VERITY RESOURCES LIMITED — Capital/Financing Update 2017

Feb 19, 2017

ABN 96 122 995 073

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ASX Code: BML

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 20 FEBRUARY 2017

PLACEMENT WELL OVERSUBSCRIBED COMPANY UPDATE

Summary

• Placement well oversubscribed.

• Update on BCL Limited Joint Venture.

• Review of exploration asset portfolio that includes areas for:

• Nickel, Copper + PGEs;

o Cobalt;

• Tantalum and Lithium.

The company’s focus is on these “new world” minerals which are essential ingredients in modern battery technologies, demand for which is expected to increase substantially as the world switches to cleaner sources of energy.

Placement well oversubscribed

The Board of BML is pleased to advise that Foxfire Capital Pty Ltd successfully placed 250 million fully paid ordinary shares at 0.2 cents ($0.002) per share to raise $500,000 for the Company. The issue was well supported and closed oversubscribed on Friday 17 February 2017. The Directors resolved to issue the shares on that date.

Update on BCL Limited Joint Venture

As advised on 13 February 2017, the High Court of Botswana postponed for 30 days a Court hearing to appoint KPMG as the formal Liquidator of BCL Limited. The request came from the Botswana Government to allow time to negotiate or otherwise a position for its investment in BCL Limited.

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au www.botswanametals.com.au

ABN 96 122 995 073

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The Company has been contacted by various parties to bring to BML’s attention the recent reports in the local Botswana media that the Botswana Government has entered a Heads of Agreement with an undisclosed party believed to be from the U.A.E. However, neither the Provisional Liquidator, the Botswana Government nor BML’s joint venture partner BCL Limited have formally advised BML of these developments.

Whilst an outcome of this nature could be of great benefit to BCL Limited, and potentially to the joint venture between BCL Limited and BML, no formal advice has been received yet by BML and there is no guarantee that a transaction will occur.

If or when this position changes the market will be advised immediately.

BML has a joint venture with BCL Limited on three licences in BML’s exploration portfolio. Before BCL Limited was placed into provisional liquidation, BCL Limited had announced its intention to proceed with a Bankable Feasibility Study with the objective of initially open pit mining the Maibele North resource.

Under the JV agreement BCL Limited can earn 70% by funding to the end of a Bankable Feasibility Study, which BCL Limited has not yet done.

Under the same agreement BCL Limited may have earned a 40% interest in the three JV licences and BML plans to discuss with either KPMG or any other relevant party who may become involved in BCL Limited.

Review of exploration asset portfolio

The board of BML is currently reviewing:

• Tantalum and Lithium exploration work recently conducted.

• Cobalt results both from for the last drilling program at Maibele North and earlier drilling at Airstrip Copper results relating to Co and or Ni on top of its Cu + Ag discovery.

• Nickel and Copper at Maibele:

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101

Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

ABN 96 122 995 073

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• Review Squid conductor at Hole 94 which intercepted 6.82m of Ni at 0.75% + 0.25% Cu + PGEs and Cobalt in massive and semi-massive sulphides (BML ASX Release 13/01/2015).

• Down hole and SQUID electro-magnetic (EM) surveys have revealed a large conductive anomaly that is adjacent to hole MARD0094 and has not yet been drill tested by the joint venture. The anomaly is only 200m beneath the northeast extension of the Maibele North deposit.

 Copper and Silver at Dibete and Airstrip:

• Review Dibete copper and silver prospect where the joint venture did no work.

• Review the Airstrip Copper prospect where the joint venture did minimal work.

The objective of the review is to determine if these recent discoveries should now be drilled by BML outside the known Maibele resource where all the joint venture efforts were focussed and to determine the priorities to be given to the various areas.

Once the desktop review is concluded and the Board has approved a formulated plan, the market will be advised accordingly.

Mr Patrick Volpe Chairman

Disclosure: Mr Patrick Volpe, a Director and substantial shareholder of the Company, is also a substantial shareholder of, and consultant to, Foxfire Capital Pty Ltd.

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by BML staff on site and provided to Mr Steve Groves who is a Member of The Australian Institute of Geoscientists. Mr Groves is a consulting geologist to BML and has previously been employed as the Exploration Manager at BML. Mr Groves has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Groves consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au