QEM LIMITED — Capital/Financing Update 2019

Jun 10, 2019

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11 June 2019

Drilling successfully completed at QEM’s Flagship Julia Creek Project

• A five hole, 4C (four inch) core drill program has been successfully completed at QEM’s flagship Julia Creek vanadium / oil shale project, located in North Western Queensland, Australia.

• The drill program was designed as an infill program to provide data on drill spacing between existing holes and will assist with increasing confidence in the geological model.

• The drill program has provided approximately 300kg of bulk ore material. This material will be used to advance the on-going processing studies and for further testing and analysis.

QEM Limited (“ QEM ”, the “ Company ”) ( ASX:QEM ) is pleased to announce the successful completion of its five hole drill program, at its flagship Julia Creek vanadium / oil shale project, covering 496km², in the Julia Creek area of North Western Queensland, Australia. The program consisted of five 4C (four inch) core drill holes and the recovered core will be used to advance processing studies intended to optimise the extraction of vanadium and potentially hydrocarbons. Results from the drill program will also be input into the geological model, with the objective of increasing the geological confidence of the deposit.

As announced on 3 May 2019, QEM undertook a 26km 2D seismic program to survey the geological structure of the seams across the Julia Creek project area. The results from the drill program and the seismic data gathered will play an important role in the Company's plans to update the geological resource, as well as the assessment of potential mine designs and also in the planning of the Prefeasibility study for the Julia Creek project.

QEM expects that the final drilling data results after assays, will be completed by July 2019, with the objective of upgrading its globally significant JORC (2012) Inferred Resource of 1,700 Mt @ 0.34% V2O5 over the coming months.

QEM Limited Executive Director David Fitch commented: “With the successful completion of the recent seismic survey and the 4C core drilling program, using this data, QEM is targeting an upgrade to its resource model in the coming months. The Julia Creek resource is the second largest vanadium resource listed on the ASX and this upgrade will improve the position of the Company in the further development of this very exciting opportunity”.

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QEM Limited John Foley Chairman Level 11, 216 St Georges Terrace Daniel Harris Non-Executive Director Perth WA 6000 Australia David Fitch Executive Director

www.qldem.com.au info@qldem.com.au +61(0) 8 9481 0389

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Figure 1: Tenement Map detailing QEM’s existing four tenements, showing the five completed drill hole locations.

For Further Information

David Fitch Managing Director P: +61 7 3303 0161 E: david@qldem.com.au

Jane Morgan Investor Relations P: +61405 555 618 E: jm@janemorganmanagement.com.au

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QEM Limited John Foley Chairman Level 11, 216 St Georges Terrace Daniel Harris Non-Executive Director Perth WA 6000 Australia David Fitch Executive Director

www.qldem.com.au info@qldem.com.au +61(0) 8 9481 0389

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About QEM

QEM Limited (ASX:QEM) is a publicly listed company which is focussed on the exploration and development of its flagship Julia Creek Project, cover 496km² in the Julia Creek area of North Western Australia.

The Julia Creek vanadium / oil shale project is a unique world class resource with the potential to deliver innovative energy solutions, through the production of energy fuels and vanadium pentoxide. QEM strives to become a leading producer of liquid fuels and in response to a global vanadium deficit, also aims to become a global supplier of high quality vanadium pentoxide, to both the nascent energy storage sector and the Australian steel industry.

This globally significant JORC (2012) Inferred Resource of 1,700 Mt @ 0.34% V2O5 is the second largest ASX listed vanadium resource and represents a significant opportunity for development.

The tenements form part of the vast Toolbec Formation, which is recognised as one of the largest deposits of vanadium and oil shale in the world and located less than 16km east of the township of Julia Creek. In close proximity to all major infrastructure and services, the project is intersected by the main infrastructure corridor of the Flinders Highway and Great Northern Railway, connecting Mt/ Isa to Townsville.

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QEM Limited John Foley Chairman Level 11, 216 St Georges Terrace Daniel Harris Non-Executive Director Perth WA 6000 Australia David Fitch Executive Director

www.qldem.com.au info@qldem.com.au +61(0) 8 9481 0389