Minrex Resources : Section 708AA(2)(f) Cleansing Notice

18 August 2017

The Manager

Market Announcements Office ASX Limited

20 Bridge Street

SYDNEY NSW 2000

Dear Sir / Madam,

This notice is given by MinRex Resources Limited ("Company") under section 708AA(2)(f) of the Corporations Act ("Act"), as notionally modified by Australian Securities and Investments Commission Class Order 08/35 ("CO 08/35").

On 9 August 2017, the Company announced a non-renounceable pro rata rights issue ("Rights Issue") of 2 fully paid ordinary shares ("New Shares") for each of 3 fully paid ordinary shares held at the record date, 21 August 2017, to eligible shareholders.

Pursuant to the Rights Issue, the Company may issue up to 28,351,090 New Shares at an issue price of $0.05 each, to raise a maximum of up to $1,417,554 (before costs of the issue).

The Company states that:

1. the Company will offer the New Shares for issue without disclosure to investors under Part 6D.2 of the Act, as notionally modified by CO 08/35;

2. the Company is providing this notice under section 708AA(2)(f) of the Act, as notionally modified by CO 08/35;

3. as at the date of this notice:

4. the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company;

5. the Company has complied with section 674 of the Act; and

6. there is no "excluded information" within the meaning of sections 708AA(8) and 708AA(9) of the Act, as notionally modified by CO 08/35.

MinRex Resources NL ACN 151 185 867 LinQ House Level 1, 17 Ord Street West Perth WA 6005 P: +61 8 9486 8806 F: +61 9321 3559

The Rights Issue is not underwritten and is not expected to have any material effect or consequence on the control of the Company.

Set out below is information on the potential effect that the Rights Issue may have on the control of the Company, though the consequences of that effect will depend on a number of factors including investor demand:

1. if all eligible shareholders take up their entitlements in full under the Rights Issue, the Rights Issue will have no effect on the control of the Company;

2. the proportional interests in the Company of those eligible shareholders who do not take up their rights under the Rights Issue will be diluted; and

3. the proportional interests in the Company of shareholders who are not eligible shareholders will be diluted because those shareholders are not entitled to participate in the Rights Issue.

Yours faithfully,

Simon Durack Executive Chairman For enquiries, please call Simon Durack on 08 9486 8806.

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