ASX/Media Announcement 24 October 2016 Magneto-Telluric (MT) Survey Suggests Significant Extensions to the Mineralisation at Paguanta Summary Golden Rim has completed a 12 line-km Magneto-Telluric (MT) geophysical survey over the Patricia Prospect at Paguanta. Strong resistivity anomalies thought to be related to the vein-style zinc-silver-lead mineralisation at Patricia were outlined to a considerable depth of more than 1km beneath the current Mineral Resource 1 area. In addition, strong resistivity anomalies were outlined for at least 1km east-southeast of the current Mineral Resource area. The results of the MT survey more clearly define the target areas for further drilling and suggest that major extensions to the mineralisation in the current Mineral Resource at Patricia are possible. The Company is now considering an expansion of its planned 2,500m diamond drilling program to test these extensive new target areas. Golden Rim Resources Ltd (ASX: GMR, Golden Rim, Company) is pleased to announce that a Magneto-Telluric (MT) geophysical survey has been completed at the Paguanta zinc-silver-lead project, in northern Chile. A total of 12 line-km of 50m MT data was acquired by Southernrrock Geophysics along 10 northsouth, 200m spaced survey lines over the Patricia Prospect area (Figure 1). The objective of the MT survey was to define resistivity anomalies that might infer extensions of the vein-style zinc-silver-lead mineralisation at depth and along strike, particularly to the east and southeast where a previously defined Induced Polarisation (IP) anomaly remains untested. The MT survey data quality is considered to be very good with results providing well-resolved sections and interpolated-3d models of the resistivity anomalies to depths of several kilometres. Inversion model results have defined coherent resistivity anomalies that appear consistent with the location of zinc-silver-lead mineralisation delineated through previous exploration activities. 1 Details of the Mineral Resource were previously announced by Golden Rim on 10 May 2016 Golden Rim to Acquire Advanced Silver-Lead-Zinc-Copper Project in Chile Golden Rim Resources Ltd I ABN 39 006 710 774 I Office 7, Level 2, 609 Canterbury Road, Surrey Hills, VIC 3127, Australia www.goldenrim.com.au I info@goldenrim.com.au I T + 61 3 9836 4146
In particular, an east-west trend of elevated resistivity at around 7809100mN from the western edge of the MT survey area to approximately 494600mE coincides with the location of the main Patricia vein style zinc-silver-lead mineralisation defined by drilling and is thought to be associated with the silicification related to the mineralisation (Figure 2). This strong resistivity anomaly extends for at least a further 1km east-southeast of the current Mineral Resource area (Figures 2 & 3). A district scale fault just to the east of the current Mineral Resource area, orientated northwest-southeast, perhaps displaces a portion of this anomaly to the southeast. Strong and coherent resistivity anomalies were also outlined to a considerable depth of more than 1km beneath the current Mineral Resource area at Patricia and along the 1km strike extension of the anomaly to the east-southeast (Figures 4, 5, 6 & 7). The results of the MT survey more clearly define the target areas for further drilling at Patricia and suggest that major extensions to the mineralisation in the current Mineral Resource are possible both along strike and at depth. Furthermore, the results of the MT survey suggest scope for extending the MT coverage towards the west where the elevated resistivity trend at Patricia remains open. Given the positive MT survey results, Golden Rim is now considering an expansion of its planned 2,500m diamond drilling program to test the extensive new target areas. -ENDS- Figure 1. Location map of the Paguanta MT survey lines over a satellite image (GoogleEarth), with regional location map. Chargeability (semi-transparent colour) from 200 & 300m depth from previous compiled IP data. Page 2
Figure 2. Paguanta project, MT survey, 1D inversion resistivity at 100m depth over satellite image. A strong resistivity anomaly (dark blue) is related to the existing Patricia zinc-silver-lead mineralisation (dark red).the current Mineral Resource lies within the red ellipse and the strong resistivity anomaly in the white ellipse remains untested by drilling and provides a target for strike extensions to the mineralisation. Page 3
Figure 3. Paguanta project, MT survey, 1D inversion resistivity at 400m depth over satellite image. A strong resistivity anomaly (dark blue) is related to the existing Patricia zinc-silver-lead mineralisation (dark red).the current Mineral Resource lies within the red ellipse and the strong resistivity anomaly in the white ellipse remains untested by drilling and provides a target for strike extensions to the mineralisation. Page 4
Figure 4. MT survey, 1D inversion model section for Line 494400mE. A strong resisitivity anomaly (dark blue) extends for >1km beneath the current zincsilver-lead Mineral Resource and drilling area (in red box). The anomaly offers an attractive target for considerable extensions to the mineralisation at depth. Figure 5. MT survey, 1D inversion model section for Line 494600mE (200m east of Line 494400mE). The strong resisitivity anomaly (dark blue) extends for >1km beneath the current zinc-silver-lead Mineral Resource and drilling area (in red box). The anomaly offers an attractive target for considerable extensions to the mineralisation at depth. Page 5
