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1 ASX Release 2 February 2012 ENCOURAGING DIAMOND DRILLING RESULTS CONTINUE AT THE FEKOLA PROJECT Papillon Resources Limited ( Papillon or the Company ) is pleased to release the assay results from two additional diamond drilling ( DD ) holes received from 2011/12 program at the Fekola Gold Discovery ( Fekola or the Project ). The DD holes, which are located on sections mN and mN, were again drilled to twin existing RC holes, with the primary goal of confirming results previously reported to the market (ASX Release, 15 September 2011, Infill Drilling Extends Continuity of Fekola Gold Discovery ). The results received were encouraging, following on closely from Papillon s previous market release of DD confirmatory drilling (ASX Release, 30 January 2012, Diamond Drilling Confirms Potential of the Fekola Project ) delivering good grades across wide anomalous intercepts, and further underlining the potential of the Fekola Gold Project. In total, Papillon completed 595.5m of DD at FKD_004 and FKD_005 combined, with a total down hole depth of 294.3m and 301.2m in FKD_004 and FKD_005, respectively. Highlights are summarised as follows: FKD_ g/t from 177.3m FKD_ g/t from 237.3m FKD_ g/t from 105.2m FKD_ g/t from 155.2m FKD_ g/t from 212.2m Following the previously reported DD results from Fekola, the additional results add further weight to the Board and Management s belief that Fekola has good resource potential and warrants significant further capital investment. The Company will continue to report assay results as they are received as it progresses towards its goal of announcing its maiden JORC compliant resource at Fekola in 2012.

2 Diamond Drilling Results at Fekola The Fekola discovery continues to deliver wide, high grade intercepts, as the next batch of results are received from infill DD at the Project. Fekola is located on the highly prospective Senegalo/Malian Shear Zone, where in excess of 42M oz of gold has been discovered, and where Papillon has tenements, either granted or under application, extending over 25km of strike length on the shear zone (Figure 1 - Mali West Regional Geology, Gold Deposits and PIR Tenements; Figure 2 - Fekola Geology and Location Map). As previously reported (ASX Release 30 th January 2012 Diamond Drilling Confirms Potential of the Fekola Project ) the first aim of the DD programme was to confirm the tenor of earlier results achieved during the RC phase of drilling. The drilling focused on sections from N to N (Figure 3 Fekola Drill Hole Location Map & DH Trace Intercepts). 7 DD holes to an average depth of 263.4m have been completed, of which a further 2 holes are reported here (Table 1). A detailed assessment of results from RC drilling and DD will be undertaken when all confirmation drill hole assay results are available. The results to date from the DD are encouraging. Better results include: Section N - FKD_005 Twinning FKCR_159 (480mN from discovery section N): 1.36g/t Au from 86.2m, 3.58g/t Au from 105.2m, 5.07g/t Au from g/t Au from 212.2m Section N - FKD_004 Twinning FKCR_165 (560mN from discovery section N): (see section in Figure 4) 1.44g/t Au from 93.3m 1.49g/t Au from 126.3m 10.69g/t Au from 177.3m 2.24g/t Au from 237.3m These results further strengthen the Board and Management s confidence that Fekola is a very robust mineralisation system, the limits of which are still to be defined. The Company is now in the process of systematically in-fill drilling the Fekola discovery to complete a minimum 40m line and hole spacing, over approximately 1.0km of the discoveries strike length. Although the Fekola discovery remains at a relatively early stage, the DD has confirmed some features of the mineralised zone which were prevalent in the RC drilling. In particular, the association between gold and widespread silicification and pyrite alteration in a host sequence comprising finely laminated quartzite, fine-grained sedimentary rocks and mafic intrusive rocks. The alteration consists of hematite, carbonate, albite, pyrite and a strong pervasive silicification producing a very typical jasperoid rock that is usually the host of the gold mineralisation. 2

3 Full details of the above and the original releases to the ASX upon which they are based (inclusive of all associated figures and tables) are available at or from Papillon s website at For further information contact Alan Campbell Hayden Locke Managing Director Business Development / Investor Relations Papillon Resources Limited Papillon Resources Limited Tel: Tel: alan.campbell@papillonresources.com hayden.locke@papillonresources.com Competent Persons Statement Information in this report that relates to Exploration Results and comments on the resource estimates is based on information compiled by Mr Peter Woodman, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Woodman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Woodman consents to the inclusion in this report of the statements based on his information in the form and context in which it appears. Forward Looking Statement Statements regarding plans with respect to the Company s mineral properties are forward-looking statements. There can be no assurance that the Company s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company s mineral properties. Please note with regard to exploration targets, the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource. 3

4 Figure 1: Mali West Regional Geology, Gold Deposits and PIR Tenements 4

5 Figure 2: Fekola Geology and Location Map 5

6 Figure 3: Fekola Drill Hole Location Map & DH Trace Intercepts 6

7 Figure 4: Fekola Cross Section N 7

8 Table 1: Fekola RC Drill Hole Summary Fekola Location Orientation Intersection (m) HoleID Easting Northing Dip Azimuth From To Interval (m) Gold g/t FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ FKD_ Results from Diamond Drilling ( DD ), Reverse Circulation (RC) and Air Core (AC) drill holes. 2. Samples at 1m intervals. 3. All Intercepts calculated using a 1.0g/t lower cut, no upper cut, maximum 2m internal dilution. 4. Intervals are all downhole length 5. Assaying conducted by SGS Analabs, Kayes, Mali using industry standard 50g lead collection fire assay with AAS finish. 6. Reference standards, field duplicates and blank samples are routinely inserted; quality control samples are routinely monitored. 7. NSA = No Significant Assays (<1g/t within the hole) 8