Target Market Determination August 2022

Lowell Resources Fund (ASX: LRT) TARGET MARKET DETERMINATION MADE BY:

Cremorne Capital Limited [ACN 006 844 588] [AFSL 241175] as responsible entity for Lowell Resources Fund [ARSN 093 363 896] of 8 Chapel Street, Cremorne, VIC 3121 (LRT or the Fund).

PRODUCT:

Fully paid ordinary units in the Fund (Units) and free-attaching unquoted options (Options) to acquire Units that are to be issued on the basis of one Option for every one Unit subscribed for under the Product Disclosure Statement dated 5 August 2022 (PDS).

EFFECTIVE DATE:

5 August 2022

This target market determination (TMD) has been prepared by the Fund in relation to the pro-rata offer of Units and Options to be made by the Fund to existing unitholders under the PDS (Offer). The PDS was lodged with Australian Securities and Investments Commission (ASIC) on 5 August 2022 and was released to ASX on that date. An electronic version of the PDS is available in the ASX announcements of LRT (https://www2.asx.com.au/markets/company/lrt).

The Offer will be made under, or accompanied by, a copy of the PDS. Any recipient of this TMD should carefully read and consider the PDS in full and consult their professional adviser if they have any questions regarding the contents of the PDS. Any recipient of this TMD who wants to acquire Units and free attaching Options under the Offer will need to complete an application form that will be in, or will accompany, the PDS. There is no cooling off period in respect of the issue of the Units and Options. This TMD is not a disclosure document for the purposes of the Corporations Act 2001 (Cth), and therefore has not been lodged, and does not require lodgement, with ASIC. This TMD does not take into account what you currently have, or what you want and need, for your financial future. It is important for you to consider these matters and read the PDS before you make an investment decision. The Fund is not licensed to provide financial product advice in relation to the Units or Options.

This TMD is not to be treated as a full summary of the product terms and conditions and is not intended to provide financial advice. Investors should refer to the PDS for the terms and conditions of the product and when making a decision in respect of the product.

Target market The Offer is proposed to be made to existing unitholders with an address in the register of unitholders of the Fund on the record date in Australia or New Zealand. Eligible existing unitholders who accept their one for three entitlement in full will be able to apply for additional Units and Options from the shortfall in acceptances (if any). Other investors may be invited to apply for Units and Options if there is a shortfall in acceptances and applications for additional Units and Options by eligible existing unitholders.

Cremorne Capital Limited [ACN 006 844 588] [AFSL 241175] as responsible entity for Lowell Resources Fund [ARSN 093 363 896] Registered Office: 8 Chapel Street, Cremorne VIC 3121Australia Telephone (03) 9665 2499 Website: www.cremornecapital.com Email: info@lowell.net.au

-2The information below summarises the overall class of investors that fall within the target market for the Units and Options, based on the key attributes of the product and the objectives, financial situation and needs that they have been designed to meet. The Units and Options have been designed for investors whose likely objectives, financial situation and needs are aligned with the product.

The Fund expects an investment in new Units and Options will be suitable to investors who take a medium to long term outlook on their investment, are accustomed to making speculative investments, and wish to increase their exposure to equities in the junior resources sector. This includes eligible existing unitholders who have previously determined that they are in the target market of the Fund, and who wish to increase their holding in the Fund.

Investors with a medium-term outlook will benefit from the ability to exercise the Options prior to the expiry date (being about 18 months from the anticipated issue of the Options) and increase their unitholding and exposure to potential upside on the Units of the Fund into the future. It is expected that the target market will include those investors who wish to obtain a degree of optionality for exposure to the Fund’s ongoing operations, as a result of the inclusion of the free attaching Options in the Offer.

Units will have an issue price of $1.35 per Unit. Investors in the target market will need be in a financial position to have sufficient available funds so as to accept the Offer.

An exercise price of the Options is $1.65, to be paid to acquire Units on exercise of Options. As such the capacity to realise the underlying value of the Options could require that they be exercised on or before the expiry date. Investors in the target market will need be in a financial position to have sufficient available funds so as to facilitate an exercise of the Options prior to the expiry date. The ability for an investor to transfer the Options may be limited as the Options are not currently intended to be quoted on (and may never be quoted on) ASX. It is also expected that the target market of investors will be able to withstand potential fluctuations in the value of their investment. The Units, Options and Units issued upon exercise of Options offer no income guarantee or capital protection for investors.

