TALGA GROUP LTD — Capital/Financing Update 2018

Nov 21, 2018

ASX Release 22 November 2018 ASX:TLG

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Expiry of Listed Options (TLGOA)

Talga Resources Ltd (“ Talga ” or “ the Company ”) ( ASX:TLG ) advises that the attached letter has been sent to holders of listed options (ASX:TLGOA), exercisable at $0.45, as notification of the expiry of their options on 31 December 2018.

The last date of quotation of TLGOA options on the ASX will be 21 December 2018.

For further information please contact:

Dean Scarparolo Company Secretary Talga Resources Ltd T: + 61 (08) 9481 6667

About Talga

Talga Resources Ltd is an advanced materials technology company enabling stronger, lighter and more functional products for the multi-billion dollar global coatings, battery, construction and polymer composites markets via graphene and graphite products. The company has significant advantages owing to its 100% owned unique high grade graphite deposits in Sweden and in-house processing and product technology. Joint development programs are underway with a range of international corporations.

Talga Resources Ltd ABN 32 138 405 419 ASX: TLG & TLGOA Germany: TGX USA: TLGRF 1st Floor, 2 Richardson St, West Perth 6005 Australia

E: admin@talgaresources.com T: +61 8 9481 6667 F: +61 8 9322 1935 W: www.talgaresources.com

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22nd of November 2018

Dear Option holder,

EXPIRY OF LISTED OPTIONS (ASX CODE: TLGOA)

We write to you as the registered holder of listed options (“Options”) in Talga Resources Ltd (ASX: TLG) (“Talga” or “the Company”) to notify you of the impending expiry of your Options at 5:00pm (AWST) on Monday, 31 December 2018 (“Expiry Date”).

Option holder choices

Some of the courses of action available to you as an Option holder are:

1. Exercise all or a portion of your Options.

2. Sell all or a portion of your Options: The Options are quoted (ASX: TLGOA) and may be traded on the Australian Securities Exchange (ASX). Quotation of the Options will cease at the close of trading on Friday, 21 December 2018.

3. Do nothing: If you choose to do nothing, your Options will expire at 5.00pm (AWST) on Monday, 31 December 2018 and have no value.

How to exercise your Options - Australian Option holders

If you wish to exercise your Options then you must complete the “Notice of Exercise of Options” form enclosed and forward it together with payment of $0.45 per Option exercised, to be received no later than 5:00pm (AWST) on Monday, 31 December 2018, to the Company’s share registry Security Transfer Australia.

Cheques should be made payable to “Talga Resources Ltd” in Australian dollars only and

should be crossed “Not negotiable”.

Payment can also be made via BPAY (see details on “Notice of Exercise of Options” form) in which event you do not need to return the "Notice of Exercise of Options" form, however the payment must still be received no later than 5:00pm (AWST) on Monday 31 December 2018.

How to exercise your Options - Overseas Option holders

If you wish to exercise your Options then you must complete the “Notice of Exercise of Options” form enclosed and forward it together with payment of $0.45 per Option exercised, to be received no later than 5:00pm (AWST) on Monday, 31 December 2018.

Please note the BPAY payment facility and the cheque/money order payment options are only available to Option holders within Australia. Overseas Option holders must instead provide payment via Electronic Funds Transfer (EFT) or Direct Deposit to Talga Resources Ltd’s bank account. Funds can be deposited directly to:

ACCOUNT NAME: Talga Resources Ltd

SWIFT CODE: WPACAU2S

BANK: Westpac Banking Corporation BSB: 036-306 ACCOUNT NUMBER: 448873

REFERENCE: Holder number (as set out in your “Notice of Exercise of Options” form)

If you use this payment method you must fax or email a copy of the completed “Notice of Exercise of Options” form together with a copy of your bank deposit receipt, date payment was made and reference used to the Company’s share registry Security Transfer Australia so your application can be processed.

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Additional information

In accordance with ASX Listing Rules, the Company provides you with the following additional information:

• a) The name of the Option holder and the number of Options held is contained on the enclosed "Notice of Exercise of Options" form.

• b) Each Option entitles you to apply for one fully paid ordinary share in the capital of TLG (“Share”).

• c) The last available market closing price of the Shares on the ASX prior to the date of this letter was $0.375 on 21 November 2018.

