Indus Energy NL : IMD Gold Transaction Update

STREET ADDRESS

Unit 17, Level 2

100 Railway Road Subiaco, Western Australia 6008

POSTAL ADDRESS

PO Box 8129

Subiaco East 6008

CONTACT DETAILS Tel: [phone] Fax: [phone]

[e-mail] www.indusenergy.com.au

BOARD & MANAGEMENT Mr John (Gus) Simpson

Non-Executive Chairman

Mr Jonathan Whyte

Non-Executive Director & Company Secretary

Mr Rhys Bradley

Non-Executive Director

Mr Ken Bull

Chief Operating Officer

ABN

22 009 171 046

ASX CODE

IND

20 February 2017

Companies Announcement Office Via Electronic Lodgement

IMD GOLD TRANSACTION UPDATE

On 24 August 2016, Indus Energy NL (Indus or Company) and IMD Gold Limited (IMD Gold) entered into an Option Agreement (Option Agreement) which contemplated Indus acquiring 100% of the issued capital of IMD Gold, who were in the process of securing a portfolio of gold assets in Western Australia.

Following the completion of due diligence , Indus and IMD Gold have been unable to satisfy some of the key conditions precedent required to enter into a binding sale and purchase agreement to progress the transaction. At the time of this announcement, IMD Gold has not been able to complete the acquisition of the Battler, British Hill and Parker Dome projects in Western Australia nor, to the satisfaction of Indus, demonstrate sufficient certainty around the prospect of obtaining a binding right to acquire the Marda project in Western Australia.

Based on the above, both Indus and IMD Gold have agreed to terminate the Option Agreement effective immediately.

While disappointed with this result, Indus has commenced review of several other attractive acquisition opportunities and is committed to securing a project that will see the Company recommence trading and provide value to shareholders in 2017.

For further information please call our office on [phone].

Yours Sincerely

John (Gus) Simpson

Non-Executive Chairman

www.indusenergy.com.au