REACH RESOURCES LIMITED — Capital/Financing Update 2021

May 18, 2021

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ASX Announcement/Media Release

19[th] May 2021

Results of Non-Renounceable Entitlement Issue

As announced 1[st] April 2021, and pursuant to a prospectus lodged on 16[th] April 2021, Cervantes Corporation Limited (ASX:CVS) ( Cervantes or the Company ) has undertaken a nonrenounceable entitlement issue of up to 268,004,155 new fully paid ordinary shares ( New Shares ) at an issue price of $0.003 each, together with free attaching options on a one-for-two basis, with an exercise price of $0.01 per option and an expiry date of three years from the date of issue ( New Options ) to raise up to approximately $804,012, before costs ( Entitlement Issue or Offer ).

The Company confirms that the Entitlement Issue closed at 5:00pm (WST) on 17[th] May 2021. Pursuant to the entitlement and acceptance form and Prospectus, valid application forms and cheques or BPAY payment, must have been received no later than 5:00pm (WST) 17[th] May 2021 to be accepted.

The results of the Entitlement Issue are as follows:

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----- Start of picture text ----- Number of New Number of New Amount RaisedShares OptionsNew Shares and New 268,004,155 134,002,075 $804,012Options offeredunder the OfferNew Shares and New 60,057,975 30,028,986 $180,174Options subscribedfor under the OfferNumber of shortfall 207,946,180 103,973,089 $623,838securities----- End of picture text -----

The Offer is fully underwritten by Westar Capital Limited ( Westar Capital ). Westar Capital has been notified of the shortfall. Westar Capital will receive a fee of 6% of the underwritten amount (exclusive of GST) for underwriting the Offer. Allocation of the shortfall securities will be at the discretion of the Underwriter, in consultation with the Board, and will otherwise be subject to the terms of the Underwriting Agreement.

The Company will proceed to issue the New Shares and New Options in accordance with the Entitlement Issue timetable.

This announcement has been authorised by the board of the Company for release.

-ENDS-

For further information please contact the Company:

P: +61 8 6436 2300 E: admin@cervantescorp.com.au

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