QX RESOURCES LIMITED — Share Issue/Capital Change 2016

Jul 20, 2016

Notification of Consolidation/Split

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Notification of Consolidation/Split

Announcement Summary

Entity name

BLACK MOUNTAIN RESOURCES LIMITED

Applicable security for the reorganisation

BMZ BMZAI

ORDINARY FULLY PAID OPTION EXPIRING VARIOUS DATES EX VARIOUS PRICES

Announcement Type

New Announcement

Date of this announcement

Thursday July 21, 2016

Reorganisation type

Security consolidation

Effective Date

Friday August 12, 2016

Record Date

Monday August 15, 2016

Issue Date

Monday August 22, 2016

Additional Information

Note, after the proposed Share Consolidation, the Options on issue will be:

(a) 100,000 at $1.00 strike price exercisable on/before 30 November 2016

(b) 300,000 at $1.20 strike price exercisable on/before 31 March 2017

The 500,000 pre Share Consolidation Options at $0.25 strike price exercisable on/before 25 July 2016, will expire prior to general meeting on 15 August 2016

Refer to below for full details of the announcement

Announcement Details

Part 1 - Entity and announcement details

*1.1 Name of +Entity

BLACK MOUNTAIN RESOURCES LIMITED

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Registration Number

*1.2 Registered Number Type ABN 55147106974

*1.3 ASX issuer code

BMZ

*1.4 The announcement is

New announcement

*1.5 Date of this announcement

Thursday July 21, 2016

*1.6 Securities affected by the reorganisation

BMZ ORDINARY FULLY PAID BMZAI OPTION EXPIRING VARIOUS DATES EX VARIOUS PRICES

Part 2 - Approvals

• *2.1 Are any of the below approvals required for the reorganisation before business day 0 of the timetable?

  • Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval

  • FIRB approval

  • Another approval/condition external to the entity required to be given/met before business day 0 of the timetable for the reorganisation.

Yes

2.2 Approvals

**Approval/Condition Date for determination Is the date estimated Approval +Security holder Monday August 15, or actual? received/condition approval 2016 Actual met? [Select...] Comments

The Company proposes to consolidate its share capital through the conversion of every 10 Existing Shares into one Share. Under section 254H of the Corporations Act, a company may consolidate its shares if the consolidation is approved by an ordinary resolution of shareholders at a General Meeting. An Extraordinary General Meeting will be held at Suite 183, Level 6, 580 Hay Street, Perth, WA 6000, at 10.00 a.m. on 15 August 2016.

Part 3 - Reorganisation timetable and details

*3.1 +Record date

Monday August 15, 2016

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3.2 Date of +security holder meeting

Monday August 15, 2016

3.3 Last day for trading in the pre-re-organised +securities

Thursday August 11, 2016

*3.4 Effective date. Trading in the re-organised securities commences on a +deferred settlement basis. If the +entity's securities are suspended from trading during this period there will be no +deferred settlement trading however ASX still captures this date. Friday August 12, 2016

3.5 Record date

Monday August 15, 2016

3.6 First day for +entity to send notices to +security holders of the change in the number of +securities they hold. First day for +entity to register +securities on a post-reorganised basis Tuesday August 16, 2016

*3.7 +Issue date. +Deferred settlement market ends. Last day for +entity to send notices to +security holder of the change in the number of +securities they hold. Last day for +entity to register +securities on a post-reorganised basis

Monday August 22, 2016

3.8 Trading starts on a normal T+2 basis

Tuesday August 23, 2016

3.9 First settlement of trades conducted on a +deferred settlement basis and on a normal T+2 basis

Thursday August 25, 2016

Part 4 - Reorganisation type and details

*4.1 The reorganisation is

+Security consolidation

*4.1a Consolidation ratio: the +securities will be consolidated on the basis that every

10

(pre-consolidation) +securities will be consolidated into

1

(post-consolidation) +security (/ies).

*4.2 Scrip fraction rounding

Fractions rounded up to the next whole number

Part 5 - +Securities on issue before and after reorganisation

*5.1 +Securities on issue before and after the reorganisation

**ASX +Security Code ASX +Security BMZ Description ORDINARY FULLY PAID

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----- Start of picture text ----- Quoted/unquoted Number on issue Number on issue after Estimate/ActualQuoted before reorganisation reorganisation Actual410,515,820 41,051,582*ASX +Security Code *ASX +SecurityBMZAI DescriptionOPTION EXPIRINGVARIOUS DATES EXVARIOUS PRICESQuoted/unquoted Number on issue Number on issue after Estimate/ActualUnquoted before reorganisation reorganisation Actual4,500,000 450,0005.2 *Exercise price of options*ASX +Security Code *ASX +Security DescriptionBMZAI OPTION EXPIRINGVARIOUS DATES EXVARIOUS PRICESQuoted/unquoted Exercise price before Exercise price afterUnquoted reorganisation reorganisationAUD 0.00000000 AUD 0.00000000----- End of picture text -----

Part 6 - Further information

6.1 Further information relating to the reorganisation

6.2 Additional information for inclusion in the Announcement Summary

Note, after the proposed Share Consolidation, the Options on issue will be:

(a) 100,000 at $1.00 strike price exercisable on/before 30 November 2016

(b) 300,000 at $1.20 strike price exercisable on/before 31 March 2017

The 500,000 pre Share Consolidation Options at $0.25 strike price exercisable on/before 25 July 2016, will expire prior to general meeting on 15 August 2016

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