WESTSTAR INDUSTRIAL LIMITED — Capital/Financing Update 2021

Dec 15, 2021

16 December 2021

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ASX ANNOUNCEMENT

Utilisation & Termination of Controlled Placement Agreement

WestStar Industrial Limited ( the Company or WestStar) (ASX: WSI), an industrial services company operating in the energy, resources, utility, defence and infrastructure sectors, in metropolitan and remote areas, across Australia, is pleased to announce that it has utilised its Controlled Placement Agreement (“CPA”) with Acuity Capital to raise $650,000 (inclusive of costs) through the set-off of 24,000,000 shares previously issued to Acuity Capital under the CPA (“Set-off Shares”) (see announcement on 30 April 2020).

The Set-off Shares reduce the 44,000,000 collateral shares which Acuity Capital is otherwise required to return to the Company upon termination of the CPA. These Set-off Shares have a deemed price of $0.027, being a premium of 17% to the last traded price of $0.023 on 16 December 2021. The funds raised will be put towards working capital.

The Company also advises that it has now terminated the CPA effective immediately. As a result of the termination of the CPA, Acuity Capital is required to return the remaining 20,000,000 shares Acuity Capital holds as collateral to the Company at zero consideration (subject to shareholder approval). A resolution to buy-back the remaining 20M collateral shares held under the facility for nil consideration will be put to shareholders at a general meeting of WestStar.

There were no costs associated with terminating the CPA.

-Ends-

ASX release authorised by the Board of Directors of WestStar Industrial Limited.

About WestStar

WestStar Industrial Limited (ASX: WSI) is an industrial, steel fabrication, installation and maintenance services company focussed on the resources, oil and gas, water and infrastructure sectors.

WestStar Industrial Limited | ABN 38 119 047 693 | weststarindustrial.com.au | Page 1