RAIDEN RESOURCES LIMITED — Capital/Financing Update 2019

Dec 17, 2019

ASX RELEASE | 18[th] December 2019

RAIDEN ENTERS INTO AN EARN-IN AND OPTION TO PURCHASE AGREEMENT OVER IGLIKA PROJECT IN BULGARIA

QUICK STATS

ASX Code: RDN

Shares on Issue: 431.4 million Market Cap: $3.02 million Cash: $1.39m (at 30 September ‘19)

BOARD & MANAGEMENT

HIGHLIGHTS

• The Company executes an Earn-in and Option to Purchase Agreement over Iglika project in southeastern Bulgaria;

• The permit is located within Upper Cretaceous Volcanic rocks, which host many significant porphyry copper and epithermal gold deposits in the Balkans;

• The Iglika copper-gold skarn deposit is located on the permit;

• Reportedly significant amount of work, including exploration adits and historic drilling completed on the permit;

• Significant copper and gold anomalies, alteration zones and outcropping zones of copper-gold mineralisation provide additional targets for further follow up; and

• Raiden has a path to a 100% ownership position

Non- Executive Chairman Mr Michael Davy

Managing Director Mr Dusko Ljubojevic

Non-Executive Directors Mr Martin Pawlitschek

Company Secretary Ms Kyla Garic

ASSET PORTFOLIO

Stara Planina - Serbia

(JV with local entity – path to 100% - 46km[2] )

Donje Nevlje - Serbia (100% – 74km[2] )

Majdanpek West - Serbia (Rio JV - 100% - 76km[2] )

Zupa - Serbia

(100% Raiden – 85km[2] )

Pirot - Serbia

(Executing Application – 16km[2] )

Bor – Serbia

(Partially granted/ pending application - 100% - ~28km[2] )

Raiden Resources Limited (ASX: RDN) (“Raiden” or “the Company”) is pleased to announce the signing of an Earn-in and Option to Purchase Agreement over the Iglika project in Bulgaria.

Vuzel - Bulgaria

(JV with local entity – path to 100% ~26.5 km[2] )

Kalabak - Bulgaria

Dusko Ljubojevic, Managing Director of Raiden commented:

“The Iglika transaction is a further demonstration of the Company’s strategy and ability to secure high value projects, while preserving the capital structure. The Iglika project is hosted within the Cretaceous volcanic belt of rocks, that is host to most of the

(JV with local entity – path to 75% ~191 km[2] )

Zlatusha - Bulgaria

(JV with local entity – path to 75% ~195 km[2] )

Significant further ground holding currently under review.

Page 1 of 9

ASX RELEASE | 18[th] December 2019

large copper porphyry and epithermal gold deposits in the region. This segment of the Tethyan is attracting interest from many international explorers and major mining companies.

Historically, majority of the exploration work on Iglika was conducted by Bulgarian state agencies, which focused on the Iglika skarn deposit in the south of the project area. The Company believes that the permit is highly prospective for further discoveries, including porphyry and epithermal styles of mineralisation. Over the following weeks, Raiden’s technical team will focus on evaluating the significant amount of historical data available for the Iglika project. This data will be used to determine the near-term exploration strategy and identification of further drill targets as soon as possible.”

About the Iglika Project

The Iglika project covers a surface area of 105 km2 and is located within the Upper Cretaceous Srednogorie Metallogenic Belt in south-eastern Bulgaria. The project contains a large portion of prospective geology, consisting of Upper Cretaceous arc magmatic rocks, and a number of large alteration systems, of a type commonly associated with porphyry copper and epithermal gold mineralisation. To date three distinct magmatic and hydrothermal centres, with associated gold and copper mineralisation have been identified on the project. Multiple copper and gold targets are associated with each alteration centre. Mineral occurrences in the vicinity of the hydrothermal alteration centres are indications of porphyry copper and epithermal gold mineralisation systems. Skarn mineralisation exists where Cretaceous diorites are in contact with older limestones.

The Iglika skarn deposit has been the focus of exploration drilling by the Bulgarian state during the 1950’s and 60’s. A total of 40,000m of historic drilling are reported on the permit, with the bulk of drill collars located over the Iglika skarns prospect. The coppergold mineralisation at Iglika is registered as a reserve under the Bulgarian system of reporting. The Company cautions that this in no way implies that there is a resource or reserve under the JORC reporting code at Iglika. The Company does however consider these results to be of interest and indicates the presence of a copper skarn mineralised system that warrants closer investigation. The Company is in the process of reviewing the data to determine the potential of the historic prospect, for further work including drilling.

