Ann: Strategic Investment by Cornerstone Investor, page-3

STRATEGIC INVESTMENT BY CORNERSTONE INVESTOR ____________________________________________________________________________
HIGHLIGHTS
➢ First Samuel complete $5 million strategic equity investment into NSL.
➢ Investment at a 9% premium to last closing and 30 day volume weighted average prices.
➢ First Samuel currently hold more than $600 million in funds under management and invest on a long term basis, being 5-7 years.
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NSL Consolidated Limited (Company, ASX: NSL), is pleased to update the market regarding a $5 million strategic equity investment by a large Australian financial institution, First Samuel. The strategic investment is at a 9% premium to the last close price and 30 day VWAP, being $0.025 per share. The Company will issue a total of 200 million shares to First Samuel.

The funds will:

1. provide additional working capital as the Phase Two wet beneficiation plant progresses to name plate capacity anticipated by the end of October,
2. allow for the ramp up of NSL mining operations, in support of the growing wet plant feed requirements,
3. provide funding for the immediate Phase Three expansion project to 400 ktpa working with Xinhai and other Chinese suppliers; and
4. enable the Company to further progress its Phase Four one million tonne per annum wet beneficiation plant project.
Importantly, First Samuel and NSL are committed to strengthening relations and working together on the near term expansion projects, and towards the medium term production goal of 2.5 million tonnes per annum of iron ore concentrate.
First Samuel is a Melbourne based, Investment Manager. It was founded in 1999 and currently has more than A$600 million in funds under management. Investing typically on a long-term (+5 year) basis, across asset classes, it has delivered superior returns for its clients throughout its 17-year history. For more information on First Samuel please visit https://www.firstsamuel.com.au/
NSL Managing Director, Mr Cedric Goode commented,

“We are very excited to have the support of such a large and successful fund like First Samuel, who after conducting significant due diligence, are so enthused by the Indian opportunity the Company represents. This significant investment by First Samuel, underpins our longer-term production growth profile and with the continuation of the Xinhai MoU actions, again highlights confidence in the Company’s Indian strategy.”

First Samuel Chief Investment Officer, Mr Dennison Hambling commented,

“Having closely watched NSL develop over recent years, First Samuel (on behalf of its clients) is thrilled to be supporting the business at this important time. For us, the NSL Consolidated
key points are: NSL is in production, it has a significant cost advantage in delivering to local steel mills, and it has the support of the Andhra Pradesh state government (with an MOU to further expand by up to 15x to 8mtpa). Given that India is an importer of iron ore and a fast growing economy, this all points to strong, long-term growth.

It is a credit to NSL management and employees that they have reached this difficult-to-achieve, landmark stage, and we feel that the addition of further capital and support can only help grow returns for all stakeholders.

We look forward to working with the business to assist in progressing it’s clearly articulated significant development plans”.
Shares related to the strategic investment and 5% fee (being 10,000,000 shares at $0.025 per share) have been allotted today in one tranche, under the Company’s 15% capacity in accordance with Listing Rule 7.1.
S.708A(5)(e) NOTICE
This notice is issued pursuant to section 708A(5)(e) of the Act and the Company advises that to the best of its knowledge, information and belief as at the date of this certificate the following statements are true and not misleading:
1. The relevant securities are in a class of securities that were quoted securities at all times in the 12 months before the day on which the relevant securities were issued.
2. The Company issued the relevant securities without disclosure to investors under Part 6D.2 of the Act, in reliance on section 708.
3. As at the date of this Notice, the Company has complied with:
a. The provisions o Chapter 2M of the Act as they apply to the Company; and
b. Section 674 of the Act (as it applies to the Company).
4. As at the date of this Notice, there is no excluded information (as that expression is defined in sections 708A(7) and 708A(8) of the Act) in relation to the Company.
The relevant Appendix 3B for the issue is attached to this announcement.