TKL: Transfer of Musgrave Project

Traka Resources Limited ABN 63 103 323 173

18 December 2019

Company Announcements

ASX Limited

Level 4, 20 Bridge Street

Sydney NSW 2000

ASX

Shareholders

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Enquiries regarding this announcement and company business may be directed to:

Patrick Verbeek

Managing Director

Ground Floor

43 Ventnor Avenue

West Perth 6005

Western Australia

Tel: [phone]

Fax: [phone]

www.trakaresources.com.au

Investor Enquiries: [e-mail]

Transfer of Musgrave Project

Traka has agreed to the transfer of the exclusive rights to the company's Musgrave Project tenements to the neighbouring Oz Minerals Ltd (Oz) and Cassini Resources Ltd (Cassini) joint venture. Oz is close to completing a Pre-Feasibility Study on the Babel, Nebo and Succoth projects and is funding a regional exploration program to build critical mass in this area. Aligning Traka's interests with this momentum represents a logical means of securing a return, should any discoveries be made on the company's tenements, with no additional costs being incurred.

The terms of agreement have been entered into with Wirraway Metals & Mining Pty Ltd, a wholly owned subsidiary of Cassini and include a $250,000 cash payment as part reimbursement of costs to date and a 2% NSR (Net Smelter Royalty). All of Traka's 5 tenements (EL 69/3156 and 3157 plus ELA 69/2749, 3490 and 3569) are included in the transfer of the exclusive rights. The transfer of the tenements is subject to receipt of all regulatory approvals.

Patrick Verbeek

Managing Director

ASX Code: "TKL"