Magnis Resources : Final Reminder Notice to Listed Option Holders

MAGNIS RESOURCES LIMITED ABN 26 115 111 763 Suite 9.03, 88 Phillip Street, Sydney GPO Box 3908 Sydney NSW 2001 TEL [phone] FAX [phone] [e-mail] www.magnis.com.au

May 1, 2017

FINAL REMINDER NOTICE TO LISTED OPTION HOLDERS

LISTED OPTIONS (ASX:MNSO) TO ACQUIRE MAGNIS RESOURCES LIMITED (ASX:MNS) SHARES AT $0.09533 PER SHARE EXPIRE ON 31 MAY 2017

Further to the announcement to the ASX on 9 March 2017 and the written correspondence that was mailed to all registered holders of MNSO on the same date, this is a final general reminder notice to all holders of listed options (ASX:MNSO) (Options) in Magnis Resources Limited

("Company") that the Options will automatically expire at 5:00pm (AEST) on 31 May 2017 (Expiry Time). If you want to exercise your Option holding, it is absolutely critical that you comply with the requirements set out in the letter dated 9 March 2017.

A copy of the letter can be found on the Company website at www.magnis.com.au under News & Reports > Governance Announcements.

A generic copy of the Notice of Exercise of Optionsform ("Form") can also be found on the Home page of the Company website by clicking the Exercise Options heading. A signed copy of the Form is required to be completed and received by the Company.

Your Option holding may be exercised:

1. In whole or in part;

2. By correctly completing and returning to us the Form (a generic copy is attached at the bottom of this Final Reminder Notice);

3. Together with payment or confirmation thereof in accordance with the requirements of the Form;

4. On or before the Expiry Time.

   We repeat, if you do not correctly complete and return to us the Form, together with confirmation of payment, by 5:00pm (AEST) on 31 May 2017, your Option holding will lapse and all rights you held under the Options will automatically cease at that time.

   The available courses of action to you as a holder of these Options are:

5. Exercise the Options on or before 5:00pm (AEST) on 31 May 2017 as set above in points 1-4;

6. Sell your Options, but please note that quotation of the Options (ASX:MNSO) will cease at the close of trading on 25 May 2017; or

7. Do nothing (i.e. allow your Options to expire).

   We repeat, if you do not exercise or sell your options they will expire on 31 May 2017 and your right to subscribe for ordinary shares in Magnis Resources Limited at $0.09533 per share will lapse.

   Option holders must ensure that payment in cleared funds is received by us, either into our possession or into our bank account details of which are set out in the Form, no later than 5:00pm (AEST) on 31 May 2017.

   You should be aware that your own financial institution may implement earlier cut-off times with regard to electronic payment, and you should therefore take this into consideration when making payment.

   It is your responsibility to ensure that funds submitted through EFT are cleared by 5:00pm (AEST) on 31 May 2017. It is highly recommended payment is made at least 3 business days before the closing date and time.

   If your Form is completed incorrectly, or is in some way defective, the Directors of the Company reserve the right to reject the Form.

   The Directors of the Company thank you for your continued support.

   If you have any queries or questions in relation to the details of the options or the Company in general, you should contact the Company Secretary of Magnis Resources Limited or consult your stock broker or licensed professional financial advisor.

   Yours sincerely,

   Doug Richardson Company Secretary

   Magnis Resources Limited

   NOTICE OF EXERCISE OF OPTIONS

   THIS DOCUMENT IS IMPORTANT. IF YOU ARE IN DOUBT AS TO HOW TO DEAL WITH IT, PLEASE CONTACT YOUR STOCKBROKER OR LICENSED PROFESSIONAL ADVISOR.

   MAILING ADDRESS:

   GPO BOX 3908, SYDNEY NSW 2001

   REGISTERED ADDRESS: SUITE 9.03, 88 PHILLIP STREET,

   SYDNEY NSW 2000

   TEL [phone]

   FAX [phone]

   [e-mail]

   MAGNIS RESOURCES LIMITED

   ABN: 26 115 111 763

   HOLDER NAME: HOLDER ADDRESS: SECURITY REFERENCE NUMBER (SRN) or HOLDER IDENTIFICATION NUMBER (HIN):

   ASX CODE: MNSO NUMBER OF OPTIONS: AMOUNT PAYABLE: _

   NOTICE OF EXERCISE OF OPTIONS EXPIRING 31/05/2017 AT $0.09533 EACH (Conversion Ratio 1 for 1)

   I/We the above named being the registered holder of Options hereby exercise such Options to subscribe for:

   NUMBER OF NEW ORDINARY FULLY PAID SHARES AMOUNT ENCLOSED AT $0.09533 PER SHARE

   , , $ , , .

