Alto Metals Ltd.: Share Purchase Plan Offer Document and Application Form

Perth - The Directors of Alto Metals Ltd. (ASX:AME) are pleased to invite you, as an eligible shareholder of the Company at 5pm WST on the record date of 15 June 2016 ("the Record Date") ("Eligible Shareholder") to subscribe for additional fully paid ordinary shares in the Company ("New Shares"), free of all brokerage and commission costs, under the terms and conditions of the Company's Share Purchase Plan ("SPP") enclosed with this offer.

As announced to the ASX on 16 June 2016, the Company is offering to Eligible Shareholders New Shares at an issue price of $0.059 per New Share by way of the SPP, to raise up to $1.7 million. Funds raised will be primarily directed towards the Sandstone Gold Project, and will include an estimation of the remnant mineral resources, drill targeting of extensions to existing mineral resources, drill targeting of other prospect area, and for working capital.

The Australian resident Directors have indicated that they intend to subscribe for New Shares under the SPP.

Eligible Shareholders will each be entitled to apply for up to $15,000 worth of New Shares, at a subscription price of $0.059 per New Share, which represents a discount of approximately 18% to the Volume Weighted Average Price ("VWAP") for the last 5 days on which sales in the Company shares were recorded before the SPP was announced on 16 June 2016 ("the Offer").

The market price of the Company's shares may rise or fall between now and the date when the New Shares are issued in accordance with the SPP. If the market price of the Company's shares falls, the subscription price of the New Shares to be issued pursuant to this Offer may not be at a discount to the market price on the date of issue.

The Directors see the following advantages for Eligible Shareholders in subscribing for New Shares under the SPP:

1. Shareholders may 'top up' their holdings to a marketable parcel;

2. No brokerage or transaction costs are payable on New Shares; and

3. The issue price will be at an approximately 18% discount to the VWAP calculated over the last 5 days on which sales were recorded on the ASX before the SPP was announced on ASX.

The Offer is non-renounceable, in that you cannot transfer your right to buy shares under the SPP to another person. However, your participation under the SPP is optional and you may elect not to participate at all, by doing nothing.

Each Eligible Shareholder may participate by completing an Application Form and subscribing for one of the following offers of New Shares (see link below).

The Directors have resolved to seek to raise $1.7 million under the SPP. However, the Directors reserve the right to reject or scale back any applications in whole or in part. The Company will return any application monies paid in relation to unsuccessful applications without interest.

To take up this Offer:

1. please read the enclosed Terms and Conditions of the SPP;

2. complete the enclosed the personalised Share Purchase Plan Application Form ("Application Form") specifying the number of New Shares you wish to apply for (up to a maximum value of $15,000 of New Shares) and the total subscription price for those New Shares; and

3. send the completed Application Form by 5pm (WST) on 18 July 2016 ("the Closing Date"), in the reply paid envelope provided, with your cheque made payable to Alto Metals Ltd., and crossed Not Negotiable to the Company's share registry at:

Computershare Investor Services Pty Limited
GPO Box 505
Melbourne VIC 3001
Australia

Alternatively, you can use the BPay(R) facility as set out on the Application Form. If you make a BPay(R) payment, you do not need to return the Application Form. Please note that New Zealand Shareholders having an Australian bank account can also use BPay(R).

Applicants should be aware that their own financial institution may implement earlier cut off times with regards to electronic payment, and should therefore take this into consideration when making payment.

You may also have your own limit on the amount that can be paid via BPay(R). It is your responsibility to check that the amount you wish to pay via BPay(R) does not exceed your limit.

Shareholders are responsible for making sure that any BPay(R) payments are made in time to become cleared funds in the account before close of business on the Closing Date. Delays may be experienced such that a BPay(R) transfer on the Closing Date is unlikely to be cleared funds by close of business on the Closing Date.

You should note that the Company may elect to close the offer at any time, or extend the Closing Date.

To view key dates, please see link below.

Please contact the Company on the details below if you have any queries in relation to this Offer or how to accept it.

I also encourage you to visit our website and sign up for our email news to keep up to date with our exploration progress at, http://www.altometals.com.au

To view the full release including Key Dates and Application Form, please visit:
http://abnnewswire.net/lnk/52PWCCQH


About Alto Metals Ltd:

Alto Metals Ltd. (ASX:AME) is a Western Australian based company and is focused on gold and uranium exploration in Australia.

The Company's primary objective is to create shareholder wealth through discovery and development of a plus 1 million ounce gold deposit and ISR style uranium deposits.



Contact:

Alto Metals Ltd.
Dermot Ryan, Executive Director
Tel: +61-8-9381-2808
Email: admin@altometals.com.au
www.altometals.com.au