FORRESTANIA RAISES $8.6M IN PREMIUM-PRICED PLACEMENT

Strong institutional support backs gold exploration at Forrestania and Bonnie Vale

Forrestania Resources Limited (ASX:FRS) has secured firm commitments to raise $8.61 million through a placement of 42 million shares at $0.205 per share — a 21.7% premium to the 10-day volume weighted average price (VWAP) of $0.168 as at 26 August 2025.

The placement, managed by Bell Potter, also represents a 22.5% premium to the 5-day VWAP of $0.167. This reflects strong support from both new institutional and sophisticated investors, as well as several existing shareholders.

Proceeds from the raise will be allocated across several key gold projects and corporate activities. The largest share of funds — $5 million — will go towards the acquisition of Hyden and North Iron Cap, as well as capital raising costs. Other allocations include:

$1.325 million for 15,000m of drilling and metallurgical testwork at the Hyden Tenure
$1.2 million for upgrading resources at British Hill to measured status
$585,000 for additional drilling and testwork at Lady Lila
$500,000 for further work at Bonnievale

These funds are expected to strengthen Forrestania’s balance sheet and support ongoing resource refinement and expansion initiatives.

Forrestania Resources’ Chairman David Geraghty commented:

We are very pleased to have received commitments for this raising at a premium to the recent share price. The support from existing shareholders and the introduction to Bell Potter is a strong endorsement of the Company’s gold projects at Forrestania and Bonnie Vale. Funds from the placement will ensure we are well funded to undertake further gold exploration programmes at those project areas.