   I/We hereby authorise you to place my/our name(s) on the register of members in respect of the number of New Shares allotted to me/us, and I/we agree to accept such Shares subject to the Rules of the Constitution of the Company.

   My/Our contact details in case of enquiries are:

   NAME:

   TELEPHONE NUMBER:

   EMAIL ADDRESS:

   PAYMENT INFORMATION Method 1 : Electronic Funds Transfer (EFT)

   BSB: 082 057 Account No: 89524 6289

   Account Name: Magnis Resources Limited Name of Bank: National Australia Bank Limited

   Payment Reference: Your HIN or SRN Number International Transfers : SWIFT CODE: NATAAU3303M

   Applicants should be aware of their financial institution's cut-off time (the time payment must be made to be processed overnight) and ensure payment is processed by their financial institution on or before the day prior to the closing date of the offer. It is the Applicant's responsibility to ensure funds are submitted correctly and cleared in the Magnis Bank Account by the closing date and time. It is highly recommended payment is made at least 3 business days before the closing date and time.

   Method 2: Cheque/Money Order

   All cheques or Money Orders (expressed in Australian currency) are to be made payable to Magnis Resources Limited and crossed "Not Negotiable". Do NOT forward cash as receipts will not be issued. Sufficient cleared funds should be held in your account as your acceptance will be rejected if your cheque is dishonoured. Cheques or bank drafts drawn on overseas banks in Australia or any foreign currency will NOT be accepted. Any such cheques will be returned and the acceptance deemed to be invalid. It is highly recommended mailed cheques/money orders be mailed 5 business days before the closing date and time to allow the funds to be cleared in time.*

   SIGNATURE OF OPTIONHOLDER(S) -this MUST be signed

   Individual or Option Holder 1 Option Holder 2 Option Holder 3

   Signature Sole Director & Company Secretary Signature of Director/Company Secretary Director

   * Magnis willNOT take any responsibility for any funds that are not cleared by the Closing Date and Time which leads to the Options not being converted. OTHER IMPORTANT NOTES:

8. Options not exercised by the Expiry Date and time shall automatically lapse.

9. You may exercise either part of, or all of your Options holding. Please write in the number of Options that you wish to exercise. If you do not indicate the number of Options you wish to Exercise, the Company will exercise as many Options as your accompanying payment will pay for. The number of Options exercised however, will not exceed the number of Options that you hold.

10. If you wish to make payment via Method 1 - EFT, please use your unique SRN/HIN that appears on Page 1 of this document as the payment reference. Also check with your financial institution as to your daily maximum internet banking transfer limit. Another potential method of payment for large amounts of transfers is to go into your financial institution branch and directly organise a telegraphic transfer (fees are normally payable via this method).

11. Please enter your contact details and telephone number so we can contact you regarding your notice if required.

12. Instructions for signing

    Individual: Where the holding is in one name, the option holder must sign. Joint Holding: Where the holding is in more than one name, all of the option holders should sign.Power of Attorney: If you have already lodged the Power of Attorney with Magnis, please attach a certified photocopy of the Power of Attorney to this form when you return it.

    Companies: Where the company has a sole director who is also the sole company secretary, this form must be signed by that person. If the company (pursuant to section 204A of the Corporations Act 2001) does not have a company secretary, a sole director can sign alone. Otherwise this form must be signed by a director jointly with either another director or a company secretary. Please sign in the appropriate place to indicate the office held. Delete titles as applicable.

13. Magnis Resources Limited reserves the right to make amendments to this form where applicable.

14. Consequence of non-payment

    If a Notice of Exercise of Options form and the required payment are not received before the Expiry Date and Time, the Options will automatically lapse and no longer be available for exercise.

    How to Lodge the Notice of Exercise of Options form

    Email: [e-mail]

    Fax: [phone] Mail/Post: Attention: Company Secretary, MAGNIS RESOURCES LIMITED, GPO Box 3908, SYDNEY NSW 2001

    If you require information on how to complete this form, please contact the Company Secretary of Magnis Resources Limited on [phone] between 9:00am and 5:00pm (AEST) Monday to Friday.

    If you are unsure as to whether or not to participate in the Exercise of Options, please consult your stockbroker, investment, financial, taxation or other professional