QX RESOURCES LIMITED — Board/Management Information 2016

Apr 20, 2016

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ASX ANNOUNCEMENT

21 April 2016

NEW BOARD APPOINTMENT TO STRENGTHEN AFRICAN INVESTMENT EXPERIENCE

Black Mountain Resources Limited ( ASX:BMZ ) ( Black Mountain or the Company ) announces that Mr Valentine Chitalu has agreed to join the Board as a Non-Executive Director of the Company, subject to the Company completing its acquisition of the producing and exporting Namakera Vermiculite Mine and Busumbu Phosphate Project in Uganda,

Mr Chitalu is a highly respected African businessman and entrepreneur who has over 20 years’ specialisation in private equity and local private sector development in Africa, with further experience in the fields of privatization, merchant banking, corporate finance, accounting, auditing, development economics, capital markets and business development in transitional economies.

Mr Chitalu holds several board positions in Zambia, Australia, South Africa and the United Kingdom. He is currently Chairman of Phatisa Group, a US$300 million private equity fund manager, focussing on the agriculture and housing sectors in Sub-Saharan Africa. He is also Chairman of MTN (Zambia) and SABMiller (Zambia) and has been a non-executive Director of ASX-listed African Energy Resources Limited since 2006.

In 2010 Mr Chitalu was appointed to the Board of the CDC Group, the UK’s Development Finance Institution wholly owned by the UK Government. It is the world’s oldest DFI with a history of making successful investments in businesses which have become industry leaders thereby having enormous impact on the private sector in their country and region. Mr. Chitalu has previously served as the Chief Executive Officer of Zambia Development Agency and the Zambia Privatisation Agency, where he oversaw the disposal and privatisation of 240 businesses. He was previously chairman of the Zambia Venture Capital Fund and board member of Commonwealth Africa Investments. He also serves as a Member of the Technical Advisory Panel of the Public Private Infrastructure Advisory Facility of the World Bank.

Mr. Chitalu is a Fellow of the Chartered Association of Certified Accountants in the United Kingdom and holds a practicing certificate from the Zambia Institute of Certified Accountants. He holds a Master's degree in Development Economics from Cambridge University, a Master's degree in Finance and Politics of Development and Bachelor's degree in Accounting and Finance.

Black Mountain Resources Limited ABN 55 147 106 974 www.blackmountainresources.com.au info@blackmountainresources.com.au

Suite 5, 531 Hay Street Subiaco WA 6008 Tel: +61 8 9380 8343

Fax: +61 8 9380 8300

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With technical, legal and financial due diligence on the Namakera Vermiculite Mine and Busumbu Phosphate Project completed by the Company and its consultants and key conditions precedent already satisfied, including the execution of a binding Share Sale Agreement and Deed of Assignment of Debt, it is proposed that Mr Chitalu will join the Board upon the Company obtaining all necessary shareholder and regulatory approvals pursuant to the ASX Listing Rules, Corporations Act 2001 (Cth) and other applicable law or regulations. A notice of meeting to its shareholders seeking the relevant approvals to proceed with the proposed acquisition is currently being prepared and will be announced shortly.

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For further information, please contact:

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Jason Brewer Director Black Mountain Resources Ltd

Forward looking statements

Forward looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

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