ASX ANNOUNCEMENT 30 January 2018 Recent Highlights: Update on Management Appointments and Corporate Activities - appointment of experienced exploration and mining executives Gareth Solly and Damien Keys; - completion under the Edwards Agreement to acquire the Edwards Tenements; - completion under the Bulong Agreement to acquire the Bulong Tenements; and - IPO process and ASX listing completed. The Directors of Black Cat Syndicate Ltd ( Black Cat ) are pleased to provide investors with an update on recent corporate activities. Management Appointments Commencement of Gareth Solly as Managing Director Gareth commenced as Black Cat s Managing Director on 1 January 2018. Gareth has a firstclass honours degree in earth science from the University of Melbourne. Gareth s career incorporates over 18 years mining industry experience covering numerous orebody types in both underground and surface environments with a proven ability in leading mine geology, resource development and near mine exploration teams. Gareth has worked his way up from mine geologist to chief operations geologist and registered mine manager, holding positions in both open cut and underground operations. He gained senior management experience with organisations including Saracen Mineral Holdings Ltd, Silver Lake Resources Ltd and PJSC MMC Norilsk Nickel. Of particular relevance, Gareth was the Chief Geologist and later Resident Manager at Mount Monger which is similar in many ways to Bulong and involved managing a workforce of approximately 200. ASX:BC8 5/16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014 P +61 458 007 713 E admin@blackcatsyndicate.com.au ABN 63 620 896 282 www.blackcatsyndicate.com.au 1
Appointment of Dr Damien Keys of Complete Target as Chief Geological Adviser Damien has been appointed to the role of Chief Geological Adviser to Black Cat. Damien has a first-class honours science degree from the University of Melbourne and a PhD from James Cook University focussing on structural mapping. Damien has held senior geological roles with a number of companies including Gold Fields Ltd and Silver Lake Resources Ltd. In recent times, Damien established Complete Target, a web-based geological and financial ranking software package designed for base and precious metals explorers. Damien has the ideal knowledge and experience to assist Black Cat in developing a comprehensive geological model over the Bulong Gold Project. Commenting on these appointments, Black Cat Chairman, Paul Chapman, said The appointment of Gareth and Damien gives Black Cat the right combination of knowledge and experience to progress from exploration into production. The Black Cat board is pleased to have secured the services of two such talented mining executives. Completion Under the Edwards Agreement to Acquire the Edwards Tenements On 14 November 2017, a wholly owned subsidiary of Black Cat, Black Cat (Bulong) Pty Ltd ( Black Cat (Bulong) ), executed a heads of agreement (the Edwards Agreement ) with Mr Cranston Gilbert Edwards atf The Emex Trust, for the acquisition of 100% of the rights, title and interest in the Edwards Tenements. The key terms of the Edwards Agreement were disclosed within the Prospectus. The Consideration paid for the acquisition was as follows: - payment of a non-refundable deposit of $30,000 by Black Cat (Bulong) upon execution of the Edwards Agreement; - a cash payment of $150,000 payable by Black Cat (Bulong) at Settlement; - the issue of 1,000,000 Black Cat ordinary shares to Mr Cranston Gilbert Edwards (or nominee); and - a 1% gross revenue royalty in respect of minerals produced within the boundaries of the Edwards Tenements. This transaction was completed on 17 January 2018. Completion Under the Bulong Agreement to Acquire the Bulong Tenements Black Cat (Bulong) also held the option to acquire 100% of the Bulong Gold Project from Bulong Mining Pty Ltd. Under the Option Agreement dated 8 August 2017 (details of which have been included in the Prospectus), the amounts paid to acquire the Bulong Tenements comprising the Bulong Gold Project are as follows: - payment of a non-refundable Option Fee of $50,000; and - payment of the Consideration of $700,000 in order to exercise the option. This transaction was completed on 24 January 2018. Details of Black Cat s tenement position following completion of these transactions is shown below: 4646-03/1810552_1 2