Page 2 of 9

ASX RELEASE | 18[th] December 2019

Location and Geological Setting

The Iglika license is located in the Jambol Province (Elhovo and Bolyarovo Districts), in south-eastern Bulgaria. The largest portion of the project area covers Upper Cretaceous volcano-sedimentary rocks, which are commonly intruded by porphyritic diorite stocks and dykes. Previous explorers in the area of interest identified at least three large and likely porphyry copper related zones of alteration within the Upper Cretaceous rocks. The eastern portion of the project area is characterised by outcrops of Palaeozoic, low-grade metamorphic rocks, intruded by granite intrusions, while the southern part of the project area contains Triassic and Jurassic sediments including limestones.

==> picture [468 x 360] intentionally omitted <==

Figure 1 - location of the Iglika project in relation to other deposits in South-Eastern Bulgaria and neighbouring Turkey

Page 3 of 9

ASX RELEASE | 18[th] December 2019

Historical Exploration

The Iglika permit area has been of interest to historic and artisanal miners as evidenced by ancient slag heaps in the area, as well as, exploration activities that were carried from 1958 onwards.

(1958-1985): The Yambol Government Geological Survey conducted exploration for Cu, Pb and Zn, but did not prospect for gold, nor were any samples analysed for gold. Reportedly, historical drilling and exploration adits were completed, mostly over the Iglika copper skarn prospect.

(1985-1991): Work by the Bulgarian National Geofund included mapping, soil sampling and reconnaissance drilling. Samples were analysed for Cu, Pb, Zn, Au and Ag. The work defined several zones of significant gold mineralisation.

(1991-2011): Caracal Cambridge Bulgaria further explored the area for gold with mapping, grab sampling, litho-geochemical profiling, rock sampling of trenches and scout drilling. The company outlined several high-grade gold prospects.

(2015 - present) Balkan Mineral Development has focussed on developing the gold potential on the Voden East and Voden West prospects

Page 4 of 9

ASX RELEASE | 18[th] December 2019

==> picture [468 x 302] intentionally omitted <==

Figure 2 - Geological setting and known prospects within on the Iglika project area. Notably, there are five known prospects which the Company will focus on in the near term

Option Agreement Terms

The Company executed an Earn-in and Option to Purchase Agreement with Balkan Mineral Development OOD (“BMD”), a Bulgaria registered company, which holds the exploration rights over the Iglika exploration license. Following are the key terms of the Agreement:

• Raiden has a 90 day period to execute due diligence over the Iglika permit and BMD, during which time, Raiden will have the exclusive rights to execute the transaction in regard to the Iglika project and BDM.

Stage 1 Earn In - Subject to Raiden providing to BMD the financing for ongoing administrative fees required to keep the Iglika license in good standing, Raiden may earn a 1% shareholding interest and become a Shareholder in BMD. The total value of administrative fees up to end of January 31[st] 2020 are expected to be approximately AUD

Page 5 of 9

ASX RELEASE | 18[th] December 2019

48,200, of which AUD 40,000 is a refundable performance guarantee to the Ministry of Energy.

Stage 2 Earn In - Raiden may earn an additional 50% shareholding interest (or stage 1 and 2 earn-in total of 51% shareholding interest), by expending not less than EURO 300,000 (three hundred thousand) of exploration expenditure before 31[st] December 2020, commencing from 1 January 2020.

Stage 3 Earn In - Raiden may earn up to an additional 49% shareholding interest in BMD, or a total 100% interest in BMD by expending not less than a further EURO 600,000 (six hundred thousand) of Exploration Expenditure before 31[st] December 2021, commencing from 1[st] January 2021. Upon Raiden earning a 100% shareholding interest in BMD as per the preceding sentence, the vendors will retain a 2% net smelter royalty capped at US$5,000,000 (five million), payable from the proceeds of commercial production from the mine operated by BMD in continuance of the exploration activities under the Iglika Permit. Raiden has the option to purchase 1% of the royalty from the Owners for a EURO 500,000 payment (five hundred thousand), and will otherwise be on customary terms and further 0.5% of royalty for EURO 1,000,000 (one million).

