Cobre Limited: Despatch of Share Purchase Plan Booklet

Sydney, Australia - Cobre Ltd. (ASX:CBE) is pleased to announce a Share Purchase Plan (SPP), which opens today, 28 December 2022.

The SPP is part of a wider capital raising being undertaken by the Company. The SPP follows on from the $5 million placement as announced to the ASX on 19 December 2022 (Placement).

The Placement is being carried out in two tranches. The first tranche of the Placement (First Tranche Placement) consisting of 26,686,668 fully paid ordinary shares in the capital of the Company (Shares) were issued to sophisticated, institutional and professional investors, within the Company's placement capacity under ASX Listing Rule 7.1. The second tranche of the Placement (Second Tranche Placement), consisting of 6,666,667 Shares will be issued to Metal Tiger plc subject to shareholders' approval to be sought at a later date. Under the Placement, a total of 33,353,335 Share were or will be issued at $0.15 per Share (Placement Issue Price).

In addition to the Placement, Cobre has entered into Subscription Deeds (Subscription Deeds) with both Mitchell Drilling Botswana Pty Ltd (Mitchell) and Remote Exploration Services (RES), pursuant to which Mitchell and RES have agreed to subscribe for US$400,000 and US$70,000 worth of New Shares, respectively, at the Placement issue price of A$0.15.

Under the terms of the Subscription Deeds, rather than paying cash for the New Shares, Mitchell and RES may set-off the subscription amount payable for their New Shares against a portion of future invoices that have been rendered for any drilling or exploration services that become due and payable from the date on which the New Shares are issued to Mitchell and RES, respectively.

Funds received by the Company from the Placement and SPP (Capital Raising), together with Cobre's existing cash, will be used to accelerate exploration on the Company's tenement holding in the Kalahari Copper Belt in Botswana, and to meet transaction costs associated with the Capital Raising.
In order to provide Eligible Shareholders (as defined below) with the opportunity to participate in the Company's capital raising activities, the Company is pleased to provide the details of the SPP that are set out in the SPP Offer Booklet.

Under the SPP, Eligible Shareholders will, irrespective of the size of their shareholding, have the opportunity to subscribe for up to $30,000 worth of Shares at an issue price (SPP Issue Price) of $0.15 per Share, to raise a total of $1 million.

The SPP Issue Price, which is the same as the Placement Issue Price, represents the following discounts prior to the announcement of the Capital Raising:

- 11.8 % discount to the close price of $0.17 on 15 December 2022;

- 18.6% discount to the five-day Volume Weighted Average Price of $0.184; and

- 28.3% discount to the ten-day VWAP of $0.209.

The Record Date to be registered as a shareholder for participation in the SPP was 7:00pm AEDT on 16 December 2022.

To be an eligible shareholder, you must hold an existing shareholding in the Company at the Record Date and have a registered address in Australia or New Zealand and who are not in the United States or acting for the account or benefit of any person in the United States or otherwise excluded from participating (Eligible Shareholders).

The Company has determined to raise a maximum of $1 million through the SPP. The Company may decide, in its absolute discretion, to scale back applications and raise less than $1 million.

If the Company decides to conduct any scale back of applications, the scale back will be applied on a pro rata basis and in the Company's absolute discretion, either based on the size of the Eligible Holder's existing holding of Shareholding or based on the number of New Shares that the Eligible Holder has applied for. The Company may, in its absolute discretion decide to accept any oversubscriptions above $1 million.

To view the Share Purchase Plan, please visit:
https://abnnewswire.net/lnk/79716YR4

About Cobre Limited:

Cobre Ltd. (ASX:CBE) is a copper and base-metals explorer with projects in Western Australia and Botswana. The Company recently discovered a new high-grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia, and is currently exploring approximately 8,100 km2 of tenements within the Kalahari Copper Belt (KCB) in Botswana.

Source:
Cobre Ltd.

Contact:

Cobre Ltd. Martin Holland E: info@cobre.com.au WWW: www.cobre.com.au