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CRITICAL RESOURCES LIMITED Capital/Financing Update 2016

May 11, 2016

64708_rns_2016-05-11_7fc4dabf-183b-46d4-af24-f05fb6855829.pdf

Capital/Financing Update

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ASX Release 12 May 2016

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Sovereign Gold Company Limited ACN 145 184 667

Lithium and Gold Direction

  • Strategic review completed by the Board of Directors

Level 2, 131 Macquarie Street Sydney NSW 2000 Tel: +61 2 9251 7177 Fax: +61 2 9251 7500

Contact

Rocco Tassone, Managing Director

e: [email protected]

Latest News www.sovereigngold.com.au

  • Gold and Lithium identified as priority resources

  • Board is currently in discussions regarding potential international Lithium opportunities, targeting projects near known well documented lithium discoveries and production operations

  • Mt Adrah Gold Project remains a strong focus for the company which contains a Mineral Resource estimate of 770,000 oz of gold (440,000 oz Indicated; 330,000 oz Inferred) within a total Mineral Resource estimate of 20.5 Mt at 1.1 g/t gold, at various cut-off grades

  • Independent consultants Cadre Geology and Mining Pty Ltd appointed to Mt Adrah project

Directors / Officers Charles Thomas (Chairman) Rocco Tassone (MD) Patrick Glovac

ASX: SOC

  • Board also continues to assess additional opportunities in the Gold sector with a focus on sizeable potential and short lead-time to development

  • Rights Issue to be extended to 20 May 2016

Sovereign Gold Company Ltd (Sovereign Gold or the Company) (ASX Code: SOC) is pleased to advise shareholders the Board of Directors has completed a strategic review on its assets and company direction. The board sees considerable upside to shareholder value by delivering quality Gold and Lithium opportunities to add to its existing resources portfolio.

Qualifying Statements

The information regarding the Mineral Resource is extracted from the report entitled “Hobbs Pipe Mineral Resource Update Additional Information” created 27[th] December 2013 and is available to view on sovereigngold.com.au/investors.htm.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Sovereign Gold has been assessing domestic and international gold and lithium opportunities with a focus of acquiring projects near known well documented Lithium discoveries and production areas.

The Board is currently in discussions regarding a Lithium opportunity, which satisfies its investment criteria and will advise the market if discussions become exclusive.

In keeping with the board gold focus, it has appointed independent consultants Cadre Geology and Mining Pty Ltd (“Cadre”) to work with Sovereign’s chief geologist Michael Leu to review prospectivity, scrutinise potential for mining operations, review drill hole data and undertake resource development planning. Mt Adrah remains a strong focus for the company and intends to fund drilling using its own funds or seeking a joint venture partner.

The Company believes the additional acquisition of prospective gold and lithium assets will strength its resources portfolio and provide upside to shareholders. Sovereign is not limiting its scope to Australia or deposit style, but is seeking a significant project of demonstrable potential, size and, ideally, short lead time to development.

ASX Release 12 May 2016 - Page 2

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Rights Issue

The recently announced non-renounceable rights issue to Eligible Shareholders has been extended and will close 5pm Sydney time on 20 May 2016.

The updated timetable for the remainder of the Rights Issue is set out below.

The dates are indicative only and the Company reserves the right to vary the dates including the right to extend the Closing Date or to withdraw the right Issue (subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules).

Key dates for investors

Key dates for investors
Closing Date of Entitlement Offer (5:00 pm Sydney Time) Friday, 20 May 16
Trading on deferred settlement basis commences Monday, 23 May 16
ASX notified of under subscriptions (no more than 3 business daysafter Closing Date) Monday, 23 May 16
Expected date of allotment of the New Shares issued under theEntitlement Offer and the Additional Share Offer (if any) Wednesday, 25 May 16
The issue date and date of dispatch of New Shares holding
statements under the Entitlement Offer and the Additional Share Thursday, 26 May 16
Offer (if any); and deferred settlement trading ends
Normal trading begins Friday, 27 May 16

Any person considering acquiring shares under the Rights Issue should read the Information Booklet carefully. Applications for shares under the Rights Issue may only be made using the Application Form to be attached to, or accompanying the Information Booklet. Securities will only be issued on the basis of an Application Form issued together with the Information Booklet.

Nothing contained in this announcement constitutes investment, legal, tax or other advice. You should make your own assessment and take independent professional advice in relation to the information and any action taken on the basis of the information.

Capitalised terms used in this announcement have the same meaning given to those terms in the Information Booklet.

Sovereign Gold encourages all Eligible Shareholders to participate in the capital raising.

For further information please contact:

Rocco Tassone, Managing Director Sovereign Gold Company Limited

Telephone: +61 2 9251 7177