ASX ANNOUNCEMENT - 4 April 2016

ISSUE OF SHORTFALL SHARES

Assets, Experience, Growth

Syndicated Metals Limited (ASX: SMD) (Company) is pleased to announce that it has issued 15,200,000 shares in the capital of the Company (Shares) at 0.5 cents per Share raising $76,000 and 7,600,000 free attaching unlisted options with each option having an exercise price of 1.2 cents and expiring on 8 February 2018 (Options).

The Shares were issued under the shortfall offer made pursuant to the Company's Prospectus dated 10 December 2015 and formed part of the shortfall from the Company's recently completed 1‐for‐6 entitlement issue. The Shares and Options were issued under the same terms and pricing as the entitlement issue.

A further $25,000 was received from an entity associated with the Company's Chairman, Mr Peter Langworthy. Shareholder approval will be required to issue the Shares and Options associated with this application and this will be sought at the next meeting of the Company's shareholders.

Funds raised from the issue of the new Shares will be used for the purposes set out in the Prospectus dated 10 December 2015.

An Appendix 3B is attached in relation to the above Share and Option issue.

ENDS

For further information: Andrew Munckton Syndicated Metals Limited Mobile: 0435 635 598

Appendix 3B New issue announcement

Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement, application for quotation of additional securities

and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

SYNDICATED METALS LIMITED

ABN

61 115 768 986

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1. Fully paid ordinary shares (Shares).

2. Unlisted options each to acquire one Share exercisable at 1.2 cents each expiring on 8 February 2018 (Options).

1 +Class of +securities issued or to be issued

1. 15,200,000 Shares issued under the shortfall offer made pursuant to the Company's Prospectus dated 10 December 2015.

2. 7,600,000 Options made pursuant to the Company's Prospectus dated 10 December 2015 on the basis of one (1) free attaching Option for every two (2) Shares issued.

1. Number of +securities issued or to be issued (if known) or maximum number which may be issued

   
   

2. The Shares are fully paid ordinary shares in the capital of the Company ranking equally with existing fully paid ordinary shares on issue.

   
   

3. The Options are unquoted options, each to acquire one Share, exercisable at 1.2 cents on or before 8 February 2018.

4. Principal terms of the

   +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if

   +convertible securities, the conversion price and dates for conversion)

   
   

   + See chapter 19 for defined terms.

   
   

   04/03/2013 Appendix 3B Page 1

   Appendix 3B

   New issue announcement

   
   

   
   

5. Yes.

   
   

6. Shares issued on exercise of the Options will rank equally with existing fully paid ordinary shares on issue.

7. Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?

   
   

   If the additional +securities do not rank equally, please state:

   • the date from which they do

   • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

   • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

     
     

   • 0.5 cents per Share.

     
     

   • Nil. The Options are free attaching Options for which no additional consideration is payable.

8. Issue price or consideration

   
   

   Funds raised from the issue of the Shares and exercise of the Options will be used as follows:

   • assessment of new gold and base metals project opportunities outside of the existing North‐West Queensland tenement holding;

   • exploration and asset maintenance activities associated with the Company's Queensland copper‐gold projects to ensure the tenement holding is kept in good standing;

   • finalisation of mining lease approvals for the Barbara Joint Venture in association with CopperChem Limited;

   • general working capital and administrative expenses; and

   • the expenses of the issue.

9. Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)




Yes.

6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?




If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i




+ See chapter 19 for defined terms.




Appendix 3B Page 2 04/03/2013




26 November 2015

6b The date the security holder resolution under rule 7.1A was passed

Appendix 3B New issue announcement




1. 15,200,000 Shares.

2. 7,600,000 Options.

6c Number of +securities issued without security holder approval under rule 7.1




Nil.

6d Number of +securities issued with security holder approval under rule 7.1A




Nil.

6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)




1. 15,200,000 Shares.

2. 7,600,000 Options.

6f Number of +securities issued under an exception in rule 7.2




N/A

6g If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the

+issue date and both values.

Include the source of the VWAP calculation.




N/A

6h If +securities were issued under rule 7.1A for non‐cash consideration, state date on which valuation of consideration was released to ASX Market Announcements




Refer Annexure 1.

6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements







4 April 2016

7 +Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.




+ See chapter 19 for defined terms.




04/03/2013 Appendix 3B Page 3