Austar Gold : Update - Proposed Issue of Securities

Update Summary

Entity name

AUSTAR GOLD LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Friday June 26, 2020

Reason for update to a previous announcement

Approval to issue convertible notes to Directors and Ratification of prior agreement to issue convertible notes and consequential issue of shares and approval to issue options granted at EGM 26/06/2020

Refer to next page for full details of the announcement

Part 1 - Entity and announcement details

1.1 Name of +Entity

AUSTAR GOLD LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type ABN

Registration Number 70107180441

1.3 ASX issuer code AUL

1.4 The announcement is

Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Approval to issue convertible notes to Directors and Ratification of prior agreement to issue convertible notes and consequential issue of shares and approval to issue options granted at EGM 26/06/2020

1.4b Date of previous announcement(s) to this update

Wednesday April 29, 2020

1.5 Date of this announcement Friday June 26, 2020

1.6 The Proposed issue is:

A placement or other type of issue

Part 7 - Details of proposed placement or other issuePart 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue?+Security holder approval

Court approval

Lodgement of court order with +ASICACCC approval

FIRB approval

Another approval/condition external to the entity

Yes

7A.1a Conditions

Approval/Condition +Security holder approval

Date for determination Friday June 26, 2020

Is the date estimated or actual?

** Approval received/condition met?

Actual

Yes

Comments

EGM held 26/06/20

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?

New class

Details of +securities proposed to be issued

Will the proposed issue of this +security include an offer of attaching +securities?

Yes

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)Have you received confirmation from Will the entity be seeking quotationASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1?

Yes

ASX +Security Code

New class-code to be confirmed

Unlisted Convertible Notes with attaching options

of the 'new' class of +securities on ASX?

No

+Security Description

+Security Type

Convertible Debt Securities

Maximum Number of +securities proposed to be issued

14,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Completion of EGM where Shareholder approval was given to the prior agreement to issue convertible notes and new options.

Purpose of the issue mine productivity enhancements, in-mine drilling programs, processing enhancements and working capital.

Offer price details for retail security holders

In what currency is the cash	What is the issue price per
consideration being paid?	+security?
AUD - Australian Dollar	AUD 100.00000

Will all the +securities issued in this class rank equally in all respects from their issue date?

Yes

Oversubscription & Scale back details

May a scale back be applied to this event?

No

Convertible Debt +Securities details

These securities are: Convertible

Type of security Hybrid Security

+Security Currency AUD - Australian Dollar

Face Value AUD 100.0000

Interest Rate Type Fixed rate

Frequency of Coupon/Interest Payments Per Year

First Payment Date

Quarterly

Tuesday June 30, 2020

Interest Rate (p.a.) 7.00000 %

Is Interest Rate (p.a) estimated at this time?

No

s128F of the Income Tax Assessment Act status applicable to the security s128F exemption status unknown

Is the security Perpetual (ie. No maturity)?

No

Is the Security Subordinated?

No

Is the Security Secured?

No

Select other features applicable to

the security

Redeemable

Is a First Trigger Date on which

conversion, redemption, call or put

can occur (whichever is first)

applicable?

Maturity Date

Wednesday March 31, 2021

No

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of +security

AUL : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

Unlisted convertible note with a face value of $100 with 200 unlisted attaching options for each convertible note.

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)?

New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)Have you received confirmation from ASX that the terms Will the entity be seeking quotation of the 'new' class ofof the proposed +securities are appropriate and equitable under listing rule 6.1?

Yes

ASX +Security Code

New class-code to be confirmed

+Security Type

Other

+securities on ASX?

No

+Security Description

Attaching options