UNION STAR METALS LTD — Capital/Financing Update 2013

Dec 10, 2013

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11 December 2013

Company Announcements Platform Australian Securities Exchange Level 4, 20 Bridge Street SYDNEY NSW 2000

INFORMATION REQUIRED BY ASX LISTING RULE 3.10.5A

Promesa Limited (ASX:PRA) ( Company ) recently announced the completion of a placement of 35,714,285 fully paid ordinary shares ( Shares ) and 20,000,000 free attaching unlisted options to acquire Shares at an exercise price of $0.05 on or before 10 December 2015 ( Options ) to raise $1,250,000 ( Placement ).

Further to the appendix 3B dated 10 December 2013 for the issue of the Shares and Options, the Company provides the following information required under ASX Listing Rule ( LR ) 3.10.5A.

The dilutive effect of the Placement on existing shareholders of the Company is as follows (this only includes the Shares):

(this only includes the Shares):
Placement issued under LR 7.1 (20,000,000 Shares)	9.95%
Placement issued under LR 7.1A (15,714,285 Shares)	7.82%
Total dilution effect of Placement	17.78%

Details of the approximate percentage of the Company’s issued capital following the completion of the Placement held by pre-Placement shareholders and new shareholders are as follows. Please note this information relates specifically in relation to the portion of Shares issued under Listing Rule 7.1A (15,714,285 Shares).

	Number of Shares	%
Pre-Placement shareholders who did not participate in the Placement	165,191,703	8.69%
New shareholder under Placement	15,714,285	91.31%
Total	180,905,988	100%

Jett Capital Advisors Holdings, LLC ( Jett ) was engaged as corporate advisor and broker to the Placement. The Company will issue 5,952,381 Shares and 21,666,667 Options to Jett as a corporate advisory fee. The Company will also issue 12,500,000 Options and pay $62,500 to Jett as a placement fee in relation to the Placement.

The Company issued the Shares as a placement under LR 7.1A as it (in consultation with Jett) considered the Placement to be the most appropriate and effective transaction for the Company.

, Address: PO Box 994 Subiaco, WA 6904 Web : www.promesa.com.au Tel: +61 8 9389 8884 Fax: +61 8 6389 0576

Yours faithfully,

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Phillip Re Promesa Limited Company Secretary

Address: PO Box 994 Subiaco, WA 6904 Web : www.promesa.com.au Tel: +61 8 9389 8884 Fax: +61 8 6389 0576