�

This�Entitlement�Offer�is�made�on�a�non�renounceable�basis.��Eligible�Shareholders�who�are�registered� as�at�the�Record�Date�may�not�renounce,�sell,�transfer�or�deal�with�all�or�any�part�of�their�Entitlement� to�the�New�Shares�which�they�do�not�wish�to�accept.�

If�you�do�not�take�up�your�Entitlement�by�the�Closing�Date,�the�Entitlement�Offer�will�lapse,�your� shareholding�in�the�Company�will�be�diluted�and�any�Shortfall�will�be�dealt�with�in�accordance�with� Section�5�of�this�Offer�Booklet.�

2.16 Enquiries�

If�you�have�any�questions�concerning�your�Entitlement�or�this�Offer�Booklet,�please�contact�your� professional�adviser�or�Petratherm�Limited�on�08�8274�5000�(within�Australia)�or�+61�8�8274�5000� (outside�Australia)�from�8:30am�to�5:00pm�Adelaide�time,�Monday�to�Friday.�

11�

SECTION�3��� REQUIRED�ACTIONS�

3.1 Eligible�Shareholders��

If�you�are�an�Eligible�Shareholder�you�may�( Options ):�

  • (a) take�up�all�of�your�Entitlement�( Option�1 ):

  • (b) take�up�all�of�your�Entitlement�and�subscribe�for�Additional�New�Shares�( Option�2 );

  • (c) take�up�part�of�your�Entitlement�( Option�3 );�or

  • (d) decline�to�exercise�your�Entitlement�and�do�nothing�( Option�4 ).

3.2 Acceptance�

If�you�decide�to�take�up�all�or�part�of�your�Entitlement�or�all�of�your�Entitlement�and�subscribe�for� Additional�New�Shares�(Options�1�to�3),�please�complete�and�return�the�Entitlement�and�Acceptance� Form�with�the�requisite�Application�Monies�or�pay�your�Application�Monies�via�BPAY®�by�following� the�instructions�set�out�in�Section�3.4�and�on�the�Entitlement�and�Acceptance�Form.�

The�Company�will�treat�you�as�applying�for�as�many�New�Shares�as�your�payment�will�pay�for�in�full�up� to�your�full�Entitlement�and,�in�respect�of�amounts�received�by�the�Company�in�excess�of�your�full� Entitlement�( Excess�Amount ),�may�treat�your�Application�as�applying�for�as�many�Additional�New� Shares�as�your�Excess�Amount�will�pay�for�in�full,�subject�to�any�scale�back�the�Company�in� conjunction�with�the�Underwriter�may�determine�to�implement�in�its�absolute�discretion�in�respect�of� Additional�New�Shares.�

Acceptance�and�full�payment�of�$0.002�per�New�Share�that�you�wish�to�apply�for�must�be�received� before�5:00pm�Adelaide�time�on�25�February�2015.��Further�instructions�for�completion�and� lodgement�of�acceptances�are�set�out�on�the�Entitlement�and�Acceptance�Form,�and�in�this�Section�3.��

3.3 Deadline�for�receiving�acceptances�

Eligible�Shareholders�should�ensure�that�their�Entitlement�and�Acceptance�Form�and�Application� Monies�are�mailed�early�to�ensure�they�arrive�at�the�postal�address�noted�below�by�5:00pm�Adelaide� time�on�25�February�2015�(or�such�other�date�as�may�be�determined�by�the�Directors�and�the� Underwriter�in�accordance�with�the�Underwriting�Agreement,�Listing�Rules�and�the�Corporations�Act).�

3.4 Action�Required�

(a) Option�1:�All�of�your�Entitlement�

If�you�wish�to�take�up� all �of�your�Entitlement,�use�the�BPAY®�facility�as�outlined�in�the� accompanying�Entitlement�and�Acceptance�Form�or�complete�the�Entitlement�and� Acceptance�Form�in�accordance�with�the�instructions�set�out�on�the�Entitlement�and� Acceptance�Form�and�send�the�Entitlement�and�Acceptance�Form�together�with�your�cheque� for�the�amount�shown�on�the�form�so�that�it�reaches�the�Share�Registry�by�no�later�than� 5.00pm�Adelaide�time�on�25�February�2015.�

The�mailing�details�for�the�Share�Registry�are�as�follows:��

Computershare�Investor�Services�Pty�Limited� GPO�Box�2987�

Adelaide�SA�5001�Australia�

Cheques�and�drafts�should�be�made�payable�to�‘Petratherm�Limited’�and�crossed�‘Not� Negotiable’.�

12�

Any�Excess�Amounts�received�by�the�Company�may�be�treated�as�you�applying�for�as�many� Additional�New�Shares�as�your�Excess�Amount�will�pay�for�in�full,�subject�to�any�scale�back� the�Company�in�conjunction�with�the�Underwriter�may�determine�to�implement�in�its� absolute�discretion�in�respect�of�Additional�New�Shares.�

Any�Application�Monies�received�for�more�than�your�final�allocation�of�New�Shares�and� Additional�New�Shares�(only�where�the�amount�is�$1�or�greater)�will�be�refunded�as�soon�as� practicable�following�the�close�of�the�Entitlement�Offer.��No�interest�will�be�paid�on�any� Application�Monies�received�or�refunded.��

(b) Option�2:�All�of�your�Entitlement�and�subscribe�for�Additional�New�Shares�

If�you�wish�to�take�up�all�of�your�Entitlement�and�subscribe�for�Additional�Shares,�use�the� BPAY®�facility�as�outlined�in�the�accompanying�Entitlement�and�Acceptance�Form�or� complete�the�enclosed�Entitlement�and�Acceptance�Form�in�respect�of�your�Entitlement�and� the�Additional�New�Shares�you�wish�to�take�up�in�accordance�with�the�instructions�set�out�on� the�Entitlement�and�Acceptance�Form�and�send�the�completed�Entitlement�and�Acceptance� Form�together�with�your�cheque�for�the�relevant�amount�(being�the�number�of�New�Shares� you�wish�to�take�up�multiplied�by�$0.002�per�New�Share)�so�that�it�reaches�the�Share�Registry� by�no�later�than�5:00pm�Adelaide�time�on�25�February�2015.�

(c) Option�3:��Part�of�your�Entitlement�

If�you�wish�to�take�up� part �of�your�Entitlement,�use�the�BPAY®�facility as�outlined�in�the� accompanying�Entitlement�and�Acceptance�Form�or�complete�the�enclosed�Entitlement�and� Acceptance�Form�in�respect�of�the�New�Shares�you�wish�to�take�up�in�accordance�with�the� instructions�set�out�on�the�Entitlement�and�Acceptance�Form�and�send�the�completed� Entitlement�and�Acceptance�Form�together�with�your�cheque�for�the�relevant�amount�(being� the�number�of�New�Shares�you�wish�to�take�up�multiplied�by�$0.002�per�New�Share)�so�that� it�reaches�the�Share�Registry�by�no�later�than�5:00pm�Adelaide�time�on�25�February�2015.�

If�you�decide�to�not�take�up�your�full�Entitlement,�your�percentage�shareholding�in�the� Company�will�be�diluted�by�the�portion�of�your�Entitlement�that�you�do�not�take�up.��

(d) Option�4:��None�of�your�Entitlement�

If�you�do�not�wish�to�take�up�any�of�your�Entitlement,�you�do�not�need�to�take�any�action� and:�

  • (i) your�Entitlement�to�the�New�Shares�will�lapse�on�the�Closing�Date;�and�

  • (ii) the�relevant�number�of�New�Shares�with�respect�to�your�Entitlement�will�form�part� of�the�Shortfall�which�will�be�dealt�with�in�the�manner�set�out�in�Section�2.7�of�this� Offer�Booklet.�

