Alligator Energy (ASX: AGE, 'Alligator' or 'the Company') and unlisted public company Samphire Uranium Ltd (Samphire) have signed a Binding Terms Sheet for the purchase by Alligator of Samphire's subsidiary, S Uranium Pty Ltd (SUPL).

SUPL owns the following key uranium resource and exploration assets (Samphire Project): Blackbush Inferred Mineral Resource Estimate (JORC 2012) comprising 64.5 million tonnes at a grade of 230ppm eU3O8 containing 14,850 t (32.7 mill lbs) U3O8 at a 100ppm cut-off grade 1; Plumbush Inferred Mineral Resource Estimate (stated in compliance with JORC 2004) of 21.8 million tonnes at grade of 292ppm eU3O8, containing 6,300t (13.9Mlbs) of mineralisation at a 100ppm eU3O8 cut-off grade 2; Exploration Target - Host geology and anomalism extend beyond the current known mineralisation envelope with uranium intercepts obtained in drill holes up to 3km distant. A conceptual Exploration Target of 2030Mt of sediment hosted mineralisation at 250 to 350ppm has been estimated.

In consideration for the acquisition of SUPL, Alligator will issue 679,561,608 AGE shares to Samphire who plan to immediately in-specie distribute the AGE shares to its shareholders. Samphire has share capital of 226,520,536 ordinary shares, hence each Samphire shareholder will receive three AGE shares for every Samphire share they hold. Upon successful completion of the transaction (subject to certain conditions precedent, including regulatory and both Company's shareholders approvals) the current 1,650 Samphire shareholders will collectively hold 32% of the expanded capital structure of AGE. Alligator has used onmarket valuations of similar status uranium resource projects to inform the consideration agreed to acquire the Samphire Project.

The Directors of Samphire have advised that, upon completion of the in-specie distribution, they intend to wind up the company.

Samphire Uranium Ltd

In late 2007, UraniumSA (ASX: USA) discovered uranium mineralisation within the shallow Kanaka Beds of the Pirie Basin at Samphire, at a location approximately 20 kilometres southwest of Whyalla within the South Australian Gawler Craton. Over several years two uranium deposits were identified, Blackbush and Plumbush, with multiple other uranium targets established.

Work completed on the licences to date included extensive drilling within excess of 700 drill holes primarily focused around the Blackbush deposit leading to its JORC2012 resource classification and the Plumbush mineral occurrence leading to its JORC2004 resource classification. The majority of drilling has been conducted through mixed rotary mud, RAB and aircore methods and some limited diamond core holes at Blackbush. The distribution of historical drilling away from these known mineral occurrences is modest and will allow for ongoing exploration in potentially extending the known resources and continued testing of additional prospects.

Detailed geophysics have been carried out over the licences with high resolution gravity, EM and magnetics already completed forming an excellent framework for future and ongoing exploration. After successful completion of the proposed transaction, Alligator will review in detail the resource and exploration work undertaken to date,and will plan its initial steps in expanding the mineralisation through work on the Exploration Target in particular.

The Blackbush and Plumbush deposits are interpreted to share the same geological setting, similar in mineralisation style, stratigraphy, depositional setting and geological structure. Uranium mineralisation is hosted by sub-horizontal sedimentary units comprising sand, minor lignites, clays and gravels, and in the Blackbush deposit partially along remnant structures within clay weathered Hiltaba Suite granite basement. Epithermal alteration is present within the granite and underlying the sediment-hosted mineralisation in the Blackbush deposit, and similar alteration is anticipated in the Plumbush deposit.

Uranium mineralisation is currently interpreted to occur in several styles such as roll front, within clay weathered granite, and narrow veinlets within the basement granites. On both a local and regional scale, mineralisation appears to have a strong relationship with underlying structures.

The current Plumbush resource2 will require some additional work, including resource drilling, core drilling for metallurgical sampling, additional geological interpretation work and estimated economic evaluation to determine whether it can be upgraded to a JORC 2012 resource. Once the transaction is completed Alligator will plan and determine timing for the initial work required for this.

