Cleveland Mining : M and K Announcement and Letter

Asx RELEASE 1 9•• JUNE 2011 www .clevelandmining.com .au

Macpherson Kelley Letter to Shareholders

During the week ending Friday 16th of June, 2017, the Board of Directors of Cleveland Mining Company Ltd ("Cleveland") (ASX: CDG) granted permission for Macpherson Kelley Lawyers (M & K) to access the Company's share register for the purpose of sending the attached letter to current and former Shareholders.

The letter from M & K includes the summary:

"For the past three years, we have been investigating the conduct of Macquarie Equities Limited and/or Macquarie Group Ltd (together Macquarie) on behalf of a small group of former clients of Macquarie (whom we still act for).

Conduct which we have uncovered suggests that those clients may have a claim against Macquarie for losses arising from advice provided by Macquarie advisors......"

Whist the investigation by M & K has been initiated, funded and conducted independently from Cleveland, after assessment of information provided by M & K to the Directors of Cleveland, the Directors are supportive of the action proposed by M & K and believe that it is in the best interest of both current and previous shareholders to be made aware of M & K's investigation and course of action.

The allegations have also been separately investigated by Journalists from Fairfax Media over a lengthy period. This investigation was also not initiated or undertaken at the request of Cleveland, though where possible Cleveland Directors have provided information and answered questions put to the Company, as it has with M & K. There is an expectation that Fairfax will soon go to print with the findings of their investigation.

Corporate Information Total shares: 338.4 million

Options on issue: 22.8 million ASX Code:COG

Contact

Investor & Media Enquir es [e-mail]

Boardof Directors

Alex Sundich - Non-Execut ve Chairman David Mendelawitz - Managing Director Rick Stroud - Non-Executive Director GlennSimpson - Non-Executive Director

Head Office

Suite 1.,41Walters Dr ve Osborne Park WA 6011 T: [phone]

F: [phone]

W: www.clevelandmining.com.au

Asx RELEASE 1 9'" JUNE 2011 www.clevelandmini ng.com.au

The information provided by both M & K and Fairfax to Cleveland has resulted in the Directors of Cleveland bringing this matter to the attention of both the ASX and ASIC. The Company does not know whether any formal investigations by either group have been commenced.

Cleveland's Managing Director David Mendelawitz commented "Whilst the Directors have long held the belief that the actions and trading patterns of Cleveland Mining shares by a few individuals in 2011 and 2012 resulted in the Company witnessing an unsustainable rise in the share price, which eventually led to the inevitable crash of the share price and loss of share market sentiment, we have not been in either the position or mindset to investigate. Whist we have been aware of the 2 separate investigations undertaken by M & K and Fairfax, and have assisted where possible by remaining open and transparent to these investigations, our focus has been on looking forward and working with what we have, rather than utilising the Company's limited resources to look back and seek to blame others for the situation that the Company has found itself in since the dramatic collapse of the share price in 2012. This said, given the substantial body of evidence provided to Cleveland by the 2 investigations , including the analysis of over 16,000 individual trades cross correlated to nominee accounts and the interviews of dozens of people, including expert witnesses, Cleveland now believes that further action may be warranted, which may lead to a claim for compensation by some Shareholder groups."

Whilst the Company is limited in what it can provide to Shareholders at this stage, it is available to assist Shareholder inquiries in any way that it can. Please be aware that the Company has limited capacity to deal with phone and email inquiry, and whilst we will endeavour to respond to all such inquiries, it is likely that responses may be delayed due to the large amount of effected parties who may request assistance.

ENDS

Corporate Information Totalshares: 338.4 million

Contact

Investor & Media Enquiries

Boardof Directors

Alex Sundich - Non-Executive Chairman

Head Office

Suite 1,, 41Wa lters Drive Osborne Park WA 6017

Asx RELEASE 1 9"JUNE 2011 www.clevelandmining.com.au

Further Information: Investors:

David Mendelawitz, Managing Director Cleveland Mining Company Limited (ASX: CDG)

Email: info@cleveland mining.com.au Tel:[phone]

Forward-looking Statements

Forward-looking statements can be identified by the use of terminology such as 'intend', 'aim', 'project ', 'anticipate', 'estimate', 'plan', 'believe', 'expect','may', 'should','will 'continue' or similar words. These statements discuss future expectations concerningthe results of operations or financial condition,or provide other forward looking statements. They are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control,and which may cause actual results to differ materially from those expressed in the statements contained in this ASX update. Readers are cautioned not to put undue reliance on forward looking statements

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information reviewed by David Mendelawitz, who is a Fellow of the AuslMM. Mr Mendelawitz has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves'. Mr Mendelawitz consents to the inclusion of the matters based on his information in the form and context in which it appears. Mr Mendelawitz is employed by Cleveland Mining Company Ltd.

Corporate Information Totalshares: 338.4 million

Contact

Investor & Media Enquiries

Board of Directors

Alex Sundich - Non-Executive Chairman

Head Office

Suite 1,.41Wa lters Drive Osborne Park WA 6017

V CTORIA I NEW SOUTH WALES I QUEENSLAND

m+k

macpherson kelley

15 June 2017 M&K Lawyers Group Pty ltd

ACN 122 450 337

Melbourne Level 22

114 William Street

Melbourne VIC 3000

GPO Box 1666

Melbourne VIC 3000

DX 174 Melbourne

Tel+ 613 8615 9900

Fax+ 61 3 8615 9999

Dandenong

Tel + 613 9794 2600

info@mk .com.au

Dear Sir/Madam,

CLEVELAND MINING COMPANY LTD

mk.com.au

We understand that you are currently or have in the past been a shareholder in Cleveland Mining Company Limited (COG).