As�the�Entitlement�Offer�is�non�renounceable,�you�will�not�receive�any�payment�for� Entitlements�you�do�not�take�up.��If�you�decide�not�to�participate�in�the�Entitlement�Offer,� you�will�continue�to�beneficially�own�the�same�number�of�Shares;�however�your�percentage� shareholding�in�the�Company�will�be�diluted�by�the�portion�of�your�Entitlement�that�you�do� not�take�up.�

3.5 Closing�Date�

The�Closing�Date�for�the�Entitlement�Offer�is�5:00pm�Adelaide�time�on�25�February�2015,�unless� closed�earlier�or�extended�at�the�discretion�of�the�Directors�and�the�Underwriter�in�accordance�with� the�Underwriting�Agreement,�Listing�Rules�and�Corporations�Act.�

13�

3.6 Declarations�and�certifications�

You�must�make�your�application�for�New�Shares�and�Additional�New�Shares�in�accordance�with�this� Offer�Booklet�and�the�personalised�Entitlement�and�Acceptance�Form.��Petratherm�reserves�the�right� to�reject�applications�not�made�in�this�way.�

Petratherm�also�reserves�the�right�(in�its�absolute�discretion)�to�reduce�the�number�of�New�Shares� allocated�to�Eligible�Shareholders,�or�persons�claiming�to�be�Eligible�Shareholders,�if�their�claims�prove� to�be�overstated�or�if�they�or�their�nominees�fail�to�provide�information�to�substantiate�their�claims.�

Submitting�an�Application�constitutes�a�binding�offer�to�acquire�New�Shares�(and�if�applicable,� Additional�New�Shares)�on�the�terms�and�subject�to�the�conditions�set�out�in�this�Offer�Booklet�and� Entitlement�and�Acceptance�Form�and,�once�lodged,�cannot�be�withdrawn.��

You�do�not�need�to�sign�the�personalised�Entitlement�and�Acceptance�Form�for�it�to�be�considered� binding.�

An�Application�may�still�be�treated�as�a�valid�Application�for�New�Shares�(and�if�applicable,�Additional� New�Shares)�even�if�it�is�not�completed�or�submitted�correctly.�The�Company’s�decision�whether�to� treat�an�Application�as�valid�and�how�to�construe,�amend,�complete�or�submit�the�Application�is�final.�

By�completing�and�returning�your�Entitlement�and�Acceptance�Form�with�the�requisite�Application� Monies�or�making�a�payment�by�BPAY®,�you�will�be�deemed�to�have�acknowledged,�represented�and� warranted:�

  • (a) that�you�are�an�Eligible�Shareholder�and�have�read�and�understood�this�Offer�Booklet�and� the�personalised�Entitlement�and�Acceptance�Form�and�that�you�acknowledge�the�matters,� and�make�the�warranties�and�representations�and�agreements,�contained�in�this�Offer� Booklet�and�the�personalised�Entitlement�and�Acceptance�Form;��

  • (b) that�on�behalf�of�yourself�or�each�person�on�whose�account�you�are�acting�that�the�law�in� your�place�of�residence�or�where�you�have�been�given�the�Offer�Booklet�and�Entitlement�and� Acceptance�Form�does�not�prohibit�you�from�being�given�the�Offer�Booklet�and�Entitlement� and�Acceptance�Form;�and��

  • (c) that�you:�

  • (i) declare�that�you�are�eligible�to�participate�in�the�Entitlement�Offer;��

  • (ii) offer�to�acquire�the�New�Shares�(and�if�applicable,�Additional�New�Shares)�on�the� terms�and�subject�to�the�conditions�set�out�in�this�Offer�Booklet;�

  • (iii) agree�to�be�bound�by�the�terms�of�this�Offer�Booklet�and�the�provisions�of�the� Company’s�constitution;�

  • (iv) authorise�the�Company�to�register�you�as�the�holder�of�the�New�Shares�allotted�to� you;�

  • (v) declare�that�all�details�and�statements�in�the�Entitlement�and�Acceptance�Form�are� complete�and�accurate;�

  • (vi) declare�that�you�are�over�18�years�of�age�and�have�full�legal�capacity�and�power�to� perform�all�of�your�rights�and�obligations�under�the�Entitlement�and�Acceptance� Form;�

  • (vii) acknowledge�that�once�the�Company�receives�the�completed�Entitlement�and� Acceptance�Form,�you�may�not�withdraw�it;�

  • (viii) agree�to�apply�for,�and�be�issued�with�up�to,�the�number�of�New�Shares�(and� Additional�New�Shares,�including�if�because�of�the�receipt�by�the�Company�of�an�

14�

Excess�Amount�from�you)�that�you�apply�for�at�the�Offer�Price�of�$0.002�per�New� Share;�

  • (ix)

  • agree�to�be�issued�the�number�of�New�Shares�that�you�apply�for;�

  • (x) authorise�the�Company�and�its�respective�officers�or�agents�to�do�anything�on�your� behalf�necessary�for�the�New�Shares�to�be�issued�to�you,�including�to�act�on� instructions�of�the�Share�Registry,�upon�using�the�contact�details�set�out�in�the� Entitlement�and�Acceptance�Form;�

  • (xi) agree�that�the�allotment�of�New�Shares�(and�Additional�New�Shares,�if�applicable)�to� you�constitutes�acceptance�of�your�Application;�

  • (xii) acknowledge�that�the�information�contained�in,�or�accompanying,�the�Offer�Booklet� is�not�investment�or�financial�product�advice�or�a�recommendation�that�New�Shares� are�suitable�for�you�given�your�investment�objectives,�financial�situation�or� particular�needs;�

  • (xiii) acknowledge�that�the�New�Shares�have�not,�and�will�not�be,�registered�under�the� securities�laws�in�any�jurisdiction�and,�accordingly,�the�New�Shares�may�not�be� offered,�sold�or�otherwise�transferred�in�a�jurisdiction�outside�Australia�or�New� Zealand�except�in�accordance�with�an�available�exemption�from,�or�in�a�transaction� not�subject�to,�the�registration�requirements�of�applicable�securities�laws;��

  • (xiv) agree�to�provide�(and�direct�your�nominee�or�custodian�to�provide)�substantiation� of�your�eligibility�or�of�your�holding�of�Shares�upon�request;�

  • (xv) declare�that�you�are�the�current�registered�holder�of�Shares�and�are�a�resident�of� Australia�or�New�Zealand�and�are�not�in�the�United�States�or�a�U.S.�Person,�or�acting� for�the�account�or�benefit�of�a�U.S.�Person;�

  • (xvi) agree�that�if�in�the�future�you�decide�to�sell�or�otherwise�transfer�the�New�Shares� (or�Additional�New�Shares,�if�applicable),�you�will�only�do�so�outside�the�United� States�in�a�standard�(regular�way)�brokered�transaction�on�the�ASX�where�neither� you�nor�any�person�acting�on�your�behalf�knows,�or�has�reason�to�know,�that�the� sale�has�been�pre�arranged�with,�or�that�the�purchaser�is,�a�person�in�the�United� States�or�person�that�is�a�U.S.�Person�or�that�is�acting�for�the�account�or�benefit�of�a� U.S.�Person,�in�accordance�with�Regulation�S�under�the�U.S.�Securities�Act;�and�

  • (xvii) have�not,�and�will�not,�send�any�materials�relating�to�the�Entitlement�Offer�to�any� person�in�the�United�States�or�that�is,�or�is�acting�for�the�account�or�benefit�of,�a� U.S.�Person.�

