Cobar Consolidated Resources Limited : 17 Sep 2012 Project Finance Initiatives

17 September 2012

• $12.5M placement completed
• $2.5M Share Purchase Plan
• $5M working capital facility extension
Cobar Consolidated Resources Limited (ASX:CCU) announced today a number of initiatives to bolster its working capital position and bring forward a number of development options.
The development options include installation of a crushing circuit and an expansion feasibility study. The Company also proposes to accelerate its exploration program. These three initiatives are expected to cost $10M. The balance of funds raised through the placement ($2.5M) and expected to be raised through the share purchase plan ($2.5M) will add incremental headroom to the Company's working capital position.

A private placement to institutional and sophisticated investors of approximately 20.8 million shares at 60 cents per share to raise $12.5 million, before costs, has been completed. The placement was priced at a 12% discount to the Company's closing share price on 12
September and an 18% discount to volume weighted average price over the 30 trading days prior to that. Settlement is expected to take place on 20 September 2012.
Due to the strength of demand, the placement size was increased by 60% from an initial $7.5 million to $12.5 million. A mix of Australian, Asian and European institutions and sophisticated investors participated in the placement, which was heavily over-subscribed.
Ord Minnett acted as Lead Manager to the placement.

The Company is also making an offer to existing shareholders of new shares under a Share Purchase Plan (SPP). Eligible shareholders will be offered up to $6,000 worth of new shares at $0.60 per share. The amount to be raised under the share purchase plan has been capped at $2.5M.

The Company also announced today that it had extended its working capital facility with the Commonwealth Bank of Australia by $5M, from $2.5M to $7.5M. An initial $2.5M of the facility was drawn in July and $2.5M from the facility extension has been drawn in September. A balance of $2.5M is undrawn.

Level 10, 420 St Kilda Road, Melbourne VIC 3004 | PO Box 33312, Melbourne VIC 3004

Ph 61 3 9869 8200 | Fax 61 3 9869 8299

www.ccrlimited.com.au

Commenting on the initiatives announced today Managing Director Ian Lawrence said, "I am delighted to announce that we have completed a $12.5 million placement. We welcome new institutions who will join the register and appreciate the support from current institutional shareholders who participated in the placement.
"We were highly encouraged by the strength of demand for the placement which indicates confidence in the management group and the Wonawinta Silver Mine.
"We also recognise previous support from our existing retail shareholder base and encourage them to participate in the Share Purchase Plan", he said.
"The Wonawinta Silver Mine is in ramp-up phase. We expect to be operating at our target rate of 2.5M ounces silver per annum during the December 2012 quarter. A great deal has been achieved over the past year. The timeframe from development approval in May 2011 to our first silver pour in July 2012 was a little over 12 months. Notwithstanding that, the completion of construction of the mine and processing plant has taken longer than expected. This has necessitated us to take steps to bolster our working capital position.
"We also want to bring forward a number of development options, together with an accelerated exploration program. This will include a targeted drilling program at our prospective base metals exploration target, Gundaroo and exploration around Wonawinta to add to our resource base. Our project finance facility limits our ability to do these things, which we believe will be value adding for shareholders," said Mr Lawrence.
More details of the Wonawinta mine's performance, the short term and medium term improvement opportunities and the Company's exploration plans can be found in the presentation which was lodged with the ASX on Wednesday 12 September.
The timetable for the placement and the Share Purchase Plan (SPP) is set out below.

Details of the Share Purchase Plan will be contained in an Offer Booklet which will be mailed to shareholders on 21 September 2012.
Media and investor enquiries: Trevor Shard, Company Secretary Telephone: (03) 9869 8200

Level 10, 420 St Kilda Road, Melbourne VIC 3004 | PO Box 33312, Melbourne VIC 3004

Ph 61 3 9869 8200 | Fax 61 3 9869 8299

www.ccrlimited.com.au

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