VERITY RESOURCES LIMITED — Capital/Financing Update 2020

Aug 16, 2020

Proposed issue of securities

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Update Summary

Entity name

SIX SIGMA METALS LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Monday August 17, 2020

Reason for update to a previous announcement

To increase the number of shares issued under the SPP to 30 percent of the existing shares already on issue. Therefore, 240,000,000 fully paid ordinary shares in total are to be issued under the SPP.

Refer to next page for full details of the announcement

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

SIX SIGMA METALS LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ABN 96122995073

1.3 ASX issuer code

SI6

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

To increase the number of shares issued under the SPP to 30 percent of the existing shares already on issue. Therefore, 240,000,000 fully paid ordinary shares in total are to be issued under the SPP.

1.4b Date of previous announcement(s) to this update

Wednesday July 8, 2020

1.5 Date of this announcement

Monday August 17, 2020

1.6 The Proposed issue is:

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An offer of +securities under a +securities purchase plan A placement or other type of issue

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Part 4 - Details of proposed offer under securities purchase plan

Part 4A - Conditions

4A.1 - Are any of the following approvals required for the offer of +securities under the +securities purchase plan issue to be unconditional?

+Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 4B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description

SI6 : ORDINARY FULLY PAID

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +security code and description

SI6 : ORDINARY FULLY PAID

Maximum total number of those +securities that could be issued if all offers under the +securities purchase plan are accepted

240,000,000

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Reason for the update of 'Maximum Number of +securities proposed to be issued'

accepting over subscriptions.

Offer price details

Oversubscription & Scale back details

Will a scale back be applied if the offer is over-subscribed? Yes

Describe the scale back arrangements

TBA

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

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Yes

Attaching +Security

The proposed attaching security can only be of an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX) Existing class

Attaching +Security - Existing class (additional +securities in a class that is already quoted or recorded by ASX)

ASX +security code and description

SI6OD : OPTION EXPIRING 01-JUL-2022

Offer ratio (ratio of attaching securities at which the new +securities will be issued)

The quantity of attaching +securities to be issued	For a given quantity of the new +securities issued
1	2
What will be done with fractional entitlements?	Maximum total number of those +securities that could be
Fractions of 0.5 or more rounded up	issued if all offers under the +securities purchase plan are accepted
	120,000,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

accepting over subscriptions under SPP.

Offer price details

Oversubscription & Scale back details

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Will a scale back be applied if the offer is over-subscribed? Yes

Describe the scale back arrangements

TBA

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Part 4C - Timetable

4C.1 Date of announcement of +security purchase plan

Wednesday July 8, 2020

4C.2 +Record date

Tuesday July 7, 2020

4C.3 Date on which offer documents will be made available to investors

Thursday July 23, 2020

4C.4 Offer open date

Thursday July 23, 2020

4C.5 Offer closing date

Friday August 14, 2020

4C.6 Announcement of results

Tuesday August 18, 2020

4C.7 +Issue date

Thursday August 20, 2020

Part 4D - Listing Rule requirements

4D.1 Does the offer under the +securities purchase plan meet all of the requirements of listing rule 7.2 exception 5 or do you have a waiver from those requirements? Yes

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Part 4E - Fees and expenses

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4E.1 Will there be a lead manager or broker to the proposed offer? Yes

4E.1a Who is the lead manager/broker?

Xcel Capital Pty Ltd

4E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

no fee for SPP

4E.2 Is the proposed offer to be underwritten? No

4E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

4E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer No

Part 4F - Further Information

4F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No

4F.2 Countries in which the entity has +security holders who will not be eligible to accept the proposed offer Offer only eligible to Australia and New Zealand

4F.3 URL on the entity's website where investors can download information about the proposed offer https://www.sixsigmametals.com/

4F.4 Any other information the entity wishes to provide about the proposed offer

N/A

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +security code and description

SI6 : ORDINARY FULLY PAID

Number of +securities proposed to be issued

160,000,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Offer price details

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

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Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

SI6OD

Have you received confirmation from ASX that the terms Will the entity be seeking quotation of the 'new' class of of the proposed +securities are appropriate and +securities on ASX? equitable under listing rule 6.1? Yes No ASX +security code +Security description New class-code to be confirmed Quoted Options - exercisable at 0.8c per share, expiring 1 July 2022

+Security type Options

Number of +securities proposed to be issued 110,000,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Offer price details

Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

Options details

+Security currency AUD - Australian Dollar Exercise price Expiry date AUD 0.0080 Friday July 1, 2022

Details of the type of +security that will be issued if the option is exercised SI6 : ORDINARY FULLY PAID

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Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

exercisable at 0.8c per share, expiring 1 July 2022

Part 7C - Timetable

7C.1 Proposed +issue date

Tuesday July 14, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

96,000,000

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes

7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

64,000,000

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

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7E.1a Who is the lead manager/broker?

Xcel Capital Pty Ltd

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

6% of capital raised, $50k management fee and 30,000,000 options (exercisable at 0.8c per share, expiring 1 July 2022)

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue N/A Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue N/A

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