15�

SECTION�4��� RISK�FACTORS�

Prior�to�deciding�whether�to�apply�for�New�Shares�under�the�Entitlement�Offer,�Eligible�Shareholders� should�read�this�Offer�Booklet�in�its�entirety�and�review�all�announcements�made�by�the�Company�to� the�ASX�in�order�to�gain�an�understanding�of�the�Company,�its�activities,�operations,�financial�position� and�prospects.���

The�risks�included�in�this�Section�are�key�risks�identified�by�the�Board�as�being�specific�to�the�Company� and�its�operations�as�at�the�date�of�this�Offer�Booklet�and�reasonably�anticipated�by�the�Board.��It�is� important�to�note�that�the�risks�listed�in�this�Section�are�not�an�exhaustive�list�of�the�risks�relevant�to� the�Company.���

Shareholders�are�strongly�encouraged�to:�

  • (a) rely�on�their�own�knowledge�of�the�Company;�

  • (b) refer�to�disclosures�made�by�the�Company�to�ASX;�and��

  • (c) consult�their�professional�advisers,��

before�deciding�whether�to�apply�for�New�Shares.���

Announcements�made�by�the�Company�to�ASX�are�available�from�the�ASX�website�www.asx.com.au or�from�the�Company’s�website www.petratherm.com.au.�����

The�risks�described�in�this�Section�may�impact�upon�the�Company’s�future�performance,�so�the� Company�and�its�Directors�have�endeavoured�(and�will�continue�to�do�so)�to�take�steps�to�safeguard� the�Company�from,�and�to�mitigate�the�Company’s�exposure�to,�these�risks.�

4.1 General�Risks�

(a) Share�Market

Share�market�conditions�may�affect�listed�securities�regardless�of�operating�performance.�� Share�market�conditions�are�affected�by�many�factors�such�as:�

  • general�economic�outlook;�

  • � movements�in,�or�outlook�on,�interest�rates�and�inflation�rates;� � currency�fluctuations;� � commodity�prices;� � changes�in�investor�sentiment�towards�particular�market�sectors;�and� � the�demand�for,�and�supply�of,�capital.�

Many�factors�will�affect�the�price�of�the�New�Shares�including�local�and�international�stock� markets,�movements�in�commodity�prices,�interest�rates,�economic�conditions�and�investor� sentiment�generally.�

(b) Economic�Factors

Factors�such�as�inflation,�currency�fluctuation,�interest�rates,�supply�and�demand�and� industrial�disruption�have�an�impact�on�operating�costs,�commodity�prices�and�stock�market� processes.��The�Company’s�future�possible�revenues�and�Share�price�can�be�affected�by�these� factors�which�are�beyond�the�control�of�the�Company�and�its�Directors.�

(c) Government

Changes�in�government,�monetary�policies,�taxation�and�other�laws�can�have�a�significant� influence�on�the�outlook�for�companies�and�the�returns�to�investors.�

16�

4.2 Exploration�and�Development�

If�the�Company�acquires�exploration�and�development�projects�in�the�resources�sector,�there�is�a� significant�risk�for�the�Company�that�the�proposed�exploration�and�development�programs�will�not� result�in�success.���

Prospective�investors�should�understand�that�exploration,�development�and�production�are�high�risk� enterprises,�only�occasionally�providing�high�rewards.��In�addition�to�the�normal�competition�for� prospective�ground,�and�the�high�average�costs�of�discovery�of�an�economic�resource,�factors�such�as� demand�for�commodities,�stock�market�fluctuations�affecting�access�to�new�capital,�sovereign�risk,� environmental�issues,�labour�disruption,�project�financing�difficulties,�foreign�currency�fluctuations� and�technical�problems�all�affect�the�ability�of�a�company�to�profit�from�any�discovery.�

There�is�no�assurance�that�exploration�of�any�exploration�interest�the�Company�may�subsequently� acquire�will�result�in�the�discovery�of�an�economically�viable�resource.��Even�if�an�apparently�viable� resource�is�identified,�there�is�no�guarantee�that�it�can�be�profitably�exploited.�

4.3 Licences�and�permits�

If�the�Company�acquires�exploration�and�development�projects�in�the�resources�sector,�the� Company’s�mining�exploration�activities�will�be�dependent�upon�the�good�standing�of�all�required� licences,�concessions,�leases,�tenements,�permits�and�regulatory�consents.��Maintaining�tenements,� obtaining�renewals,�or�getting�tenements�granted�will�often�depend�on�the�Company�being�successful� in�obtaining�the�required�statutory�approvals�for�its�proposed�activities�and�that�the�licences,� concessions,�leases,�permits�or�consents�it�holds�will�be�renewed�as�and�when�required.��There�is�no� assurance�that�such�renewals�will�be�given�as�a�matter�of�course�and�there�is�no�assurance�that�new� conditions�will�not�be�imposed�in�connection�therewith.�

4.4 Title�of�tenements�

If�the�Company�acquires�exploration�and�development�projects�in�the�resources�sector,�each�licence� or�permit�will�be�for�a�specific�term�and�carry�with�it�annual�expenditure�and�reporting�commitments,� as�well�as�other�conditions�requiring�compliance.��Consequently,�the�Company�could�lose�title�to�or�its� interest�in�these�tenements�if�licence�conditions�are�not�met�or�if�insufficient�funds�are�available�to� meet�expenditure�commitments.�

4.5 Insurance�Risks�

If�the�Company�acquires�exploration�and�development�projects�in�the�resources�sector,�the�Company� intends�to�insure�its�operations�in�accordance�with�industry�practice.��However,�in�certain� circumstances,�the�Company’s�insurance�may�not�be�of�a�nature�or�level�to�provide�adequate� insurance�cover.��The�occurrence�of�an�event�that�is�not�covered�or�fully�covered�by�insurance�could� have�a�material�adverse�effect�on�the�business,�financial�condition�and�results�of�the�Company.�

Insurance�against�all�risks�associated�with�mining�exploration�and�production�is�not�always�available� and�where�available�the�costs�can�be�prohibitive.�

4.6 Competition�Risk�

If�the�Company�acquires�exploration�and�development�projects�in�the�resources�sector,�the�industry�in� which�the�Company�will�be�involved�is�subject�to�domestic�and�global�competition.��Although�the� Company�will�undertake�all�reasonable�due�diligence�in�its�business�decisions�and�operations,�the� Company�will�have�no�influence�or�control�over�the�activities�or�actions�of�its�competitors,�which� activities�or�actions�may,�positively�or�negatively,�affect�the�operating�and�financial�performance�of� the�Company’s�projects�and�business.��

17�

4.7 Environmental�

If�the�Company�acquires�exploration�and�development�projects�in�the�resources�sector,�the� Company’s�projects�will�be�subject�to�both�the�relevant�State�and�also�Commonwealth�laws�and� regulations�relating�to�environmental�matters.��Should�the�Company�proceed�to�development�of�one� or�more�mines,�it�could�be�expected�that�such�developments�would�have�numerous�environmental� impacts�which�would�require�various�statutory�approvals�to�be�put�in�place.��There�is�no�guarantee� that�such�approvals�would�be�granted.��The�Company�intends�to�conduct�its�operations�in�an� environmentally�responsible�manner�and�in�accordance�with�relevant�legislation.��However,�the� Company�is�unable�to�predict�the�effect�of�future�changes�to�environmental�legislation�or�policy�and� the�cost�effect�of�such�changes�on�its�operations�and�financial�position.�

