VYSARN LIMITED — M&A Activity 2017

Feb 8, 2017

MHM Metals Limited Level 4, 100 Albert Road South Melbourne VIC 3205 AUSTRALIA

T: +613 9692 7222 F: +613 9077 9233 www.mhmmetals.com

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ASX Announcement

9 February 2017

RECEIPT OF INTENTION TO MAKE OFF-MARKET TAKEOVER OFFER

MHM Metals Limited ( MHM or the Company ) (ASX: MHM) advises that it has received an intention to make an off-market takeover offer for all of the ordinary shares in the Company ( the Offer ) from Cadmon Ventures Pty Ltd ( Cadmon or the Bidder ).

Capital Structure

Ordinary shares on issue: 136,228,616

The Bidder proposes to offer MHM shareholders $0.0435 (4.35 cents) in cash for each MHM share they own, valuing the equity in MHM at approximately $5.93 million.

The offer price is superior to the existing off-market takeover offer for MHM received from Mercantile OFM Pty Ltd ( Mercantile OFM ), a wholly owned subsidiary of Mercantile Investment Company Limited (ASX: MVT) ( Existing Offer ), being almost 10% higher and otherwise on the same terms. In particular, the proposed offer is subject to the same conditions as the Existing Offer. It is not subject to any funding conditions. It is noted that the Existing Offer from Mercantile OFM was the first and final offer.

The Board advises shareholders not to take any action until MHM has received the formal Bidder’s Statement from Cadmon.

MHM will make further announcements regarding the Cadmon offer and the Existing Offer in due course.

- ENDS

For more information :

MHM Metals Limited Faldi Ismail, Chairman: +61 3 9692 7222

MHM Metals Limited ABN 41 124 212 175

Registered Office: Level 4, 100 Albert Road, South Melbourne VIC 3205| Tel: 03 9692 7222 | Fax: 03 9077 9233 | www.mhmmetals.com