Lion Asiapac Limited : Announcement Of Joint Venture By Mindax Limited

LION ASIAPAC LIMITED

(Co. Reg. No. 196800586R)

(Incorporated in the Republic of Singapore)

ANNOUNCEMENT OF JOINT VENTURE BY MINDAX LIMITED

The Board of Directors of Lion Asiapac Limited (the "Company") wishes to announce that, Mindax Limited ("Mindax"), which is approximately 12.7% held by LAP Exploration Pte Ltd, a wholly-owned subsidiary of the Company, had on 15 October 2013 released an announcement to the Australian Securities Exchange ("ASX Announcement").
The ASX Announcement pertains to, inter alia, the Shareholders and Development Agreement ("SDA") entered into between Mindax and Perpetual Mining Holding Limited ("PMHL"), whereby PMHL will acquire 51% of Yilgiron Pty Ltd ("YPL") from Mindax for a consideration of A$52.3 million. YPL will become the joint venture vehicle for the Mt Forrest Iron Project, and the A$52.3 million will be utilized towards the funding of operating expenses, completion of a feasibility study, and development of the mine in relation to the aforesaid iron project, under the terms and conditions of the SDA.
Mindax also proposes to, subject to final advice, make a Bonus Share Issue to all shareholders, by issuing four (4) new shares for each one (1) existing share at zero consideration.
Further details are found in the ASX Announcement, a copy of which can be found in the
Appendix to this Announcement.
BY ORDER OF THE BOARD LION ASIAPAC LIMITED
Tan Yen Hui
Company Secretary
Singapore, 16 October 2013

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Appendix

ANNOUNCEMENT

f5 October 2013

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MINDAX LJMITEO 1 www.mindax.com.au

COMPANY DEFINING AGREEMENT SÌGNED

Bindnl g Agreement signed with Perpetuai Minlng

Holding limiled ( PMHL} of Hong Kong

Agreement is subject to solisfoclory complellon of vorlous condliions precedent ond securing regulotory ono shoreholder opprovols:

PMHL will acquire SI% of current Mindox (MDX)

subsidiary Y grion Ply lld (YPLJ for o consideration of

$52.3M. YPL will become the Joinl venlure vehlcle for

. lhe MI ForreslIran projecl. The shares w lbe lsrued as

portiolly poid. There will be an inli iol paymenl of

$8.2970. 00 an subscription. In the initiol subscriptlon

82,875,000 shores will be tully poid vp. As to the bolonce of the subscriplion prìce $10 million is !o be poidlo fund operoling e)(penses end completion of o feosibili!y s udy ond the bolonce of the subscription price,$34.049,750 is to be pold In connection wilh the development of the mine. As exploined loler in lhls announcement.il is intended tholthe portiolly unpaid shores wat be paid up progressively agoinst the above expenditure. The Agreemenl contoins provisoi ns whlch moy .require the ouls anding subscriploi n price t o be poid through a cali if cerlain mies ones are not mel (referred lo below).Il the cali is noimell hen he shares which are noifully podi may ultimolely be forfelled.

MDX wiU issue 25M ordinory shores lo PMHL and inveslors lo be lnlroduced by ilal lOc per shore lo give gross proceeds of $2.5M lo fund future MDX activtiies oulslde of MI Forrest.

Subject lo finaladvice, MDX proposeslo issue 4 bonus ordinory MDX shores far eoch existni g ordinary MDX share to ali shoreholders far zero consideration.

The Agreement (defined below) secures the way forward for lhe MIForresIl ran Projeclend enobles il o be fast lracked towords produclion,provides significant funding far other MDX activities. rewards exlst ng MDX shorehalders end creates poel nilal lo improve MDX shore lroding liquidity.