4.8 Native�Title�and�Aboriginal�Heritage�

The� Native�Title�Act�1993 �(Cth)�recognises�certain�rights�of�indigenous�Australians�over�land�where� those�rights�have�not�been�extinguished.��These�rights,�where�they�exist,�may�impact�on�the�ability�of� the�Company�to�acquire�exploration�or�development�projects�in�the�resources�sector.��In�applying�for� certain�production�tenements,�the�Company�would�be�required�to�observe�the�provisions�of�Native� Title�legislation�(where�applicable)�and�Aboriginal�Heritage�legislation�which�protects�Aboriginal�sites� and�objects�of�significance.�

In�certain�circumstances�the�consent�of�registered�Native�Title�claimants�must�be�obtained�prior�to� carrying�out�certain�activities�on�land�to�which�their�claim�relates.��It�is�possible�that�the�terms�of� registered�Native�Title�agreements�may�restrict�the�Company’s�ability�to�gain�access�to�any�tenements� it�may�acquire�and�conduct�exploration,�development�and�mining�operations,�or�that�the�conditions� imposed�by�Native�Title�claimants�on�such�consent�may�be�on�terms�unacceptable�to�the�Company.�

4.9 Potential�Acquisitions�

As�part�of�its�business�strategy,�the�Company�may�make�acquisitions�of�or�significant�investments�in� companies,�products,�technologies�or�resource�projects.��Any�such�future�transactions�would�be� accompanied�by�the�risks�commonly�encountered�in�making�acquisitions�of�companies,�products,� technologies�or�resource�projects.

4.10 Resource�estimates�

Resource�estimates�are�expressions�of�judgment�based�on�knowledge,�experience�and�industry� practice.��Estimates�that�are�valid�when�made�may�change�significantly�when�new�information� becomes�available�through�drilling,�sampling�and�similar�examinations.�

In�addition,�resource�estimates�are�necessarily�imprecise�and�depend�to�some�extent�on� interpretations,�which�may�prove�to�be�inaccurate.��If�the�Company�acquires�exploration�and� development�projects�in�the�resources�sector�and�encounters�mineralisation�or�formations�different� from�those�predicted,�resource�estimates�may�have�to�be�adjusted�and�mining�plans�may�have�to�be� altered�in�a�way�which�could�adversely�affect�the�Company’s�operations.�

4.11 Reliance�on�key�management�

The�responsibility�of�overseeing�the�day�to�day�operations�and�strategic�management�of�the�Company� depends�substantially�on�its�Directors.��There�can�be�no�assurance�given�that�there�will�be�no� detrimental�impact�on�the�Company�if�one�or�more�of�the�Directors�leave�the�Company.�

4.12 Risks�associated�with�operations�in�foreign�jurisdictions�

If�the�Company�acquires�an�investment�in�a�foreign�jurisdiction,�it�may�be�subject�to�the�risks� associated�with�operating�in�a�country�that�will�not�have�the�same�degree�of�political,�financial�and� economic�stability�as�enjoyed�in�Australia.��Accordingly,�it�may�be�subject�to�various�levels�of�political,� economic�and�other�risks�and�uncertainties,�including,�but�not�limited�to,�terrorism,�hostage�taking,�

18�

military�repression,�extreme�fluctuations�in�currency�exchange�rates,�high�rates�of�inflation,�labour� unrest,�the�risks�of�war�or�civil�unrest,�expropriation�and�nationalisation,�renegotiation�or�nullification� of�existing�concessions,�licences,�permits�and�contracts,�changes�in�taxation�policies,�restrictions�on� foreign�exchange�and�repatriation�and�changing�political�conditions,�currency�controls�and� governmental�regulations�that�favour�or�require�the�awarding�of�contracts�to�local�contractors�or� require�foreign�contractors�to�employ�citizens�of,�or�purchase�supplies�from,�a�particular�jurisdiction.�

The�Company’s�operations�may�be�affected�in�varying�degrees�by�government�regulations�with� respect�to,�but�not�limited�to,�restrictions�on�production,�price�controls,�export�controls,�foreign� currency�remittance,�income�taxes,�expropriation�of�property,�foreign�investment,�maintenance�of� claims,�environmental�legislation,�land�use,�land�claims�of�local�people,�water�use�and�safety�issues.�

Failure�to�comply�strictly�with�applicable�laws,�regulations�and�local�practices�could�result�in�loss,� reduction�or�expropriation�of�entitlements,�or�the�imposition�of�additional�local�or�foreign�parties�as� joint�venture�partners�with�carried�or�other�interests.�

The�occurrence�of�these�various�factors�and�uncertainties�cannot�be�accurately�predicted�and�could� have�an�adverse�effect�on�the�operations�or�profitability�of�the�Company.�

4.13 Investments�may�not�be�wholly�owned�

Resource�investments�(minerals�and�oil�and�gas)�are�often�structured�through�joint�ventures.��If�the� Company�acquires�exploration�and�development�projects�in�the�resources�sector,�there�is�a�risk�that� development/production�activity�could�be�disrupted�in�situations�where�there�is�a�disagreement�on� development/production�programs�or�other�issues�between�the�Company�and�the�other�parties�in� such�joint�ventures.��Should�such�disagreements�occur,�this�may�have�a�deleterious�impact�on�the� Company’s�operations�and�performance�generally.�

4.14 Speculative�Investment�

The�above�list�of�risk�factors�ought�not�to�be�taken�as�exhaustive�of�the�risks�faced�by�the�Company�or� by�investors�in�the�Company.��The�above�factors,�and�others�not�specifically�referred�to�above,�may�in� the�future�materially�affect�the�financial�performance�of�the�Company�and�the�value�of�New�Shares� offered�under�this�Offer�Booklet.�

Therefore,�New�Shares�to�be�issued�pursuant�to�this�Offer�Booklet�carry�no�guarantee�with�respect�to� the�payment�of�dividends,�returns�of�capital�or�the�market�value�of�those�New�Shares.�

Potential�investors�should�consider�that�the�investment�in�the�Company�is�speculative�and�should� consult�their�professional�advisers�before�deciding�whether�to�apply�for�New�Shares�pursuant�to�this� Offer�Booklet.

19�

SECTION�5��� ADDITIONAL�INFORMATION�

5.1 Underwriting�Agreement

By�an�Underwriting�Agreement�entered�into�between�the�Company�and�Taylor�Collison�Limited� ( Underwriter )�on�30�January�2015�( Underwriting�Agreement ),�the�Underwriter�agrees�to� conditionally�underwrite�the�offer�for�252,277,951�Shares�( Underwritten�Shares )�pursuant�to�the� Entitlement�Offer.�

Pursuant�to�the�Underwriting�Agreement,�the�Company�has�agreed�to�pay�the�Underwriter:�

  • (a) an�underwriting�fee�of�5%�of�$504,556�(the�amount�underwritten�pursuant�to�the� Underwriting�Agreement);�and

  • (b) a�management�fee�of�1%�of�$504,556�(GST�exclusive).

The�underwriting�fee�and�management�fee�referred�to�above�will�be�satisfied�by�the�issue�of� 15,136,677�Shares�at�an�issue�price�of�$0.002�per�Share.

