Rights Issue and Options Priority Offer

Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce its intention to undertake a non-renounceable rights issue of 1 fully paid ordinary share in the capital of the Company (“Share”) for every 3 Shares held by eligible shareholders at an issue price of $0.002 per Share (pre-consolidation) or $0.01 (post-consolidation), together with 1 free attaching option to acquire a Share (“Option”) for every 2 Shares subscribed for and issued, to raise up to approximately $2.14 million (“Rights Issue”).

Each Option issued under the Rights Issue will be exercisable within 3 years from the date of issue with an exercise price of $0.003 (pre-consolidation) or $0.015 (post consolidation) (“New Options”).

In addition to the Rights Issue, the Company will be offering eligible holders of the existing RR1O listed Options (“RR1O Options”) a non-renounceable priority offer to subscribe for 1 New Option for every 1 RR1O held at an issue price of $0.0002 (pre-consolidation) or $0.001 (post-consolidation) per New Option to raise up to approximately a further $0.26 million (“Priority Offer”). The issue of the New Options under the Priority Offer will be subject to shareholder approval.

The Company intends to apply for the quotation of the New Options to be issued under the Rights Issue and the Priority Offer (together, the “Offers”).

Funds raised under the Offers will be allocated towards funding the exploration of the Company’s projects and for general working capital purposes.

The Company has engaged Westar Capital Limited (AFSL 255789) (“Westar”) to act as lead manager for the Offers. In consultation with the Company, Westar will have the exclusive right to the placement of any shortfall.

The Company intends to release a prospectus for the Offers to its ASX platform on Friday, 1 March 2024 (“Prospectus”) following the lodgement of the Prospectus with ASIC.

Eligible shareholders and optionholders should consider the Prospectus in deciding whether to acquire securities under the Offers and will need to complete the personalised entitlement and acceptance form that will accompany the Prospectus.

The Company advises that, should they be eligible, the Directors intend to take up any entitlements available to them under the Offers. As at the date of this announcement, the Directors are not eligible to participate in the Offers.

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