VYSARN LIMITED — Capital/Financing Update 2019

Jul 10, 2019

VYSARN ENTERS INTO $8.8 MILLION FINANCING AGREEMENT WITH WESTPAC

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10 July 2019

HIGHLIGHTS

• A$8.8 million debt facility with Westpac Banking Corporation

• The debt facility is a significant step towards completion of the acquisition of the Ausdrill assets and the reinstatement of the Company’s securities to the Official List of ASX

• Shareholders voted overwhelming in favour of the transaction at the General Meeting of the Company held on 5 July 2019

Vysarn Limited (ASX:VYS) (the Company ) is pleased to announce that it, together with Pentium Hydro Pty Ltd ( Pentium ), has entered into a binding conditional financing agreement with Westpac Banking Corporation Limited ( Westpac ) ( Financing Agreement ), one of Australia’s ‘Big 4’ banks.

Under the facility, subject to the satisfaction of specified conditions, Westpac will provide debt funding of $8.8 million as part of the funding for the acquisition by the Company and Pentium of various waterwell drilling assets (and associated inventory) ( Assets ) from Ausdrill Northwest Pty Ltd (a wholly owned subsidiary of Ausdrill Limited (ASX:ASL)) ( Ausdrill ) ( Transaction ).

The Transaction was announced by the Company on 11 April 2019 and is subject to the satisfaction of specified conditions. As noted in the announcement, the Company has entered into a share sale agreement to acquire all the issued shares in Pentium ( SSA ), and the Company and Pentium have entered into an asset sale agreement to acquire the Assets from Ausdrill ( Asset Sale Agreement ). In connection with the Transaction, the Company will undertake a public offer capital raising to raise a minimum of $5 million and up to a maximum of $7 million ( Public Offer ).

The Company and Pentium’s entry into the Financing Agreement is a significant step towards satisfaction of the conditions to the Transaction, and the Company is delighted with the support provided by Westpac, one of Australia’s leading banks.

It is proposed that completion of the SSA will occur immediately prior to completion of the acquisition of the Assets pursuant to the Asset Sale Agreement, and that the Assets will be acquired by Pentium (at which time it will be a wholly owned subsidiary of the Company).

As such, under the Financing Agreement, it is intended that the debt facility of $8.8 million will be provided to Pentium, and will be guaranteed by the Company.

The Company expects to lodge the prospectus for the Public Offer shortly, and full details of the Financing Agreement will be provided in the Prospectus.

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For more information contact:

Peter Hutchinson Chairman +61 (8) 9486 7244