ZEOTECH LIMITED — Capital/Financing Update 2019

Oct 16, 2019

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16 October 2019

ACQUISITION OF ABERCORN HIGH PURITY ALUMINA PROJECT COMPLETE

• Acquisition of 100% of the share capital in Abercorn Kaolin Pty Ltd, which owns the Abercorn High Purity Alumina (“HPA”) Project located in Queensland, Australia successfully completed.

• Company well capitalised to fund planned exploration activities.

• Planning for a 2000m Reverse Circulation (“RC”) drilling program well advanced, with the objective to define a maiden Inferred Mineral Resource and further test the extent and scale of the Abercorn Project’s minerlisation.

• Mr John Goody and Mr Keong Chan appointed to the Board.

Metalsearch Limited (“ Metalsearch ” or “ the Company ”) is pleased to announce that it has successfully completed its acquisition of 100% of the share capital in Abercorn Kaolin Pty Ltd (“ Abercorn ”) , which owns the Abercorn High Purity Alumina (“HPA”) Project (“ Abercorn Project ”) located in Queensland, Australia.

The acquisition of the Abercorn Project follows completion of the transaction announced on 13 August 2019, where the company agreed to acquire 100% of Abercorn, the holder of EPM’s 26837, 26903 and 19081.

Completion of the acquisition follows receipt of shareholder approval on 4 October 2019 and resulting issuance of vendor consideration shares and performance rights along with the execution of all required legal, financial, technical and transactional documentation.

The Company has also completed the required $2.0 million capital raising, paid the initial cash consideration for the acquisition and has issued the shares and performance rights associated with the capital raising and the acquisition.

Following completion of the acquisition, highly experienced technical director, Mr John Goody has joined the Board. Mr Keong Chan, a highly experience corporate executive, has also joined the board. Mr Bassett and Mr Brewer have both resigned as directors. Mr Bassett continues as company secretary.

Commenting on the completion of the Acquisition Metasearch’s Chairman, Robert Downey said:

We are pleased that we have been able to move so efficiently to complete the acquisition of the Abercorn High Purity Alumina Project.

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

With the acquisition now complete, our shareholders have an interest in a large scale kaolinite prospect which has the potential to be developed into a world leading HPA project.

We are well advanced on planning for a 2000m Reverse Circulation (“RC”) drilling program with the objective to define a maiden Inferred Mineral Resource and test the extent and scale of the Abercorn Project’s minerlisation.

The Abercorn High Purity Alumina Project

The Abercorn Project comprises 3 contiguous Exploration Permits for Mineral (“EPM”) for a total of 38 sub-blocks, an area of 128km[2] , these are EPM 26837 comprising 33 subblocks, EPM 26903 comprising 4 sub-blocks and EPM 19081 comprising one sub-block (Figure 1).

The Abercorn Project is situated approximately 135km south of the deep-water port of Gladstone and 125km west of the deep-water port of Bundaberg in Central Queensland. Both of these major ports are connected to the project by sealed roads. The Burnett highway bisects the property (Figure 2).

The kaolin mineralisation previously drilled in 24 holes in 2007 has the potential for the extraction of marketable volumes of higher-grade feedstock[1] .

Assays completed on samples of kaolin from the 2007 drilling program, indicate the -10 micron fraction consistently graded at >33% Al2O3, representing approximately 20% of the raw ore mass. The ability to cost effectively upgrade bulk raw ore to a higher yield of Al2O3 via simple grain size sorting, at considerable scale, indicates the potential for developing the Abercorn Project in joint venture with global end users seeking to source high grade Al2O3[1] .

The kaolin on the Abercorn Project has already been shown to be capable of producing 99.99% Al2O3 (4N HPA) including high grade assays up to 33.71% Al2O3 (-10 micron fraction[1] ) and commercial grade Aluminium Sulphate (ALUM), used in water purification.

Processing of multi-spectral satellite scanner data (ASTER) suggests that the kaolin intersected by previous drilling, is much more extensive than indicated by the 2007 drilling.

1See Metalsearch Limited ASX Announcement 13 August 2019. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

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

Figure 1 – Project Location

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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

Figure 2 – Project Location and Infrastructure

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Planning for RC Drilling Program

Planning is well advanced for a RC drilling program to commence on the Abercorn Project. It is anticipated that 60-70 RC drill holes, of average depth 30-40m will be completed for approximately 2000m of drilling. The RC drilling program should take approximately 4 weeks to complete. Commencement of the program is subject to rig availability. The first geochemical data should be available approximately 6 weeks following submission of the initial samples from the RC drilling program.

Drilling will initially be concentrated around holes CK003 and CK007 – CK023 from the 2007 drilling program (Figure 3) in order to further investigate and extend the encouraging kaolin mineralisation intersected in these drill holes. The objective of the RC drilling program around holes CK003 and CK007 – CK023, is to define a maiden Inferred Mineral Resource (JORC 2012) and further define the potential scale of kaolin containing high grade Al2O3.

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

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Reconnaissance drilling is also being planned to be undertaken in the far north-west of the Project area to investigate the occurrence of outcropping kaolin which has not been previously drilled, but appears to have similarities to the kaolin intersected in hole CK003, which contained the highest grade Al2O3 from the 2007 drilling program[2] .

Figure 3 – Previous Drilling

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2See Metalsearch Limited ASX Announcement 13 August 2019. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

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

Competent Person Statement

Statements contained in this announcement relating to historical exploration results, and current exploration results are based on, and fairly represents, information and supporting documentation prepared by Mr. Jeremy Read, who is a member of the Australian Institute of Mining & Metallurgy (AusIMM), Member No 224610. Mr Read is a Non-Executive Director and part-time consultant to the Company and has sufficient relevant experience in relation to the mineralisation styles being reported on to qualify as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC) Code 2012 . Mr Read consents to the use of this information in this announcement in the form and context in which it appears.

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