21 July 2015
Dear Optionholder

Renounceable Rights Issue - Information for Optionholders

On 17 July 2015, Heemskirk Consolidated Limited (ASX: HSK) (Company) announced to ASX that it was to undertake a fully underwritten renounceable rights issue offering eligible shareholders the opportunity to subscribe for 1 New Share for every 5 Shares held on 27 July 2015 at an issue price of $0.10 per new share to raise approximately
$3.7 million (Rights Issue).
The Rights Issue is fully underwritten by Morgans Corporate Limited (Underwriter). In consideration for the underwriting, the Company has agreed to pay the Underwriter a total underwriting commission and management fee of $0.221 million, representing 6% of the total amount to be raised under the Rights Issue.
The proceeds of the Rights Issue will be used to fund the ongoing working capital requirements to support the ongoing business activities of the Company during the completion of the Moberly Frac Sand Project in British Columbia, Canada.

A copy of the Offer Document has been lodged with the ASX and is available on the ASX website.

Optionholders

The terms and conditions of the Options you currently hold do not entitle you to participate in the Rights Issue unless you exercise your options in time for new shares to be allotted and entered on the Company's register of members on or before the Record Date of 27 July 2015.
To exercise your options and thereby participate in the Rights Issue, you will need to deliver the following to the Boardroom Pty Ltd
1. A notice exercising your options in accordance with their terms; and

HEEMSKIRK CONSOLIDATED LIMITED ABN 18 106 720 138

Level 17 303 Collins Street Melbourne Vic 3000

PO Box 96 Collins Street West Melbourne Vic 8007 t + 61 3 9614 0666 f + 61 3 9614 4466 www.heemskirk.com
2. Payment of the exercise price in respect of those options to be exercised, by way of cheque payable to 'Heemskirk Consolidated Limited' and crossed 'Not Negotiable'.
To ensure that the above are allotted prior to the Record Date, the above must be received by the Share Registry no later than 23 July 2015. If received after this date, allotment of the new shares prior to the Record Date cannot be assured.
Below is a summary of the key terms of the Rights Issue:

Key dates

The current timetable for the Rights Issue is as follows:

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Subject to the Listing Rules, the Directors note that this timetable is indicative only and reserve the right to amend this timetable without notice.

Applications

In the event the Rights Issue is not fully subscribed, the Directors have determined to offer Eligible Shareholders the right to apply for New Shares arising out of any shortfall. The Company may, in consultation with the Underwriter and subject to any restrictions imposed by the Corporations Act or the Listing Rules, exercise a discretion to impose restrictions on the number of New Shares which can be taken up by any Shareholder under the Shortfall Facility. In exercising this discretion, factors such as the number of applications made and the number of available New Shares will be taken into consideration.
The Entitlement and Acceptance Form will be dispatched together with the Offer Document. Eligible Shareholders must complete the Entitlement and Acceptance Form in order to take up their Entitlements and to apply for Shortfall Securities. Entitlement
and Acceptance Forms must be properly completed and received by the Company no

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later than 5.00pm (AEST) on 11 August 2015 in order for Applicants to be issued New
Ordinary Shares and Shortfall Securities.

Quotation

New Ordinary Shares issued under the Offer Document will rank equally with the Company's existing Shares. The Company has applied to ASX for quotation of the New Ordinary Shares on the Official List of the ASX. If approval is not granted by ASX within
3 months after the date of the Offer Document, the Company will not issue any New
Ordinary Shares and will repay all Application monies without interest.

Enquiries

If you have any questions regarding this renounceable Rights Issue, please telephone the Company on +61 3 9614 0666 or email the Company at [email protected].
The Directors recommend this renounceable Rights Issue to you. Yours faithfully

Peter Bird
Managing Director

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