TALGA GROUP LTD — Capital/Financing Update 2018

Jun 27, 2018

ASX Release 28 June 2018 ASX:TLG

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Oversubscribed $8.5m Institutional Placement

Talga Resources Ltd ABN 32 138 405 419

1st Floor, 2 Richardson St, West Perth 6005 Australia

T: +61 8 9481 6667 F: +61 8 9322 1935 www.talgaresources.com

Corporate Information

ASX Codes TLG, TLGOA Shares on issue 204.2m Options (listed) 44.0m Options (unlisted) 32.6m

Company Directors Terry Stinson Non-Executive Chairman

Mark Thompson Managing Director

Grant Mooney Non-Executive Director

Stephen Lowe Non-Executive Director

Ola Mørkved Rinnan

Non-Executive Director

• Oversubscribed institutional placement raises ~A$8.5 million

• Placement strengthens Talga’s register with the introduction of new institutional investors

• Proceeds enable accelerated growth of Talga’s global scale graphite-graphene material and technologies business, together with expedited exploration of its Swedish cobalt-copper projects

Australian advanced materials technology company, Talga Resources Ltd (“Talga” or “the Company”) (ASX: TLG), is pleased to announce a funding initiative to raise gross proceeds of approximately $8.5 million (“Placement”). Binding commitments have been received for the Placement which is due to settle on Tuesday 3rd July 2018.

The Placement will see the issue of ~13.1 million new ordinary fully paid shares at an issue price of $0.65 per share and will be made pursuant to the Company’s 15% placement capacity under ASX Listing Rule 7.1.

The oversubscribed Placement was undertaken following in-bound interest from several new, high-quality institutional investors, in turn strengthening the Company’s share register. The Placement pricing reflects a ~5.8% discount to Talga’s last traded share price being $0.69 and the Company expects to have a 30 June 2018 cash balance of approximately $18.5m.

The Company plans to apply the Placement proceeds towards further business growth and development including:

• Li-ion battery graphite and graphene product development, including scale up of battery anode commercial samples towards product marketing/offtake agreements

• Graphite resource to reserve conversion and advanced feasibility studies

• Cobalt project development including drilling and establishment of maiden JORC resources, exploration, metallurgy and preparation for potential cobalt IPO

• General working capital and business development.

Canaccord Genuity (Australia) Ltd acted as the Sole Lead Manager to the Placement.

Talga Managing Director, Mr Mark Thompson :

“We welcome our new institutional shareholders to the Talga register in what we see as a maturing vote of confidence by equity markets in the long-term upside for Talga’s global scale graphitegraphene material and technologies business.”

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Capital Structure

The total number and class of all securities of the Company quoted and unquoted on ASX will be as follows post issue to Placement Subscribers:

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Quoted Unquoted A$ (m)
Shares
Event Options Options Raised
(m)
(m) (m) Total
Securities on issue 204.2 44.0 32.6
Placement (ASX Listing Rule 7.1 capacity) (A$0.65) 13.1 $8.5
Total 217.3 44.0 32.6
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Indicative Placement Timetable

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Event Date (2018)
Placement Funds Due Tuesday 3rd July
Allotment of Placement Shares Wednesday 4th July
Expected date of ASX quotation of Placement Shares Wednesday 4th July
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For further information visit www.talgaresources.com or contact:

Mark Thompson Managing Director Talga Resources Ltd T: + 61 (08) 9481 6667

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

About Talga

Talga Resources Ltd (“Talga”) (ASX: TLG) is an advanced material technology company enabling stronger, lighter and more functional graphene and graphite enhanced products for the multi-billion dollar global coatings, battery, construction and carbon composites markets. Talga has significant advantages owing to 100% owned unique high grade conductive graphite deposits in Sweden, a test processing facility in Germany and in-house product development and technology. Joint development and commercial agreements are underway with a range of international corporations.

http://www.talgaresources.com/irm/PDF/1455/KiskamaIOCGProjectDrillingResults

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