In�addition�to�the�fees�payable�by�the�Company�to�the�Underwriter�set�out�above,�the�Company�has� agreed�to�pay�and�indemnify�the�Underwriter�against�and�in�relation�to,�all�reasonable�costs�and� expenses�of�and�incidental�to�the�offer�of�Shares�under�the�Entitlement�Offer�( Offer )�and�the�issue�of� the�Underwritten�Shares�( Issue ),�provided�that�the�aggregate�of�all�such�costs�and�expenses�does�not� exceed�$5,000�(without�the�prior�written�consent�of�the�Company).�

In�the�event�that�the�Issue�does�not�proceed�for�any�reason,�including�termination�of�the� Underwriting�Agreement�(excluding�failure�by�the�Underwriter�to�perform�its�obligations�under�the� Underwriting�Agreement),�the�Company�has�agreed�to�reimburse�and�indemnify�the�Underwriter�in� relation�to�all�its�reasonable�costs�and�expenses�in�relation�to�the�Offer,�up�to�the�date�of�termination� of�the�Underwriting�Agreement�or�the�date�upon�which�the�Issue�is�otherwise�brought�to�an�end� ( Termination�Date ).�

The�obligation�of�the�Underwriter�to�underwrite�the�Offer�is�subject�to�certain�events�of�termination.�� The�Underwriter�may�terminate�its�obligations�under�the�Underwriting�Agreement�in�the�event�of�any� of�the�termination�events�set�out�below:�

  • (a) ( Offer�Withdrawn ):��the�Offer�is�withdrawn�by�the�Company;

  • (b) ( Corrective�Disclosure ):�

  • (i) the�Underwriter,�having�elected�not�to�exercise�its�right�to�terminate�its�obligations� under�the�Underwriting�Agreement�as�a�result�of�an�occurrence�as�described�in� clause�(h)(iv)�below,�forms�the�view�on�reasonable�grounds�that�a�corrective� document�should�be�lodged�with�ASX�to�comply�with�the�Corporations�Act�and�the� Company�fails�to�lodge�a�corrective�document�in�such�form�and�content�and�within� such�time�as�the�Underwriter�may�reasonably�require;�or

  • (ii) the�Company�lodges�a�corrective�document�without�the�prior�written�agreement� (such�agreement�not�to�be�unreasonably�withheld)�of�the�Underwriter;�

  • (c) ( Misleading�Documents ):��it�transpires�that�there�is�a�statement�in�this�Offer�Booklet�that�is� misleading�or�deceptive�or�likely�to�mislead�or�deceive,�or�that�there�is�an�omission�from�this� Offer�Booklet�or�if�any�statement�in�this�Offer�Booklet�becomes�misleading�or�deceptive�or� likely�to�mislead�or�deceive�or�if�the�issue�of�this�Offer�Booklet�is�or�becomes�misleading�or� deceptive�or�likely�to�mislead�or�deceive;

20�

  • (d) ( Restriction�on�allotment ):��the�Company�is�prevented�from�allotting�the�Underwritten� Shares�within�the�time�required�by�the�Underwriting�Agreement,�the�Corporations�Act,�the� Listing�Rules,�any�statute,�regulation�or�order�of�a�court�of�competent�jurisdiction�by�ASIC,� ASX�or�any�court�of�competent�jurisdiction�or�any�governmental�or�semi�governmental� agency�or�authority;

  • (e) ( ASIC�application ):�an�application�is�made�by�ASIC�for�an�order�under�section�1324B�or�any� other�provision�of�the�Corporations�Act�in�relation�to�the�Offer,�the�Shortfall�Notice�Deadline� Date�(as�defined�in�the�Underwriting�Agreement)�has�arrived,�and�that�application�has�not� been�dismissed�or�withdrawn;

  • (f) ( Takeovers�Panel ):�the�Takeovers�Panel�makes�a�declaration�that�circumstances�in�relation�to� the�affairs�of�the�Company�are�unacceptable�circumstances�under�Part�6.10�of�the� Corporations�Act,�or�an�application�for�such�a�declaration�is�made�to�the�Takeovers�Panel�and� is�not�withdrawn�or�disposed�of�by�the�Shortfall�Notice�Deadline�Date�(as�defined�in�the� Underwriting�Agreement),�either�of�which�in�the�Underwriter’s�reasonable�opinion�has�a� Material�Adverse�Effect�(as�defined�in�the�Underwriting�Agreement);�

  • (g) ( Indictable�Offence )�a�director�or�senior�manager�of�the�Company�is�charged�with�an� indictable�offence;�or

  • (h) ( Termination�Events ):��any�of�the�following�events�occurs:

  • (i) ( Default ):��default�or�breach�by�the�Company�under�the�Underwriting�Agreement�of� any�terms,�condition,�covenant�or�undertaking�and�the�default�or�breach�is�either� incapable�of�remedy�or�is�not�remedied�within�5�Business�Days�(as�defined�in�the� Underwriting�Agreement)�after�the�Underwriter�notifies�the�Company�of�the�default� or�breach�occurs�or�by�the�Shortfall�Notice�Deadline�Date�(as�defined�in�the� Underwriting�Agreement),�whichever�is�earlier;

  • (ii) ( Incorrect�or�untrue�representation ):��any�representation,�warranty�or�undertaking� given�by�the�Company�in�the�Underwriting�Agreement�is�or�becomes�untrue�or� incorrect;

  • (iii) ( Contravention�of�constitution�or�Act ):��a�contravention�by�the�Company�of�any� provision�of�its�constitution,�the�Corporations�Act,�the�Listing�Rules�or�any�other� applicable�legislation�or�any�policy�or�requirement�of�ASIC�or�ASX;

  • (iv) ( Adverse�change ):��an�event�occurs�(or�is�reasonably�likely�to�occur)�which�gives�rise� to�(or�is�reasonably�likely�to�give�rise�to)�a�Material�Adverse�Effect�(as�defined�in�the� Underwriting�Agreement)�or�any�adverse�change�or�any�development�including�a� prospective�adverse�change�after�the�date�of�the�Underwriting�Agreement�in�the� assets,�liabilities,�financial�position,�trading�results,�profits,�losses,�prospects,� business�or�operations�of�the�Company;

  • (v) ( Misleading�information ):��any�information�supplied�at�any�time�by�the�Company�or� any�person�on�its�behalf�to�the�Underwriter�in�respect�of�any�aspect�of�the�Offer�or� the�Issue�or�the�affairs�of�the�Company�is�or�becomes�misleading�or�deceptive�or� likely�to�mislead�or�deceive;�

  • (vi) ( Change�in�Act�or�policy ):��there�is�introduced,�or�there�is�a�public�announcement�of� a�new�proposal�to�introduce,�into�the�Parliament�of�Australia�or�any�of�its�States�or� Territories�any�Act�or�prospective�Act�or�budget�or�the�Reserve�Bank�of�Australia�or� any�Commonwealth�or�State�authority�adopts�or�announces�a�new�proposal�to�

21�

adopt�any�new,�or�any�major�change�in,�existing,�monetary,�taxation,�exchange�or� fiscal�policy;

  • (vii) ( Prescribed�Occurrence ):��any�of�the�following�occurs:

  • (A) the�Company�converting�all�or�any�of�its�shares�into�a�larger�or�smaller� number�of�shares;

  • (B) the�Company�resolving�to�reduce�its�share�capital�in�any�way;

  • (C) the�Company:

    • entering�into�a�buy�back�agreement;�or

    • resolving�to�approve�the�terms�of�a�buy�back�agreement�under� section�257D�or�257E�of�the�Corporations�Act;

  • (D) the�Company�making�an�issue�of,�or�granting�an�option�to�subscribe�for,�any� of�its�shares�or�any�other�securities,�or�agreeing�to�make�such�an�issue�or� grant�such�an�option,�other�than�the�issue�of�securities�in�accordance�with� the�Entitlement�Offer,�any�securities�issued�or�granted�pursuant�to�any� incentive�plan�or�scheme�for�the�issue�of�securities�to�employees�or�officers� of�the�Company,�any�securities�issued�as�a�result�of�a�pro�rata�offering�to� existing�shareholders�of�the�Company,�any�securities�issued�on�conversion� of�convertible�securities�that�are�on�issue�at�the�date�of�the�Underwriting� Agreement�and�any�securities�issued�with�the�prior�written�consent�of�the� Underwriter�(such�consent�not�to�be�unreasonably�delayed�or�withheld);

