TREK METALS LIMITED — Capital/Financing Update 2021

Jan 26, 2021

27 JANUARY 2021 ASX/MEDIA RELEASE

TREK RAISES $3.05M TO ACCELERATE PILBARA GOLD EXPLORATION

Strongly supported $3.05m raising to underpin ongoing exploration and maiden drill programs at the newly acquired Tambourah Project and the existing Pincunah Project

Highlights

• Commitments received for a share placement to raise A$3.05 million at 6c per share.

• Proceeds will increase Trek’s cash reserves to over A$5 million, putting it in a strong position to execute its growth strategy in 2021.

• Chairman Tony Leibowitz to invest $350k (subject to shareholder approval).

• Funds will be used to ramp-up exploration activity across Trek’s recently expanded gold exploration portfolio.

• Field work to resume at the newly-acquired Tambourah Project and the existing Pincunah Gold and Copper Project in the Pilbara.

• Exploration programs set to ramp-up during the March Quarter, paving the way for maiden drilling programs targeted to commence in April, following the northern wet season.

Trek Metals Limited ( ASX: TKM, Trek or the Company) is pleased to announce a strongly supported capital raising of A$3.05 million to accelerate exploration across its key Pilbara gold and base metal projects in Western Australia.

The Company has received applications for a share placement comprising 50,833,333 shares at an issue price of $0.06 per share to sophisticated and professional investors to raise a total of A$3.05 million ( Placement ). Included in the placement is an application for $350,000 by Chairman Tony Leibowitz that will be subject to shareholder approval.

The proceeds of the Placement will increase the Company’s cash reserves to over A$5 million, putting it in a strong position as it moves into the New Year to unlock the potential of its expanded Pilbara gold portfolio and pursue new growth opportunities.

Commenting on the placement, Trek Executive Director John Young said:

“This is a significant capital raising for the Company that puts us in an enviable position as we embark on our maiden exploration and drilling programs in the Pilbara.

“The success of this raising reflects a growing recognition within the market that Trek has been able to assemble a high-quality and strategically located portfolio of gold and base metal exploration projects in the Pilbara which offer enormous potential for new discoveries. The standout feature of all our projects is that they have had virtually no modern exploration and remain wide open for potential new discoveries.

ASX TKM | TREKMETALS.COM.AU | T Ph 08 6215 0371 | E INFO@TREKMETALS.COM.AU | 1

“We are really looking forward to getting on the ground to progress field work and get our maiden drill programs underway as soon as weather conditions permit. This will be a really exciting year for Trek with plenty of targets to test, lots of action coming up and, most importantly, a strong balance sheet and shareholder base to support our activities.”

The new shares to be issued under the Placement will rank equally with the existing ordinary shares on issue. The Placement to investors (excluding Directors) will be undertaken withing the Company’s existing placement capacity under the ASX Listing Rules with 21,002,036 shares to be issued under Listing Rule 7.1A and 23,997,964 million shares to be issued under LR 7.1. Accordingly, no shareholder approval will be required for the issue of these Placement shares. The balance of 5,833,333 shares for Mr Leibowitz will be subject to shareholder approval.

Funds raised will be used to ramp-up exploration activity at the Pincunah project and the recently acquired Tambourah project and for general working capital.

Allotment of the shares pursuant to the Placement (excluding Director participation) is expected to occur on or around 3[rd] February 2021. The Placement price of 6c per share represents:

• A 17.36% discount to the volume weighted average price (VWAP) in respect of the last 5 trading days, which was 7.26c.

• A 16.55% discount to the volume weighted average price (VWAP) in respect of the last 15 trading days, which was 7.19c.

The Company confirms that the issue price of 6c per share satisfies the requirements of Listing Rule 7.1A.

Westar Capital acted as Lead Manager and Broker to the issue. As part of the Lead Manager fees, Westar will be issued 1,000,000 share options exercisable at 10c per share expiring 2 years from the date of issue. The issue of these options remains subject to shareholder approval at a general meeting expected to be held in late February 2021.

Authorised for release by John Young – Executive Director

ENDS

For further information contact:

INVESTORS:		MEDIA:
John Young	Tony Leibowitz	Nicholas Read
john@trekmetals.com.au	tleibowitz@trekmetals.com.au	0419 929 046
Ph 08 6215 0371

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

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