RAGNAR METALS LIMITED — Capital/Financing Update 2016

Oct 11, 2016

ASX Announcement 12 October 2016

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GENOME TRANSACTION UPDATE

Drake Resources (ASX: DRK) (“Drake” or “the Company”) advises that the ASX has determined that the Genome company structure and operations post completion of the Genome Technologies Ltd (“Genome”) acquisition (the “Transaction”) will not be suitable for a listed entity under Listing Rule 1.1 Condition 1.

The Company advises that as a result, the Transaction will not proceed.

The Company has been working very diligently to prepare Genome for a listing on ASX. The transaction to acquire Genome was first announced on 11 March 2016 in an announcement setting out the specific details of the Genome business

On the same day the Transaction was announced, Drake undertook a non-renounceable entitlement issue to raise $447,992 before costs.

On 24 April 2016, the Company announced that it had completed a very detailed and comprehensive Due Diligence process. Drake also announced that it held discussions with representatives of an Australian State government and agencies supporting these governments with regard to the commercial development of Genome’s human cyber-risk governance solution. The discussions confirmed that the Genome cyber-risk solution satisfied an unresolved need.

On 30 June 2016, the Company announced that the CEO of Genome had visited Australia to meet with potential investors, regulators and representatives of various State governments and agencies.

On 16 September the Company announced that the Prospectus was on target to be available on or around the date of the shareholder meeting. It further advised that the Notice of Meeting was seeking approval of the Transaction and was expected to be circulated to shareholders by the start of October for a shareholders meeting in early November.

The Company is currently working with the ASX towards reinstatement as soon as possible.

Jay Stephenson COMPANY SECRETARY

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