$1.118m Placement and Launch of Share Purchase Plan to Fund Completion of HPA Pilot Plant

ChemX Materials Limited (ASX:CMX) (ChemX or the Company), an Australian based high purity critical materials developer, is pleased to advise it has received firm commitments under the Placement from new and existing professional, sophisticated investors to subscribe for 21,937,508 fully paid ordinary shares (Shares) at an issue price of $0.048 per Share to raise approximately$1,053,000.

Highlights

• $1,118,000 raised pursuant to placement to professional, sophisticated investors (“Placement”)
• Launch of Share Purchase Plan (“SPP”) to raise up to a further $500,000.
• Funds raised from Placement and SPP to fund completion of HPA Pilot Plant in O’Connor in Perth, Western Australia.
• Participants of the Placement and SPP to receive one free attaching option for every two shares subscribed for and issued with an exercise price of $0.09 on or before three years from the date of issue (“Attaching Options”) subject to shareholder approval.
• High Purity Alumina (“HPA”) Pilot Plant reaches 80% construction milestone, enabling early-stage commissioning to commence in-line with its original project timeline to deliver first 4N HPA material in Q2 CY2024.

Funds raised under the Placement will be applied towards completion of the HPA Pilot Plant, working capital and costs of the offer.

ChemX has achieved a number of important milestones within its HPA Pilot Plant construction enabling early-stage commissioning activities to commence in the O’Connor facility in Perth, Western Australia.

Over 80% of the critical equipment for the Pilot Plant has been received and the ChemX team is undertaking individual stage early-commissioning activities in line with its original project timeline to deliver first 4N HPA material in Q2 CY2024.

ChemX is well positioned to take advantage of expected increased demand for HPA across electric vehicle battery separators and LED, Synthetic sapphire and semiconductor markets.

The Shares issued under the Placement (other than those to be issued to Directors) will be issued pursuant to the Company’s available placement capacity under ASX Listing Rule 7.1A (9,534,317 Shares) and 7.1 (12,403,191 Shares).

SHARE PURCHASE PLAN

In addition to the Placement, the Company will be offering eligible shareholders the opportunity to participate in the Company’s capital raising activities via the SPP for up to a further $500,000 (before costs and with the ability to take oversubscriptions) from the issue of 10,416,667 Shares.

Under the SPP, eligible Shareholders will be able to subscribe for Shares up to the value of $30,000 at an issue price of $0.048 per Share. In addition, the Company will separately offer one free Attaching Option for every two new Shares issued, exercisable at $0.09 per Share and expiring 3 years from the date of issue.

Documentation relating to the SPP and a Prospectus for the issue of the Attaching Options will be sent to eligible shareholders shortly.

The Attaching Options offered under both the Placement and SPP are subject to Shareholder approval and will be offered under a prospectus to be lodged shortly by the Company. The Attaching Option terms and conditions are included in Annexure A.

The issue of Shares under the Placement is not subject to shareholder approval as it falls within ChemX’s available placement capacity under Listing Rules 7.1 and 7.1A. A Notice of Meeting to approve the issue of Attaching Options under the Placement and SPP, Director participation in the Placement and other matters as necessary will be circulated in due course.

At the conclusion of the Placement, the Company will have 118,634,847 Shares on issue. Following the SPP offer to raise $500,000 (with the ability to take oversubscriptions), the Company will have a total of 129,051,514 Shares on issue.

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