Impact Minerals : Letter to Shareholders and Despatch of Prospectus

916CR_0_Sample_CA/000001/000001

IPT

MR SAM SAMPLE 123 SAMPLE STREET

SAMPLETOWN VIC 3000

Offer under the Share Purchase Plan

Under the SPP, the Company is offering up to 222,300,000 New Shares at an issue price of $0.018 each with three Free Attaching Options for every two New Shares issued, to raise up to $4,001,400 before expenses.

The issue price of $0.018 per New Share is equal to the volume weighted average price of the Shares traded on Australian Securities Exchange during the 5 trading days immediately prior to the announcement of the SPP (being 11 May 2017).

Each Eligible Shareholder is entitled, irrespective of the number of Shares that they hold, to purchase up to $15,000 worth of New Shares at the issue price of $0.018 each. Applications for Offer Securities under the Share Purchase Plan may be made with respect to any one of the following amounts:

An Eligible Shareholder that does not wish to participate in the SPP is not required to do anything and may disregard this letter and the Prospectus. In this event, the number of Shares held by that Eligible Shareholder will not change but the percentage of their shareholding in the Company will be diluted.

The directors of the Company reserve the right to scale back applications for Offer Securities under the SPP at their discretion.

The Share Purchase Plan will open on Friday, 19 May 2017 and will close at 5.00pm (WST) on Friday, 9 June 2017.

Shortfall Offer

Any Offer Securities not subscribed for under the Share Purchase Plan will form the Shortfall and will be offered under the Shortfall Offer, which forms a separate offer under this Prospectus.

Offer Securities offered under the Shortfall Offer are offered on the same terms as under the Share Purchase Plan, being at an issue price of $0.01B each, with three Free Attaching Options for every two New Shares issued.

An individual, including an Eligible Shareholder, may apply for additional Offer Securities under the Shortfall Offer provided they are eligible under all applicable securities laws to receive an offer under the Shortfall Offer.

If after the close of the Share Purchase Plan and Shortfall Offer, any Shortfall has not been subscribed for under the Share Purchase Plan or Shortfall Offer, the Directors reserve the right to place some or all of those Offer Securities within 3 months of the close of the Offers.

The Directors will have discretion as to how to allocate the Shortfall both under the Shortfall Offer, and after the close of the Offers.

The Shortfall Offer will open on Friday, 19 May 2017 and will close at 5.00pm (WSn on Friday, 16 June 2017.

Purpose and use of funds

The funds raised by the Share Purchase Plan, Shortfall Offer and placement of any remaining Offer Securities will be used to fund a drill programme of up to 3,000 metres of reverse circulation and

916CR_0_Sample_CA/000001/000002

Eligible Shareholders who wish to submit an application for Offer Securities are encouraged to do so as soon as practicable.

The full terms and conditions of the Share Purchase Plan and Shortfall Offer are set out in the Prospectus. By making an Appl cation, an investor will have agreed to be bound by those terms and conditions.

If you wish to discuss any information contained in the Prospectus or Application Forms, please contact the Company Secretary, Bernard Crawford on +61 8 6454 6666.

Yours faithfully

Peter Unsworth Chairman

Forward Looking Statements

This document {Document) is provided on the basis that neither of Impact Minerals Limited ACN 119 062 261 (Company) nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the origin, validity, accuracy, reliabi ity, relevance, currency or completeness of the material contained in the Document and no responsibility is taken ror any errors or omissions. Nothing contained in the Document is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. Toe Company excludes all warranties (including implied warranties) and all liability that can be excluded bylaw for anyloss, claim, damage, oost or expense of any nature arising out of the Document (or any accompanying

or other information) whatsoever, nor by reasonof any reliance upon it. Toe Company does not accept any responsibility to update any person regarding any inaccuracy, omission or change ininformation in this Document or any other information made available to a person nor any obligation to furnish the person with any further information, other than to the extent required by law.

Toe Document may contain prospective financial material which is predictive in nature and based on certain assumptions. Accordingly, actual financialresults may be affected by assumptions which prove to be inaccurate or by known or unknown risks and uncertainties, and arelikely to differ, possibly materially, from results ultimately achieved. The Document may contain "forward-baking statements". All statements other than

those of historical facts included in the Document are forward-looking statements including, without limitation, (0 estimates of future earnings, and

the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales; (iii) estimates of future cash oosts; Ov) estimates of future cash flows, and the sensitivity of cash flows to gold and other metals prices; (v) estimates of future capital expenditures; and (vi) estimates of reserves, and statements regarding future exploration results and the replacement of reserves. Where

the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forwardooking statements are subject to risks, uncertainties and other factors, which could cause actual resuHs to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but

are notlimited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade, recovery

rates or other matters from those assumed in mining plans, as wellas political and operational risks and governmental regulation and judicial outcomes. Toe Company does not undertake any obligation to release publicly any revisions to any ''forward-looking statemenf' to reftect events or circumstances after the date of the Document, or to reflect the occurrence of unanticipated events, except as may be required under applicable

securities laws.