QX RESOURCES LIMITED — Capital/Financing Update 2017

Sep 17, 2017

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ASX ANNOUNCEMENT

18 September 2017

BLACK MOUNTAIN DIVESTS US SILVER ASSETS

Black Mountain Resources Limited ( ASX: BMZ ) (“ Black Mountain” or “ the Company” ) is pleased to announce that it has successfully divested its non-core US silver assets, with management attention and capital now solely focused on maximising the value from the Company’s 100%-owned Namekara Vermiculite Mine (Namekara) in south-eastern Uganda.

Previously, Black Mountain held a 70% stake in two prospective US silver mines, the New Departure site in Montana and the Conjecture Silver Project in Idaho. As a result of this transaction, Black Mountain will extinguish all future financial obligations associated with the US silver assets including holding and lease costs, exploration and rehabilitation commitments.

In addition, Executive Director John Ryan has resigned from the Board of Black Mountain. The Board is grateful to John for his commitment to the Company and wish him well with his future endeavours.

Black Mountain’s Interim CEO Bronwyn Barnes commented: “With the significant opportunities we’re witnessing in the global Vermiculite and phosphate markets, the Board took the view that it is best to deploy our capital and management’s time and effort in scaling up development, manufacturing and production at Namekara. This is what we are now doing.

“The Namekara mine and processing facility are performing very well, and we look forward to updating shareholders on progress.”

Transaction Details

Black Mountain has agreed with Texas Energy Advisors LLC (“TEA”) to transfer the rights and responsibilities for the US silver assets for a total payment of A$70,000. An initial sum of A$25,000 has been transferred to TEA on execution of legal documents relating to the divestment and a second payment of A$45,000 will be made by 31 December 2018.

-ENDS-

ABOUT BLACK MOUNTAIN

Black Mountain owns 100% of the Namekara Mine in south-eastern Uganda, which leads the world in the extraction, production, and export of premium-grade Vermiculite. Vermiculite is a unique, naturally-occurring mineral used across numerous industries, including as a high-quality fertiliser for agriculture and in fire-proof building materials for the construction and manufacturing sectors.

Further information, please contact:

Bronwyn Barnes Interim CEO Ph: +61 (0)417 093 256

Email: info@blackmountainresources.com.au Web: www.blackmountainresources.com.au

Released through: Ben Jarvis, Six Degrees Investor Relations: +61 (0) 413 150 448

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

Level 2, 34 Colin Street West Perth WA 6005 Tel: +61 8 9321 7277