• d) During the three (3) months preceding the date of this notice the:

• highest market sale price of the Shares on the ASX was $0.670 on 29 August 2018

• lowest market sale price of the Shares on the ASX was $0.370 on 21 November 2018

Share Registry Postal Address and Contact Details

Security Transfer Australia Pty Ltd

PO Box 52, Collins Street West VIC 8007

Tel: 1300 992 916 Fax: +61 8 9315 2233

Email: registrar@securitytransfer.com.au

If you have any questions please do not hesitate to contact our share registry, details above, or for further information please contact our office.

Yours faithfully,

Dean Scarparolo Company Secretary Talga Resources Ltd T: + 61 (08) 9481 6667

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NOTICE OF EXERCISE OF OPTIONS

THIS DOCUMENT IS IMPORTANT. IF YOU ARE IN DOUBT AS TO HOW TO DEAL WITH IT, PLEASE CONTACT YOUR STOCK BROKER OR LICENSED PROFESSIONAL ADVISOR.

TALGA RESOURCES LTD

ACN: 138 405 419

SHARE REGISTRY: Security Transfer Australia Pty Ltd All Correspondence to: PO Box 52 Collins Street West VIC 8007

«Post Barcode»[«Post_zone»]

«Company_code» «Sequence_number» «Holder_name» «Address_line_1» «Address_line_2» «Address_line_3» «Address_line_4» «Address_line_5»

T: 1300 992 916 F: +61 8 9315 2233 E: registrar@securitytransfer.com.au W: www.securitytransfer.com.au

ASX Code: TLGOA Holder Number: Number of Options: Amount Payable:

NOTICE OF EXERCISE OF OPTIONS EXPIRING 31 DECEMBER 2018 AT $0.45 EACH

I/We the above named being the registered holder of Options hereby exercise such Options to subscribe for:

NUMBER OF NEW ORDINARY FULLY PAID SHARES AMOUNT ENCLOSED AT $0.45 PER SHARE , , $ , , . I/We hereby authorise you to place my/our name(s) on the register of members in respect of the number of New Shares allotted to me/us, and I/we agree to accept such Shares subject to the Rules of the Constitution of the Company. Individual or Securityholder 1 Securityholder 2 Sole Director & Company Secretary Director/Company Secretary Director

I/We hereby authorise you to place my/our name(s) on the register of members in respect of the number of New Shares allotted to me/us, and I/we agree to accept such Shares subject to the Rules of the Constitution of the Company.

Securityholder 3

My/Our contact details in case of enquiries are:

NAME TELEPHONE NUMBER ( )

EMAIL ADDRESS

PAYMENT INFORMATION

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Biller code: 159483 Ref: <>

Telephone & Internet Banking – BPAY[® ] Contact your bank or financial institution to make this payment from your cheque, savings, debit, or transaction account. More info: www.bpay.com.au

CHEQUE / MONEY ORDER

All cheques (expressed in Australian currency) are to be made payable to TALGA RESOURCES LTD and crossed "Not Negotiable".

Do not forward cash as receipts will not be issued.

Sufficient cleared funds should be held in your account as your acceptance may be rejected if your cheque is dishonoured.

® Registered to BPAY Pty Ltd ABN 69 079 137 518

Cheques or bank drafts drawn on overseas banks in Australian or any foreign currency will NOT be accepted. Any such cheques will be returned and the acceptance deemed to be invalid.

Applicants should be aware of their financial institution's cut-off time (the time payment must be made to be processed overnight) and ensure payment is processed by their financial institution on or before the day prior to the expiry date. BPAY applications will only be regarded as accepted if payment is received by the registry from your financial institution on or prior to the expiry date. It is the Applicant's responsibility to ensure funds are received by the expiry date.

When completed, this form together with the appropriate payment should be forwarded to the share registry.

Your BPAY reference number is unique to these Options and is not to be used for any other offer. BPAY payment or the return of this form with the required remittance will constitute your exercising of the Options.

REGISTRY DATE STAMP

YOU DO NOT NEED TO RETURN THIS FORM IF YOU HAVE MADE PAYMENT BY BPAY.

E & O.E.

• TLGOEX311218

TLGOA

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