REACH RESOURCES LIMITED — Capital/Financing Update 2021

Apr 22, 2021

==> picture [587 x 100] intentionally omitted <==

ASX ANNOUNCEMENT/ MEDIA RELEASE

23 April 2021

Prospectus and Entitlement and Acceptance Forms despatched to Eligible Shareholders

As previously announced, Cervantes Corporation Limited (ACN 097 982 235) (the Company or Cervantes ) is undertaking a non-renounceable entitlement issue to shareholders of up to 268,004,155 new fully paid ordinary shares ( New Share ) 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 Option ) to raise up to approximately $804,012, before costs ( Entitlement Issue or Offer ). The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 16 April 2021.

The Company confirms that the Prospectus, containing full details of the Entitlement Issue, together with personalised Entitlement and Acceptance Forms, has been despatched to Eligible Shareholders (as defined below) today, 23 April 2021.

The Offer is underwritten by Westar Capital Limited ( Westar Capital ). Westar Capital will receive a fee of 6% of the underwritten amount (exclusive of GST) for underwriting the Offer.

The Entitlement Issue will be offered to shareholders registered at the Record Date of 22 April 2021 with a registered address in Australia and New Zealand ( Eligible Shareholders ).

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company already on issue. All Shares issued on conversion of the New Options will rank equally with the Shares on issue at the date of the Prospectus. Following completion of the Entitlement Issue and based on the number of Shares currently on issue, the Company will have issued approximately 268,004,155 New Shares and 134,002,075 New Options resulting in total Shares on issue of approximately 804,012,464 and total Options of approximately 177,752,075.

The Closing Date for the Entitlement Issue is Monday, 17 May 2021.

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

==> picture [587 x 93] intentionally omitted <==