  • (E) the�Company�issuing,�or�agreeing�to�issue,�convertible�notes;

  • (F) the�Company�disposing,�or�agreeing�to�dispose,�of�the�whole,�or�a� substantial�part,�of�its�business�or�property;

  • (G) the�Company�charging,�or�agreeing�to�charge,�the�whole,�or�a�substantial� part,�of�its�business�or�property;

  • (H) the�Company�resolving�that�it�be�wound�up;

  • (I) the�appointment�of�a�liquidator�or�provisional�liquidator�of�the�Company;

  • (J) the�making�of�an�order�by�a�court�for�the�winding�up�of�the�Company;

  • (K) an�administrator�of�the�Company,�being�appointed�under�section�436A,� 436B�or�436C�of�the�Corporations�Act;

  • (L) the�Company�executing�a�deed�of�company�arrangement;�or

  • (M) the�appointment�of�a�receiver,�or�a�receiver�and�manager,�in�relation�to�the� whole,�or�a�substantial�part,�of�the�property�of�the�Company;

  • (viii) ( Suspension�of�debt�payments ):��the�Company�suspends�payment�of�its�debts� generally;

  • (ix) ( Event�of�Insolvency ):��an�Event�of�Insolvency�(as�defined�in�the�Underwriting� Agreement)�occurs�in�respect�of�the�Company;

22�

  • (x) ( Judgment�against�the�Company ):��a�judgment�in�an�amount�exceeding�$100,000�is� obtained�against�the�Company�and�is�not�set�aside�or�satisfied�within�seven�days;

  • (xi) ( Litigation ):���litigation,�arbitration,�administrative�or�industrial�proceedings�are�after� the�date�of�the�Underwriting�Agreement�commenced�against�the�Company;

  • (xii) ( Board�and�senior�management�composition ):��there�is�a�change�in�the�composition� of�the�Board�or�a�change�in�the�senior�management�of�the�Company�before�the�issue� of�the�Underwritten�Shares�without�the�prior�written�consent�of�the�Underwriter,� which�consent�will�not�be�unreasonably�withheld�or�delayed;

  • (xiii) ( Change�in�shareholdings ):��a�takeover�offer�or�scheme�of�arrangement�pursuant�to� Chapter�5�or�6�of�the�Corporations�Act�is�publicly�announced�in�relation�to�the� Company;

  • (xiv) ( Timetable ):��there�is�a�delay�in�any�specified�date�in�the�timetable�set�out�in�this� Offer�Booklet,�which�is�greater�than�3�Business�Days�(as�defined�in�the�Underwriting� Agreement),�without�the�prior�written�consent�of�the�Underwriter,�such�consent�will� not�to�be�unreasonably�withheld�or�delayed;

  • (xv) ( Force�Majeure ):��a�Force�Majeure�(as�defined�in�the�Underwriting�Agreement)� affecting�the�Company's�business�or�any�obligation�under�the�Underwriting� Agreement�lasting�in�excess�of�seven�days�occurs;

  • (xvi) ( Certain�resolutions�passed ):��the�Company�passes�or�takes�any�steps�to�pass�a� resolution�under�section�254N,�section�257A�or�section�260B�of�the�Corporations�Act� or�a�resolution�to�amend�its�constitution�without�the�prior�written�consent�of�the� Underwriter;

  • (xvii) ( Capital�Structure ):��the�Company�alters�its�capital�structure�in�any�manner�not� contemplated�by�this�Offer�Booklet;

  • (xviii) ( Market�Movement ):��the�S&P�Materials�index�falls�by�more�than�7.5%�after�the� date�of�execution�of�the�Underwriting�Agreement;

  • (xix) ( Investigation ):��any�person�is�appointed�under�any�legislation�in�respect�of� companies�to�investigate�the�affairs�of�the�Company;�

  • (xx) ( Hostilities ):��hostilities�not�presently�existing�commence�(whether�war�has�been� declared�or�not)�or�a�major�escalation�in�existing�hostilities�occurs�(whether�war�has� been�declared�or�not)�involving�any�one�or�more�of�Australia,�New�Zealand,�the� United�States�of�America,�the�United�Kingdom�any�member�state�of�the�European� Union,�Indonesia,�Japan,�Russia�or�the�People’s�Republic�of�China,�or�a�terrorist�act�is� perpetrated�on�any�of�those�countries�or�any�diplomatic�or�political�establishment�of� any�of�those�countries�elsewhere�in�the�world,�or�a�national�emergency�is�declared� by�any�of�those�countries;�or

  • (xxi) ( Adverse�Change�in�Financial�Markets ):��there�occurs�any�material�adverse�change� or�material�adverse�disruption�to�the�political�or�economic�conditions�of�financial� markets�in�Australia,�the�United�Kingdom,�the�United�States�of�America�or�the� international�financial�markets�or�any�change�or�development�involving�a� prospective�change�in�national�or�international�political,�financial�or�economic� conditions.

23�

The�events�listed�in�paragraphs�(c),�(g)�and�(h)�above�do�not�entitle�the�Underwriter�to�exercise�its� rights�of�termination�unless,�in�the�reasonable�opinion�of�the�Underwriter�reached�in�good�faith,�the� event�has�or�is�likely�to�have,�or�those�events�together�have,�or�could�reasonably�be�expected�to�have,� a�Material�Adverse�Effect�(as�defined�in�the�Underwriting�Agreement)�or�could�give�rise�to�a�liability�of� the�Underwriter�under�the�Corporations�Act.�

The�Underwriting�Agreement�also�contains�a�number�of�indemnities,�representations�and�warranties� from�the�Company�to�the�Underwriter�that�are�considered�standard�for�an�agreement�of�that�type.��

5.2

Effect�of�the�Offer�on�control�of�the�Company�

The�potential�effect�the�Offer�will�have�on�the�control�of�the�Company�is�as�follows:�

  • (a) if�all�Shareholders�are�Eligible�Shareholders�and�take�up�their�Entitlements�under�the�Offer� then�the�Entitlement�Offer�will�have�no�effect�on�the�control�of�the�Company;�

  • (b) if�not�all�Shareholders�are�Eligible�Shareholders�or�do�not�take�up�their�full�Entitlements,�the� Shortfall�will�be�allocated:�

  • (i) to�Eligible�Shareholders�who�subscribe�for�Additional�New�Shares;�and�

  • (ii) by�the�Underwriter�in�consultation�with�the�Company,�to�the�Underwriter�or�any� sub�underwriter�(if�appointed)�to�the�Entitlement�Offer�(in�accordance�with�Listing� Rule�7.2�(exception�2))�or�any�other�parties�selected�by�them.�

The�effect�the�placement�of�the�Shortfall�may�have�on�control�will�depend�entirely�on�any� Additional�Subscriptions�by�Shareholders�and�the�allocations�made�by�the�Underwriter�or�any� sub�underwriter�(if�appointed);�

  • (c) if�some�Shareholders�do�not�take�up�their�Entitlements�(whether�because�they�are�Ineligible� Shareholders�or�otherwise),�their�equity�in�the�Company�will�be�diluted.��The�equity�of� Shareholders�who�only�take�up�part�of�their�Entitlement�will�also�be�diluted,�but�to�a�lesser� extent;��

