VERITY RESOURCES LIMITED — Capital/Financing Update 2019

Aug 15, 2019

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

SIX SIGMA METALS LIMITED

ABN

96 122 995 073

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to 1. Fully paid ordinary shares be issued 2. Unquoted Options 2 Number of[+] securities issued or 1. 62,500,000 to be issued (if known) or 2. 31,250,000 maximum number which may be issued 3 Principal terms of the 1. Fully paid ordinary shares +securities (e.g. if options, 2. Unquoted Options (exercisable at $0.008; exercise price and expiry date; if expiry 1 July 2022) partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

• 4 Do the[+] securities rank equally 1. Yes in all respects from the[+] issue 2. No – Upon exercise and conversion into

• date with an existing[+] class of ordinary shares the securities will rank

• quoted[+] securities? equally

• If the additional[+] securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• 5 Issue price or consideration 1. $0.004 per share 2. Nil – free attaching options.

• 6 Purpose of the issue 1. Issue of Shares under the Share Purchase (If issued as consideration for Plan (SPP) as announced to ASX on 7 June the acquisition of assets, clearly 2019 and approved by shareholders at the identify those assets) General Meeting on 15 August 2019. The funds raised will be used to maintain the Company’s existing portfolio of assets and to keep those assets in good standing, to assess new opportunities and to augment working capital.

• 1. Issue of unquoted Options for nil cash consideration to subscribers in the SPP on the basis of 1 Option for every 2 Shares subscribed for and issued.

• No – Upon exercise and conversion into ordinary shares the securities will rank equally

6a Is the entity an[+] eligible entity Yes that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the[+] securities the subject of this Appendix 3B , and comply with section 6i 6b The date the security holder N/A resolution under rule 7.1A was passed 6c Number of[+] securities issued N/A without security holder approval under rule 7.1

• See chapter 19 for defined terms.

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6d Number of[+] securities issued N/A with security holder approval under rule 7.1A 6e Number of[+] securities issued 62,500,000 fully paid ordinary shares issued under with security holder approval the SPP and approved at the General Meeting held under rule 7.3, or another on 15 August 2019. specific security holder approval (specify date of meeting) 6f Number of[+] securities issued N/A under an exception in rule 7.2 6g If[+] securities issued under rule N/A 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. 6h If[+] securities were issued under N/A rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining RULE 7.1: 93,656,723 issue capacity under rule 7.1 and RULE 7.1A: 62,437,815 rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 +Issue dates Issue dates 16 August 2019

7 +Issue dates Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.

8 Number and +class of all +securities quoted on ASX ( including the +securities in section 2 if applicable)

Number	+Class
624,378,153 132,436,366	Ordinary shares Quoted Options (expiring 1 July 2021, exercisable at $0.015)

Number +Class 9 Number and +class of all 18,000,000 Unquoted Options +securities not quoted on ASX (expiring 23 March 2021, ( including the +securities in exercisable at $0.022 section 2 if applicable) per option) 12,500,000 Unquoted Options (expiring 16 April 2021, exercisable at $0.022 per option) 31,250,000 Unquoted options (expiring 1 July 2022, exercisable at $0.008 per option)

10 Dividend policy (in the case of a THE COMPANY DOES NOT YET HAVE A DIVIDEND trust, distribution policy) on the POLICY. PAYMENT OF FUTURE DIVIDENDS WILL increased capital (interests) DEPEND UPON THE FUTURE PROFITABILITY AND FINANCIAL POSITION OF THE COMPANY.

Part 2 - Pro rata issue

11 Is security holder approval N/A required? 12 Is the issue renounceable or nonN/A renounceable? 13 Ratio in which the[+] securities N/A will be offered 14 +Class of +securities to which the N/A offer relates 15 +Record date to determine N/A entitlements 16 Will holdings on different N/A registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements N/A in relation to fractions

• See chapter 19 for defined terms.

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18 Names of countries in which the entity has security holders who will not be sent new offer documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders 25 If the issue is contingent on security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and offer documents will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do security holders sell their entitlements_in full_through a broker? 31 How do security holders sell_part_	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A.

of their entitlements through a broker and accept for the balance?

32 How do security holders dispose N/A. of their entitlements (except by sale through a broker)?

33 +Issue date N/A.

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of[+] securities ( tick one )

• (a) +Securities described in Part 1

• (b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories

• 1 - 1,000

1,001 - 5,000

5,001 - 10,000

10,001 - 100,000

100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of[+] securities for which N/A. +quotation is sought

• See chapter 19 for defined terms.

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39 +Class of+securities for which quotation is sought 40 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted +securities? If the additional+securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another+security, clearly identify that other+security) 42 Number and +class of all +securities quoted on ASX (_including_the+securities in clause 38)	N/A.
	N/A.
	N/A.
	Number	+Class
	N/A.

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: .................................................... (Company Secretary)

Date: 16/08/2019

Print name: Mr Mauro Piccini

== == == == ==

• See chapter 19 for defined terms.

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Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

==> picture [454 x 409] intentionally omitted <==

----- Start of picture text -----

Insert number of fully paid [+] ordinary
457,503,153
securities on issue 12 months before the
+ issue date or date of agreement to issue
Number Date Issue Type
Add the following:
58,624,685 17/06/2019 7.1 Issue T1
• Number of fully paid [+] ordinary securities Placement – ratified
issued in that 12 month period under an
on 15 August 2019.
exception in rule 7.2
7.1A Issue T1
• Number of fully paid [+] ordinary securities 45,750,315 17/06/2019 placement – ratified
issued in that 12 month period with on 15 August 2019
shareholder approval
62,500,000 16/08/2019 7.1 Issue Share
• Number of partly paid [+] ordinary Purchase Plan
securities that became fully paid in that Shares as approved
12 month period by shareholders at
the 15 August 2019
Note: General Meeting.
• Include only ordinary securities here –
other classes of equity securities cannot
be added
• Include here (if applicable) the securities
the subject of the Appendix 3B to which
this form is annexed
• It may be useful to set out issues of
securities on different dates as separate
line items
Subtract the number of fully paid [+] ordinary
securities cancelled during that 12 month
period
“A” 624,378,153
----- End of picture text -----

Step 2: Calculate 15% of “A”

“B” 0.15

• See chapter 19 for defined terms.

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	[Note: this value cannot be changed]
Multiply“A” by 0.15	93,656,723
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period_not counting_those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	Number	Date	Type
“C”

Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1

Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1	Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	93,656,723
Subtract“C” Note: number must be same as shown in Step 3	-
Total[“A” x 0.15] – “C”	93,656,723
	[Note: this is the remaining placement capacity under rule 7.1]

• See chapter 19 for defined terms.

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Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Part 2	Part 2	Part 2	Part 2
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1	624,378,153
Step 2: Calculate 10% of “A”
“D”	0.10 Note: this value cannot be changed
Multiply“A” by 0.10	62,437,815
Step 3: Calculate “E”, the amount 7.1A that has already been used	of placement capacity under rule
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items	Number	Date	Type
“E”

• See chapter 19 for defined terms.

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Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A	Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	62,437,815
Subtract“E” Note: number must be same as shown in Step 3	-
Total[“A” x 0.10] – “E”	62,437,815
	Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

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