Caspin Capital Raising, page-4

Bit more information from the demerger booklet page 38.

(b) Capital raisings
Caspin intends to conduct an equity capital raising for an initial public offering as soon as practicable
following implementation of the Demerger. The precise number of securities and amount to be raised
under the capital raise have not yet been determined but it is intended that a sufficient amount will be
raised to enable Caspin to satisfy the admission requirements of the Listing Rules. The investors in the
capital raising have not yet been identified.
Further details will be included in the prospectus issued by Caspin in connection with the capital raising.
The funds raised from the initial public offering, together with the A$500,000 of cash Caspin will have
on the Implementation Date, will provide working capital and funding for future exploration and other
initiatives. The issue price per share will be at least A$0.20.

Based on scenario 1 the number of shares to be issued (19,573,638) at 20 cents will give the company a market cap of $3,914,727.

This is approximately the value that BDO provided in the expert opinion based on the Assets that Caspin will hold.

This is primarily the cost of exploration that has been capitalised in the subsidiaries to be spun off into Caspin per the Grant Thornton publication.

What I am struggling with is, how this valuation compares to the entities as outlined in the presentation for other Listed Companies in the Province


Mkt cap Net Cash EV Area in Province
(A$m) (A$m) (A$m) (km2)

CHN 284 47 0 .7 236 ~2,000 Now Market cap of $462m due to recent price increases.
DEV 20 2. 8.0 17 ~620
ASQ 9 3.3 5.3 ~55
MAN 5 3.5 1.6 ~140
Caspin 3.9 0.5 3.4 ~400

Given the prospectivity of the Yarawindah Brook Project and its proximity to the CHN leases the disparity appears to be much larger than I would have expected.

I think the company needs to give much more clarity to the true value of its leases in Caspin. Given the values in the above table of comparable entities in the providence and how existing shareholders will be treated in the proposed capital raising.

To be fair, existing shareholders should be given first preference in any capital raising.

To issue new shares at 20 cents per share would appear to grossly undervalue the assets in Caspin ($3.5m) given CHN has a market cap of $462m.

IMHO

DYOR