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Mindax Umi!ed (MDX orlhe Company) refers !o ifs announcemen!releosed to the marke!on 26

Morch 2013 (ondrelatedannouncements on 9 April2013 and llJune 20131 regording the proposol for ils wholly owned subsidiary,Yilgi"on Pty Ltd (YPL) lo lorm o strategie partnershìp with Perpetuai

'Mìnìng Holding Limìted (PMHL) of Hong Kong for the Mount Forresl lron Project.

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MDX ìs pleased lo onnounce thalo binding Shoreholders arid Development Agreement Reloting o

YPL (A9reement) hos now been signed with PMHL.

A summary of the principal terms of the Agreement are as follows:

PMHL will acquire 51% Of current MDX subsidiary YPL fora totolconsideralol n of $52.3M. As refened to above,pariof the subscription prlce $8,297,000 will be paìd on subscriptìon ond

lhe balance wm be pold In connec ion with compleilon of the feaslbllily study and the construclion of the mine. MDX wm convert Hs currentintercompqny loan of opproxlmately

$17m to YPLinto equity in YPL ond MDX w lhold 49% of theincreosed shore capitai. YPL witl be the vehicle whichowns lhe MI Fonesll ron Project and associated ìnfrastructure tenements.

lhe feoslblllly study musi be complete-cl by 30 June 2014 or suchlater date as MDX ond PMHL agree ond if ilis noio coli moy be mode for the bolance of lhe subscnpllon price o be pald. lf Force Majeure deloys lhe completion of lhe feasibifity study. there moy be an extension of lime up !o 30 June 201 S. Al hat poìnt MDX and PMHL wiU dlscuss the implementotion of the project and il onother course of oc ion has no! been agreed wlthin

60 doys o coli moy be mode for the balonce of the outstonding subscriptoi n price.

The bolonee of lhe subscription price musibe paid by 3l December 201s: or suchloler dote os MDX ond PMHL agree (subject as mentioned below). The llme for payment moy

be extended by Force Mojeure up to31 December 2016. Althot point MDX ond PMHL will discusslhe lmplementotion of the project and ilonolher course of oction hos not been ogreed wi!hin 60 doys a coli moy be mode for the bolonce of the outslal'lding subscription price.

A cali moy only be mode for the baiance of the subscriptoi n prci e if the Compony has

been olloco!edlegally binding port capacify andaccess lo ship i"on ore. lf pori access hos not been granted by 30 September 2016 MDX and PMHL will discusslhe implemenla ion of the project andif anolher course of oc ion hos not beenagreed within92 doys a cali may be mode for the balonce of the outstonding subscr ptionprice.

lf a coil.s mode ror the outstanding subscrption price ond poyment is not mode.the shores lssued lo PMHL which hove noi been fully poid moy ulilmolely be forfeited.

Yilgiron lnfrastuc vre Ply Ltd {YIPL) willbecome a subsidiary of YPL giving YPL full use of oli ìnfrostructure lenements ond rìghts owned by YIPL.

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YPL will be a standa!one Joinl Venture (JV) entity betweenMDX and PMHL Il wlll be controlled by PMHL from the ou set o!the JV. YPL wil!have four Boord members.two each from PMHL and MDX.A number of l:ey YPL business decisions will requrie unanimous YPL Board or shareholder approvailo pwtec t the lnterests of bolh shareholders.

YPL owns ali rights to the MIForres1 tronProjecltenements ond will be responslbte for developmenland operation of OSO and Magnetlte projects.tnitial focus will be to fast t rae!( the OSO project towards production.

The Subscripilon will toke pi ace within 30 Business Days from lhe date on which the condilions precedenlore satisfied. From lheini ial subscriplion payment of $8.29M. YPL wm reimburseMDX approxlmately $2.7M far work undertoken on the Optimi sed Scoping Sludy in the period November 2012 to Augusl2013.YPL will olsopoy MDX approxlmately $600K for work undertaken onlhe MIForrest Iran Project from Seplember 2013 unti!!he executian

date of the Agreement.

