Macarthur Minerals : Target Market Determination

Made by:

Macarthur Minerals Limited ACN 103 011 436 of Suite 1G, Building 1, Kings Row

Office Park, 40 McDougall Street, Milton QLD 4064 (Company)

Product:

Attaching options issued in connection with the issue of fully paid ordinary shares

in the capital of the Company (Shares) under a prospectus dated 1 March 2024

(Options)

Effective date:

8 March 2024

Factor

Target market

Investment

Options will expire on 27 September 2025 (Expiry Date). The Company expects that an

Objective

investment in the Offers (which includes an investment in the Options) will be suitable

for investors who wish to have a right, but not an obligation, in the medium term, to

acquire Shares in the Company prior to the Expiry Date.

The Company expects that an investment in Options will be suitable for investors who

wish to gain exposure to equities in a micro-cap exploration company listed on the

Australian Securities Exchange (ASX), the exposure being both the New Shares, the

Options, and the Shares that underlie the Options. It is proposed that the Company

seek quotation of the Options on the ASX as a separate class of additional security.

The Options are not designed for investors who require an income stream from their

investment in the Options.

Investment

The target market of investors will take a short to medium-term outlook on their

Timeframe

investment. Investors with a short-term outlook for their investment will benefit from

an ability to trade the Options on ASX and/or exercise Options and trade the

underlying Shares issued on exercise should the Option exercise price of the Options

be lower than the trading price of Shares. Investors with a medium-term outlook will

benefit from an ability to exercise Options within the term of the Options and increase

their shareholding and exposure to the potential upside in the Company's Shares into

the future.

Given the need to pay the exercise price in order to acquire Shares, Investors in the

target market are in a financial position that is sufficient for them to invest their funds

on exercise the Options over the term of the Options, during which their ability to

liquidate their Options in the Company may be limited by a lack of liquidity in the

Options and by the trading price of Shares.

An investment in the Shares and Options under the Offers or the resulting Shares

should be regarded as highly speculative.

Investment Metrics

Investment eligibility is limited to existing Shareholders for the Rights Issue Offer and

Shortfall Investors for the Shortfall Offer. It is crucial for prospective investors to be

prepared to endure potential fluctuations in their investment's value since the Options

are issued without additional consideration.

To realise the underlying value of the Options, an exercise price must be paid for the

issuance of the Shares upon Option exercise. Therefore, the ability to capitalise on the

Options' value necessitates exercising them on or before the Expiry Date, or

alternatively, trading them on the ASX before the Expiry Date if there's demand,

particularly when the trading price of the underlying Shares exceeds the exercise price

for the Options.

Page 2

Reporting requirement

Period for reporting to the

Information to be provided

Company by the distributor

Whether the distributor received

(a)

For such time as the

(a)

The

number

of

complaints about the Options.

Offer Period remains

complaints received.

open, within 10 business

(b)

A summary of the nature

days after the end of

of

each

complaint

or a

each quarter.

copy of each complaint.

(b)

Within 10 business days

after the end of the Offer

Period.

A significant dealing of the

As soon as reasonably practicable

(a)

Details of the

significant

Options that is not consistent

after

the significant dealing

dealing.

with this TMD.

occurs, but in any event no later

(b)

Reasons

why

the

than

10 business days after the

distributor considers that

significant dealing occurs.

the

significant

dealing is

not

consistent

with

this

TMD.

A summary of the steps taken by

Within 10 business days after the

A summary of the steps taken by

the distributor to ensure that its

end of the offer of Shares in

the distributor to ensure that its

conduct was consistent with this

accordance with the Prospectus.

conduct was consistent with this

TMD.

TMD.