Hawthorn Resources : 2022 29 3 - Letter to shareholders with unmarketable parcels of shares

29 March 2022

ABN 44 009 157 439

Level 2, 90 William Street

Melbourne VIC 3000

Australia

P: [phone]

E:[e-mail]

W:www.hawthornresources.com

Dear Shareholder

Unmarketable Parcels Sale Facility - Notice of Divestiture

We are writing to advise you that Hawthorn Resources Limited ("the Company") (ASX:HAW) has established an unmarketable parcel sale facility (Facility) for shareholders who hold HAW shares on the ASX register with less than A$500 in value of fully paid ordinary shares in the Company (Unmarketable Parcel) as at 7.00pm (AEST) Friday 21 March 2022 (Record Date).

The Company is providing this Facility to require holders of Unmarketable Parcels to sell their shares. Holders of Unmarketable Parcels may opt out of the Facility as noted below. The Company is offering this sale to assist holders of Unmarketable Parcels to sell shares without having to use a broker or pay brokerage. The Company will pay for all the costs of the sale for shareholders who use this Facility, excluding tax consequences from the sale which remains the shareholder's responsibility.

The Company values all of its shareholders, however, it incurs significant administrative costs maintaining such a large number of Unmarketable Parcels. By facilitating this sale, the Company expects to reduce the administrative costs associated with maintaining a large number of very small holdings.

Our registry records show that you held an Unmarketable Parcel of less than 6,494 shares in the Company, based on closing price on ASX of shares of $0.077 per share on the Record Date.

If you hold Company shares in a CHESS Holding and they remain in a CHESS Holding after the Closing Date (as defined in the timetable below) the Company may, without further notice, remove those Company shares from the CHESS Holding to an Issuer Sponsored Holding for the purposes of divestment in accordance with this notice.

Shares to be sold under the Facility will be sold on ASX in the ordinary course of trading at the prevailing market price. The Company will pay all brokerage and handling costs of the sale for holders of Unmarketable Parcels under the Facility, excluding tax consequences from the sale, which remain the shareholder's responsibility. The sale price of each of your Company shares will be the average price of every share sold on ASX under the Facility.

All holders of an Unmarketable Parcel who are participating in the Facility will receive the same sale price per share and the payment for your holding will be the sale price multiplied by the number of your shares sold. As the sale price is an average, the proceeds that you receive may be more or less than the actual price received by the broker for the sale of your shares.

As the Company has determined that the preferred method of payment to shareholders is to be made via direct credit to their nominated bank account, please ensure your account details are up to date with the Company's share registry, Link Market Services Limited (Link Market Services). You can update your banking and personal details with Link Market Services by logging in to your holding on Link Market Services' Investor Centre athttps://investorcentre.linkmarketservices.com.au/Login/Login.Shareholders who do not update their payment details with the share registry will be subject to additional delay in receiving their payments.

Key Dates

A summary of key dates in relation to the Facility are as follows:

Unmarketable Parcels Record Date	7.00pm (AEST) Monday, 21 March 2022
Despatch of Letter to holders of Unmarketable Parcels	Tuesday, 29 March 2022
Closing Date for Receipts of Share Retention Form	5.00pm (AEST) Monday, 16 May 2022
Estimated Unmarketable Parcels payment date	As soon as practicable after Monday, 16 May 2022

The Company may modify these dates or suspend or terminate the Facility. Any modification, suspension or termination will be notified to shareholders by way of a market announcement on ASX.

What do you need to do if you wish to sell your Unmarketable Parcel?

You do not need to take any action. Your shares will be sold through the Facility after the Closing Date and the proceeds of the sale paid to you in accordance with the timetable above.

What do you need to do if you wish to retain your Unmarketable Parcel?

If you wish to retain your shares you must complete the attached Share Retention Form and ensure it is received by Link Market Services before the Closing Date, being 5.00pm (AEST) on Monday, 16 May 2022.

Alternatively, you may acquire additional shares so that the value of your shareholding is $500 (i.e. a Marketable Parcel) or more at the Closing Date. In this event, the Facility will not apply to any of your shares.

Important Notes

The Company is not licensed to provide financial product advice. The Company makes no recommendation as to whether you should participate in the Facility. You are encouraged to seek advice from your legal or financial adviser if you are unsure about what to do in response to this notice.

The market price of shares is subject to change from time to time. Up-to-date information on the price of Company shares is available on the ASX's websitewww.asx.com.au from time to time.

