Mineral Deposits : Appendix 3B – Performance Rights

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

ABN

19 064 377 420

We (the entity) give ASX the following information.

You must complete the relevant sections (attach sheets if there is not enough space).

Unlisted performance rights granted as long‐term incentives under the MDL Performance Rights Plan ('PRP')

1+Class of+securities issued or to be issued

1,168,209 unlisted performance rights

Number of +securities issued or to be issued (if known) or maximum number which may be issued

Unlisted performance rights under the PRP as long‐term incentives

Grant date: 30 June 2017 Exercise price: nil

Performance Period: Three years from 1 February 2017 to 31 January 2020

Expiry Date: 31 January 2022

Vesting: 50% of the performance rights will vest subject to an Absolute Total Shareholder Return ('TSR') performance condition and 50%

will vest subject to a Relative Total Shareholder Return performance condition over the three year period.

Performance rights subject to an Absolute TSR vest as follow: 50% vest at 15% compound annual growth rate ('CAGR'), 100% vests at 25% CAGR, with pro rata vesting between the two points. Note that for the purposes of calculating the CAGR over the duration of the performance period, the price for MDL Shares will be calculated on the basis of the 20 day VWAP preceding 1 February 2017.

Performance rights subject to a Relative TSR vest as follows: 50% vest at 50thpercentile performance against companies in the S&P/ASX Resources 300 Index (peer group), 100% at 75thpercentile and pro rata vesting between the two points. For the purposes of calculating the relative TSR performance over the duration of the performance period, the price for MDL Shares will be calculated on the

basis of the 20 day VWAP preceding 1 February 2017.

Should a change of control occur before the end of the vesting period, the amount of the rights that will vest will be calculated in accordance with the Absolute TSR vesting conditions.

Further details are available in the Notice of Annual General Meeting released to the market on 3 April 2017.

The issue of these rights, their vesting conditions and the amended PRP were approved by Shareholders of the Company at the Annual General Meeting held 4 May 2017.

3Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid

+securities, the amount outstanding and due dates for payment; if+convertible securities, the conversion price and dates for conversion)

No - the unlisted performance rights only rank equally with ordinary shares if and when any vested performance rights are exercised.

Unlisted performance rights carry no dividend or voting rights.

1. Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted

   +securities?

   If the additional +securities do not rank equally, please state:

   • the date from which they do

   • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

   • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

     Nil

2. Issue price or consideration

   Issued to a director and three executive employees of the Company under the amended PRP approved at the Annual General Meeting held on 4 May 2017.

3. Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

No

6aIs the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

If Yes, complete sections 6b - 6hin relation to the +securities the subject of this Appendix 3B, and comply with section 6i

N/A

6b The date the security holder resolution under rule 7.1A was passed

N/A

6cNumber of +securities issued without security holder approval under rule 7.1

N/A

6dNumber of +securities issued with security holder approval under rule 7.1A

N/A

6eNumber of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

N/A

6fNumber of +securities issued under an exception in rule 7.2

N/A

6gIf +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the

+issue date and both values. Include the source of the VWAP calculation.

N/A

6hIf +securities were issued under rule 7.1A for non‐cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

N/A

6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

30 June 2017

7 +Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.

1. Number and +class of all +securities quoted on ASX (including the

   +securities in section 2 if applicable)

2. Number and +class of all +securities not quoted on ASX (including the

   +securities in section 2 if applicable)

   There has been no change to the Mineral Deposits Limited dividend policy.

3. Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)