Canyon Resources Limited (ASX: CAY) ('Canyon' or the 'Company') is pleased to announce that it has received firm commitments from existing and new institutional and sophisticated investors to raise $6.0m (before costs), via the issue of 77,257,157 new fully paid ordinary shares in Canyon ('New Shares') at $0.08 per New Share ('Placement').

Commenting on the Placement, Canyon Managing Director Phillip Gallagher said: 'Canyon acknowledges the continued strong support from our existing shareholders, including Major Shareholder, Mr Peter Su. Additionally, we welcome a number of new sophisticated and institutional investors to the Canyon register. The Placement will allow Canyon to complete the Feasibility Study and progress the delivery of important agreements required for the development of the Minim-Martap Project with the Government of Cameroon and potential project partners. This is an exciting time for Canyon as we transition from a predominantly exploration driven company to a project builder taking one of the world's most substantial bauxite projects towards development.'

Major Shareholder Participation

The Placement was strongly supported by Canyon's largest shareholder and Non-executive Director, Mr Peter Su, who has subscribed for his pro-rata amount of the Placement and will continue to hold more than 9% of Canyon post-Placement. Mr Su became a strategic shareholder in Canyon in 2020 following a $5.6m investment. Mr Su is a Perth-based strategic investor with a diverse range of business interests in Australia and overseas. The Su family have historically held commercial interests in bauxite and alumina refining in China and Mr Su has and will continue to assist the Company with accelerating the development of the Minim Martap Bauxite Project and to provide introductions and commercial assistance relating to bauxite offtake and project financing.

Placement Overview

The Placement will result in the issue of 77,257,157 additional Canyon Shares (New Shares), which will rank equally with existing Canyon Shares. Of the New Shares, 6,771,482 are relevant to Mr Peter Su's participation, and the remainder totalling 70,485,675 will be issued utilising the Company's existing placement capacity under ASX Listing Rule 7.1. These are expected to be issued on or around 9 August 2021.

Mr Peter Su, a Non-Executive Director of Canyon, has subscribed for 6,771,482 New Shares as part of the Placement. In accordance with ASX Listing Rule 10.11, Mr Su's participation in the Placement will be subject to approval by Canyon shareholders. The Company anticipates convening a shareholder meeting in midSeptember to seek this approval. The issue price of $0.08 per New Share represents a: 14.0% discount to the last closing price of $0.093 on 28 July 2021

17.8% discount to the 5-day VWAP of $0.097. Ashanti Capital Pty Ltd and Foster Stockbroking Ltd acted as Joint Lead Managers to the Placement.

This announcement is authorised for release by the Board of Canyon Resources Ltd.

Contact:

Tel: +61 8 6382 3342

Email: info@canyonresources.com.au

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