EXPLORATION UPDATE. ASX/Media Announcement. Drilling at Banouassi Prospect, Kouri. 26 September Kouri Gold Project, Burkina Faso

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1 ASX/Media Announcement 26 September 2017 EXPLORATION UPDATE Kouri Gold Project, Burkina Faso Major drilling program to commence shortly at the Banouassi Prospect comprising approximately 1,500m (12 holes) of diamond drilling and 15,000m (~120 holes) of RC drilling. Drilling will test for extensions to the gold mineralisation at depth and along strike with core from diamond drilling used for metallurgical test work. Three high priority target areas southwest of Banouassi have been identified with potential for significant gold mineralisation. Follow-up auger drilling is planned following the completion of drilling at Banouassi. The drilling program at Banouassi is expected to be completed by early December Paguanta Zinc-Silver-Lead-Gold Project, Chile Low cost exploration activities will continue at Paguanta while the Company seeks a corporate transaction. Geological mapping has outlined extensive zinc-silver-lead veining at the Cumbre Prospect highlighting the potential for further exploration to add to the zinc-silver-lead resource inventory at Paguanta. Golden Rim Resources Ltd (ASX: GMR) (Golden Rim or Company) is pleased to provide an update on recent exploration work and planned exploration activities for the next 3 months on its 100% owned Kouri Gold Project (Kouri) in Burkina Faso and its 73% owned Paguanta Zinc-Silver- Lead Project (Paguanta) in Chile. Drilling at Banouassi Prospect, Kouri The recently completed Rights Issue which raised approximately $2.57 million (before costs) means the Company is now fully funded to undertake its planned work programs on the Banouassi Prospect (Banouassi) at Kouri, the Company s flagship gold project. Golden Rim s planned work programs comprises drilling, metallurgical test work and a potential maiden resource estimation for Kouri. The drilling program comprises approximately 1,500m (12 holes) of diamond drilling and approximately 15,000m (~120 holes) of reverse circulation (RC) drilling (Figure 1). Golden Rim Resources Ltd I ABN I Level 2, 609 Canterbury Road, Surrey HillsVIC3127, Australia I PO Box 124, Surrey Hills VIC 3127, Australia I info@goldenrim.com.au I T

2 The drilling program comprises infill drilling and drilling designed to test for extensions of the gold mineralisation at depth and along strike. Drilling will target the more than 20 north-east trending, parallel gold mineralised zones (Guitorga Lodes) that comprise the bulk of the current Exploration Target of approximately 500,000 to 611,000 ounces of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold and a number of east-west trending cross-structures that may have the potential to host high grade gold mineralisation. Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources. Historical drilling at Banouassi extends to only 70m below surface. The new drilling will be extended to approximately 120m below surface. Drilling will be conducted on a 50m x 25m spacing around significant gold mineralisation identified in historical drilling and a 100m x 50m spacing in areas where no previous drilling has been conducted, such as the current 650m gap in the drilling on the Guitorga Lodes. Drilling will also follow up a number of highly significant previous gold intercepts (at depth and along strike). Notable previous intercepts include: 21m at 5.6 g/t gold from 13m, including 8m at 11.8 g/t gold (Hole BARC083); 18m at 5.4 g/t gold from 2m, including 2m at 45.6 g/t gold (Hole BARC114); 10m at 4.5 g/t gold from 15m, including 1m at 20.4 g/t gold (Hole BARC111); and 10m at 11 g/t gold from 111m, including 1m at g/t gold (Hole BARC118). The Company has engaged a diamond drilling contractor and a RC drilling contractor. Drilling on the two rigs will be conducted in two shifts, 24 hours a day. The drilling program is expected to be completed by early December Currently a camp is being re-established in the township of Piela, located 14km west of Kouri, and a bulldozer has been mobilised to upgrade the access road and to prepare the drilling sites. Subject to favourable weather conditions, drilling is expected to commence within the next few weeks. The drill core from the diamond drilling will be used to undertake metallurgical test work. Regional Exploration at Kouri Gold mineralisation at Kouri is hosted in a major northeast-trending shear zone that extends for 16km through the licence. To date, only the gold mineralisation at Banouassi, which is situated in the north-east portion of Kouri and extends over a strike of 3km, has been systematically explored. The remaining 13km of the shear zone within the licence remains poorly explored. Following the completion of the drilling at Banouassi, Golden Rim intends to focus on the following three high priority target areas identified following a review of the regional exploration data (Figure 2), which are located at the Namagodo Prospect: Page 2

