PTR MINERALS LTD — Capital/Financing Update 2017

Dec 26, 2017

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PETRATHERM SIGNS TENEMENT PURCHASE AGREEMENT

TO ACQUIRE TENEMENTS PROSPECTIVE FOR GOLD AND BASE METALS

IN SOUTH AUSTRALIA

ASX ANNOUNCEMENT

27 December 2017

HIGHLIGHTS

• Petratherm to acquire 2 tenements prospective for gold and base metals in the Curnamona Province of South Australia

• Petratherm to seek re-instatement to quotation on ASX and raise AUD$4 million via a Prospectus.

Petratherm Limited (ASX:PTR) (“the Company/Petratherm”) is pleased to announce it has signed a Tenement Purchase Agreement with privately owned SAEX Pty Ltd (“SAEX”), to acquire two tenements, EL 5306 and EL 5717, located in the gold and base-metal endowed Curnamona Province, of northeastern, South Australia.

In consideration for the purchase of the Tenements – Petratherm shall issue to SAEX and/or its nominee the value of $50,000 of fully paid ordinary shares under the planned future prospectus.

Conditions Precedent to the Transaction:

The transaction is subject to the satisfaction (or waiver) of the following conditions precedent:

• Petratherm conducting due diligence in respect of the Tenements.

• Petratherm obtaining all shareholder approvals required under the Corporations Act 2001 and ASX Listing Rules in order for its ordinary shares to be re-instated to quotation on ASX including (without limitation) for a significant change to the nature and scale of the Company’s activities (Chapter 11 of the ASX Listing Rules) and for the issue of shares pursuant to a Prospectus (Chapters 1 and 2 of the ASX Listing Rules). Petratherm also intends to consolidate its securities at a specified ratio that will be sufficient, based on the lowest price at which its shares traded over the last 20 trading days prior to its suspension, to achieve a market value for its shares of not less than 2 cents each.

• Petratherm raising at least $4 million via a Prospectus.

• Petratherm obtaining conditional approval from ASX for its ordinary shares to be re-instated to quotation.

• Petratherm obtaining any approval or consents required under the Mining Act 1971 (SA).

Background on Walparuta Project

The Walparuta Project is located 30 kilometres north of Mannahill, and covers strata of the Curnamona Province of South Australia (Figure 1). The Curnamona Province contains widespread base-metal, gold and uranium occurrences and several commercial mines, most notably the world-class Broken Hill silver-lead-zinc deposit and more recently Havilah Resources operating Portia Gold Mine.

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SAEX Tenements
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Figure 1: Regional Location Map – Outline of tenements, major mineral deposits and Curnamona Province strata (light green areas).

The project comprises two tenements totalling 78 km[2] and as recorded by the South Australian Resources Information Gateway (Government of South Australia, web ref: https://map.sarig.sa.gov.au/), contains several historic mineral prospects demonstrating gold-copper and silver-lead (Figure 1) anomalism. The Company intends to undertake ground geophysical and surface geochemical exploration activities over these sites and the broader tenement area to identify targets for potential later drill testing.

The Board of Petratherm will continue to keep shareholders updated following completion of the due diligence period.

For further information please contact:

Simon O’Loughlin

Chairman Tel: (08) 8111 4000

Competent Persons Statement: The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Peter Reid, who is a Competent Person, and a Member of the Australian Institute of Geoscientists. Mr Reid is not aware of any new information or data that materially affects the historical exploration results included in this report. Mr Reid is a contractor to Petratherm Ltd. Mr Reid has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Reid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.