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ANNOUNCEMENT 11 January 2017 TRANSACTION TO SELL SOUTH KOREAN GRAPHITE ASSETS TO BATTERY MINERAL RESOURCES SETTLES ON AMENDED TERMS Hexagon Resources Limited (ASX: HXG, “the company” or “HXG”) wishes to advise that it has today settled the sale of its subsidiary company, Opirus Minerals Pty Ltd (“Opirus”), which holds its South Korean assets to Battery Material Resources Limited (“BMR”). The board is delighted to inform the market that both parties have agreed to a variation to the previous terms with Hexagon now receiving a larger upfront cash component as partial consideration for the sale of the South Korean assets to BMR. The transaction has settled today. Under the revised terms, Hexagon has received AUD$1,000,000 in cash and 2,000,000 shares in BMR in full settlement of all shares and loans owned by Hexagon in Opirus. The funds received will support the Company’s ability to accelerate the development of its focus project at McIntosh while preserving value for shareholders.