RAIDEN RESOURCES LIMITED — Capital/Financing Update 2020

Sep 6, 2020

VUZEL GOLD PROJECT EXPLORATION AGREEMENT EXECUTED

OVERVIEW

• Exploration Agreement for the Vuzel project executed by the Minister of Energy in Bulgaria
• Company to expedite approvals of work program and advance towards drilling of the prospect
• Vuzel hosts historical high grade gold targets which have not been drill tested
• Gold target defined by historical channel rock sampling and includes the following results:
  • ➢ 45m @ 1.48 g/t Au AND 63m @ 2.55 g/t Au, which includes 33m @ 3.42 g/t Au and 3m @ 15.46
  • ➢ 24m @ 2.79 g/t Au, which includes 6m @ 9.31 g/t Au
  • ➢ 66m @ 1 g/t Au
  • ➢ 99m @ 2.48 g/t Au, which includes 12m @ 11.78 g/t Au
  • ➢ 48m @ 4.96 g/t Au, which includes 24m @ 7.78 g/t Au and 6m @ 20.99 g/t Au

Raiden Resources Limited (ASX: RDN) ('Raiden' or 'the Company') is pleased to announce the execution of the Exploration Agreement for the Vuzel project by the Minister of Energy in Bulgaria.

Dusko Ljubojevic, Managing Director of Raiden commented:

"We are pleased that the Ministry of Energy has provided the final approval for the project. The Company can now commence to finalise the administrative aspects required to be able to commence with the drilling activities. Management will aim to have these

QUICK STATS

ASX Code: RDN DAX Code: YM4

**Shares on Issue: ~**574.3 million* **Market Cap: ~**$6.31 million* Cash Position: ~A$1.25M*

*Assumes completion of the Placement as per announcement on 4th September 2020

BOARD & MANAGEMENT

Non- Executive Chairman Mr Michael Davy

Managing Director Mr Dusko Ljubojevic

Non-Executive Director Mr Martin Pawlitschek

Company Secretary Ms Kyla Garic

ASSET PORTFOLIO

Stara Planina - Serbia (JV with local entity – path to 100% - 46km2 )

Donje Nevlje - Serbia (100% – 74km2 )

Majdanpek West - Serbia (100% - 76km2 )

Zupa - Serbia (100% Raiden – 85km2 )

Kalabak - Bulgaria (JV with QX Metals, path to 75% - ~195km2 )

Zlatusha - Bulgaria (Pending final signature – Jv with QX Metals, path to 75% - ~195km2 )

Vuzel - Bulgaria (JV with local entity – path to 100% - ~26.5km2 )

completed over the following months, allowing us to commence with drilling of the priority targets sequentially after the Kalabak project drilling."

Vuzel Exploration Agreement executed

The Minister of Energy has executed the Exploration Agreement ("Agreement") and Ridge Consultants, the applicant, has counter signed the Agreement. At this time, the project is officially granted to Ridge Consultants, providing Raiden with a path to 100% ownership of the project (refer to the earn in and option terms below). The Company will aim to complete administrative tasks, which are required prior to commencement of drilling, following which the Company will aim to commence with drilling activities as soon as possible.

Vuzel project highlights

The Vuzel project hosts a significant low sulphidation epithermal gold target. The target has been defined by historical soil sampling, mapping and rock-channel sampling, all of which have defined a drill target over a 500 x 500 meter area. The target is characterised by anomalous gold values, which are continuous over significant widths and in some instances high grades. While historical drilling did encounter some encouraging results, the Company believes that it did not test the full potential of the target and additional drilling targeting the high grade channel/rock sampling is warranted.

The Vuzel project has many similarities to Dundee Precious Metals' Ada Tepe deposit, which is also a low sulphidation epithermal style of deposit and is located only 35km from Vuzel. Ada Tepe is a high grade, open pit gold deposit, which became the 1st greenfield gold mine to be put into production in 2019 by a foreign investor - Dundee Precious Metals.

Figure 1 – The central target area, which includes historical high grade channel sampling, is defined by evidence of historical mining. A number of shafts and adits were observed in the field, as well as, what appear to be surface mining activity on a small scale

High grade target defined on the project includes channel rock sampling results:

• ➢ 45m @ 1.48 g/t Au AND 63m @ 2.55 g/t Au, which includes 33m @ 3.42 g/t Au and 3m @ 15.46
• ➢ 24m @ 2.79 g/t Au, which includes 6m @ 9.31 g/t Au
• ➢ 66m @ 1 g/t Au
• ➢ 99m @ 2.48 g/t Au, which includes 12m @ 11.78 g/t Au
• ➢ 48m @ 4.96 g/t Au, which includes 24m @ 7.78 g/t Au and 6m @ 20.99 g/t Au

For further technical details in regard to the Vuzel project, please refer to Company's previous announcement on the 12th of June 2019, which details all the historical work and results.