The Fund considers that an investment in the Units and Options is highly speculative, such that an investment in the Fund may not be appropriate for an investor who would not be able to bear the loss of some or all of their investment. The Offer may not be a suitable investment for investors seeking to obtain a solely tradeable investment, as whilst the Units will be quoted on the ASX, the Options will not be quoted on the ASX. It would be necessary to exercise the Options to be able to seek to trade the new Units (issued upon exercise of the Options) on the ASX. Investors should also have sufficient financial literacy and resources (including appropriate advisers) to understand and appreciate the potential risk of investing in the Fund, including the Units and the Options as asset classes generally, and the more specific risks of investing in an ASX listed junior resources focused fund.

Distribution conditions As set out above, the Offer of Units and Options is made under the PDS to unitholders of the Fund who are eligible to participate in the Offer. Eligible existing unitholders who accept their one for three entitlement under the Offer in full will be able to apply for additional Units and Options from the shortfall in acceptances (if any). Other investors may be invited to apply for Units and Options if there is a shortfall in acceptances and applications for additional Units and Options by eligible existing unitholders.

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The PDS includes jurisdictional conditions on eligibility. The Fund will include a copy of this TMD on its website and require retail clients to confirm they meet the eligibility criteria of the expected target market outlined in this TMD before they apply for Units and Options.

The Fund considers that these distribution conditions will ensure that persons who invest in Units and Options fall within the target market in circumstances where personal advice is not being provided to those persons by the Fund.

Review triggers The Units and Options are being offered for a limited offer period as provided for in the PDS. The Units and Options will not be available for investment by way of issue by accepting entitlements following the close of the Offer. Accordingly, this TMD applies between the commencement of the Offer and the issue of the Units (Offer Period). Other investors may be invited to apply for Units and Options under the PDS (unless otherwise stated at the time of being offered or issued) if there is a shortfall in acceptances and applications for additional Units and Options by eligible existing unitholders, for up to three months after the closing date, in which case the Offer Period will be deemed to have been extended until the latest date of the issue of the Units or Options from the shortfall under the PDS (but no later than the date 3 months after the offer to eligible existing unitholder closes).

To allow the Fund to determine whether circumstances exist indicating this TMD is no longer appropriate to the Units or Options and requires review, the following review triggers apply for the Offer Period: •

the Fund lodges with ASIC a supplementary or replacement product disclosure statement in relation to the PDS;

•

any event or circumstance occurs that materially changes a factor that was taken into account in making this TMD;

•

the existence of a significant dealing of the Units or Options that is not consistent with this TMD;

•

ASIC raises concerns with the Fund regarding the adequacy of the design or distribution of the Units and/or Options or this TMD;

•

significant changes in metrics, including, but not limited to, complaints, and fund performance;

•

material changes to the regulatory environment that applies to an investment in the Units or Options; and

•

indications that the distribution conditions do not make it likely that the consumers who acquire the product are in the target market.

Review period If a review trigger occurs during the Offer Period, the Fund will review this TMD in light of the review trigger. The Fund will otherwise complete a review of the TMD immediately prior to the issue of the Units and Options under the Offer.

-4Information reporting The reporting requirements of all distributors is set out below: Whether the distributor received complaints about the Units or Options •

During the Offer Period, distributors are required to report to the Fund within 10 business days after the end of each quarter about any complaints received relating to the design, availability, and distribution of the Units or Options. A complaints report must also be made within 10 business days after the end of the offer period.

•

A complaint report is to include the number of complaints received and a summary of the nature of each complaint, or a copy of each complaint.

A significant dealing of the Units that is not consistent with this TMD •

A distributor must report to the Fund as soon as reasonably practicable (and in any event no more than 10 business days) after the significant dealing occurs. The fund will then notify ASIC as soon as practicable on becoming aware of the dealing (in any event no more than 10 business days).

•

A significant dealing report is to include details of the significant dealing and reasons the distributor considers the significant dealing is not consistent with this TMD.

Summary of steps to be taken by the distributor to ensure its conduct was consistent with this TMD •

A distributor must report to the Fund providing a summary of steps taken by the distributor to ensure its conduct was consistent with this TMD.

If practicable, distributors should adopt the FSC data standards for reports to the Fund.

Contact Contact details for the Fund in respect of this TMD are: Julie Edwards The Joint Company Secretary of the Responsible Entity Phone: 03 9642 0655 Email: info@lowell.net.au