Lake Resources Provides Update On Previously Announced Upsized Share Purchase Plan Offer

• Share Purchase Plan (SPP) and Shortfall Offer to be closed this week
• Share Purchase Plan (SPP) Offer oversubscribed at $2.5 million due to overwhelming shareholder demand.

Lithium explorer and developer Lake Resources NL (ASX:LKE) is pleased to announce that the upsized Share Purchase Plan Offer has been well received by shareholders with over $2.5 million in applications being received by the Company to date. Any scale back to applications will be made on a pro-rata basis after the Withdrawal Period ends on 28 March 2020.

The private placement was also previously increased by $0.55 million before costs, to a total amount of $3.9 million (as announced on 28 February 2020).

The Company refers to its prospectus dated 10 February 2020 (Prospectus) and the supplementary prospectus dated 28 February 2020 (First Supplementary Prospectus) in respect of:

(a) its offer to all Eligible Shareholders to participate in the Company’s Share Purchase Plan (SPP) by subscribing for up to $30,000 worth of new Shares at an issue price of $0.04 per Share (SPP Shares) to raise up to $2.5 million (SPP Offer); and

(b) a shortfall offer on the same terms as the SPP Offer which provides the Company with the ability to issue any shortfall under the SPP Offer up to the maximum available under the SPP Offer of $2.5 million (Shortfall Offer).

Under the First Supplementary Prospectus, the Company provided details of the recent placement and upsized share purchase plan as well as providing withdrawal rights for all SPP applications received on or before 28 February 2020 for a period of one month (ending on 28 March 2020) (Withdrawal Period). As a result of the Withdrawal Period required by the Corporations Act, the Company was required to extend the closing date of the SPP Offer and the Shortfall Offer in order to comply with ASX Listing Rule 7.40 and the timetable requirements set out in Appendix 7A.

The Company is pleased to now advise that the ASX has granted the Company a waiver from ASX Listing Rule 7.40 (Waiver). ASX Listing Rule 7.40 provides that the Company must comply with the timetable requirements set out in Appendix 7A in respect of the SPP Offer. The Waiver permits the Company to close the SPP Offer and Shortfall Offer early, but does not require the Company to issue the SPP Shares and Shortfall Shares (if any) and apply for quotation of such shares until after the Withdrawal Period has passed (which would be beyond the 7 day period required by the Appendix 7A timetable). It is a condition of the Waiver that the Company issue the SPP Shares and Shortfall Shares (if any) no more than 7 business days after the Withdrawal Period has passed.

As a result of the oversubscriptions received in respect of the SPP Offer and in reliance on the Waiver, the Company now proposes to close the SPP Offer and Shortfall Offer early at 5.00pm (AEDT) on Friday, 13 March 2020. This will provide shareholders a final opportunity to provide their applications to the Company prior to the close of the SPP Offer and Shortfall Offer.

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