Cygnus Metals Limited - Successful Placement Completed

Cygnus Metals Limited (ASX:CY5) ('Cygnus' or the 'Company') is pleased to advise that it has received commitments from institutional and sophisticated investors to raise approximately A$3.0 million (before costs) through the issue of 85,600,001 fully paid ordinary shares in the Company ('Shares') at an issue price of A$0.035 per Share ('Placement').

Canaccord Genuity (Australia) Limited and Euroz Hartleys Limited acted as Joint Lead Managers to the Placement.

Use of funds

Proceeds of the Placement will be utilised for exploration activities across the Company's existing project portfolio, general working capital (including transaction costs), corporate costs (which have recently been reduced - refer to ASX release dated 27 March 2024) and due diligence costs associated with potential acquisitions. Cygnus intends to assess a number of opportunities in the battery metals space (including copper). With the support of the Board and founders/shareholders including Steve Parsons and Michael Naylor, Cygnus will assess these project opportunities in the normal diligent manner, noting the recent success of Firefly Metals Limited and Andean Silver Limited (formerly Mitre Mining Corporation Limited)

Exploration plans

Existing cash reserves will predominantly fund Cygnus' remaining 2024 lithium exploration program which is required to meet the commitments from the previous flow-through capital raising completed in August 2023. At this stage the program will focus on the Auclair Project with a 3,000m diamond drill program and further target generation work at Auclair and Sakami. Cygnus has also recently secured EIS funding from the State Government of Western Australia to drill test a copper-gold anomaly at its Snake Rock Project in Western Australia (refer ASX release dated 31 January 2023). Exploration on this project to date has been limited while the focus has been on James Bay lithium, and this co-funding provides the opportunity to drill test this prospect potentially later this year.

Placement

Cygnus will undertake the Placement in two tranches: Tranche 1 of 72,685,715 Shares ('Tranche 1 Shares') will be conducted using the Company's existing capacity under ASX Listing Rules 7.1 (43,349,802) and 7.1A (29,335,913) to raise a total of A$2,544,000, with settlement expected to occur on Thursday, 18 July 2024. The first tranche is not subject to shareholder approval. Tranche 2 of 12,914,286 Shares ('Tranche 2 Shares') will be issued, subject to shareholder approval, to raise up to an additional A$452,000. The second tranche includes A$330,000 committed by Cygnus Directors. The notice for a general meeting, which is targeted to be held in September 2024, will be sent to shareholders shortly. The issue price represents a discount of 18.6% to the last closing price of A$0.043 on Wednesday, 10 July 2024, a discount of 21.8% to the 5-day VWAP of A$0.0447 and a 22.7% discount to the 15-day VWAP of A$0.0453.

Contact:

David Southam

Executive Chair

Tel: [phone]

Email: [e-mail]

Paul Armstrong

Read Corporate

Tel: [phone]

About Cygnus Metals

Cygnus Metals Limited (ASX: CY5) is an emerging exploration company focussed on advancing the Pontax Lithium Project (earning up to 70%), the Auclair Lithium Project and Sakami Lithium Project in the world class James Bay lithium district in Canada. In addition, the Company has REE and base metal projects at Bencubbin and Snake Rock in Western Australia. The Cygnus Board of Directors and Technical Management team has a proven track record of substantial exploration success and creating wealth for shareholders and all stakeholders in recent years. Cygnus Metals' tenements range from earlystage exploration areas through to advanced drill-ready targets.

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