You may have received multiple copies of this letter. This is because you may have held shares in CDG through different legal entities (e.g. through a self managed super fund, and in your personal capacity); or you have held some shares in your name and some shares jointly with another. We have therefore written to each entity in recognition of their individual shareholding.

SUMMARY

For the past three years, we have been investigating the conduct of Macquarie Equities Limited and/or Macquarie Group Ltd (together Macquarie) on behalf of a small group of former clients of Macquarie (whom we still act for).

Conduct which we have uncovered suggests that those clients may have a claim against Macquarie for losses arising from advice provided by Macquarie advisors.

Of particular interest is conduct relating to trades in CDG.

We invite you to contact us to discuss a potential claim if you fall into one of the following categories:

1. you purchased or held shares in CDG on or after 1 January 2011 and you used Macquarie as your stockbroker and/or advisor. We may be able to make a complaint against Macquarie on your behalf with no further cost to you (including legal costs) because Macquarie has established a process whereby they offer up to $5,500 inclusive of GST towards legal costs; or

2. you purchased or held shares in CDG on or after 1 January 2011 and you did not have Macquarie as your stockbroker and/or advisor. This type of claim is more complicated as there may not be a direct contractual or legal relationship between you and Macquarie. coNFIDENr1AuTY

This message together with any attachment 1s intended for the use of the person towhom it is addressed and contains informat ion that i5 privileged and confidential. If you are not the intended recipient, or the employee or agent responsible for its delivery to the intended recipient, you are hereby notified that any dissemination, distribution or copying of it is strictly prohibited. Please notify us if you have received it in error, and other11/iSe take all necessary steps to delete it from any transient or permanent storage device or medium

We have obtained approval from CDG to contact you regarding a potential claim in accordance with section 177(1A) of the Corporations Act 2001 (Cth) and more generally. CDG has released your details to us so that we could inform you of the concerns and potential claims.

In doing so, we wish to make it absolutely clear that:

1. our actions to date are on behalf of our clients only;

2. we have their permission to write to you; and

3. this is not a claim against CDG or its board and/or management.

Macquarie clients

We currently act for several shareholders of CDG who were severely impacted when its share price collapsed in 2013.

Those clie.nts were introduced to CDG by Macquarie and/or Macquarie acted as their stockbroker/advisor. They raised complaints about the conduct of Macquarie in making buy recommendations and representations about the share price increasing to over $1.

Following those complaints, we commenced inquiries into certain share trading in CDG and into the relationships between Macquarie and CDG. Of particular interest was conduct engaged in by brokers employed by Macquarie. As a result of those inquiries, it is likely that clients of Macquarie who were encouraged and/or recommended to trade in CDG may well have claims against Macquarie in relation to that trading. In particular, our clients allege that conduct undertaken by Macquarie may have led to, among other things:

1. buy recommendations being made where conflicting or contrary information was known to brokers;

2. trading designed to increase the share price of CDG;

3. brokers receiving remuneration for transactional matters that was not disclosed to clients;

4. brokers' interests being in conflict with the interests of their clients including by contrary trading on private related party accounts; and

5. brokers failing to comply with directions provided to them by their clients.

If this proves to be the case, clients of Macquarie who purchased shares in CDG may have a claim for compensation in relation to the trading. This is the case if you purchased or held shares in CDG since 1 January 2011, whether or not you still hold those shares.

How we can help you

If you have any queries about the matters raised in this letter or are concerned about your trading in COG through Macquarie we invite you to contact us. Our contact details are set out below.

We can consider your circumstances and provide advice as to whether you have good grounds for making a claim.

As mentioned above, it may be possible to make a claim against Macquarie at no further cost to you. This is because Macquarie has established a scheme whereby if you make an application for a review of the advice it provided before the end of July 2017, Macquarie may make a contribution of up to $5,500 (inclusive of GST) towards legal costs. We can discuss this in more detail with you in due course.

Non-Macquarie clients

In relation to those investors in COG who were not clients of Macquarie, we would need to investigate your specific circumstances before being able to confirm the basis of a claim. For example, we would need to know:

1. how you were introduced to the COG stock (e.g. by a different broker, another investor, posts on Hot Copper);

2. what, if any, information did you have regarding the prospects of COG; and

3. what research, if any, you undertook in relation to COG and its prospects.

The evidence we have collated regarding Macquarie's conduct will still be relevant to your potential claim. However, the potential causes of action will differ to those available to clients or ex-clients of Macquarie. It is a more complicated claim because there is potentially no direct contractual or direct relationship of trust (fiduciary) between you and Macquarie.

In terms of costs, we are currently exploring funding options in order to keep any contribution by non-Macquarie clients to a minimum. We can discuss those options with you in more detail.

NEXT STEPS

If you would like to engage us to assist with a review of your investments in COG now, we propose the following course of action:

1. Respond to this letter via email to [e-mail] expressing your interest in proceeding;

2. We will then arrange a telephone conference with you to obtain details about any relationship with Macquarie and your investments in COG; and

3. If we consider that your circumstances give rise to a possible claim, we would then provide advice regarding the appropriate next steps.

If you have any queries, please contact Vicky Keller on [phone]. We look forward to hearing from you.

Yours faithfully

Macpherson Kelley

VICKY KELLER

Principal

Macpherson Kelley

ALEXANDRA DODDRIDGE

Lawyer

TEL: [phone]

FAX: [phone]

[e-mail] .au

TEL: [phone]

FAX: [phone]

Alexandra .Doddridge@mk .com.au