WESTERN YILGARN NL — Capital/Financing Update 2017

Apr 11, 2017

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12 April 2017

Mauro Piccini Australian Securities Exchange Limited Level 40, Central Park, 152-158 St Georges Terrace PERTH WA 6000

Dear Mauro

Pacific Bauxite Limited –Information disclosed under ASX LR 7.1A.4(B) and 3.10.5A

Further to the Appendix 3B lodged by Pacific Bauxite Limited (“Pacific Bauxite”) on 12 April 2017;

Pacific Bauxite provides the following information under ASX Listing Rule 3.10.5A:

• (a) Details of the dilution to the existing holders of ordinary securities caused by the issue are as follows:

A total of 38,983,400 were issued under the placement. A total of 23,390,056 shares are issued pursuant to Listing Rule 7.1 (representing 12.00% of the postplacement capital) and 15,593,344 shares were issued under the Placement pursuant to Listing Rule 7.1A (representing 8.00% of the post-placement capital).

The percentage of the post-placement capital held (in aggregate) is as follows:

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• pre-placement security holders who did not participate in the placement – 73.42%

• pre-placement security holders who did participate in the placement – 9.78%

• participants in the placement who were not previously security holders – 16.80%

• (b) Pacific Bauxite considered the placement to sophisticated investors was in this instance the most efficient to raise the required funds in the shortest amount of time. The Company believes that the time required to conduct another type of offer e.g. a pro rata or other type of offer to existing shareholders did not fit with these requirements.

• (c)

• The placement was not underwritten.

• (d) A 6% commission was incurred by Pacific Bauxite Ltd in connection with the money raised from brokers totally $600,000.

ACN: 112 914 459

Level 3 | 33 Ord Street| West Perth | Western Australia | 6005 PO Box 186 West Perth | Western Australia | 6872 t + 61 (8) 9481 4478 f +61 (8) 9486 4833 e info@pacificbauxite.com.au www.pacificbauxite.com.au

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Yours sincerely

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Suraj Sanghani Company Secretary

ACN: 112 914 459

Level 3 | 33 Ord Street| West Perth | Western Australia | 6005 PO Box 186 West Perth | Western Australia | 6872 t + 61 (8) 9481 4478 f +61 (8) 9486 4833 e info@pacificbauxite.com.au www.pacificbauxite.com.au