RLD.L Regulatory News (RLD)

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This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of Richland Resources Ltd or other evaluation of any securities of Richland Resources Ltd or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.

4 July 2019

Richland Resources Ltd

("Richland" or the "Company")

 Equity Fundraising of approximately £100,000 gross and

 Appointment of Peterhouse Capital Limited as Broker

Richland (AIM: RLD), the Australian sapphire producer and gemstones developer, is pleased to announce, further to its announcements of 27 June and 28 June 2019 regarding, inter alia, its intention to secure funding to provide additional working capital for the period through to completion of the proposed disposal of its Capricorn Sapphire Project to Fura Gems Inc. (the "Proposed Disposal"), that the Company has conditionally raised, in aggregate, approximately £100,000 (before expenses) through a placing of 158,730,159 new common shares of US$0.0003 each in the capital of the Company ("Common Shares") (the "Placing Shares") (the "Placing") with certain new investors at an issue price of 0.063 pence per Placing Share (the "Placing Price").

Details of the Placing

The Placing was arranged via Peterhouse Capital Limited ("Peterhouse") as agent of the Company. Pursuant to the Placing, in aggregate, 158,730,159 Placing Shares will be issued at the Placing Price to certain new investors. The Placing Price represents a discount of approximately 16 per cent. to the closing middle market price of a Common Share of 0.075 pence on 3 July 2019, being the latest practicable date prior to this announcement. Peterhouse are due 5 per cent. commission on the gross proceeds of the Placing which it has agreed will be settled by the issue of 7,936,508 new Common Shares to Peterhouse (the "Commission Shares"). The Placing is conditional upon admission of the Placing Shares to trading on AIM ("Admission").

The Placing Shares represent, in aggregate, approximately 21.14 per cent. of the Company's enlarged issued share capital (as enlarged by the Placing Shares, the Commission Shares and the Broker Fee Shares, as defined below). The Placing Shares, Commission Shares and Broker Fee Shares will rank pari passu in all respects with the Company's existing Common Shares and will be issued fully paid.

Appointment of Peterhouse as Sole Broker

Peterhouse Capital Limited have been appointed as the Company's sole broker with immediate effect and have agreed that their initial six month retainer fee will be settled by the issue to them of a further 15,873,016 new Common Shares at the Placing Price (the "Broker Fee Shares").

Admission to trading

Application will be made to the London Stock Exchange for Admission of the abovementioned new Common Shares and it is expected that Admission will become effective and that dealings in the Placing Shares, Commission Shares and Broker Fee Shares (together, the "New Shares") will commence at 8.00 a.m. on 9 July 2019. Following Admission, the Company will have 750,893,533 Common Shares with voting rights in issue and holds a further 7,275,000 Common Shares in treasury.

Use of Proceeds and Outlook

The net proceeds from the Placing will be used to provide the Company with additional working capital for the period through to completion of the Proposed Disposal. In anticipation of the successful completion of the Proposed Disposal in due course, the Company is currently seeking to identify and evaluate suitable reverse takeover opportunities in the mining sector.

For further information, please contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Note to Editors:

Further information is available on the Company's website: www.richlandresourcesltd.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.