EXPLORATION ACTIVITY TO RECOMMENCE AT KOURI GOLD PROJECT IN BURKINA FASO

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1 ASX/Media Announcement 26 April 2017 EXPLORATION ACTIVITY TO RECOMMENCE AT KOURI GOLD PROJECT IN BURKINA FASO Exploration program targeting the definition of a maiden JORC Mineral Resource by the end of Drilling will target potentially high-grade gold cross-structures and extensions to the gold mineralisation that comprises the current Exploration Target. Initial Reverse Circulation (RC) drill program to commence early May 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 Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Golden Rim Resources Ltd (ASX: GMR, Golden Rim, Company) advises that, as part of its continued strategy to diversify its portfolio as well as leverage its exposure to the strong gold price, it is planning to recommence exploration activities at its 100% owned Kouri Gold Project (Kouri) in Burkina Faso. While Golden Rim s primary focus remains to advance its Paguanta Zinc-Silver-Lead Project in Chile, the Company sees significant potential to generate shareholder value by investing in an exploration program designed to define a maiden JORC gold resource at the Banouassi Prospect (Banouassi) at Kouri by the end of The Company suspended exploration activities in Burkina Faso in late 2015 due to security concerns and a period of political instability, however management is now confident that these security issues have subsided and a stable, democratic government has been firmly established in the country. The Burkina Faso government continues to actively support the mining industry and has permitted more mines in the last decade than any other West African jurisdiction. The planned exploration program will be rolled out in two stages, with an initial RC program to commence within the next few weeks, before a larger infill and extensional RC and diamond drill program commences in October 2017, subject to available funds and the results of the initial program. Full details of the exploration program can be found in Appendix 1. Golden Rim s Managing Director, Craig Mackay, said With the current strength in the gold price and the recent success of our peer gold companies in Burkina Faso, Golden Rim considers recommencing activity at Kouri to be a prudent and value accretive strategy for our shareholders. Golden Rim Resources Ltd I ABN I Office 7, Level 2, 609 Canterbury Road, Surrey Hills, VIC 3127, Australia I info@goldenrim.com.au I T

2 We believe that, for a relatively small financial outlay, we can deliver a JORC resource at Banouassi in a short time frame, providing Golden Rim with optionality as we continue to make strong progress at Paguanta. Contact Information ENDS Hayley Butcher Richard Glass Golden Rim Resources Ltd Citadel-MAGNUS Company Secretary rglass@citadelmagnus.com E: info@goldenrim.com.au W: goldenrim.com.au Competent Person Statements The information in this report relating to Exploration Targets and previous exploration results is 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; Guitorga Gold Anomaly at Korongou Exceeds 3.5km dated 12 February 2015; and Quarterly Activities Report dated 28 April 2015, and has 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. The information in this public report that relates to rock chip samples is based on information compiled by Mr Craig Mackay who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is an employee of Golden Rim Resources Ltd. Mr Mackay 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 Mackay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 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 2

3 APPENDIX 1: Exploration Program Details Two drilling programs have been planned with the first program expected to commence by early May The programs are designed to achieve a maiden JORC Mineral Resource for Kouri by the end of First Drilling Program The first planned program consists of 2,500m RC drilling at Banouassi which is situated in the north-east portion of Kouri. Banouassi covers around 3km of a major fault zone that strikes for 16km through Kouri and is where most of Golden Rim s previous exploration activities have been focussed. The RC drilling will include: drilling a number of potentially high-grade gold east-south-east trending cross-structures; and (Figures 1 & 2) infill and strike extensional drilling of the Guitorga Lodes (Figures 3 & 4). The Guitorga Lodes were outlined by Golden Rim in early January 2015 and cover an area of 3.5km x 0.4km. The mineralisation remains open to the north-east and the south-west. The Guitorga Lodes appear to sit in a possible dilational structural setting which is considered highly prospective for hosting bulk tonnage gold mineralisation. The Guitorga Lodes comprise the majority of the current Exploration Target of approximately 500,000 ounces to 611,000 ounces of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold. 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 Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The first program is expected to take 6 weeks to complete and be finished prior to the beginning of the rainy season anticipated in early July Second Drilling Program In early October 2017 the Company plans, subject to available funds and the results of the initial program, a second larger drilling program to commence which will include infill and extensional RC and diamond drilling at Banouassi. Following completion of the second drilling program, the Company expects to be able to outline a maiden JORC Mineral Resource for Banouassi by the end of Most of the zones of gold mineralisation included in the Exploration Target are open along strike and at depth. The Exploration Target was generally only calculated to a maximum of 70m below surface. With deeper drilling, Golden Rim expects to intercept additional gold mineralisation beneath the Exploration Target and aims to outline a Mineral Resource to at least 130m below surface. Page 3

4 Extensional drilling along strike is also expected to intercept further gold mineralisation. A priority target area is the 900m gap in the previous RC drilling on the Guitorga Lodes, where previous auger drilling has intersected bedrock gold mineralisation grading up to 4.4 g/t gold. Figure 1. Photograph of previous small scale mining by Epsilon Gold Mines Limited SARL. The pit exploited a 3m wide ESE-trending cross structure. Oxide ore was mined to ~10m below surface with a head grade of 7 g/t gold. Page 4

5 Figure 2. Artisanal miners have previously exploited very high grade gold mineralisation at Banouassi (see visible gold in a photograph of a sample of artisanal ore above). Previous rock chip sampling by Golden Rim returned results up to 313 g/t gold from this high grade material which the Company believes is associated with ESE crossstructures. Page 5

6 Figure 3. Plan showing interpreted zones of the gold mineralization and previous drilling intercepts at Banouassi. Page 6

7 Figure 4. Drill Section GN7 at Guitorga North, showing the multiple gold lodes and drilling intersections. Current drilling has generally only allowed the calculation of an Exploration Target to 70m below surface. (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 Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource) Page 7

8 About the Kouri Gold Project Kouri lies on a major mineralised fault zone that extends to the north-east into western Niger, where the 2Moz Samira Hill gold deposit is located. To the south-west, the fault zone is connected to the Markoye Fault system which controls a number of large gold deposits in Burkina Faso, including Kiaka (5.9Moz gold), Bombore (5.2Moz gold) and Essakane (6.2Moz gold). The major fault zone strikes for 16km through the Kouri licence. To date, Golden Rim has focussed its exploration on Banouassi in the north-east portion of the licence which covers around 3km of strike along the fault zone. Golden Rim has previously completed 15,800m of RC drilling and has discovered at least 20 parallel, north-east-trending gold zones at Banouassi in a 1km wide corridor. Best intercepts include: 21m at 5.6 g/t gold from 13m and 10m at 4.5 g/t gold from 15m. In July 2015 an initial Exploration Target of approximately 500,000 ounces to 611,000 ounces of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold has been outlined at Banouassi (see ASX Announcement of 16 July 2015). 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 Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Most of the zones of gold mineralisation included in the Exploration Target are open along strike and at depth. The Exploration Target was generally only calculated to a maximum of 70m below surface. Deeper drilling would allow the gold mineralisation to be extended below 70m. Further, there is a 900m gap in the drilling which also offers scope to discovery additional mineralisation. With infill drilling Golden Rim expects to be able outline a maiden JORC Mineral Resource at Kouri. Page 8