REACH RESOURCES LIMITED — Capital/Financing Update 2021

Apr 18, 2021

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19 April 2021

Dear Shareholder

NON-RENOUNCEABLE ENTITLEMENT ISSUE

Cervantes Corporation Limited (ACN 066 153 982) (the Company or Collaborate ) 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 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 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 funds raised from the Offer are currently intended to be used towards data compilation and access costs, mapping, drilling and assay work at the Company’s Blue Heaven and Pansy projects, Pansy mine development, tenement rates and rents and reporting, liabilities, general working capital and corporate administration and expenses of the Offer.

The Entitlement Issue will be offered to shareholders registered at the Record Date (as defined below) with a registered address in Australia and New Zealand ( Eligible Shareholders ) on the basis of one (1) New Share for every two (2) Shares held (together with one (1) free attaching New Options for every two (2) New Shares subscribed for and issued).

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.

Collaborate announced the record date of 5:00pm (AWST) on 22 April 2021 for the purposes of determining shareholders entitled to participate in the Entitlement Issue ( Record Date ). A prospectus containing full details of the Entitlement Issue was lodged with ASIC on 16 April 2021 and Eligible Shareholders will be sent a copy of the prospectus and an entitlement and acceptance form on 23 April 2021. The Prospectus is available on the ASX website (company announcements section, ASX code: CVS).

Ineligible Shareholders

A Shareholder registered at the Record Date who has a registered address outside Australia and New Zealand ( Ineligible Shareholder ) will not be eligible to participate in the Entitlement Issue.

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You are not eligible to participate in the Entitlement Issue and you will not be sent a copy of the Prospectus. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside of Australia and New Zealand, the number of Ineligible Shareholders and the number and value of New Shares to which they would otherwise be entitled.

If you require further information, please contact the Company via email at admin@cervantescorp.com.au.

Yours faithfully

CERVANTES CORPORATION LIMITED

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Justin Vost

Non-Executive Director

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