QEM LIMITED — Capital/Financing Update 2018

Oct 18, 2018

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QEM Limited commences trading on the ASX

• $5 million raised at $0.20 per share in successful Initial Public Offering to advance QEM’s Julia Creek vanadium and oil shale prospects in Queensland

• Cornerstone investors include Executive Director David Fitch who holds 23.48% on ASX admission

• Exploration activities to commence immediately

19 October 2018: QEM Limited (“QEM” or “the Company”) will commence trading on the Australian Securities Exchange (ASX) at 7:30am WST today after raising $5 million at $0.20 per share as part of its Initial Public Offering (IPO). The Company issued 25,000,000 shares in its IPO, with 100,000,000 total shares on issue, giving it an indicative market capitalisation of $20 million on listing.

QEM plans to use funds from its IPO to advance exploration at its 100% owned Julia Creek Project (“the Project”) in Queensland, where it is targeting vanadium and oil shale prospects in the Toolebuc Formation. QEM’s previous work on the Project, as outlined in the IPO prospectus, indicated an opportunity exists for a significant vanadium and oil shale project. In March 2018, QEM upgraded the size of its JORC Inferred Resource to its current level of 1,700Mt @ 0.34% V205. In addition, within the same 1,700Mt, a Contingent 3C Oil Shale Resource of 589 MMbbls is estimated. However, it is important to note that at this stage, the vanadium Mineral Resource and oil shale Petroleum Resource stand on their own, as there has been insufficient work completed by QEM to confirm that the vanadium Mineral Resource and oil shale Petroleum Resource can be extracted together.

QEM’s first task at Julia Creek will be to commence a 3,000m drilling program aimed at increasing the geological confidence of the Project and providing a basis for the Company to complete feasibility studies. It will also advance investigations into vanadium and oil shale processing options and testing, conduct environmental studies on the Julia Creek Project and complete pre-feasibility studies on all aspects of project development.

Cornerstone investors include the Company’s Executive Director David Fitch, who has an initial holding of approximately 23.48% of the Company on ASX admission. Mr Fitch was Chief Operating Officer and joint major shareholder of the Fitch Group – a group of companies with assets worth more than $250 million across commercial, residential, manufacturing, retail and hotel industries. Mr Fitch has extensive experience in strategic planning, commercial negotiations, business operations and asset management. He is a director of BioCentral Laboratories Ltd, a company producing products for firefighting as well as dust suppressants for mining and road construction.

Non-Executive Chairman John Foley is a barrister with nearly 50 years of experience. He is a director of Citigold Corporation Limited (ASX: CTO) and Hudson Investment Group Limited (ASX: HGL), and was a founding director of industry body the Australian Gold Council. He is a long-standing member of the Australian Institute of Company Directors.

Highly experienced mining executive Daniel Harris is a Non-Executive Director of QEM. Mr Harris has been involved in all aspects of the vanadium industry for over 37 years including both COO and CEO positions in Atlantic Ltd, whose subsidiary, Midwest Vanadium, owned a +$500 million-dollar production plant and vanadium mine in Western Australia as well as former Vice President of EVRAZ Plc, where he was responsible for their global vanadium business. Daniel also acts as a technical executive consultant to GSA Environmental in the UK, a process engineering company that is well credentialed in the vanadium and oil industries and is a currently a Non-Executive Director of Atlas Iron Limited.

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Julia Creek Project Overview

The Julia Creek Project consists of tenements EPM 25662, EPM 25681 and EPM26429 which form part of the vast Toolebuc Formation. This formation is increasingly recognised for elevated vanadium potential, with vanadium and oil shale hosted by, and co-located within, the Toolebuc Formation. QEM seeks to further explore and exploit these important resources.

The Julia Creek project currently has an Inferred JORC resource of 1.7Bt with an average V205 content of 0.34% and an SPE-PRMS petroleum resource of 589MMbarrels in the 3C contingent category.

Further information about the Project is contained in the Company’s IPO prospectus.

Competent Person and Qualified Evaluator Statements

The information in this announcement that relates to the mineral resource and contingent resource estimates for the Company’s Julia Creek Project was first reported by the Company in its IPO prospectus dated 20 August 2018 and supplementary prospectus dated 12 September 2018 (together, the “Prospectus”). The Company confirms that it is not aware of any new information or data that materially affects the information included in the Prospectus, and in the case of estimates of Mineral Resources and Contingent Resources, that all material assumptions and technical parameters underpinning the estimates in the Prospectus continue to apply and have not materially changed.

For further information:

David Fitch Executive Director P: +61 8 9481 0389 E: david@qldem.com.au

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