Ann: AUZ secures $12 million investment from US fund, page-8

11 September 2018 Australian Mines secures $12 million investment from US fund HIGHLIGHTS: • $12 million of investment secured through agreement with New Yorkbased Bergen Global Opportunity Fund II, LLC • Agreement limits share value dilution and provides inbuilt flexibility with competitive terms • Company remains funded through to Final Investment Decision on flagship Sconi Cobalt-Nickel-Scandium Project in Queensland • Part proceeds also to be allocated to completing acquisition of Flemington Project in New South Wales on a 100% basis Australian Mines Limited (“Australian Mines” or “the Company” (Australia ASX: AUZ; USA OTCQB: AMSLF; Frankfurt Stock Exchange: MJH) is pleased to announce the execution of an investment agreement with Bergen Global Opportunity Fund II, LLC (the “Investor”, a New York-based institutional investor managed by Bergen Asset Management, LLC. Under the terms of the agreement, the Investor will make an initial up-front investment of $4 million, followed by a second investment of $4 million, and, by mutual consent, a third investment of $4 million, each by way of an unsecured interest-free convertible security with a 24-month maturity. The key aspects of the investment are set out in the Appendix below. Australian Mines remains fully-funded for the planned work program across the Company’s project portfolio and, importantly, through to a final investment decision on its flagship Sconi Cobalt-Nickel-Scandium Project in Queensland1 . 1 The terms of SK Innovation’s option to subscribe for up to 669,000,000 shares in the Company at 12 cents per share, as detailed in the Company’s announcement via the ASX dated 19 February 2018, remains unchanged. Australian Mines’ ability to fund its planned program through to final investment decision is not dependent on SK Part proceeds of the convertible securities will be allocated to completing the acquisition of the Flemington Cobalt-Scandium-Nickel Project in New South Wales on a 100% basis under the Company’s Option Agreement with Jervois Mining Limited, as well as used to complete the upcoming Flemington resource expansion drilling program. These funds will also strengthen Australian Mines’ balance sheet as it progresses through the current project finance discussions for the development of the Sconi Project, while allowing the Company to maintain the operation of its demonstration-scale processing plant in Perth. The Investor is an investment fund focused on high growth publicly-traded investment opportunities, primarily outside of the United States. Australian Mines Managing Director, Benjamin Bell, commented: “I am delighted to have attracted a significant investment in Australian Mines from a firm like Bergen, which has made a number of successful ASX investments over the years, alongside existing shareholders and management. The issue of these convertible securities reinforces the significant investment interest we have received out of the United States over the past 12 months.” “The investment structure gives a flexible facility and minimises any dilution at current levels for Australian Mines’ shareholders. It also allows the flexibility to accelerate progress at our promising Flemington Project and greenfields Thackaringa Cobalt Project in New South Wales in parallel to delivering our development program at Sconi where, pending a positive BFS and successful funding negotiations, we plan to commence construction in early 2019.”

not sure how the winks are getting in there??