After PMHL has mode ali paymentsin respect of svbscrilionlor its shores.MDX ond PMHL eoch hos the righilo contribute oddìti onalfunds toYPL as required for future YPL activi ies in proportion o their prevailing shareholdings once the lntiialfunding of $52.3m hos been provided by PMHL.

Dividends wlll be paid as foows lo !atee account of production of OSO:

1'12 MIproducecf..PMHL 75% and MDX 25%

2nd 2Mt produced-PMHL 65% ond MDX 35%

3•d 2M! produced-PMHL 25% and MDX 75%

4"" 2 MIproduced-PMHL 35% and MDX 65%.

Thereoiter dividends will be distributed according lo shareholdings.

MDX wm lssue 25M ordinory MDX shares to PMHL ond lnvestors to be introducedby il for JOc per new ordinary share which will raise gross proceeds of $2.5M. (These h:mds toge!her with other monies receìved from PMHL noted obove wilt provìde a si gnificonlcash bolanc e o support other MDX activities oùtside of Mt Forres1 for some considerable lime).

Subjecllo fina! advice.MDX proposes !o make a Bonus Shore lssve lo ali shareholders. including those frorn the 25M placement noted above.of four new MDX ordni ary shares l or each one existing MDX shore. The Bonus Share lssue will be for zero consideratlon.(The Bonus issue willreward existni g shareholders ond provide pal enllal for ncreased sharelrading llquldily.MDX tiquidity has hislorically been quite low and in lhe view of lhe Board lhis prevents the true value ot the Cornpany beingreflectedin lhe shore price.)

The issue of 25M new ordinary MDX shores and MDX Bonus Sharelssue ore precondiiionslo the MIForreslironprojecl Join!venture proceeding.

MINDA.X LIMITED l WVW.mlndox.(Otn.on Page 3of4

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The Agreemenlis subjecl lo a number of olher conditions precedenlincluding successfulty receiving ali regulafory andsharehodl er approval s.) Approvaiunder the Foreign Acquisilìons ond Tokeovers Acl1975 (Cih) will also be requlred. The conditlons precedent musi be melby 31 January 2014 or suchlater date as MDX and PMHL agree.fa ing which either party may terminate lhe agreemenl.

MDX lnlends to arrange on Exlroordinary Generaimeeting of Shareholders in due course to enoble shareholders lo consider ond vale on lhe Agreement. An lndependenlExpert's Reporl will be providedlo shareholders wìth the no!ice of lhe meeting.

/":l Mindax Manoging Director and CEO Dr Sieve Word commented 'We are delighledlo have PMHL

''./::]:.:.[..J:/J as our strategie partner.PMHL and Mindax have worltogether very closely over the posfiew

((i,,/)) mon hs to finolise lhis ogreement. In extraordinary times.we have felt the need lo beinnovative n

-..::::..!? pl anning our future.This agreemenlsecures lhe way forword for the MIForreslProject. provìdes

r· , tunding for our other activities,rewards our exisling shareholders and creotes polential o improve

r-V our shore troding liquidity. We hove grven eoch of these mo tters serlous conslderation in the posi

few months and o.re very pleased with this outcome'.

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About PMHL

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PMHL is a Hong Kong basedinveslmenlcompony with significant business conneclions within

Chino. PMHL's slokeholders have experience withiron ore production and within the iron ore

industry ingenerai. PMHLis supportedby some existing Mindax inveslors who hove inlroduced

PMHL to lhe Company. These include lhoseinvestors wihl whom Mindox hos formed the

Meekotharra Gold Project farm-in Jolnt venture.They hove further demonstroted their·support for

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Mindax by setting up andinvesling in PMHLlo enoble the proposed strategie porlnership between

Mindax ond PMHL tor lhe developmenlof MIFones.i

[This is lhe announcement referredloin the Compony's requeslfora lrading halldoled 14

Oclober2013.J

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For further lnformafion contaçt: Sieve Word,Managing Director Mindax limited

Telephone:[phone]

Media: Oovid Utting

David Utting Corporale

Telephone:[phone]

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