Figure 2 – The low sulphidation gold system is defined by alteration within the overlying sedimentary (sandstone and conglomerate units), which rest on metamorphic basement. This geological setting and style of mineralisation is very similar to the setting of the Ada Tepe gold deposit (Dundee Precious Metals), located approximately 35km to the east

Vuzel project earn-in and option terms

Under the terms of the agreement, the Company has the option to earn into or purchase the Vuzel license under the following terms:

On execution of the Exploration Agreement, the Company has the exclusive right to conduct a legal and technical due diligence on the Vuzel license to determine if it wishes to proceed with the agreement. On satisfactory completion of the due diligence, the parties will form a joint venture company and submit a request to the Ministry to transfer the permit into the joint venture company.

Stage 1 Earn-in Raiden has the option to sole fund AUD$350k of exploration expenditure within 24 months from the exploration agreement coming into effect, to earn a 51% project level interest

Stage 2 Earn-in Raiden has the option to sole fund an additional AUD$650k of exploration

expenditure within the following 24 months from the completion of Stage 1 to earn a 75% project

level interest

Stage 3 Earn-in Subject to Raiden completing the Stage 2 Earn-in and having maintained its Participating Interest at 75% or greater, Raiden will have the right to earn up to a total 90% interest

in the JV Company by defining a resource reported under the JORC code.

Option to Purchase

The Company also has the exclusive right, exercisable at the Company's discretion, to purchase 100% of the project from Ridge and the rights to the project under the following terms:

• At any time within the first 12 months of the exploration agreement coming into effect, Raiden can at its election make a AUD$100k cash payment OR AUD$50k cash payment and a further AUD$50k equivalent in Raiden shares (at an issue price based on 30 day VWAP) to the vendor;
• At any time during the 12-month period commencing 12 months from the date of signing of the Exploration Agreement, Raiden may acquire a 100% interest in the Vuzel Permit through acquisition of a 100% Participating Interest in the JV Company by either (at the election of Raiden):

a) paying AUD$300,000 to the bank account nominated by Ridge Consultants; or

b) paying AUD$150,000 to the bank account nominated by Ridge Consultants and issuing to Ridge Consultants that number of shares with a total value of AUD$150,000 based on an issue price per share equivalent to the 30 Day VWAP; and

• if Raiden gives a Stage 2 Earn In Notice, at any time during the 12 month period commencing 24 months after the date of signing of the Exploration Agreement, Raiden may acquire a 100% interest in the Vuzel Permit by paying either (at the election to Raiden):

a) paying AUD$400,000 to the bank account nominated by Ridge Consultants; or

b) paying AUD$200,000 to the bank account nominated by Ridge Consultants and issuing to Ridge Consultants that number of Shares with a total value of AUD$200,000 based on an issue price per share equivalent to the 30 Day VWAP.

This ASX announcement has been authorised for release by the Board of Raiden Resources Limited.

ASX RELEASE | 7 th September 2020

FOR FURTHER INFORMATION PLEASE CONTACT:

DUSKO LJUBOJEVIC Managing Director RAIDEN RESOURCES LIMITED dusko@raidenresources.com.au www.raidenresources.com.au

Competent Person's Statement

The Exploration Results referred to in this announcement were first reported in accordance with Listing Rule 5.7 in the Company's ASX announcements on 12 th June 2019. The Company confirms that it is not aware of any new information or data that materially effects the information included in the previous ASX announcements.

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. Investors are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and the Company does 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

Raiden Resources Limited (ASX: RDN) is an ASX listed copper—gold focused exploration Company focused on the emerging prolific Tethyan metallogenic belt in Eastern Europe and has established a significant exploration footprint in Serbia and Bulgaria.

Over the last 2½ years, the Company has secured one of the largest project portfolios, considered prospective for porphyry and epithermal mineralisation in Eastern Europe. The Company has defined over 20 porphyry, epithermal and polymetallic prospects over the course of 2019, a number of which will be drill tested during the remainder of 2020 and during 2021.

The Directors believe that the Company is well positioned to unlock value from this exploration portfolio and deliver a significant mineral discovery.