TREK METALS LIMITED — Capital/Financing Update 2021

Oct 19, 2021

20 OCTOBER 2021

ASX/MEDIA RELEASE

TREK TO FAST-TRACK PILBARA EXPLORATION

Investors back oversubscribed $3.5m placement to fund aggressive exploration including geophysics and further drilling at the emerging Valley of the Gossans VMS discovery

Key Points:

• Firm commitments received to raise $3.5M through an oversubscribed share placement to strategic investors at $0.115 per share.

• Trek to undertake a Share Purchase Plan (SPP) to raise up to an additional $2M, allowing eligible shareholders to participate in the capital raising.

• Proceeds to be used to progress the next phase of the Company’s Pilbara Exploration Strategy, with key planned activities including:

• Surface geochemistry to test the prospective stratigraphy along strike from the previously defined multi-element soil anomaly, now proven to be related to VMS-style base metal mineralisation at Valley of the Gossans

• Helicopter EM across the greater Pincunah Project, including the highly prospective Valley of the Gossans Prospect, which contains sulphide mineralisation and has not been subjected to any electromagnetics previously

• Down-hole EM on selected holes from Trek’s maiden RC drill program at Valley of the Gossans, to detect any significant off-hole conductors as immediate drill targets

• Drilling of VMS Cu-Zn-Ag targets at Pincunah (including the priority Valley of the Gossans Prospect)

Trek Metals Limited ( ASX: TKM, Trek or the Company ) is pleased to announce a capital raising of up to $5.5 million to fast-track the next phase of exploration across its highly prospective Pilbara portfolio, including the emerging VMS discovery at the Valley of the Gossans prospect.

The Company has received firm commitments for a share placement comprising 30.43 million shares at an issue price of $0.115 per share to existing and new professional, sophisticated and other institutional investors to raise a total of $3.5 million ( Placement ).

Trek also intends to conduct a Share Purchase Plan ( SPP or Plan) to eligible shareholders on the same terms as the placement to raise up to an additional $2 million, increasing the total raising to ~$5.5 million. Trek’s Directors have confirmed that they will take up their full entitlement in the SPP.

The funds raised through the Placement and SPP will be used to accelerate the next phase of exploration, particularly at the highly prospective Pincunah Project where Trek has recently confirmed an emerging VMS base metal discovery at the Valley of the Gossans prospect.

Trek Metals Limited | ARBN 124 462 826 130 Stirling Highway, North Fremantle WA 6159 | Locked Bag 4, North Fremantle WA 6159 | Australia Tel +61 (0)8 6215 0371 | info@trekmetals.com.au www.trekmetals.com.au

The funds will be used to underpin an expanded program of surface geochemistry across prospective stratigraphy along strike from Valley of the Gossans ( currently underway ), helicopterborne and down-hole EM surveys ( planned to commence shortly ) and further drilling ( planned to commence shortly subject to drill rig availability ).

Trek Metals Chief Executive Officer, Mr Derek Marshall, said the outstanding investor response to this oversubscribed capital raising reflected growing market recognition of the potential of Trek’s Pilbara exploration portfolio.

“This has been a breakthrough year for Trek, with the maiden drilling program at Pincunah confirming the potential for a large-sale VMS discovery at Valley of the Gossans. This highly successful capital raising will put us in a very strong position to accelerate our exploration programs and unlock the full potential of this exciting project.

“We have a combination of surface geochemistry programs, airborne and down-hole geophysics and further drilling either underway or planned to ensure that we give ourselves the best possible chance of making a transformational discovery. The next few weeks and months will be a very exciting time for our shareholders.”

PLACEMENT

The Company has received commitments from existing and new sophisticated, professional and other institutional investors comprising 30.43 million shares at an issue price of $0.115 per share.

The Placement and SPP issue price of $0.115 per share represents a 14.81% discount to the closing price of the Company’s shares on 15[th] October 2021.

The strongly supported capital raising will result in the introduction of a number of strategic and high net worth investors to Trek’s share register. The new shares to be issued under the Placement will rank equally with the existing ordinary shares on issue.

The Placement will be undertaken within the Company’s existing placement capacity under the ASX Listing Rules with 26.14 million shares to be issued under Listing Rule 7.1A and 4.29 million shares to be issued under Listing Rule R 7.1. Accordingly, no shareholder approval will be required for the issue of the Placement shares.

Allotment of the shares pursuant to the Placement is expected to occur on 26[th] October 2021. The Company confirms that the issue price of $0.115 satisfies the requirements of Listing Rule 7.1A.

EverBlu Capital acted as Lead Manager to the Placement and will be paid a 6% fee on funds raised directly by Everblu and will also be issued 5,000,000 20c Share Options expiring on 31[st] October 2023.

SHARE PURCHASE PLAN

Under the SPP, the Company is giving eligible shareholders the opportunity to subscribe for up to $30,000 worth of shares at an issue price of $0.115 per share. The Company confirms that the record date for participation in the SPP is Tuesday, 19th October 2021 (being the business day prior to the release of this announcement).

Trek is targeting to raise up to an additional $2 million from the SPP offer. Should total demand for the SPP exceed A$2 million, the Company reserves the right to scale-back applications in its

ASX TKM | TREKMETALS.COM.AU | T Ph 08 6215 0371 | E INFO@TREKMETALS.COM.AU | 2

absolute and sole discretion and may consider taking oversubscriptions. Directors have confirmed that they will take up their full entitlement in the SPP.

In determining the amount (if any) by which to scale back an applicant's application, Trek may take into account, among other factors, the size of an applicant's shareholding at the date at which the SPP offer closes.

Further details of the SPP will be announced in the Share Purchase Plan to be dispatched to eligible shareholders and lodged with the ASX.

Approved for release by John Young – Executive Director.

ENDS

For further information contact:

INVESTORS:		MEDIA:
John Young	Derek Marshall	Nicholas Read
john@trekmetals.com.au	dmarshall@trekmetals.com.au	0419 929 046

REGISTERED OFFICES – TREK METALS LIMITED ARBN 124 462 826

Australia	Bermuda	Postal Address
130 Stirling Highway	Vallis Building, 4th Floor	Locked Bag 4
North Fremantle	58 Par-la-Ville Road	NORTH FREMANTLE
WA 6159	Hamilton HM 11	WA 6159

DISCLAIMERS AND FORWARD-LOOKING STATEMENTS

This announcement contains forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", “target”, "anticipate", “forecast”, "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions.

The forward-looking statements in this announcement are based on current expectations, estimates, forecasts and projections about Trek and the industry in which it operates. They do, however, relate to future matters and are subject to various inherent risks and uncertainties. Actual events or results may differ materially from the events or results expressed or implied by any forward-looking statements. The past performance of Trek is no guarantee of future performance.

None of Trek’s directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy or likelihood of fulfilment of any forward-looking statement, or any events or results expressed or implied in any forward-looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

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