  • (d) the�Options�the�Company�currently�has�on�issue�are�not�expected�to�be�exercised�prior�to�the� Record�Date�as�the�exercise�price�for�these�Options�exceeds�the�Offer�Price�and�the�share� price�on�3�February�2015,�of�$0.004�per�Share�at�close�of�trade,�therefore�the�Options�are� expected�to�have�no�effect�on�the�Offer�or�the�control�of�the�Company;��

  • (e) given�the�Entitlement�Offer�is�fully�underwritten�and�that�the�Underwriter�will�enter�into�sub� underwriting�arrangements�with�various�parties,�based�on�the�structure�of�the�Entitlement� Offer�and�the�current�level�of�holdings�of�substantial�shareholders,�the�Entitlement�Offer�is� not�expected�to�have�a�material�effect�or�consequence�on�the�control�of�the�Company.�

The�capital�structure�of�the�Company�on�completion�of�the�Entitlement�Offer�will�be�as�follows� (assuming�none�of�the�Options�currently�on�issue�are�exercised�before�the�Record�Date):�

TotalnumberofSharesonissueimmediatelybeforethe 252,277,951
EntitlementOffer
Optionscurrentlyonissue 2,550,000*
NumberofNewSharesofferedunderthe 252,277,951
EntitlementOffer

24�

TotalnumberofSharesonissueimmediatelyafter 504,555,902**
completionoftheEntitlementOffer
TotalamounttoberaisedfromtheEntitlement $504,556(beforecosts)***
Offer

* The�Options�have�exercise�prices�of�between�$0.13�and�$0.20.��The�Board�considers�it�reasonable�to� assume�that�none�of�the�Options�will�be�exercised�before�the�Record�Date�given�the�Company’s�share� price�as�at�close�of�trading�on�3�February�2015�of�$0.004.��

**Assuming�the�Offer�is�fully�subscribed�and�none�of�the�Options�currently�on�issue�in�the�Company� are�exercised�before�the�Record�date.�

***Assuming�the�Underwriting�Agreement�is�not�terminated.�

5.3 CHESS��

The�Company�participates�in�the�CHESS�operated�by�ASX�Settlement�Corporation�( ASX�Settlement ),�a� wholly�owned�subsidiary�of�the�ASX,�in�accordance�with�the�Listing�Rules�and�the�ASX�Settlement� Operating�Rules.�

Under�CHESS,�the�Company�will�not�issue�certificates�to�Applicants.��Instead,�Applicants�will�receive�a� statement�of�their�holdings�in�the�Company�of�New�Shares.��If�the�Applicant�is�broker�sponsored,�ASX� Settlement�will�send�them�a�CHESS�statement.��

The�CHESS�statement�will�set�out�the�number�of�New�Shares�issued�under�this�Offer�Booklet,�provide� the�details�of�a�Shareholder's�holder�identification�number,�the�participant�identification�number�of� the�sponsor�and�the�terms�and�conditions�applicable�to�the�New�Shares.�

If�you�are�registered�on�the�issuer�sponsored�sub�register,�your�statement�will�be�dispatched�by�the� Share�Registry�and�will�contain�the�number�of�New�Shares�issued�to�you�under�this�Offer�Booklet�and� your�security�reference�number.�

A�CHESS�statement�or�issuer�sponsored�statement�will�routinely�be�sent�to�Shareholders�at�the�end�of� any�calendar�month�during�which�the�balance�of�their�shareholding�changes.�Shareholders�may� request�a�statement�at�any�other�time;�however�a�charge�may�apply�for�additional�statements.�

5.4 Taxation�Implications�

Shareholders�should�be�aware�that�there�may�be�taxation�implications�in�participating�in�the� Entitlement�Offer�and�subscribing�for�New�Shares.��The�taxation�consequences�of�participating�in�the� Entitlement�Offer�and/or�acquiring�New�Shares�may�vary�depending�on�the�individual�circumstances� of�each�Shareholder.��Before�making�a�decision�on�whether�or�not�to�participate�in�the�Entitlement� Offer,�Shareholders�should�consult�their�own�professional�taxation�advisers�to�obtain�advice�in� relation�to�the�taxation�laws�and�regulations�applicable�to�their�personal�circumstances.�

25�

SECTION�6��� DEFINITIONS�

AdditionalNewSharesor
ShortfallShares
AdditionalSubscriber
AdditionalSubscription
Applicant
Application
ApplicationMonies
ASIC
ASX
ASXSettlementOperating
Rules
Board
BusinessDay
CHESS
ClosingDate
Company
CorporationsAct
Directors
Dollars,A$,AUDorA
EligibleShareholder
Entitlement
Entitlementand
AcceptanceForm
EntitlementOffer
ExcessAmount
ExistingShare
NewSharesthatmakeuptheShortfall.
anEligibleShareholderwhosubscribesforAdditionalNewSharesundertheir
Entitlement.
anApplicationmadeforAdditionalNewSharesbyEligibleShareholders.
apersonwhosubmitsanApplication.
avalidlycompletedEntitlementandAcceptanceForm.
moniespaidbyEligibleShareholdersinrespectofNewSharesappliedfor.
theAustralianSecuritiesandInvestmentsCommission.
theAustralianSecuritiesExchangeorASXLimitedACN008624691.
thesettlementrulesofthesecuritiesclearinghousewhichoperatesCHESS.
theboardofDirectorsoftheCompany.
adayonwhichtradingtakesplaceonthestockmarketofASX.
ClearingHouseElectronicSubregisterSystem.
thedateonwhichtheEntitlementOffercloses,being5:00pmAdelaidetimeon
25February2015,whichmaybevariedbytheDirectorsattheirabsolute
discretion.
Petratherm.
the_CorporationsAct2001_(Cth).
thedirectorsoftheCompanyfromtimetotime.
Australiandollarsunlessotherwisestated.
aShareholderwitharegisteredaddressinAustraliaorNewZealandwhois
eligibletoparticipateintheEntitlementOffer.
theentitlementtosubscribeforNewSharespursuanttotheEntitlementOffer.
theentitlementandacceptanceformaccompanyingthisOfferBooklet.
thenon�renounceablepro�ratarightsissueofNewSharesonthebasisof1New
Shareforevery1ExistingShareheldattheRecordDate.
hasthemeaninggiveninSection3.2ofthisOfferBooklet.
aShareonissueasattheRecordDate.

26�

ExcessAmount
IneligibleShareholder
ListingRules
NewShare
OfferBooklet
Offer
OfferPrice
OfficialList
OpeningDate
Option
Petratherm
QuotationandOfficial
Quotation
RecordDate
Share
ShareRegister
ShareRegistry
Shareholder
Shortfall
ShortfallSharesor
AdditionalNewShares
UnderwriterorTaylor
Collison
UnderwritingAgreement
UnderwrittenAmount
U.SPerson
U.SSecuritiesAct
anyApplicationMoniesreceivedbytheCompanyinexcessofyourfull
Entitlement,tobetreatedasanApplicationforAdditionalNewShares.
aShareholderwhoisnotanEligibleShareholder.
theofficialListingRulesofASX.
aShareofferedundertheEntitlementOffer.
thisdocument.
theEntitlementOffer.
$0.002perNewShare.
theOfficialListofASX.
thedateonwhichtheEntitlementOfferopens,being16February2015.
anoptiontoacquireaShare.
PetrathermLimitedACN106806884.
officialquotationonASX.
7.00pmAdelaidetimeon11February2015.
afullypaidordinaryshareintheCompany.
theregisterofShareholdersmaintainedbytheShareRegistry.
ComputershareInvestorServicesPtyLimitedABN71005485825.
aholderofSharesintheCompanyasattheRecordDate.
thenumberofNewSharesundertheEntitlementOffernotappliedforbyEligible
ShareholdersundertheirEntitlementorofferedtoShareholdersbecausethey
areIneligibleShareholders.
theNewShareswhichmakeuptheShortfall.
TaylorCollisonLimitedABN53008172450,AFSL247083.
theagreementbetweentheUnderwriterandtheCompanyenteredintoon
30January2015.
$504,556.
hasthemeaninggiventothatterminRegulationSundertheUSSecuritiesAct.
theUnitedStatesSecuritiesActof1933,asamended.

