Dateline Resources : Rights Issue - Notice to Foreign Shareholders

31 July 2017

Company Announcements Office AS X Limited

Exchange Centre 20 Bridge S treet

S ydney NS W 2000

Please find attached a copy of a letter which was despatched today to those shareholders who are ineligible to participate in the Rights Issue.

John Smith Company Secretary

Dateline Resources Limited

+61 2 8231 6640

31 July 2017

Dear Shareholder

On 21 July 2017, Dateline Resources Limited (DTR) ("Dateline" or the "Company") announced a non-renounceable non-underwritten rights issue on the basis of 1 ordinary share in the Company for every 2 ordinary shares held at the Record Date at an issue price of $0.02 per share. The rights issue will result in the issue of up to 200,247,902 new ordinary shares (New Shares) to raise a total of up to approximately $4,000,000 (Rights Issue).

The Company intends to use the funds raised under Rights Issue for general working capital purposes, including pursuing the Colorado Gold Project previously announced.

This notice is to inform you about the Rights Issue and to explain why you will not be able to subscribe for New Shares under the Rights Issue. This letter is not an offer to issue New Shares to you, nor an invitation for you to apply for New Shares. You are not required to do anything in response to this letter.

Documents relating to the Rights Issue were lodged with the ASX on Monday, 31 July 2017 and are being mailed to Eligible Shareholders (defined below). The Offer Document is also available on the Company's announcements platform at www.asx.com.au (ASX Code: DTR).

The Company has determined, pursuant to ASX Listing Rule 7.7 and Section 9A of the Corporations Act 2001 (Cth), that it would be unreasonable to make offers under the Rights Issue to registered shareholders on the Record Date, being 26 July 2017, that have a registered address outside of Australia or New Zealand (Ineligible Foreign Shareholders), having regard to:

1. the small number of shareholders with addresses outside these countries;

2. the small number and value of the shares those shareholders would otherwise have been entitled; and

3. the cost of complying with the legal requirements, and requirements of regulatory authorities in each of the countries concerned.

Shareholders who are eligible to participate in the Rights Issue (Eligible Shareholders) are shareholders who:

1. are registered as a holder of Shares as at 7.00pm (AEST) on the Record Date;

2. as at the Record Date, have a registered address in Australia or New Zealand; and

3. are not in the United States and are not acting for the account or benefit of a person in the United States; and

4. are eligible under all applicable securities laws to receive an offer under the Rights Issue without any requirement for a prospectus or offer document to be lodged or registered.

All other shareholders are not eligible to participate in the Rights Issue.

Unfortunately, the Company has determined that you do not satisfy the eligibility criteria for an Eligible Shareholder stated above. Accordingly, the Company wishes to advise you that it will not be extending the Rights Issue to you and you will not be able to subscribe for New Shares under the Rights Issue. You will also not be sent the Offer Document relating to the Rights Issue nor be able to subscribe for New Shares under the Rights Issue.

As the Rights Issue is non-renounceable, you will not receive any payment or value for entitlements in respect of any New Shares that would have been offered to you if you were eligible.

Any New Shares offered under the Rights Issue that are not applied for by Eligible Shareholders by the Closing Date under their entitlement will form part of the shortfall (Shortfall). The Directors reserve the right, subject to the Corporations Act 2001 (Cth) and the Listing Rules, to place any Shortfall (other than to Directors and related parties of the Company) at their discretion within 3 months after the Closing Date (at a price not less than the Issue Price of $0.02 per New Share).

The Company apologises that you are ineligible to participate in the Rights Issue. However, if you are interested in applying for any shares comprising the Shortfall, you should contact the Company and it will explore whether an offer can be made outside of the Rights Issue structure.

If you have any questions regarding the above matters, please contact John Smith, Company Secretary on +61 2 8231 6640 or contact your stockbroker or professional advisor.

We look forward to your continuing support of the Company. For and on behalf of