VERITY RESOURCES LIMITED — Capital/Financing Update 2019

Jun 6, 2019

Six Sigma Metals

Corporate Details

ASX Code: SI6

ASX Announcement

7 June 2019

Directors

Steve Groves

Non-Executive Director

Six Sigma Metals Limited to Raise $0.50 million via Placement

Joshua Letcher

Non-Executive Director

Six Sigma Metals Limited (ASX:SI6) (“ Six Sigma ” or “ the Company ”) is pleased to announce that it has received firm commitments to raise $0.5 million (before costs) via a share placement (“ Placement ”) at an issue price of $0.004, representing a 20% discount to the last sale price.

In addition, Six Sigma will raise up to $0.25 million via a Share Purchase Plan (“ SPP ”) on the same terms as the Placement.

Details of the Capital Raising

Eddie King

Non-Executive Director

Contact

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

+61 (8) 6559 1792

The Placement will involve the issue of 125,000,000 fully paid ordinary shares at an issue price of $0.004, with a free attaching unquoted option (exercisable at $0.008 and expiring on 1 July 2022) (“ Options ”) on the basis of one Option for every two Placement shares issued.

info@sixsigmametals.com sixsigmametals.com

The Placement will be conducted in two tranches:

• (a) The first tranche will comprise 114,375,468 shares and be undertaken using the Company’s available placement capacity, comprising:

• (i) 68,625,153 shares under the Company’s Listing Rule 7.1 15% placement capacity; and

• (ii) 45,750,315 shares under the Company’s additional Listing Rule 7.1A 10% placement capacity, as approved by shareholders at the Company’s 2018 annual general meeting;

• (b) The second tranche of 10,624,532 shares and SPP attaching Options will be issued subject to shareholder approval at a General Meeting (“ GM ”) of shareholders which is expected to be held in July 2019.

The Options attaching to both tranches of the Placement will also be issued subject to shareholder approval at the GM.

There was significant interest in the Placement from professional and sophisticated investors, and the Company expects to issue the tranche 1 Placement shares on or around 12 June 2019.

Details of the Share Purchase Plan

The Company will also conduct an SPP. The SPP will be offered to existing shareholders to raise up to $250,000. The SPP is not underwritten and will be conducted on the same terms as the Placement, namely at an issue price of $0.004 per share with one free attaching Option for every two SPP shares issued. Any shortfall associated with the SPP will be placed by the Lead Manager. The record date for the SPP is 6 June 2019, and a transaction specific prospectus in relation to the SPP will be distributed in due course.

The funds raised via the Placement and SPP will be used to maintain the Company’s existing portfolio of assets is kept in good standing, to assess new opportunities and to augment working capital.

ASX Announcement – 7[th] June 2019

Xcel Capital Pty Ltd acted as Lead Manager to the Placement and will act as Lead Manager to the SPP.

For and on behalf of the Board

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Mauro Piccini Company Secretary

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