Strategic Energy Resources : Partially Underwritten Non-Renounceable Entitlement Offer

12 April 2017 UNDERWRITTEN NON-RENOUNCEABLE ENTITLEMENT OFFER

Strategic Energy Resources Limited (ASX Code: SER) (Company) today launched a partially underwritten non-renounceable entitlement issue of 1 fully paid ordinary share (Share) for each 2 Shares held by eligible shareholders to raise approximately $2,100,000 (Entitlement Offer).

The proceeds of the Entitlement Offer will be used to fund the costs of the Entitlement Offer, exploration activities and the Company's on-going working capital requirements.

All new Shares will rank equally with existing Shares on the date of issue.

An Appendix 3B in relation to the Entitlement Offer and a notice under section 708AA(2)(f) of the Corporations Act 2001 (Cth) have been lodged with ASX Limited (ASX).

Key indicative dates*
Announcement of Offer	12 April 2017
Lodgement of cleansing notice, Offer Document and Appendix 3B with ASX	12 April 2017
Notice sent to shareholders	13 April 2017
Ex Date	18 April 2017
Record Date for determining entitlements	19 April 2017
Offer Document despatched to eligible shareholders and Company announces despatch has been completed	21 April 2017
Closing Date	5 May 2017
Securities quoted on a deferred settlement basis	8 May 2017
ASX notified of under subscriptions	10 May 2017
Issue date	12 May 2017

*The above timetable is indicative only and subject to change. Subject to the ASX Listing Rules, the directors of the Company reserve the right to vary these dates, including the Closing Date, without notice. The directors may extend the period of the Entitlement Offer or bring forward the Closing Date at their discretion.

Offer Document

Further details about the Entitlement Offer, including how shareholders may apply for their entitlement, will be set out in the Offer Document to be sent to eligible shareholders on 21 April 2017.

Underwriting Agreement

The offer is partially underwritten pursuant to an underwriting agreement with KSLcorp Pty Ltd to a minimum subscription level of $1,200,000 (100 million Shares). The underwriter's obligations to underwrite any shortfall under the offer is subject to terms and conditions which are customary for these type of agreements.

Eligible Shareholders

The eligible shareholders to whom the Entitlement Offer is being made are those shareholders who are:

1. registered as a holder of the Company's Shares as at the Record Date;

2. have a registered address in Australia or New Zealand;

3. not in the United States, are not a "U.S. person", as defined in Regulation S under the U.S. Securities Act of 1933 ("U.S. Person"), and are not acting for the account or benefit of any person in the United States or any 'US Person'; and

4. eligible under all applicable securities laws to receive an offer under the Entitlement Offer.

In addition to being able to apply for new shares under the Rights Issue, eligible shareholders will also have the ability to apply for additional new shares that are not subscribed for under the Rights Issue.

Shareholders with registered addresses outside Australia and New Zealand are considered ineligible shareholders (Ineligible Foreign Shareholders) and cannot participate in the Offer.

The Company has determined that it is not practicable for Ineligible Foreign Shareholders to participate in the Offer having regard to the number of Ineligible Foreign Shareholders, the number and value of New Shares they would be offered and the costs of complying with the regulatory requirements of those jurisdictions.

Further information

For further information please refer to the Offer Document, which has been despatched and is available on the Company's announcement platform on ASX or contact the Company on:

Telephone: [phone]

Facsimile: [phone]

Yours faithfully,

STUART RECHNER STRATEGIC ENERGY RESOURCES LIMITED

Director

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