Alara Resources : Proposed issue of Securities - AUQ

About this update from Alara Resources Limited

Proposed issue of securities Announcement Summary Entity name ALARA RESOURCES LIMITED Announcement Type New announcement Date of this announcement Wednesday December 2, 2020 The Proposed issue is: A placement or other type of issue Total number of +securities proposed to be issued for a placement or other type of issue Maximum Number of ASX +security code +Security description +securities to be issued n/a Options 5,000,000 Proposed +issue date Thursday December 3, 2020 Refer to next page for full details of the announcement Proposed issue of securities 1 / 6 Proposed issue of securities Part 1 - Entity and announcement details 1.1 Name of +Entity ALARA RESOURCES 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 Registration Number ABN 27122892719 1.3 ASX issuer code AUQ The announcement is New announcement Date of this announcement Wednesday December 2, 2020 1.6 The Proposed issue is: A placement or other type of issue Proposed issue of securities 2 / 6 Proposed issue of securities Part 7 - Details of proposed placement or other issue Part 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 +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes 7A.1a Conditions Approval/Condition Date for determination Is the date estimated or ** Approval +Security holder approval Monday November 30, 2020 actual? received/condition met? Actual Yes Comments Approved by Shareholders at the Company's 2020 AGM. 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 Will the proposed issue of this +security include an offer of attaching +securities? No Details of +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 of the proposed +securities are appropriate and equitable under listing rule 6.1? No ASX +security code New class-code to be confirmed Will the entity be seeking quotation of the 'new' class of +securities on ASX? No +Security description Options Proposed issue of securities 3 / 6 Proposed issue of securities +Security type Options Number of +securities proposed to be issued 5,000,000 Offer price details Are the +securities proposed to be issued being issued for a cash consideration? No Please describe the consideration being provided for the +securities The Options are being issued as part of the Managing Director's remuneration. Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities 1.000000 Will all the +securities issued in this class rank equally in all respects from their issue date? Yes Options details +Security currency Exercise price Expiry date AUD - Australian Dollar AUD 0.0300 Thursday March 30, 2023 Details of the type of +security that will be issued if the option is exercised AUQ : ORDINARY FULLY PAID Number of securities that will be issued if the option is exercised One (1) fully paid ordinary share (ASX:AUQ) Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement. https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02303893-6A1005417?access_token=8 3ff96335c2d45a094df02a206a39ff4 Part 7C - Timetable 7C.1 Proposed +issue date Thursday December 3, 2020 Proposed issue of securities 4 / 6 Proposed issue of securities Part 7D - Listing Rule requirements 7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No 7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? No 7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No 7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? Yes 7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No 7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No Part 7E - Fees and expenses 7E.1 Will there be a lead manager or broker to the proposed issue? No 7E.2 Is the proposed issue to be underwritten? No 7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue Nil Part 7F - Further Information 7F.01 The purpose(s) for which the entity is issuing the securities As part of the Managing Director's remuneration. 7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No Proposed issue of securities 5 / 6 Proposed issue of securities 7F.2 Any other information the entity wishes to provide about the proposed issue The Options vest if Alara Resources Limited's joint venture company Al Hadeetha Resources LLC achieves the first production of saleable copper concentrate (Vesting Condition) on or before 31 March 2022 (Vesting Date). If the Vesting Condition is not met on or before the Vesting Date the Options may not be exercised. If the Vesting Condition is met on or before the Vesting Date, the Options may be exercised at any time within one year after the day on which the Vesting Condition is satisfied. Proposed issue of securities 6 / 6

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