Ann: Response to ASX Price and Volume Query, page-6

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Elizabeth Harris Principal Adviser, Listings Compliance (Perth) Australian Securities Exchange Level 40, Central Park 152 St Georges Terrace PERTH WA 6000 BY EMAIL: [email protected] MUSTANG RESOURCES LIMITED (MUS) PRICE QUERY Dear Elizabeth, We refer to your letter dated 30 October 2017 querying the change in price of MUS shares (Letter). Prior to responding to the price query request, MUS considers that it is important that it clarify the events leading up to the suspension of its shares from trading on Monday, 30 October 2017. The rough ruby tender took place from Friday, 27 October 2017, 9am local time in Mauritius, running over the weekend to Monday, 30 October 2017. The tender was undertaken by way of ‘sealed bids’ where all bids are made by registered participants and are delivered to a sealed tender box monitored by an independent security company. The results of the tender are therefore unknown until all bids are opened and the highest bid above the minimum reserve price is determined. MUS’s Managing Director, Company Secretary/CFO and other members of management and the Board are attending the tender in Mauritius. As at the opening of trading on Monday, 30 October 2017, the tender had not yet closed and therefore no results had been published or made available. The results of the tender are expected in the evening (Perth time) on Monday, 30 October 2017. Therefore, as at the open of trading on Monday, 30 October 2017, there was no information MUS was capable of reporting to the market. Notwithstanding the above, in order to ensure an orderly market pending the announcement of the tender resuts, on Saturday, 28 October 2017, MUS, through its Company Secretary, sent a request for a trading halt to the designated email address at ASX for the lodgment of trading halts (Trading Halt Request). MUS has evidence that the email containing the Trading Halt Request was sent from the email server of the Company Secretary and delivered at ASX on 16h18 WST. However, after the commencement of trading on Monday, 30 October 2017, in discussions with ASX, it became apparent that ASX had not received the Trading Halt Request for reasons still unknown to MUS or ASX. A copy of the Trading Halt Request is annexed to this letter. MUS reiterates that the Trading Halt Request was intended to ensure an orderly market pending the announcement of the tender results, albeit that the results of the auction were not yet known. For this reason, MUSTANG RESOURCES LIMITED 2 MUS had determined to take a cautious approach to lodge the Trading Halt Request until it had been informed of the results of the tender and it could make an announcement to the market. In response to your specific questions outlined in the Letter, we provide the following information: 1. As per the Trading Halt Request, notwithstanding that there was no information known that MUS could announce to the market, MUS’s preference was that its securities be placed into trading halt as per the Trading Halt Request until it had been notified of the results of the tender and could make an announcement to the market. 2. MUS expects to receive official notification of the outcome of the tender this afternoon 5pm (Perth time), 30 October 2017, following which it will prepare an announcement informing the market of the outcome of the tender. As per the Trading Halt Request, MUS had requested its shares be placed into a trading halt until the earlier of 1 November 2017 or it making an announcement in relation to those results. 3. Not applicable. 4. MUS believes that it has taken all steps to ensure compliance with ASX Listing Rule 3.1, specifically by making the Trading Halt Request to ensure an orderly market pending the release of the tender results. On the basis that it was unaware of any information it could release to the market relating to the results of the tender MUS believes that it remains in compliance with the Listing Rules, including Listing Rule 3.1. 5. I confirm that the responses to the questions above have been authorised and approved by MUS’s Board. Please do not hesitate to contact me if further information is required.