3 Area A: 1.7km long east-west trending cross-structure, located 2.5km southwest of Banouassi. No previous exploration has been conducted on this target area. Area B: 3.1km long east-west trending cross-structure, located 3.5km southwest of Banouassi, in an area of little outcrop. Previous rock chip sampling of quartz veining returned results up to 108 g/t, 46.5 g/t and 16.9 g/t gold. No drilling has been conducted within this target area, to date. Area C: 6.3km long east-southeast trending cross-structure, located 4km southwest of Banouassi. There is little outcrop in this area, however in one portion of the structure, quartz veining with visible gold is being exploited by artisanal miners. Golden Rim has previously tested the structure with a single drill hole (NKRC005), which returned 4m at 9.2 g/t gold from 40m, including 1m at 31.5 g/t gold. This high grade intercept remains open at depth and along strike. The existence of substantial artisanal workings and the discovery of gold in previous rock chip sampling, auger drilling and limited RC drilling suggest the majority of the shear zone area outside of Banouassi has the potential to be strongly mineralised, offering extensive future exploration upside for Kouri. Exploration activity planned for the three target areas includes both auger drilling and subsequent RC drilling. Paguanta Zinc-Silver-Lead Project (Chile) The Company has exclusively engaged leading Canadian broking firm, Eight Capital, to secure a corporate transaction for Paguanta. While the divestment process is being conducted, a major drilling program for the Patricia Prospect (Patricia) at Paguanta at has been put on hold. However, low cost exploration activities that are likely to add value and assist with the divestment process continue to be undertaken. Geological Mapping and Sampling A geological/structural mapping and geochemical grid sampling program has commenced on the Cumbre Prospect (Cumbre), located 500m due south of Patricia where Golden Rim has defined a Measured, Indicated and Inferred Mineral Resource of 2.4Mt at 5.0% zinc, 1.4% lead, 88 g/t silver and 0.3 g/t gold (Figure 3). At Cumbre, zinc-silver-lead-manganese mineralisation has been identified using a portable XRF in multiple east-west trending vein zones or stock work zones over an area of 500m along strike and 150m in width. Golden Rim believes the mineralisation at Cumbre is an extension of the Patricia epithermal system highlighting the potential for further exploration to add to the zinc-silver-lead resource inventory at Paguanta. Drill Core Re-logging A re-logging program of the historic diamond holes at Patricia has also commenced. The objective of the re-logging is to help better define structure, mineralization, alteration and lithology within the central core of Patricia. To date, more than 5,000m of drill core has been re-logged and the following observations have been made: Page 3

4 The zinc-silver-lead lode mineralization is preferentially hosted in coarser grained, structurally controlled host rocks (volcanic breccias). East-west dilatant fractures formed parallel to principle compression represent the main corridors for east-west lode vein mineralization (Cathedral, Carlos, and New Veins). The high grade mineralization in the Knuckle Shoot located in central part of Patricia, and predominately within the Cathedral Vein, is exposed on surface as a northeast-southwest oval shaped area 170m (east-west) by 150m (north-south). The southwest plunging shoot has been intercepted to 350m depth and is still open. Not all of the mineralisation in the historical drill core has been analysed. This mineralised core is being sampled as the re-logging proceeds and will be shortly sent to a laboratory for analysis. - ENDS - Contact Information Hayley Butcher Tony Dawe Golden Rim Resources Ltd Citadel Magnus Company Secretary tdawe@citadelmagnus.com Competent Persons Statement The information in this report relating to previous exploration results, Mineral Resources and Exploration Targets are extracted from the announcements Initial Exploration Target Defined for Korongou dated 16 July 2015; Guitorga Delivers Significant Drilling Results 21m at 5.6 g/t gold including 8m at 11.8 g/t gold from 13m dated 11 May 2015; New High Grade Gold Intercepts Move Kouri Closer to Maiden Resource dated 6 July 2017; Korongou Delivers Significant Drilling Results dated July 2014; New Resource Estimation for Paguanta dated 30 May 2017, and have been reported in accordance with the 2012 edition of the JORC Code. These announcements are available on the Company s website ( The Company confirms that it is not aware of any new information or data that materially affects the information included in these announcements. Forward Looking Statements Certain statements in this document are or maybe forward-looking statements and represent Golden Rim s intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Golden Rim, and which may cause Golden Rim s actual performance in future periods to differ materially from any express or implied estimates or projections. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect and differences may be material. Golden Rim does not make any representation or warranty as to the accuracy of such statements or assumptions. Page 4

5 Figure 1. RC drill collars labelled with >10 m x g/t gold intercepts and the interpreted zones of gold mineralisation over a satellite image at the Banouassi Prospect. The location of the proposed holes to be drilled over the next few months are shown as white circles.

6 Figure 2. Location of prospects, rock chip samples and drill holes over an aeromagnetic image at Kouri. The Banouassi Prospect covers approximately 3km of the gold mineralised shear zone that extends for 16km through the licence. Three high priority target areas have been identified at the Namagdo Prospect (labelled A,B,C and with black outlines).

7 Figure 3. Location of the Patricia Prospect and the Cumbre Prospect at Paguanta. The newly mapped zinc-silver-lead veins at the Cumbre Prospect are depicted as red lines. Page 7

8 Page 8 Figure 4. Photograph of outcropping zinc-silver-lead-manganese veining at the Cumbre Prospect