REACH RESOURCES LIMITED — Capital/Financing Update 2021

Jan 17, 2021

ASX ANNOUNCEMENT/ MEDIA RELEASE

18TH January 2021

Eligible and Ineligible Letters despatched to Shareholders

As announced on 15 January 2021, Cervantes Corporation Ltd (ASX: CVS, Cervantes or the Company) announced it will undertake a non-renounceable entitlement issue of up to 268,004,155 Shares at an issue price of $0.008 per Share on the basis of one (1) Share for every two (2) Shares held at the Record Date, together with one (1) free unlisted new Option for every (2) new Shares issued exercisable at $0.015 on or before 28 February 2023 (Offer) to raise up to approximately $2.144 million before costs.

The Offer is open to all shareholders who have a registered address within Australia or New Zealand (Eligible Shareholders) and who hold Shares at 7pm (EDST) on Thursday 21 January 2021 (Record Date).

The Company confirms that the Letters to Eligible and Ineligible shareholders have today been despatched.

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

18 January 2021

Dear Shareholder,

RE: CERVANTES CORPORATION LIMITED – NON-RENOUNCEABLE RIGHTS ISSUE – NOTIFICATION TO ELIGIBLE SHAREHOLDERS

As announced on ASX on 15 January 2021, Cervantes Corporation Limited (ACN 097 982 235) (Company) is undertaking a non-renounceable rights issue of one (1) fully paid ordinary share in the capital of the Company (Share) for every two (2) shares held by eligible shareholders at 5pm (Perth) on 21 January 2021 (Record Date) at an issue price of $0.008 per Share, with one free attaching unlisted option for every 2 Shares issued (exercise price of $0.015 expiring 28 February 2023) (Options), to raise up to A$2,144,033 before costs (Offer).

The Offer is accompanied by an offer for shortfall Shares at the same issue price for Shares under the Offer, together with free attaching Options on the same terms as the Offer (Shortfall Offer) (together the Offers).

The Company lodged a prospectus for the Offers (Prospectus) with ASIC and ASX on 15 January 2021 and a copy is available at the Company's website www.cervantescorp.com.au or under the ASX Code "CVS" on the ASX announcements website www2.asx.com.au/markets/trade-our-cash-market/announcements.

The Company has determined that the Offer will only be made to shareholders with a registered address within Australia or New Zealand as at the Record Date (Eligible Shareholders).

Eligible Shareholders will receive a copy of the Prospectus including an entitlement acceptance form which will provided instructions how to participate in the Offer and the Shortfall Offer.

Set out below is the anticipated timetable for the Offer.

Lodgement of Prospectus with the ASIC and ASX	15 January 2021
Company announces Offer and lodges Appendix 3B with ASX	15 January 2021
"Ex" date	20 January 2021
Record Date for determining Entitlements	21 January 2021
Prospectus sent out to Eligible Shareholders & Company announces this has been completed	25 January 2021
Last day Company can extend Closing Date	2 March 2021
Closing Date of the Offer*	5 March 2021
Announcement of results of the Offer*	10 March 2021
Issue date of Shares under the Offer / Lodgement of Appendix 2A with ASX*	12 March 2021
Shares issued under the Offer commence trading on ASX on a normal basis*	15 March 2021

* The dates above are indicative only and are subject to change. The Directors may vary these dates subject to any applicable requirements of the Corporations Act or the Listing Rules. The Directors may extend the Closing Date by giving at least three (3) Business Days' notice to ASX prior to the Closing Date. As such the date the Securities are expected to commence trading on ASX may vary.

In accordance with the ASX Listing Rules, the key information relating to the Offers is set out below:

• Shareholder approval is not required for the Offers;

• each new Share will rank equally with and be issued on the same terms and conditions as those quoted fully paid ordinary shares already issued by the Company. Application for quotation of the new Shares offered under the Offers was made by the Company on 15 January 2021;

• Options will have an exercise price of $0.015 expiring 28 February 2023 and be issued on the basis of one (1) Option for every two (2) Shares subscribed;

• holdings on different registers will not be aggregated for determining entitlements;

• for the purpose of determining entitlements, fractional entitlements will be rounded down to the nearest whole number of Shares;

• the Shortfall Offer will be offered to Eligible Shareholders and other parties determined by the Company in its discretion. Shares will be offered under the Shortfall Offer at an issue price of $0.008 per Share, with free attaching Options on the same basis as the Offer. If there is no shortfall from the Offer, there will be no Shortfall Offer;

• the Prospectus and entitlement acceptance forms will be sent to Eligible Shareholders on 25 January 2021;

• entitlements under the Offer are not transferrable, accordingly rights to entitlements will not be tradable on ASX or otherwise transferable. Eligible Shareholders who do not take up their entitlements in full will not receive any value in respect of that part of their entitlement that they do not take up;