Tenement Size Project Area No Prospect Interest Sq Kms Status Woodline M25/083 Woodline 100% 0.7 Granted Woodline E25/520 Anomaly 38, Fenceline, Unknown SW 100% 8.3 Granted Trump, Strathfield, Vulcan, Melbourne United, White Horse, Queen Margaret (Main, Central, Margaret M25/024 South), Princess Margaret 100% 4.9 Granted Margaret M25/091 Boundary 100% 0.8 Granted Margaret M25/129 Boundary, Federation 100% 1.8 Granted Margaret P25/2286 Trump 100% 1.2 Granted Margaret P25/2367 100% 2.0 Granted Margaret P25/2368 100% 2.0 Granted Margaret P25/2369 Virgin Dam 100% 1.7 Granted Balagundi P25/2463 100% 1.4 Pending Hampton Hill P27/2326 100% 1.8 Pending Hampton Hill P27/2327 100% 1.8 Pending Hampton Hill P27/2328 100% 1.6 Pending East Bulong P25/2478 100% 1.2 Pending East Bulong P25/2479 100% 1.9 Pending East Bulong P25/2480 100% 1.8 Pending East Bulong P25/2481 100% 1.7 Pending Edwards E27/532 Thrust 100% 18.4 Granted Edwards E25/512 100% 10.1 Granted Edwards E25/499 Ramsgate 100% 9.8 Granted Edwards P25/2287 100% 1.3 Granted Edwards P25/2293 100% 0.5 Granted Edwards P25/2288 100% 1.0 Granted Edwards P25/2378 100% 1.9 Granted Edwards P25/2377 Virgin Dam North 100% 2.0 Granted Total 81.6 IPO Process and ASX Listing Completed The IPO process and ASX listing has now been completed. We would like to thank all those who were involved for their contribution with specific mention to: - Computershare Investor Services Pty Ltd - Share Registry (Rod Somes and John Katsiris) - Crowe Horwath - Investigating Accountant and Auditor (Cyrus Patell) - CSA Global Pty Ltd - Independent Geologist (Marcus Willson and Sam Ulrich) - DJ Carmichael Pty Limited - Lead Manager to the Offer (Davide Bosio and Carly Terzanidis) - Eagle Research Advisory - Consulting and Research Analysts (Keith Goode) - Endeavour Corporate - Company Secretarial Services (Mark Pitts and Dan Travers) - Steinepreis Paganin - Solicitors (Toby Hicks, Philip Greaney, Romy Hirshowitz) - Willis CKA Risk Management ( Naser Kerimi and Brooke Shields) We would also like to welcome our new shareholders and thank them and existing shareholders for their support. Demand for the IPO was well in excess of supply. Unfortunately, we were not able to fulfil many applications resulting in disappointment for those applicants. We appreciate the interest of unsuccessful applicants in Black Cat. 4646-03/1810552_1 3
The capital and escrow structure in Black Cat post listing is shown below: Escrow Period Details 15-Oct-18 24-Nov-18 17-Jan-19 17-Jan-20 No Escrow Total Shares on issue 9,815,000 2,000,000 1,000,000 11,192,878 33,252,124 57,260,002 Options expiring 17 January 2023 @ $0.20 2,600,000 - - 14,860,001-17,460,001 Total 12,415,000 2,000,000 1,000,000 26,052,879 33,252,124 74,720,003 For further information, please contact: Gareth Solly Managing Director +61 458 007 713 admin@blackcatsyndicate.com.au Investment Highlights - Black Cat Syndicate Ltd. (ASX:BC8) ( Black Cat ) Black Cat controls 100% of ~82km² of the Bulong Gold Project ( the Project ) of which ~84% of tenements are granted. In addition, there are numerous targets on mining leases meaning low barriers to exploration and production hence strong expected news flow. The Project is situated just 25km east of Kalgoorlie by sealed road. Mains power runs through the Project with five regional mills, support services and a residential workforce nearby. The Project has a history of complex, unconsolidated ownership and small scale, high grade production: - mine production in the Project area ceased in the early 1910s with a total of ~152,000oz @ >1oz/t produced to date; - the Queen Margaret mine was the main producer with ~96,000oz @ >1oz/t. Despite the mine s high grade production record, average depth of drilling has only been 39m with no effective drilling below the old workings; - despite encountering mineralised lodes in a 200m deep drive to the east of Queen Margaret, minimal drilling for parallel lodes has been undertaken; - prospectors have seen high specimen and nugget production with multiple +100oz nuggets discovered; and - the complex and unconsolidated ownership structures have hampered exploration and mining at the Project. Black Cat has now consolidated the Project bringing together a number of high grade, near term, underground production targets along with shallow open cut positions. BC8 s initial focus is to drill and study the economics of developing an open cut mine at Queen Margaret then declining from the open cut into footwall and eastern zones and developing across to historic workings while assessing backfill volumes and grade. 4646-03/1810552_1 4
Figure 1: Regional map of Kalgoorlie showing the location of the Black Cat Bulong tenements and nearby infrastructure. 4646-03/1810552_1 5