Finders Resources : Confirmation of Release - Eastern Field Developments Proposed Takeover

For ASX Market Release: 6 October 2017

Proposed Takeover Offer - TAKE NO ACTION

Finders Resources Limited (ASX: FND) ("Finders" or "the Company"), has this morning received a letter from Eastern Field Developments Limited, a special purpose vehicle jointly owned by Procap Partners Limited, PT Saratoga Investama Sedaya Tbk (IDX: SRTG) and PT Merdeka Copper Gold Tbk (IDX: MDKA) (together, "the Consortium"), stating the Consortium's intention to make an off-market takeover offer for all of the shares in Finders ("Proposed Offer"). The Proposed Offer is unsolicited.

The Proposed Offer is at a price of 23 cents cash per Finders share, and is subject to a number of conditions. The offer letter is attached to this announcement. The offer letter states that a bidder's statement will be sent to Finders shareholders in due course.

The Finders directors will consider the terms of the Proposed Offer, and the content of the bidder's statement (when received) and will advise Finders shareholders of their recommendation in due course.

In the meantime, Finders shareholders are advised to TAKE NO ACTION in relation to the Proposed Offer and any correspondence received in relation to it.

-ends-

Contacts: Mr Gary Comb

Non-Executive Chairman

Mr Barry Cahill Managing Director Mr Wayne Apted

Chief Financial Officer

Phil Retter Investor Relations NWR Communications

[e-mail]

T: [phone]

Perth Office:

25 Colin Street West Perth WA 6005 T: [phone]

F: [phone]

E: [e-mail]

ASX Code: FND

www.findersresources.com

EASTERN FIELD DEVELOPMENTS LIMITED

(BVI Co No 1955552)

(a company jointly owned by Procap Partners Limited, PT Saratoga Investama Sedaya Tbk. and PT Merdeka Copper Gold Tbk.)

6 October 2017

For Immediate Release

Takeover Offer to be made for Finders Resources Limited

Eastern Field Developments Limited (Eastern Field), a special purpose vehicle jointly owned by Procap Partners Limited (Provident), PT Saratoga Investama Sedaya Tbk (IDX: SRTG) (Saratoga) and PT Merdeka Copper Gold Tbk (IDX: MDKA) (Merdeka) (together the Consortium), is pleased to announce its intention to make an off-market takeover offer to acquire all the shares of ASX-listed Indonesian copper producer Finders Resources Limited (ASX: FND) (Finders) (the Offer).

Offer Background

Provident, via a related entity Provident Minerals, has been a Finders shareholder since 2012 and an active supporter of Finders, including providing assistance to Finders in connection with successful achievement of Indonesian regulatory approvals. Provident also assisted Finders by introducing leading Indonesian investment company Saratoga as another supportive, high-quality Indonesian shareholder to Finders in 2013.

Provident has now invited Saratoga and Indonesian copper-gold producer Merdeka to form Eastern Field and become members of a Consortium making a Takeover Offer for Finders.

The Consortium Members and Eastern Field currently have a relevant interest of approximately 19.8% in Finders. This represents the largest relevant interest in Finders Shares.

Offer Terms

Under the Offer, Finders shareholders will receive attractive all cash consideration of A$0.23 for every Finders Share they own.

The Offer is subject to Eastern Field obtaining a relevant interest in more than 50% of Finders Shares, FIRB approval and other limited customary conditions as set out in the Schedule.

Benefits for Finders Shareholders

The Offer will deliver Finders shareholders a price which is significantly above Finders' 3 month volume weight average price of approximately A$0.21 and Finders' most recent equity raising price of A$0.12 as completed in November 2016.

In addition the Offer price exceeds the recently disclosed average sale prices by Finders' former substantial shareholders, Resource Capital Funds1, a leading global resources investor, and Australian institution Acorn Capital2.

1 Resource Capital Funds reported on 6 September 2017 it ceased being a substantial shareholder in Finders after selling 50,000,000 Finders Shares (approximately 6.6% of Finders Shares on issue) at an average sale price of A$0.2286 per share.

