ZEOTECH LIMITED — Capital/Financing Update 2018

Jun 5, 2018

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6 June 2018

ASX Market Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000

Notification under section 708AA (2)(f) of the Corporations Act 2001 (Cth)

Metalsearch Limited (" Company ") gives notice under section 708AA (2)(f) of the Corporations Act 2001 (Cth) (" Corporations Act ") that:

1. The Company will offer approximately 152,970,053 fully paid ordinary shares (” New Shares ”) for issue without disclosure to shareholders under Part 6D.2 of the Corporations Act pursuant to a nonrenounceable pro-rata rights issue announced to ASX on 30 May 2018 (" Rights Issue "). Under the Rights Issue eligible shareholders will be entitled to apply for one (1) New Share in the Company for every two (2) shares held at the record date at an issue price of $0.01 per New Share. The Rights Issue will raise approximately $1,529,700 before costs if fully subscribed.

2. As at the date of this notice:

3. a) the Company has complied with the provisions of Chapter 2M of the Corporations Act as they apply to the Company;

4. b) the Company has complied with section 674 of the Corporations Act being the requirement to meet its continuous disclosure obligations under the ASX Listing Rules; and

5. c) there is no "excluded information" within the meaning of sections 708AA(8) and 708AA(9) of the Corporations Act which is required to be disclosed under section 708AA(7)(d) of the Corporations Act.

6. The offer is a non-renounceable pro-rata rights issue fully underwritten by Westar Capital Limited (“ Westar ”). The potential effect that the Rights Issue will have on the control of the Company is as follows:

7. a) if all shareholders of the Company on the record date of 12 June 2018 take up their entitlements under the Rights Issue, then the Rights Issue will have no effect on the control of the Company; and

8. b) if shareholders take up none or only some of their entitlements under the Rights Issue then the Rights Issue will have limited effect on control of the Company. Under the terms of the underwriting agreement with Westar, the Underwriter must ensure that no party will receive Shortfall Shares that in itself (ie. the amount of the shortfall) would result in a voting power in the Company equal to or greater than 19.9%;

An Appendix 3B reflecting the revised capital structure following the Rights Issue was lodged with ASX on 30 May 2018.

If you have any questions in relation to the Rights Issue, please do not hesitate to contact the Company on (08) 6268 2622.

Neville Bassett Company Secretary

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au