GME Resources : Entitlement Issue Notice Letter

Renounceable Entitlement Issue Notice Letter Despatched

9 May 2018

RENOUNCEABLE ENTITLEMENT ISSUE - NOTICE LETTER DESPATCHED

GME Resources Limited ('GME' or the 'Company') (ASX:GME) advises the attached letter was sent to shareholders today, 9 May 2018 in accordance with the notice requirements for the recently announced renounceable entitlement issue (the Offer).

Through the Offer the Company is seeking to raise up to approximately $2 million before expenses by issuing up to approximately 18,543,855 fully paid ordinary shares (Shares) at an issue price of $0.11 per Share on the basis of 1 Shares for every 25 Shares held on the record date. (Refer to the attached Notice Letter for full details of the Offer.)

As a reminder the following table sets out the key dates for the Offer.

Subject to the ASX Listing Rules, the directors reserve the right to extend the Closing Date for the Offer. Any extension of the Closing Date will have a consequential effect on the anticipated date for issue of the shares. The commencement of quotation of new shares is subject to confirmation from ASX.

Yours faithfully

Mark Pitts Company Secretary

GME Resources Limited Unit 5, 78 Marine Terrace Fremantle WA 6160 Ph +618 9336 3388 Fax +618 9315 5475www.gmeresources.com.au

Unit 5, 78 Marine Terrace

Fremantle WA 6160

Phone: (618) 9336 3388

Fax: (618) 9315 5475

Website:www.gmeresources.com.au

ABN 62 009 260 315

9 May 2018

(SHAREHOLDER) (ADDRESS)

Dear Shareholder,

GME Resources Ltd (GME) Entitlement Issue - Notification Details

On 7 May 2018 GME Resources Ltd announced a one for twenty five Renounceable Entitlement Issue of up to 18,543,855 new shares at an issue price of $0.11 per share. The issue will raise a maximum of $2,039,824 if all of the entitlements are taken up.

Funds raised from the issue will be used to complete the Pre-Feasibility Study (PFS) on the NiWest Nickel-Cobalt Project and for general working capital purposes.

Eligible Shareholders

Shareholders with registered addresses inside Australia, New Zealand and Bermuda, who hold ordinary shares in the Company (Existing Shares) as at 5.00pm WST on 11 May 2018 (Eligible Shareholders) will be entitled to participate in the Issue.

All Eligible Shareholders will be offered 1 new ordinary share in the Company (New Share) for every 25 Existing Shares held by the Eligible Shareholder, at an issue price of $0.11 per New Share (Offer). This represents a discount of approximately 24% to the volume weighted average price (VWAP) of GME's shares for the ten trading days before the announcement (10 day VWAP is 14.5 cents).

Shareholders with registered addresses outside Australia, New Zealand and Bermuda are considered Ineligible Shareholders and cannot participate in the Offer.

The Company has determined that it is not practicable for Ineligible Shareholders to participate in the Offer having regard to the number of Ineligible Foreign Shareholders, the number and value of New Shares they would be offered and the costs of complying with the regulatory requirements of those jurisdictions.

Underwriting

The Company's major shareholder, ICM Limited and its related parties and the Directors intend to take up their Entitlements in full for a combined amount of $1,225,163. In addition, the Company has signed an underwriting agreement with Somers and Partners Pty Ltd for the partial underwriting for the balance of the Offer up to $814,661.

Summary of Key Information

A summary of key information is set out below for your information:

The current proposed timetable for the Entitlement Issue is set out below. The dates are indicative only and GME reserves the right to vary the dates subject to the Corporations Act 2001, the ASX Listing Rules and other applicable law.

Capital structure on completion of the Offer

The following table shows the proposed capital structure of the Company on completion of the Entitlement Issue.

Dealing with Entitlements

The Entitlement Issue is Renounceable, which means shareholders can sell their Rights on the Australian Stock Exchange.

Accordingly Shareholders have the following options in relation to the Entitlement Issue:

• • Take up their full Entitlements in full

• • Sell all their Entitlements on the Australian Stock Exchange

• • Take up part of their Entitlement and sell the balance of their Entitlements on the Australian Stock Exchange

• • Transfer their Entitlements (other than through the Australian Stock Exchange); or

• • Allow their Entitlements to lapse

If you do not wish to accept part or all of your entitlement, you are not obliged to do anything.

Before making a decision whether to apply for Shares, please read the Offer Booklet carefully in its entirety when you receive it. The Entitlement Offer is scheduled to close at 5:00pm (WST) on 5 June 2018.

This is a notice letter and does not constitute an offer of securities. An offer of Shares under the Entitlement Issue will only be made in, or accompanied by, a copy of the Offer Booklet sent to all Eligible Shareholders.

The Offer Booklet is available on the Company's website atwww.gmeresources.com.auor on the ASX website (company announcements section, ASX code: GME) atwww.asx.com.au.

For further information on the issue or how to deal with your entitlement please contact your stockbroker or GME's share registrar:

Computershare Investor Services Pty Limited

Telephone: 1300 263 821 (within Australia) or +61 3 9415 4873 (outside Australia)

Yours faithfully

MARK PITTS Company Secretary