27�

CORPORATE�DIRECTORY

Directors�

Mr�Simon�O’Loughlin�(Non�Executive�Chairman)� Mr�Terry�Kallis�(Managing�Director)� Mr�Donald�Stephens�(Non�Executive�Director)�

Company�Secretary�

Mr�Donald�Stephens��

Registered�Office�

c/��HLB�Mann�Judd�(SA)�Pty�Limited� 169�Fullarton�Road�� DULWICH��SA��5065�

Auditors

Grant�Thornton� South�Australian�Partnership� Chartered�Accountants� Level�1� 67�Greenhill�Road�� WAYVILLE��SA��5034�

Legal�Advisers�to�the�Company�

O’Loughlins�Lawyers� Level�2� 99�Frome�Street� ADELAIDE��SA��5000�

Share�Registrar

Computershare�Investor�Services�Pty�Limited� Level�5� 115�Grenfell�Street�� ADELAIDE��SA��5000�

Contact�Details�

Petratherm�Limited� Level�1�� 169�Fullarton�Road�� DULWICH��SA��5065�

Telephone����(08)�8274�5000� Facsimile:�����(08)�8272�8141� Website:����www.petratherm.com.au� Email:�� ���[email protected]

ASX�Code�

PTR�

28�

For all enquiries:

Phone:

Petratherm Ltd

ACN 106 806 884

(within Australia) 08 8274 5000 (outside Australia) +61 8 8274 5000 Web: www.investorcentre.com/contact

Make your payment:

See overleaf for details of the Offer and how to make your payment

Non-Renounceable Rights Issue — Entitlement and Acceptance Form

[Your payment must be received by 5:00pm (Adelaide time) 25 February 2015]

This is an important document that requires your immediate attention. It can only be used in relation to the shareholding represented by the details printed overleaf. If you are in doubt about how to deal with this form, please contact your financial or other professional adviser.

Step 1: Registration Name & Offer Details

Details of the shareholding and entitlements for this Offer are shown overleaf.

Please check the details provided and update your address via www.investorcentre.com if any of the details are incorrect.

If you have a CHESS sponsored holding, please contact your Controlling Participant to notify a change of address.

Step 2: Make Your Payment

You can apply to accept either all or part of your Entitlement. In addition, if you accept all of your entitlement you may also apply for additional shares that may be available from any Entitlement not taken up by other shareholders ("Additional New Shares"). Enter the number of Entitlement Shares (and any Additional New Shares) you wish to apply for and the amount of payment for those New Shares.

Choose one of the payment methods shown below.

BPAY ®: See overleaf. Do not return the payment slip with BPAY payment.

By Mail: Complete the reverse side of the payment slip and detach and return with your payment. Make your cheque, bank draft or money order payable in Australian dollars to " 'Petratherm Limited’ " and cross " Not Negotiable ". The cheque must be drawn from an Australian bank. Cash is not accepted.

Payment will be processed on the day of receipt and as such, sufficient cleared funds must be held in your account as cheques received may not be re-presented and may result in your Application being rejected. Paperclip (do not staple) your cheque(s) to the payment slip. Receipts will not be forwarded. Funds cannot be debited directly from your account.

Entering your contact details is not compulsory, but will assist us if we need to contact you.

Turn over for details of the Offer è

By making your payment you confirm that you agree to all of the terms and conditions as detailed in the Offer Booklet dated 5 February 2015.

Petratherm Limited Non-Renounceable Rights Issue Payment must be received by 5:00pm (Adelaide time) 25 February 2015

® Registered to BPAY Pty Limited ABN 69 079 137 518

195726_0_COSMOS_Sample_CA/000001/000001/i

Entitlement and Acceptance Form with Additional Shares

Registration Name & Offer Details

�[For your security keep your SRN/] HIN confidential.

Registration Name:

Entitlement No:

Offer Details:

Existing shares entitled to participate as at 11 February 2015: Entitlement to New Shares on a 1 for 1 basis: Amount payable on full acceptance at $0.002 per New Share:

Make Your Payment

Pay by Mail:

Biller Code: 240093 Ref No: �

Make your cheque, bank draft or money order payable to " 'Petratherm Limited’ " and cross " Not Negotiable ". Return your cheque with the below payment slip to: Computershare Investor Services Pty Limited GPO BOX 2987 Adelaide South Australia 5001 Australia

Contact your financial institution to make your payment from your cheque or savings account.

Lodgement of Acceptance

If you are applying for New Shares and your payment is being made by BPAY, you do not need to return the payment slip below. Your payment must be received by no later than 5:00pm (Adelaide time) 25 February 2015. Applicants should be aware that their own financial institution may implement earlier cut off times with regards to electronic payment, and should therefore take this into consideration when making payment. Neither Computershare Investor Services Pty Limited (CIS) nor Petratherm Limited accepts any responsibility for loss incurred through incorrectly completed BPAY payments. It is the responsibility of the applicant to ensure that funds submitted through BPAY are received by this time.

If you are paying by cheque, bank draft or money order the payment slip below must be received by CIS by no later than 5:00pm (Adelaide time) 25 February 2015. You should allow sufficient time for this to occur. A reply paid envelope is enclosed for shareholders in Australia. Other Eligible Shareholders will need to affix the appropriate postage. Return the payment slip below with cheque attached. Neither CIS nor Petratherm Limited accepts any responsibility if you lodge the payment slip below at any other address or by any other means.

Privacy Notice

The personal information you provide on this form is collected by Computershare Investor Services Pty Limited (CIS), as registrar for the securities issuers (the issuer), for the purpose of maintaining registers of securityholders, facilitating distribution payments and other corporate actions and communications. In addition, the issuer may authorise us on their behalf to send you marketing material or include such material in a corporate communication. You may elect not to receive marketing material by contacting CIS using the details provided above or emailing [email protected]. We may be required to collect your personal information under the Corporations Act 2001 (Cth) and ASX Settlement Operating Rules. We may disclose your personal information to our related bodies corporate and to other individuals or companies who assist us in supplying our services or who perform functions on our behalf, to the issuer for whom we maintain securities registers or to third parties upon direction by the issuer where related to the issuer’s administration of your securityholding, or as otherwise required or authorised by law. Some of these recipients may be located outside Australia, including in the following countries: Canada, India, New Zealand, the Philippines, the United Kingdom and the United States of America. For further details, including how to access and correct your personal information, and information on our privacy complaints handling procedure, please contact our Privacy Officer at [email protected] or see our Privacy Policy at http://www.computershare.com/au.

Detach here

Petratherm Limited Acceptance Payment Details

Entitlement taken up: Number of Additional New Shares applied for: Entitlement No: Amount enclosed at $0.002 per New Share: A$ .

Payment must be received by 5:00pm (Adelaide time) 25 February 2015

Contact Details

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Contact Daytime
Name Telephone
Cheque Details
Drawer Cheque Number BSB Number Account Number Amount of Cheque
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