5 September 2016

Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street

SYDNEY NSW 2001

Strong support for A$40 million Placement

The Board of Imdex Limited (Imdex, ASX:IMD) today announces a placement of approximately 72.72 million new ordinary shares at an issue price of A$0.55 per share to qualified institutional and sophisticated investors to raise A$40 million (before issue costs) (Placement).

The Placement shares will be issued via two tranches:

• Tranche 1 - unconditional placement of 37.29 million shares issued under the Company's existing placement capacity pursuant to ASX Listing Rule 7.1 (to raise approximately A$20.5 million), scheduled to be issued on 12 September 2016; and

• Tranche 2 - conditional placement of approximately 35.43 million shares (to raise approximately A$19.5 million), subject to shareholder approval at a General Meeting of the Company's shareholders, expected to be held on Thursday, 13 October 2016, with the tranche 2 shares scheduled to be issued on 17 October 2016. A Notice of Meeting will be dispatched to all shareholders shortly.

The Placement was significantly oversubscribed and the funds raised will be applied towards reducing debt and strengthening the balance sheet.

Commenting on the announcement, Managing Director, Bernie Ridgeway said:

"The strong level of support for the Placement is very pleasing. Imdex is moving forward with a re-set capital and corporate structure that will allow the Company to take full advantage of the minerals cycle upswing. We thank our existing shareholders for their strong support and welcome several new, high quality institutions to the Imdex register."

"In addition to the Placement, Imdex intends to undertake a Share Purchase Plan (SPP) in order to provide all shareholders with the opportunity to acquire new shares in Imdex at the same price as the Placement."

The Company proposes to offer eligible shareholders as at 7pm (Sydney time) on Friday, 2 September 2016 with registered addresses in Australia, New Zealand and the United Kingdom the opportunity to subscribe for up to A$15,000 of shares under the SPP. The issue price under the SPP is A$0.55 per share, the same price as the Placement price, and it will be capped at A$5 million.

Further details on the SPP will be released to ASX and distributed to eligible shareholders shortly.

Imdex Chairman, Anthony Wooles said:

"The Imdex Board supports the Placement and proposed SPP. The capital raising substantially de- risks the balance sheet and results in an enhanced capital structure for the Company in the long- term."

Subject to shareholder approval, Mr Wooles intends to participate in the Placement and the majority of directors who own or control shares in Imdex intend to participate in the SPP. Should there be a shortfall of shares in the proposed SPP not taken up by eligible shareholders, subject to shareholder approval, the directors may also participate in this shortfall.

Euroz Securities Limited acted as sole lead manager and book runner to the Placement. Hartleys Limited acted as Broker to the Offer.

Yours faithfully

Imdex Limited

Paul Evans

Company Secretary