2 Acorn Capital reported on 17 February 2017 it reduced its substantial shareholding in Finders by selling 8,988,215 Finders Shares (approximately 1.2% of Finders Shares on issue) at an average sale price of A$0.1772 per share and that it retained 54,516,474 Finders Shares (approximately 7.2% of Finders Shares on issue). Acorn Capital subsequently advised on 24 July 2017 it had sold Finders Shares on-market and ceased being a substantial shareholder in Finders.

Commentary from Eastern Field

Eastern Field director David Fowler said:

"Provident and Saratoga have determined their existing interest in Finders is too small in the context of their collective portfolios. This Offer enables them to materially increase their shareholding in Finders.

The Offer also provides Finders shareholders with the opportunity to lock in certain all cash value while removing the Indonesian operational and regulatory risks associated with Finders' Wetar project."

Eastern Field director David Fowler went on to comment:

"In the event the Offer is unsuccessful then Provident and Saratoga will review their Finders' interest and may divest all their Finders Shares and withdraw their involvement in Finders."

Next Steps and Timetable

Eastern Field expects that its Bidder's Statement, which will contain further information about the Offer, will be sent to Finders shareholders in due course.

Advisors

Argonaut is acting as Financial Adviser and Iffla Wade is acting as Legal Adviser.

Further Information

For further details on this announcement, please contact: Andrew Rowell or Peter Klinger

Cannings Purple

Ph [phone] or [phone]

E [e-mail] or [e-mail]

Background Information on the Consortium Provident Group: The Provident Group, which incorporates Provident and Provident Minerals, was established in 2004 and has invested in a wide range of investments in Indonesia including; telecommunications, agriculture, mining, oil & gas and real estate. The Provident Group has successfully founded three prominent IDX listed companies including Merdeka in which it retains a significant shareholding. Saratoga: An Indonesian investment company with two decades of active investment experience in Indonesia. Saratoga was listed on the IDX in 2013 (IDX: SRTG) and at the date of this announcement has a market capitalisation of approximately US$650 million and a Net Asset Value of US$1.6 billion as at 31 August 2017. Further information on Saratoga can be found at www.saratoga-investama.com Merdeka: An Indonesian listed mining company (IDX: MDKA) operating and developing the Tujuh Bukit project, located 200km south-east of Surabaya in Indonesia. At the time of this announcement, Merdeka has a market capitalisation of approximately US$620 million. Further information on Merdeka can be found at www.merdekacoppergold.com Schedule - Conditions

The Offer is subject to fulfilment of the following conditions:

1. FIRB approval

   That before the expiration of the Offer Period, the Treasurer of the Commonwealth of Australia provides written advice (on terms acceptable to Eastern Field Developments) that the Commonwealth Government does not object to the transfer of the Finders Shares under the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) or due to the passage of time becomes precluded from making an order in relation to the transfer of the Finders Shares under the FATA (FIRB Approval).

2. Minimum acceptance

   That before the expiration of the Offer Period, Eastern Field has received valid acceptances so that Eastern Field has a relevant interest in more than 50% of the Finders Shares at or before the end of the Offer Period.

3. No regulatory action

   Between the date of this Announcement and the end of the Offer Period:

4. no preliminary or final decision, order or direction is made or issued by any Regulatory Authority;

5. no action, proceeding or investigation is announced, commenced or threatened by any Regulatory Authority; and

6. no application is made to any Regulatory Authority (other than by Eastern Field or any associate of Eastern Field),

7. which is likely to or purports or threatens to restrain, prohibit, impede or otherwise adversely affect the making of the Offer, the acquisition of Finders Shares by Eastern Field, the rights of Eastern Field in respect of the Finders or Finders Shares (other than any action or decision by or application to ASIC or the Takeovers Panel in exercise of the powers or discretions conferred by the Corporations Act).

8. No Target Prescribed Occurrences

   Between the date of this Announcement and the end of the Offer Period, there is no occurrence of a Target Prescribed Occurrence.

9. No Material Adverse Change

   Save as publicly announced to the ASX prior to the date of this Announcement, between 1 January 2017 and the end of the Offer Period, there is no occurrence of any Material Adverse Change.

10. Third party consents

11. If Finders, or a subsidiary of Finders, is a party to, is bound by, or is subject to, an agreement, arrangement or understanding which as a result of or in connection to the acquisition of Finders Shares under the Offer entitles another person to exercise any rights (including termination rights or pre-emptive rights).