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Exterra Resources Ltd attracts funds for Linden Gold and Moolyella Lithium

Exterra Resources Ltd (ASX:EXC) will raise $500,000 from investors to progress exploration at the Linden Gold project and the Moolyella Lithium Project.

Linden is located 220 kilometres from Kalgoorlie in Western Australia.

At Moolyella, a review of historical rock chip sampling in 2011/12 over an area of 2 square kilometres included the presence of lithium in a significant number of samples analysed.

The best results include the previously recorded sample of 1.82% lithium, 1.06% lithium and 0.63% lithium.

The company has also signed a new joint development agreement for the Second Fortune Gold Mine with PYBAR Mining Services Pty Ltd.

Funds were placed to new investors and existing shareholders at $0.021.

There is also a one for two attaching option exercisable at A$0.035 over a twelve month term.

John Davis, managing director, commented:

"We are very pleased with this successful placement and the support shown by existing and new shareholders to our register.

"This funding allows Exterra to continue exploration drilling at the Linden project at the exciting Golden Orb prospect, in parallel with the Pybar/Exterra joint development of the Second Fortune gold mine, and to commence ground activities on the Moolyella Lithium project in the Pilbara region of WA.

"These activities position Exterra to provide ongoing updates on a number of exploration and development initiatives as we move forward."

PYBAR Mining Services Pty Ltd agreement

Exterra has signed a binding term sheet with hard rock mining contractor PYBAR Mining Services Pty Ltd for the establishment of a joint, profit share based development of the Second Fortune Gold Mine.

Details include:

- PYBAR to provide all funding to develop the Second Fortune Gold Mine under a life of mine Mining Services Contract based initially on the Main Lode Probable Reserve of 56,300 ounces at 9.7 g/t gold.

- PYBAR will pay Exterra a Net Profits Interest (NPI) at a rate of 30% until PYBAR has recovered its peak cash drawdown and EXC will be paid at a rate of 55% thereafter.

- PYBAR will advance an initial $250,000 to Exterra as a pre-payment under the NPI no later than three months from Commencement, subject to the satisfaction of Conditions Precedent.

- Exterra to retain 100% of the exploration upside exposure outside of an agreed Mining Area around the Second Fortune Mine.

Davis added: "We look forward to welcoming PYBAR on board as partners.

"PYBAR are a well-respected underground mining contractor with projects throughout Australia, including at Red October and Deep South for Saracen Mineral Holdings."

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