Options Prospectus

• OAR Resources Limited is offering options to noteholders and the lead manager of a previous capital raising.
• The offer includes 218,750,000 CN Options to noteholders and 60,000,000 Broker Options to the lead manager.
• Both CN Options and Broker Options are exercisable at $0.007 each on or before June 30, 2027.
• No funds will be raised under these offers.
• The purpose of the prospectus is to remove trading restrictions on the sale of options issued prior to the closing date, under section 708A(11) of the Corporations Act.
• The company secured up to $1.75 million in funding through convertible notes in April 2023.
• The lead manager for the capital raising, GBA Capital, will receive 60,000,000 options as part of their compensation.
• The expiry date for the CN Options and Broker Options was extended to June 30, 2027, due to delays in issuing them.
• Shareholder approval to issue the CN Options and Broker Options was obtained on July 31, 2024.
• The expenses of the Offers will be met from the Company's existing cash reserves and are estimated to be approximately $25,019.

Score: 6

Explanation: The sentiment is neutral. While the company is issuing options and has secured funding in the past, there are also risks associated with the speculative nature of the investment and potential dilution. The delay in issuing options is a minor concern.

• Shareholder approval has been obtained for the issuance of the CN Options and Broker Options.
• The extension of the option expiry date to June 30, 2027, provides more time for the options to be exercised.
• The prospectus aims to remove trading restrictions, potentially increasing liquidity for option holders.
• The company has existing cash reserves to cover the expenses of the offers, estimated at $25,019.

• The options are considered speculative investments.
• There were delays in issuing the CN Options and Broker Options, requiring an extension of the expiry date.
• The offers will increase the number of options on issue from 260,000,000 to 538,750,000, which could dilute existing shareholders if the options are exercised.
• The expenses of the Offers will have an effect on the Company's financial position, being the costs of preparing the Prospectus of approximately $25,019.

• The options offered are considered highly speculative.
• Climate-related factors may affect the company's operations.
• Exploration costs may differ materially from estimates.
• Mining and exploration tenements are subject to periodic renewal and potential relinquishment.
• The company may require additional capital in the future.
• The company's annual report includes a note on the financial condition of the company, and it is highly likely that further funding will be required to meet the medium to long-term working capital costs of the Company.
• Sovereign risks exist in countries where the company has tenements, including Australia, the United States, Brazil, Namibia and Peru.
• Exploration activities have inherent uncertainty, and there is no assurance of discovering economic mineralisation.
• The company may make strategic investments or acquisitions, which carry inherent risks.
• Enforcing liabilities against assets outside of Australia may be difficult.
• The company's operations may be affected by various operating risks, including infrastructure issues and environmental accidents.
• Environmental risks are associated with mining operations.
• The company relies on key personnel, and their departure could impact operations.
• Commodity price volatility and exchange rate risks could affect revenue.
• Insurance may not fully cover all potential events.
• Share market conditions may affect the value of the company's securities.
• The company faces competition in its industry.
• Volatility in global credit and investment markets could affect the company's performance.
• Government and legal risks exist.
• Force majeure events could adversely affect projects.
• Future issuance of securities may result in dilution.
• Taxation consequences may vary for investors.
• The company is exposed to possible litigation risks.
• General economic conditions and other global or national issues may have an adverse effect on the company's operations and financial performance.

The Prospectus contains forward-looking statements regarding expected future events and actions, but cautions that actual results may differ due to various risks and uncertainties. The company does not intend to update or revise these statements, except as required by law.

This announcement relates to the financing activities of a resource exploration company, which is common in the junior mining sector. Companies often use options and convertible notes to raise capital and incentivize service providers. The extension of option expiry dates suggests potential challenges in meeting initial timelines, which is not uncommon in the industry.

• Issuing options to noteholders and lead managers is a common practice in the junior mining sector to incentivize investment and services.
• The exercise price of $0.007 is relatively low, reflecting the speculative nature of the company's projects.
• Extending option expiry dates is not uncommon when companies face delays or need to provide additional incentives.
• Similar companies like Chalice Mining and IGO Limited also use option schemes to attract and retain talent and raise capital.

• Shareholders may experience dilution if the options are exercised.
• Noteholders will receive CN Options, potentially increasing their investment value if the share price increases.
• The lead manager, GBA Capital, will receive Broker Options as compensation for their services.
• Employees and management may be affected by the company's ability to secure funding and advance its projects.

• Application for Official Quotation of the CN Options and Broker Options will be made to the ASX.
• The Company will issue holding statements for Options issued under the Offers as soon as practicable after the issue of the Options.

• 24 April 2023: Date of the CN Capital Raising mandate with GBA Capital.
• 28 April 2023: Company announced securing up to $1.75 million in funding through convertible notes.
• 14 June 2023: Company received Shareholder approval for the issue of Tranche 2 Notes.
• 16 December 2023: Vesting date for Tranche 2 Retention Rights and Performance Rights held by Anthony Greenaway and Yugi Gouw.
• 5 April 2024: Company announced issuing 50,000,000 options to the lead manager and broker for the placement.
• 27 May 2024: Company announced extending the expiry date of CN Options and Broker Options to 30 June 2027.
• 30 June 2027: Expiry date for the CN Options and Broker Options.
• 31 July 2024: Company obtained Shareholder approval to issue the CN Options and Broker Options.
• 8 August 2024: Lodgement of Prospectus with the ASIC and ASX; Opening Date.
• 9 August 2024: Closing Date for the Offers (5:00pm WST).