Right to Purchase

• At any time during the period commencing on 1[st] January 2020 and ending on 31[st] July 2021, Raiden may acquire a 100% interest in the Iglika Permit through acquisition of a 100% Shareholding Interest in BMD, by purchasing all of the shares in BMD owned by the Owners against payment of a purchase price to the Owners, proportional to their equity in BMD, for the total amount of US$250,000 (two hundred and fifty thousand), less any management fees paid by Raiden to the Owners at the time of acquisition. The purchase price under the preceding sentence is payable either (upon agreement between Raiden and the Owners, at the election of Raiden):

  • (a) by paying US$250,000 (two hundred and fifty thousand) to the bank accounts nominated by the Owners; or

(b) by paying US$125,000 (one hundred and twenty five thousand) to the bank accounts nominated by the Owners and issuing to the Owners that number of Raiden’s Shares with a total value of US$125,000 (one hundred and twenty five thousand), based on an issue price per share equivalent to the 30 Day VWAP.

Page 6 of 9

ASX RELEASE | 18[th] December 2019

In addition to the purchase price payable and as a part of the consideration due for transfer of the Owners shareholding interest in BMD to Raiden upon exercising of the right to purchase, the Owners will retain a 0.5% net smelter royalty capped at US$5,000,000 (five million), payable from the proceeds of commercial production from the mine operated by BMD in continuance of the exploration activities under the Iglika Permit. Raiden has the option, within the first 12 (twelve) months of the commercial production from the mine, to purchase the Royalty from the Owners for US$500,000 consideration.

• at any time during the period from 1 August 2021 until 18 (eighteen) months thereafter, Raiden may acquire a 100% shareholding interest in the Iglika Permit through acquisition of a 100% shareholding interest in BMD by purchasing all of the shares in BMD owned by the Owners against payment of a purchase price to the Owners, proportional to their equity in BMD, at the total amount of US$ 500,000 (five hundred thousand), less any management fees paid by Raiden to the Owners at the time of acquiring by Raiden of the shareholding interest. The purchase price under the preceding sentence is payable either (at the election of Raiden):

  • (a) by paying US$500,000 (five hundred thousand) to the bank accounts nominated by the Owners; or

  • (b) by paying US$250,000 (two hundred and fifty thousand) to the bank accounts nominated by the Owners and issuing to the Owners that number of Raiden’s Shares with a total value of US$250,000 (two hundred and fifty thousand), based on an issue price per share equivalent to the 30 Day VWAP. In this event the Owners will not retain any Royalty rights.

Regional porphyry potential

The Iglika project is located within the Cretaceous porphyry and epithermal belt. The majority of historical exploration in the south-eastern segment of this belt where the Iglika permit is located, was carried out by state-owned enterprises and focused on lead and zinc mineralisation. More recent exploration over the last fifteen to twenty years elsewhere in the belt, has highlighted that the belt is prospective for porphyry and epithermal gold mineralisation, with many deposits of this type now known in the Cretaceous volcanic belts of Serbia and Turkey. The alteration and associated copper and gold geochemical

Page 7 of 9

ASX RELEASE | 18[th] December 2019

anomalies and mineralisation identified on the permit warrants further prospecting and drilling to test for porphyry copper and epithermal gold mineralisation.

==> picture [469 x 426] intentionally omitted <==

Figure 3 - Iglika project is located on a well-established porphyry and epithermal deposit trend

FOR FURTHER INFORMATION PLEASE CONTACT

DUSKO LJUBOJEVIC

Managing Director

RAIDEN RESOURCES LIMITED

dusko@raidenresources.com.au www.raidenresources.com.au

Page 8 of 9

ASX RELEASE | 18[th] December 2019

Disclaimer:

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “potential(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

About Raiden Resources (ASX: RDN) is an ASX listed copper—gold exploration company focused on the emerging prolific Tethyan metallogenic belt in Eastern Europe (Serbia and Bulgaria). The Company has signed an Earn-In and Joint Venture Agreement with Rio Tinto in respect to two licenses (Majdanpek West and Majdanpek Pojas), whereby Rio Tinto can earn a 75% project-level position in the properties, via a staged exploration commitment totalling USD$31.5 million in three stages at Rio Tinto’s election. Raiden also retains a 100% interest in the Bor and Pirot project applications, the Donje Nevlje project; the Zupa property and the Tilva Njagra project which the company considers prospective for epithermal and porphyry style copper, gold and base metal mineralisation. The Company also has executed a Joint Venture Agreement with a local vendor in relation to the Stara Planina project, which hosts two large anomalies, which the Company plans to continue exploring throughout 2019. The Company has also recently signed 3 significant transactions in Bulgaria, including the Vuzel project (epithermal gold); Kalabak project (epithermal and porphyry potential) and Zlatusha project (porphyry and epithermal potential). With the recent acquisitions, the Company has become one of the largest ground holders in the Western Tethyan belt and the Directors believe that the Company is well positioned to unlock value from this exploration portfolio.

Page 9 of 9