• a maximum of 268,004,155 new Shares and 134,002,077 Options will be issued under the Offer (assuming full subscription and no other Shares are issued prior to the Record Date). This number is subject to reconciliation of entitlements and rounding;

• the Company does not have a dividend policy and does not intend to declare one in the near future; and

Item	Proceeds of the Offer	Full Subscription ($)	%
1.	Exploration and Evaluation of the Primrose Project	$1,075,000	50.1
2.	Liabilities (aged debtors/loans)1	$520,000	24.3
3.	Assessing new projects	$75,000	3.5
4.	Expenses of the Offer	$35,513	1.7
5.	Working capital	$438,520	20.5
Total		$2,144,033	100%

• the proceeds from the Offer intend to be applied as follows:

Notes:

1. Including $450,000 in repayment of 50% of a $900,000 interest free loan from Global Oil and Gas Limited (GLV), and $25,000 to GLV to extend the repayment date for the remaining $450,000 of the loan to 7 June 2022.

The above table is a statement of current intentions as of the date of this Prospectus. As with any budget, intervening events (including exploration success or failure) and new circumstances have the potential to affect the manner in which the funds are ultimately applied. The Board reserves the right to alter the way funds are applied on this basis.

Pursuant to the Offer there are a number of actions Eligible Shareholders may take:

• take up some or all of your entitlements;
• take up all of your entitlements and apply for additional Shares under the Shortfall Offer; or
• not participate in the Offer and if so, you do not need to take any action.

If you are eligible and wish to participate in the Offer, it will be necessary for you to comply with the personalised Entitlement and Acceptance Form (that will accompany the Prospectus expected to be sent to Eligible Shareholders on 25 January 2021 in accordance with the instructions on that Form. You will need to ensure your application money for the entitlements you wish to take up, and any Shares applied for under the Shortfall Offer, is received by no later than 5.00pm (WST) on the closing date of the Offer, being 5 March 2021 unless varied.

You should consider the Prospectus in full if you are considering applying for Shares and Options under the Prospectus.

If you have any questions concerning the Offer or Shortfall Offer, or the actions you are required to take to subscribe for Shares, please contact your financial advisor or please contact the Company on +61 (08) 8 6436 2300 or by email to admin@cervantescorp.com.au.

Yours sincerely

COLLIN VOST CHAIRMAN AND MANAGING DIRECTOR CERVANTES CORPORATION LIMITED

18 January 2021

Dear Shareholder,

RE: CERVANTES CORPORATION LIMITED – NON-RENOUNCEABLE RIGHTS ISSUE – NOTIFICATION TO INELIGIBLE SHAREHOLDERS

As announced on ASX on 15 January 2021, Cervantes Corporation Limited (ACN 097 982 235) (Company) is undertaking a non-renounceable rights issue of one (1) fully paid ordinary share in the capital of the Company (Share) for every two (2) shares held by eligible shareholders at 5pm (Perth) on 21 January 2021 (Record Date) at an issue price of $0.008 per Share, with one free attaching unlisted option for every 2 Shares issued (exercise price of $0.015 expiring 28 February 2023) (Options), to raise up to A$2,144,033 before costs (Offer).

The Offer is accompanied by an offer for shortfall Shares at the same issue price for Shares under the Offer, together with free attaching Options on the same terms as the Offer (Shortfall Offer) (together the Offers).

The Company lodged a prospectus for the Offers (Prospectus) with ASIC and ASX on 15 January 2021 and a copy is available at the Company's website www.cervantescorp.com.au or under the ASX Code "CVS" on the ASX announcements website www2.asx.com.au/markets/trade-our-cashmarket/announcements.

The Company has determined, pursuant to the Corporations Act 2001 (Cth) and Listing Rule 7.7.1(a) of the ASX Listing Rules, that it would be unreasonable to make offers under the Offer to shareholders with a registered address outside of Australia and New Zealand.

Accordingly, in compliance with the Corporations Act 2001 (Cth) and Listing Rule 7.7.1(b) of the ASX Listing Rules, the Company wishes to advise that it will not be extending the Offer to shareholders with a registered address outside of Australia and New Zealand (Ineligible Shareholders).

Your shareholding is currently registered to an address outside of Australia and New Zealand. Accordingly, you are an Ineligible Shareholder that is not entitled to participate in the Offer. The Offer is nonrenounceable and so you may not sell your entitlement.

Questions

If you have any questions concerning the Offers, or the actions you are required to take to subscribe for Shares and Options, please contact your financial advisor or please contact the Company on +61 (08) 8 6436 2300 or by email to admin@cervantescorp.com.au.

Yours sincerely

COLLIN VOST CHAIRMAN AND MANAGING DIRECTOR CERVANTES CORPORATION LIMITED