General Mining : 29 May 2016 - Bid Implementation Agreement

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GALAXY RESOURCES LIMITED ACN 071 976 442

(Galaxy) and

GENERAL MINING CORPORATION LIMITED ACN 125 721 075

(General Mining)

BID IMPLEMENTATION AGR EEMENT

T A B L E O F C O NT E NT S

1. DEFINITIONS AND INTERPRETATION 4

2. Definitions 4

   1 .2 Interpretation 1 1

3. Next day 12

4. Next Business Day 12

5. Headings 12

6. CO-OPERATION 12

7. General obligations 12

8. No independent expert required 13

9. Access to people and information 13

10. Implementation obligations of General Mining 14

11. Appointment of directors 14

12. THE OFFER 15

13. Offer by Galaxy 15

14. Consideration 15

15. Fractional entitlements 15

16. Foreign General Mining Shareholders 15

17. Conditions of the Offer 15

18. Offer Period 16

19. Variation 1 6

20. OTHER SECURITIES 16

21. General Mining Options 16

22. Extension of Takeover Bid 1 6

23. DOCUMENTATION AND GENERAL MINING BOARD RECOMMENDATION 16

24. Galaxy's obligations to prepare documentation 16

25. General Mining's obligations to prepare documentation 1 7

26. Provision of Information 1 7

27. Directors ' recommendations 17

28. Joint Despatch 18

29. Timetable 18

30. Consent to early dispatch of Bidder 's Statement 18

31. CONDUCT OF BUSINESS 18

32. Overview 18

33. Specific obligations 19

34. Prohibited actions 19

35. Financial accommodation 20

36. EXCLUSIVITY 20

37. No existing discussions 20

38. No-shop 20

39. No-talk 21

40. Notice of approach 21

41. Notification and Matching Offer 22

42. Exceptions to no-talk 22

43. Compliance with law 23

44. Legal advice 23

45. REIMBURSEMENT OF COSTS 23

    Project Brisbane - BIA - (Execution Version) 26 5 16

46. Rationale 23

47. Payment of Compensating Amount by General Mining 24

48. Payment of Compensating Amount by Galaxy 25

49. Payment 25

50. Exclusive Remedy 25

51. Compliance with law 25

52. Survival 26

1. WARR ANTIES 26

2. Galaxy Warranties 26

3. Galaxy indemnity 27

4. General Mining Warranties 27

5. General Mining indemnity 29

1. TERMINATION 29

2. Termination rights 29

3. Termination by Galaxy 29

4. Termination by General Mining 30

5. Effect of termination 30

6. ANNOUNCEMENT OF TAKEOVER BID 30

1 1 .l Public announcement of Takeover Bid 30

1 1 .2 Required Disclosure 30

1 1 .3 Other Announcements 30

1. CONFIDENTIAL INFORMATION OBLIGATIONS 31

2. l Disclosure of Galaxy Confidential Information 31

3. Use of Galaxy's Confidential Information 31

4. Disclosure of General Mining Confidential Information 31

5. Use of General Mining Confidential Information 31

6. Disclosure by recipient of Confidential Information 31

7. Excluded Information 32

8. Return of Confidential Information 32

9. Termination 32

10. Termination of existing Confidentiality Agreement. 32

11. NOTICES AND OTHER COMMUNICATIONS 32

12. l Notices in writing 32

1. Details 32

2. Change of Address 33

3. Receipt of notice 33

14. GOODS AND SERVICES TAX (GST) 33

14. l Consideration does not include GST. 33

1. Recovery of GST 33

2. Time of payment 33

3. Adjustment of additional amount 33

4. Reimbursement 34

5. Survival 34

1. MISCELLANEOUS 34

2. Discretion in exercising rights 34

3. Partial exercising of rights 34

4. No liability for loss 34

5. Approvals and consents 34

6. Conflict of interest 34

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7. Remedies cumulative 34

8. Variation and waiver 34

9. No merger. 34

10. Indemnities 35

11. Further steps 35

15. 1 1 Construction 35

1. Costs 35

2. Stamp duty 35

3. Assignment 35

4. No representation or reliance 35

5. Governing law 36

6. Counterparts 36

7. Knowledge and belief 36

SCHEDULE 1 - TIMETABLE 37 SCHEDULE 2 - CONDITIONS TO THE OFFER 38 SCHEDULE 3 - GALAXY PRESCRIBED OCCURRENCES 41 SCHEDULE 4 - GENERAL MINING PRESCRIBED OCCURRENCES 44 SCHEDULE 5 - GENERAL MINING SECURITIES 46 SCHEDULE 6 - GALAXY SECURITIES 47 SCHEDULE 7 - ANNOUNCEMENT 48

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