Ann: Proposed issue of Securities - AVZ, page-2

Shareholder Update on Yibin Tianyi $14.1M PlacementThe Sunset Date for the satisfaction of conditions precedent has been extended to 31 March 2020 to accommodate a request from FIRB for additional review timeYibin Tianyi, through its associate, N-Resource Limited, is proposed to provide the Company with a US$1m Convertible Note by 11 March 2020 in order for Yibin Tianyi to maintain its rights under the Subscription Agreement1AVZ requested and was given the right to commence negotiations, discussions or communications, to enter and conclude funding agreements with additional parties of interest, provided the total issue of new shares does not dilute Yibin Tianyi’s expected 11% equity position in AVZ post the subscription agreement being finalisedAVZ Minerals Limited (ASX:AVZ, “the Company”) advises the Sunset Date for the satisfaction of conditions precedent to the A$14.1million investment in AVZ by Yibin Tianyi Lithium Co., Ltd (“Yibin Tianyi”) has been extended to 31 March 2020 to accommodate a request to Yibin Tianyi from Australia’s Foreign Investment Review Board (“FIRB”) for additional review time.Other than obtaining the necessary FIRB and Chinese Overseas Direct Investment approvals, all other conditions precedents to the Subscription Agreement are currently satisfied.Accordingly, the Company and Yibin Tianyi have agreed to extend the Sunset Date for Yibin Tianyi’s investment to 31 March 2020, or “144 days from the initial execution date of this Subscription Agreement”. The Company will continue to work with FIRB and Yibin Tianyi’s lawyers with a view to obtaining the necessary regulatory approvals as soon as possible prior to the extended deadline.In addition, Yibin Tianyi, through its associate N-Resource Limited is proposed to provide the Company with a US$1m Convertible Note by 11 March 2020 in order to maintain Yibin Tianyi’s rights under the Subscription Agreement. The Convertible Note will be provided interest free until 31 March 2020* and will be issued under the Company’s placement capacity as per ASX Listing Rule 7.1.