Mithril Resources Limited: Share Purchase Plan to Fund Nickel Search

Adelaide, Australia - Mithril Resources Ltd. ("Mithril" or "Company") (ASX:MTH) is pleased to announce a capital raising by way of a Partly Underwritten Share Purchase Plan ("SPP").

- Share Purchase Plan to provide eligible shareholders with the opportunity to subscribe for up to $15,000 worth of new shares targeting approximately $600,000

- New shares priced at a 20% discount to the 5-day VWAP up to and including the SPP Closing Date

- SPP partly underwritten by Patersons Securities Ltd to $290,000

- Funds raised will be used to drill priority nickel targets at Kurnalpi, support ongoing target generation activities and for working capital purposes

- Directors intend to take up their maximum entitlement under the SPP

The Company is pleased to offer eligible shareholders the opportunity to subscribe for a maximum of $15,000 worth of new fully paid ordinary shares in the Company ("New Shares") without incurring brokerage or other transaction costs. The SPP is intended to raise approximately $600,000 and is partly underwritten to $290,000 by Patersons Securities Ltd ("Patersons").

Patersons also have the right to facilitate a Top Up Placement following the SPP with New Shares issued under the Company's Placement Capacity at the same price as the SPP.

Funds raised will be used to drill priority nickel targets at the Kurnalpi Nickel Project, support ongoing target generation activities and for working capital purposes.

The Company expects to dispatch the SPP Offer Document and Application Form to eligible shareholders shortly.

Share Purchase Plan

Pursuant to the SPP rules, existing shareholders who are recorded on the share register at 17 May 2018 (Record Date) with a registered address in Australia or New Zealand will be eligible to participate and will be entitled to apply for up to $15,000 of new fully paid ordinary shares of the Company at a 20% discount to the 5-day volume weighted average price ("VWAP") up to and including the SPP Closing Date.

All shares issued under the SPP will rank equally with existing ordinary shares of the Company.

The Company's Directors have indicated that they intend to take up their maximum $15,000 entitlement under the SPP (subject to scale-back if oversubscribed).

Indicative SPP Timetable

Record Date: Thursday 17 May 2018

Announcement of Share Purchase Plan: Friday 18 May 2018

Dispatch Date: Monday 28 May 2018

Closing Date: Monday 18 June 2018 or such other date agreed in writing by the Company and the Underwriter

Shortfall Notice Deadline Date (notice of the Shortfall Shares and Certificate): Thursday 21 June 2018 or such other date as agreed in writing by the Company and the Underwriter

Shortfall Settlement Date: Wednesday 25 June 2018 or such other date as agreed in writing by the Company and the Underwriter

Allotment of Shortfall Shares: Within 1 Business Day of the Shortfall Settlement Date

Despatch of shareholding statements: Within 2 Business Days after the Allotment Date or such other date agreed in writing by the Company and the Underwriter.

About the Kurnalpi Nickel Project

Mithril's recent drilling at the 100%-owned Kurnalpi Nickel Project (located 70 kms north east of Kalgoorlie, WA - see Figure 1 in link below) intersected a 4-metre zone of gossanous weathered ultramafic and several other narrow intervals of disseminated nickel sulphide mineralisation at the Kurnalpi Nickel-Cobalt Prospect which remains open in all directions. This is the first ever recognition of nickel sulphides within the project tenement boundaries.

Subsequent downhole EM geophysical surveying identified a new off hole conductor lying adjacent to the sulphide mineralisation on the eastern edge of the host ultramafic unit.

The south-plunging conductor (Conductivity Thickness of 3400S), which has not been previously drilled, is a priority for follow-up and three Reverse Circulation holes (750 metres) are planned as an initial test of the EM conductor and the gossan / sulphide intercepts.

The nickel prospective ultramafic rocks also extend for over 3.5 kilometres to the south with little, or no previous testing.

In addition to the planned drilling, the Company is planning to carry out ground EM geophysical surveying over the southern ultramafic, including a historic drill hole (KURA50) which intersected 20m @ 0.69% nickel, 0.07% cobalt from 32 metres including 8m @ 0.96% nickel, 0.09% cobalt from 36 metres and was never followed-up (see ASX Announcement dated 7 February 2018).

The aim of the EM geophysics is to define additional targets for drill testing.

To view figures, please visit:
http://abnnewswire.net/lnk/B03E412Q

About Mithril Resources Limited:

Mithril Resources Ltd. (ASX:MTH) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery and development of mineral deposits. Mithril are exploring for a range of high-value commodities (principally nickel, cobalt, copper and zinc) throughout the Meekatharra, West Kimberley and Kalgoorlie Districts of Western Australia. The Company is also exploring South Australia's far western Coompana Province for magmatic nickel – copper deposits with OZ Minerals Ltd..



Contact:

Mithril Resources Ltd.
David Hutton Managing Director
E: admin@mithrilresources.com.au
T: +61-8-8132-8800
F: +61-8-8132-8899
www.mithrilresources.com.au