Reach Resources Limited (ASX:RR1) signed binding term sheet to acquire Western Australian exploration licenses E09/2388 and E09/2375 from TasEx Geological Services Pty Ltd for AUD 1.1 million on February 8, 2023. The consideration of AUD 0.05 million non-refundable cash deposit paid on January 4, 2023; and will pay a further AUD 0.15 million in cash and the issue of 200 million shares of Reach Resources Limited at an issue price of AUD 0.004 per share and grant to Tasex a royalty equal to 1% of the gross revenue from all minerals produced or sold from the Tenements. Reach and Tasex will enter into a royalty deed for this purpose.

An agreed voluntary escrow period of 6 months from the date ordinary shares in Reach Resources Limited are issued to Tasex or its nominee. Completion of the Acquisition is subject to the satisfaction or waiver conditions precedent, i.e., Reach Resources successfully completing Tranche 1 of the Placement, the TasEx executing a voluntary escrow deed with respect to the consideration shares for a period of 6 months from the date the consideration shares are issued to Tasex or its nominee and execution of a formal royalty agreement on the terms outlined. The Company has received firm commitments for AUD 2 million in new equity to fund both acquisitions, pay off all debt (non-cash via share issue), conduct exploration activities and provide additional working capital.