ASKARI METALS LIMITED (AS2)

The suspension of trading in the securities of Askari Metals Limited will be lifted immediately following the release by AS2 of an announcement regarding a material acquisition in the lithium sector and a placement.

The company releases a notice of proposed issue of securities.

Askari Metals has completed a heavily oversubscribed placement to raise A$2.6 million. Placement was completed via the issue of fully paid ordinary shares at an issue price of A$0.35 per share with a 1-for-3 free attaching AS2O listed option. Peak Asset Management acted as lead manager to the placement. Placement has been completed at a premium of 15% to both the 10-day and 15-day VWAP and a premium of 6.5% to the 5-day VWAP. Funds raised from the placement will be applied to: initial exploration at the recently acquired Barrow Creek Lithium Project; Phase II and III drilling at the Burracoppin Gold Project; maiden drilling at the Horry Copper Project; initial exploration at the recently staked Yarrie Lithium Project; continued exploration at the Red Peak Lithium Project; magnetic surveys at the Callawa Copper Project.

Askari Metals has further expanded its reach in the lithium sector by acquiring the Barrow Creek Lithium Project in the Arunta Pegmatite Province of the Northern Territory. The AS2 Barrow Creek Lithium Project borders exploration licences with similar geology. The Barrow Creek Lithium Project covers an area of 278km2 in an area known for hosting significant pegmatites and is highly prospective for hard-rock spodumene-bearing lithium mineralisation as supported by highly fractionated pegmatites mapped and documented in government reports in this region. The Arunta Pegmatite Province has been described as one of the largest pegmatite provinces in Central Northern Territory. Barrow Creek Lithium Project boasts year-round access via the Stuart Highway, supporting low-cost exploration. A reconaissance site visit at the exploration licence resulted in several samples being collected - assay results are expected within the next 2 to 3 weeks. A Hyperspectral Remote Sensing Program will be undertaken at the Barrow Creek Lithium Project to commence immediately. Askari Metals is positioning itself to be a prominent landholder in the lithium sector through its recent acquisitions of three highly prospective lithium projects in its portfolio. Following the completion of the heavily oversubscribed placement of A$2.6 million, Askari Metals is well funded to achieve its exploration objectives.

The company anticipates that the voluntary suspension will end on the earlier of the commencement of trading on 28 January 2022 or when an announcement regarding a material acquisition in the lithium sector and a placement is released to the market.

The securities of Askari Metals Limited will be suspended from quotation immediately under Listing Rule 17.2, at the request of AS2, pending the release of an announcement regarding a material acquisition in the lithium sector and a placement.

listed entity carried for record purposes only