Following approval by UraniumSA Limited shareholders at an Extraordinary General Meeting held on 22 June 2016 the Samphire Uranium Project Assets are now wholly owned by Samphire. Samphire is currently an unlisted public company with an issued share capital of 226,520,536 fully paid ordinary shares and 1,650 shareholders.

Binding Terms Sheet

The parties have signed a Binding Terms Sheet for the transaction and have agreed to use their best endeavours to negotiate in good faith to enter into a Share Purchase Agreement for all of the shares in SUPL that is in a fuller form but consistent with the Terms Sheet by no later than 30 June 2020. SUPL holds the Samphire project which comprises interests in Exploration Licences 5926, 6350 and 5804, all mining information generated from activities on the said Exploration Licences, all authorities and approvals in and relating to the said Exploration Licences and all associated joint venture or farmin arrangements.

In consideration for the acquisition of SUPL, Alligator plans to issue (subject to shareholder approval) 679,561,608 AGE shares valued at $0.006 per share to Samphire who plan to immediately in-specie distribute the AGE shares to its shareholders. Samphire has share capital of 226,520,536 ordinary shares, hence each Samphire shareholder will receive three AGE shares for every Samphire share they hold.

Upon successful completion of the transaction (subject to certain conditions precedent, including regulatory and both Company's shareholders approvals) the current 1,650 Samphire shareholders will collectively hold 32% of the expanded capital structure of AGE. The 679,561,608 AGE shares to be issued represents 47.2% of the current issued share capital of AGE. The largest current shareholder of Samphire is expected to hold approximately 5.7% of AGE immediately following the completion of the in-specie distribution. Alligator has used on-market valuations of similar status uranium resource projects to inform the consideration agreed to acquire the Samphire Project.

The Directors of Samphire have advised that, upon completion of the in-specie distribution, they intend to wind up the company.

Contact:

Mr Greg Hall

Email: gh@alligatorenergy.com.au

About Alligator Energy

Alligator Energy Ltd (Alligator or the Company) is an Australian, ASX-listed, exploration company focused on uranium and energy related minerals, principally cobalt-nickel. Alligator's Directors have significant experience in the exploration, development and operations of both uranium and nickel projects (both laterites and sulphides)

Uranium

The Company is primarily exploring for uranium in West Arnhem, utilising modern exploration techniques, combined with the best geological knowledge acquired by Alligator and consultant geologists, in search for uranium deposits of similar mineralisation style and tenure to that of the world class Alligator Rivers Uranium deposits of Jabiluka and Ranger, concealed beneath the covering sandstone. The company's Tin Camp Creek and Beatrice tenements form the exploration focus but the Company also assesses other opportunities as they arise.

The Company is researching and developing novel uranium decay isotope geochemical techniques and has modified and is applying airborne geophysical techniques with the objective of detecting such concealed targets. The previously drilled Caramal and Beatrice deposits represent eroded remnants of once much larger deposits. The Company also has in excess of 1000km2 of Exploration Licence applications awaiting grant within the Alligator Rivers Uranium Province.

Alligator also has exploration ground in South Australia (SA) having entered into a binding Heads of Agreement to obtain up to 100% of the BLU project. This project represents an exploration opportunity for ISR shallow sandstone hosted style deposits in the Cooper Basin of SA, similar to those of the Beverley, Four Mile and Honeymoon resources of the Frome basin in SA.

Cobalt- Nickel

Alligator signed a binding Heads of Agreement with Chris Reindler and Partners (CRP) in January 2018 to earn up to 70% interest in the Piedmont sulphide cobalt - nickel project in Northern Italy. The project covers four titles containing ultramafic-hosted cobalt-nickel sulphide deposits that were mined between the 1860's and the end of World War II. Sulphides in pipe-like intrusive bodies and massive sulphide accumulations at the base of large, layered ultramafic intrusions were mined. The cobalt to nickel ratio was high in these deposits. Airborne surveys obtained by CRP have defined a number of conductors potentially indicative of massive sulphides as well as a number of magnetic features which may represent the responses from intrusive bodies hosting disseminated sulphides. These represent very attractive targets in an area with clear cobalt-nickel pedigree untouched by modern exploration techniques.

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