VERITY RESOURCES LIMITED — Capital/Financing Update 2018

Jan 2, 2018

==> picture [175 x 67] intentionally omitted <==

(formerly Botswana Metals Limited) ASX: SI6 / SI6OC

ABN:

96 122 995 073

Issued Securities:

426,169,820 ordinary shares

89,769,699 options

(exercise price $0.015 expiry date 01/07/2021)

Directors:

Mr Edwin Bulseco (Chairman) Mr Steve Groves (Director/Geologist) Mr Joshua Letcher (Non-executive)

Registered Office:

Suite 2, Level 1 1 Altona Street West Perth, WA 6005

About Six Sigma Metals:

Six Sigma Metals is exploring for nickel, copper, cobalt, tantalum and lithium within its ~1,500 square kilometre exploration portfolio in Botswana. These “new world” metals are becoming increasingly important as the world switches to cleaner sources of energy.

The company announced a maiden JORC Inferred Resource of 2.38Mt on 28 April 2015 from drilling within a small 185 square kilometre section of its exploration portfolio in which it had entered a joint venture with BCL. At the time cobalt was not included in the resource calculation.

Historical drilling outside of the joint venture ground has intercepted further nickel as well as significant intercepts of copper and cobalt.

A soil sampling program detected traces of lithium and tantalum which warrant further exploration.

Large tracts of the Company’s exploration portfolio remain unexplored.

ASX ANNOUNCEMENT 3 January 2018

Listing Rule 3.10.5A Disclosure

Six Sigma Metals Limited (ASX: SI6 or “the Company”) confirms that further to the ASX Announcement released 21[st] December 2017, in relation to the Placement, the Company has issued 75,333,333 fully paid ordinary shares at $0.015 per share ( Placement Shares) .

The Company issued 41,319,573 Placement Shares under its placement capacity under Listing Rule 7.1, and 34,013,760 Placement Shares under its placement capacity under Listing Rule 7.1A.

The Company provides the following information as required under ASX Listing Rule 3.10.5A in respect of the shares issued under the Company’s 10% Placement Capacity under Listing Rule 7.1A:

• a) The dilutive effect of the Placement under LR 7.1A on existing shareholders is as follows:

Number of shares on issue prior to the issue of the tranche 1 Placement Shares under LR7.1 and LR7.1A: 350,836,487

under LR7.1 and LR7.1A: 350,836,487
	Percentage
Dilution as a result of issue under LR 7.1 of 41,319,573 shares	9.70%
Dilution as a result of issue under LR 7.1A of 34,013,760 shares	7.98%
Total Dilution	17.68%

Details of the Company’s issued capital following completion of the share issue under Listing Rule 7.1A held by pre-issue shareholders and new shareholders are as follows:

follows:
	**Percentage **
Pre-issue shareholders who did not participate in the issue under LR7.1A	91.33%
Pre-issue shareholders whoparticipated in the issue under LR7.1A	8.67%
New shareholders whoparticipated in the issue under LR7.1A	0.00%
Total(post LR7.1A issue)	100.00%

• b) The 34,013,760 shares issued under Listing Rule 7.1A were issued to sophisticated and professional investors as it was considered to be the most efficient mechanism for raising funds at the time;

• c) There were no underwriting arrangements entered into; and

• d) Fees for tranche 1 of the placement included a management fee of $52,968.75 (plus GST) and 6% (plus GST) of total funds raised.

---END---

NOTICE UNDER SECTION 708A(5)(e) OF THE CORPORATIONS ACT

Further to the attached Appendix 3B, the Directors of Six Sigma Metals Limited (ASX: SI6) (Company) provide a notice for the purposes of section 708A(5)(e) of the Corporations Act 2001.

The above Placement Shares are part of a class of securities quoted on ASX and may be subject to a subsequent offer for sale. The Company issued the Shares above without a disclosure document to investors under Part 6D.2 of the Corporations Act 2001 (Cth) (the Act).

As at the date of this notice, the Company has complied with:

a) the provisions of Chapter 2M of the Act as they apply to the Company; and b) section 674 of the Act.

As at the date of this notice, there is no excluded information for the purposes of sections 708A(7) and (8) of the Corporations Act.

For and on behalf of the Board

==> picture [70 x 24] intentionally omitted <==

Mauro Piccini (Company Secretary)