The attached Information Sheet provides further information about the Facility. If you have any further questions about the Facility, please contact the Hawthorn Resources Limited by email [e-mail] or phone Ella Harris on [phone] between 9.00am and 5:00pm (AEST) Monday to Friday. or visitwww.linkmarketservices.com.au.

Yours sincerely

Glenn Fowles Company SecretaryINFORMATION SHEET - UNMARKETABLE PARCEL SALE FACILITY

Why is the Company Implementing the Facility?

The Company welcomes the support of all shareholders, however, the administrative costs in producing and distributing shareholder communications and maintaining small holdings on the register through registry fees can be disproportionately high when compared with the dollar value of small holdings. Additionally, the Facility will assist holders with a small number of shares who would find it difficult or expensive to dispose of those shares through the normal means.

Does the Company have the authority to sell my shares?

Under ASX Listing Rule 15.13 and clause 12 of the Company's constitution, the Company has the right to sell Unmarketable Parcels, unless shareholders give notice to the Company before the Closing Date that they wish to retain their shares or acquire additional shares such that their holding at the Closing Date comprises a marketable parcel.

When will my shares be sold under the Facility?

The sale of shares under the Facility will be sold as soon as practicable after the Closing Date.

Can I purchase more shares, so my shares won't be sold?

If you increase your holding so that the value of your shareholding is $500 (ie, a Marketable Parcel) or more at the Closing Date, then the Company will not sell your shares under the Facility.

What if I hold multiple Unmarketable Parcels?

If you hold multiple holdings that, in isolation, are deemed to be Unmarketable Parcels, but when aggregated would constitute a Marketable Parcel, you can contact Link Market Services to have those holdings merged into one holding so that this is reflected on the register before the Closing Date. If you do not do this, each of your holdings will be treated as Unmarketable Parcels.

When and how will I receive sale proceeds

The proceeds from the sale of your shares will be remitted to you as soon as practicable after the completion of the Facility. The expected payment date is as soon as practicable after Monday, 16 May 2022. The payment will be made into the bank account nominated by you to Link Market Services. If you do not update your bank account details with the share registry you will be subject to additional delay in receiving your payment.

To update your bank details

• 1. Go to investorcentre.linkmarketservices.com.au

• 2. Login to your holding or create a Portfolio

• 3. Click the Payments & Tax tab

• 4. Select Payment Instructions and provide your bank account details.

• 5. You cannot use a United States bank account for payments in respect of the Unmarketable Parcel facility.

• 6. Payments will be withheld until your bank details are provided.

ABN 44 009 157 439

All Offer communications to: Hawthorn Resources Limited

Email:[e-mail]: [phone]

ASX Code: HAW

Company website: hawthornresources.com Registry website:www.linkmarketservices.com.au

IID:

SRN/HIN:

Number of Shares held as at the Record Date, 7:00pm (AEST) on 21 March 2022:

IMPORTANT NOTICE

Please return this slip if you do not wish your Shares in Hawthorn Resources Limited to be sold. If you do not understand this notice you should immediately consult your financial adviser.

SHARE RETENTION FORM

If you wish to retain your Shareholding in Hawthorn Resources Limited you must detach this slip and return it to Hawthorn Resources Limited's Registry, so that it is received no later than 5.00pm (AEST), on 16 May 2022. Slips may be mailed to the addresses below.

Mailing Address

Hawthorn Resources Limited C/- Link Market Services Limited Locked Bag A14

SYDNEY SOUTH NSW 1235

THIS FORM MUST BE RECEIVED BY LINK MARKET SERVICES LIMITED

BY NO LATER THAN 5.00PM (AEST) ON THE 16 MAY 2022

If you require further information regarding this form, please contact the Hawthorn Resources Limited on (3) 9605 5902 (within Australia) or [phone] (from outside Australia) between 9:00am and 5:00pm (AEST) Monday to Friday.

THIS IS A PERSONALISED FORM FOR THE SOLE USE OF THE SHAREHOLDER AND HOLDING RECORDED ABOVE.

Please detach

IID:

SRN/HIN:

ABN 44 009 157 439

*X99999999999*

RETENTION SLIP

I/We the Shareholder(s) described above by returning this retention slip, hereby give notice that I/we wish to retain my/our Shareholding in Hawthorn Resources Limited, pursuant to ASX Listing Rule 15.13 and clause 12 of the Company's Constitution.

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DO NOT SELL MY SHARES

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