Mr. Cameron McCall reports

RENOUNCEABLE RIGHTS ISSUE TO RAISE UP TO A$3.3M

Macarthur Minerals Ltd. intends to undertake a pro rata renounceable rights issue of one new share for every five ordinary shares held at the record date at an issue price of 10 Australian cents per new share. Additionally, for every two new shares issued, shareholders will receive one free attaching new option. Each new option is exercisable at 25 Australian cents per ordinary share and expires 18 months from the date of issue. This initiative aims to raise approximately $3.3-million (Australian).

The rights issue is open to all eligible shareholders with a registered address in Australia and New Zealand, who hold shares on the record date, Thursday, March 7, 2024.

Eligible shareholders will have the opportunity to apply for any shortfall in excess of their entitlement. Trading of rights will commence from March 8, 2024, with the rights issue scheduled to conclude on March 22, 2024, unless an extension is deemed necessary. Net proceeds generated from this undertaking will primarily be allocated toward exploration budgets of the Lake Giles iron project and working capital.

The rights issue is managed by lead manager Mahe Capital Pty. Ltd.

All directors who hold shares in the company are eligible to participate in the rights issue.

All new shares issued will rank equally with existing shares on issue on the record date and the company will apply for quotation of the new shares and new options. A prospectus in relation to the rights issue will be lodged with Australian Securities & Investments Commission on March 1, 2024. Along with a personalized entitlement acceptance form, it will be sent to eligible shareholders on March 8, 2024, when the offer is open to eligible shareholders. Eligible shareholders should carefully consider the prospectus and consult professional advisers as necessary in deciding whether to acquire securities under the rights issue. Instructions on the entitlement and acceptance form that will accompany the prospectus must be duly followed.

Indicative dates in respect to the capital raising are provided herein.

These dates are indicative only and the company's board reserves the right to modify all dates, including the rights issue closing date, subject to the Corporations Act and listing rules.

Executive chairman Cameron McCall commented:

"Our rights issue is a big step for Macarthur as we seek a partner or buyer for our world-class iron ore project. With a completed feasibility study and a strong asset base in place, our focus remains steadfast on delivering value for our shareholders. We're excited about the opportunities ahead and appreciate your participation and ongoing support."

About Macarthur Minerals Ltd.

Macarthur is an iron ore development, and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles iron project mineral resources include the Ularring hematite resource (approved for development) comprising indicated resources of 54.5 million tonnes at 47.2 per cent Fe and inferred resources of 26 million tonnes at 45.4 per cent Fe; and the Lake Giles magnetite resource of 53.9 million tonnes (measured), 218.7 million tonnes (indicated) and 997 million tonnes (inferred). The Lake Giles iron project also contains proven ore reserves of 51.9 Mt and probable ore reserves of 184.7 Mt. Macarthur also holds 24-square-kilometre tenement area iron exploration interests in the Pilbara region of Western Australia. In addition, Macarthur has lithium brine claims in the emerging Railroad Valley region in Nevada, United States. The mineral resource and ore reserve estimates presented herein have previously been released to the Australian Securities Exchange on March 21, 2022, including supporting JORC reporting tables. The company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of mineral resources and mineral reserves that all assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

We seek Safe Harbor.