Argent Minerals Limited: Letter to Option Holders

Sydney, Australia - As announced on 24 October 2018, Argent Minerals Ltd. (ASX:ARD) (Company) is undertaking a pro-rata non-renounceable rights issue of one (1) fully paid ordinary share in the capital of the Company (Share) for every four (4) Shares held by eligible shareholders at the Record Date (being 5:00pm (WST) on 31 October 2018) at an issue price of $0.015 per Share (New Shares) to raise approximately $1,739,848, together with one (1) attaching option to acquire a Share (New Option) for every two (2) New Shares subscribed for and issued (New Options) (Entitlement Issue or Offer). The Company lodged a prospectus for the Offer (Prospectus) with the ASIC on 25 October 2018. The Offer is not underwritten.

The Company reserves the right to issue Shares and New Options comprising the shortfall within three months after the closing date of the Entitlement Offer on the same terms as the Entitlement Offer (Shortfall Offer). The Company is also seeking shareholder approval for the right to issue Shares and New Options under the Shortfall Offer to Directors of the Company (up to an amount of $133,000) at its upcoming annual general meeting to be held on 28 November 2018. The Shares and New Options to be issued to the Directors under the Shortfall Offer (if any) will be issued within one month of the date of obtaining shareholder approval.

Participation by option holders

The terms and conditions of the options you currently hold do not entitle you to participate in the Entitlement Issue in relation to your holding of options unless you exercise your options in time for New Shares to be issued and to be entered on the Company's register of members on or before 5:00pm (WST) on 31 October 2018 (Record Date).

To exercise your options and thereby participate in the Entitlement Issue, you will need to deliver the following to the Company in the manner contemplated by the option terms:

(a) a notice of exercise of options; and

(b) payment for the exercise price in respect of those options to be exercised.

To ensure that your new Shares are issued prior to the Record Date, the above must be received by the Company's share registry no later than 2pm (WST) on 30 October 2018. If received after this date, issue of New Shares prior to the Record Date cannot be assured.

There is no obligation for you to exercise your options. This letter is intended to inform you of your rights in relation to your options and the Offer. If you do not wish to participate in the Offer you do not need to take any action.

Before deciding whether to exercise any or all of your options, you should read the Prospectus in its entirety.

Key details of the Offer

The Company intends to apply the funds raised from the Offer after expenses towards exploration drilling, geochemical survey work and general working capital. This is a statement of the Board's current intentions as at the date of the Prospectus. However, the Board reserves the right to alter the way the funds are applied.

The Offer is being made to all shareholders of the Company (Shareholders) named on its register of members at 5.00pm (WST) on the Record Date, whose registered address is in Australia or New Zealand.

Shares subscribed for and issued under the Offer will rank equally with all Shares already on issue. New Options issued under the Offer will be exercisable at $0.05 each, on or before 29 October 2021 and will otherwise be on the terms and conditions set out in the Prospectus. The Company will make application for official quotation of the New Options proposed to be issued under the Offer.

Following completion of the Offer (assuming full subscription, no options are exercised prior to the Record Date and ignoring the effect of rounding of fractional entitlements), the Company will have issued approximately 115,989,870 New Shares and 57,994,935 New Options resulting in total Shares on issue of approximately 579,949,349 and total Options on issue of approximately 263,494,935.

A copy of the Prospectus is available on ASX's and the Company's website. Eligible Shareholders will be mailed a Prospectus together with an Entitlement and Acceptance Form on November 2018. Your entitlement will be set out on the personalised Entitlement and Acceptance Form accompanying the Prospectus.

Key dates for the Offer

Event: Lodgement of Prospectus with the ASIC
Proposed Date: 25 October 2018

Event: Lodgement of Prospectus & Appendix 3B with ASX
Proposed Date: 25 October 2018

Event: Notice sent to Optionholders
Proposed Date: 29 October 2018

Event: Notice sent to Shareholders
Proposed Date: 29 October 2018

Event: Ex date
Proposed Date: 30 October 2018

Event: Record Date for determining Entitlements
Proposed Date: 5.00pm (WST) 31 October 2018

Event: Prospectus despatched to Eligible Shareholders with personalised Entitlement and Acceptance Form & Company announces despatch has been completed

Proposed Date: 2 November 2018

Event: Last date to notify ASX of an extension to the Closing Date
Proposed Date: 8 November 2018

Event: Closing Date (see Note below)
Proposed Date: 13 November 2018

Event: Securities quoted on a deferred settlement basis
Proposed Date: 14 November 2018

Event: ASX notified of under subscriptions
Proposed Date: 16 November 2018

Event: Issue Date/Securities entered into Shareholders' security holdings
Proposed Date: 20 November 2018

Event: Quotation of Securities under the Offer
Proposed Date: 21 November 2018

Note: The Directors may extend the Closing Date by giving at least 3 Business Days' notice to ASX prior to the Closing Date. As such the date the Securities are expected to commence trading on ASX may vary.

If you have any queries concerning the Entitlement Issue, or the action you are required to take to subscribe for New Shares and New Options, please contact your financial adviser or Vinod Manikandan, the Company Secretary, on +61 2 9300 3390.

About Argent Minerals Limited:

Argent Minerals Ltd. (ASX:ARD) is an Australian publicly listed company with a 100% interest in a silver/gold project at Kempfield NSW. Work is underway on the preparation of an EIS and a feasibility study for the first stage of the project which will involve heap leaching some 8.8 million tonnes of mainly oxide and transitional material to produce over 9.5 million ounces of silver and 15,000 ounces of gold over a 5 year mine life. Argent is also earning up to a 70% interest in two other NSW projects - gold at West Wyalong and base metals at Sunny Corner.

Source:

Argent Minerals Ltd.

Contact:

Argent Minerals Ltd. David Busch, Managing Director T: +61-2-9300-3390 E: admin@argentminerals.com.au WWW: www.argentminerals.com.au