Heemskirk Consolidated : Appendix 3B - Issue of Options

Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and

documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

Heemskirk Consolidated Limited

ABN

18 106 720 138

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	+Class of +securities issued or to be issued	Options
2	Number of +securities issued or to be issued (if known) or maximum number which may be issued	1,576,215
3	Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)
Options exercisable on or before 15 July 2020 at $0.0878

4	Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities? If the additional +securities do not rank equally, please state: the date from which they do the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
Options are exercisable on or before 15 July 2020. Upon exercise of the options, the shares issued will rank equally in all respects from the date of issue with existing fully paid ordinary shares of the Company.
5	Issue price or consideration	Nil issue price. Issued in accordance with terms of the Debt Facility Agreement entered into between HCA Mountain Minerals (Moberly) Limited, Heemskirk Consolidated Limited, Heemskirk Canada Limited, Heemskirk Canada Holdings Limited, Taurus Funds Management Pty Ltd as trustee for Taurus Resources No.2 L.P and Taurus Funds Management Pty Limited as trustee for Taurus Resources No.2 Trust on 15 July 2015 ("Debt Facility Agreement").
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Issued in accordance with terms of the Debt Facility Agreement.
6a	Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i
No
6b	The date the security holder resolution under rule 7.1A was passed

6c	Number of +securities issued without security holder approval under rule 7.1
6d	Number of +securities issued with security holder approval under rule 7.1A
6e	Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)
6f	Number of +securities issued under an exception in rule 7.2
6g	If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation.
6h	If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements
6i	Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements	79,666,742
7	+Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.
3 January 2017

Number	+Class
562,635,912	Fully paid ordinary

8 Number and +class of all

+securities quoted on ASX (including the +securities in section 2 if applicable)