Figure 6. MT survey, 1D inversion model section for Line 495000mE. The strong resisitivity anomaly (dark blue) lies 500m along strike from the existing zinc-silver-lead Mineral Resource and extends for >1km beneath the surface. This area remains untested by drilling and offers considerable potential to extend the current Mineral Resource along strike and at depth. Figure 7. MT survey, 1D inversion model section for Line 495200mE. A strong resisitivity anomaly (dark blue) lies 700m along strike from the existing zincsilver-lead Mineral Resource and extends for >1km beneath the surface. There is a second strong parallel resistivity anomaly to the north on Line 495200mE which remains unexplained and provides a further target. This area remains untested by drilling. Page 6
Competent Persons Statement The information in this report that relates to exploration results is based on information compiled by Mr Craig Mackay, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is a full-time employee of Golden Rim Resources Ltd. Mr Mackay has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 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. For further information, please contact: Hayley Butcher Golden Rim Resources Ltd Company Secretary +61 0409 880 009 Further Company Information E: info@goldenrim.com.au W:goldenrim.com.au Capital Structure: Issued Shares: 1,438,520,000 Unlisted Options: 143,358,400 Share Registry: Link Market Services Limited Central Park Level 4 152 St Georges Terrace Perth WA 6000 Telephone: (+61) 1300 554 474 Fax: 02 9287 0303 Page 7
Appendix 1: JORC Code (2012 Edition), Assessment and Reporting Criteria Section 1: Sampling Techniques and Data Criteria JORC Code Explanation Explanation Sampling Techniques Drilling techniques Drill sample recovery Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Natural Source Remote Referenced Magneto- Tellurics (MT). Modified EMAP style data acquisition with contiguous 50m length E x-fields along each survey line. With E y-fields nominally every 350m along the line. Usually 2 local H x- and H y- fields along each line and remote reference H x- and H y- fields. Porous-pot electrodes (Cu-CuSO 4) in small hand dug pits. Time series data acquired with sampling rates (Fs) of 32Hz, 256Hz, 2kHz and 16kHz. Time series records of 10 20 samples for each Fs. Timing provided by internal GPS. Acquisition interval of usually about 12 hours (overnight) for each station. Data quality for the surveys is considered to be very good and appropriate for inversion modelling, within the normal inherent limitations of the method, to depth of several kilometres and probably to over 10km (limited in part by the survey s lateral extents). No drilling was carried out as part of the survey. No drilling or sample recovery was carried out as part of the survey. No drill sub-sampling was carried out as part of the survey. No drill sub-sampling was carried out as part of the survey. Page 8
Quality of assay data and laboratory tests Verification of sampling and assaying Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security Audits or reviews The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. No drilling was carried out as part of the survey; therefore no assay samples were collected. Geophysical surveys were carried out by experienced industry contractors (Southernrock Geophysics) and are of acceptable quality. No drilling was carried out as part of the survey; therefore no sample verification was required. Locations were recorded by GPS with positional accuracy of approximately +/- 5 metres. Location data was collected in WGS 84, UTM zone 19S. The survey area contains one grid (UTM zone 19S). The survey lines were orientated north-south. Lines are spaced at 200m. Data is collected at 50m intervals along each line There was no sample compositing. Survey lines were orientated at approximately 90 degrees to the general strike direction. The measures taken to ensure sample security. No drilling or sample recovery was carried out as part of the survey. The results of any audits or reviews of sampling techniques and data. Geophysical data was collected by the contractor, who delivered a final report and images. There has been no external audit or review of the geophysical data Section 2: Reporting of Exploration Results Criteria JORC Code explanation Explanation Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. The MT survey was carried out over the Paguanta Project. Paguanta is predominantly owned through a joint venture company, CMP, where Golden Rim indirectly holds a 70% interest and an unrelated party, Costa Rica Dos SpA (Costa Rica), holds the remaining 30% interest. The tenements are in good standing. Exploration Acknowledgment and appraisal of exploration by The area that is presently covered by the Page 9
done by other parties other parties. Paguanta Project has undergone some previous mineral exploration. Geology Deposit type, geological setting and style of mineralisation. Drill hole Information Data aggregation methods Relationship between mineralisation widths and intercept lengths A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or The Patricia zinc-silver-lead deposit, located in the south of the Project area, is the best explored area at Paguanta and represents the major economic interest. The mineralisation is epithermal-style hosted in andesite and rhyolite volcanic rocks and consists of silver-lead-zinc sulphides in multiple mineralised vein structures that are typically steep dipping, 3m to 15m in width, and have an east-west orientation. The mineralisation is hosted in vein structures included massive to semi-massive breccia zones and stockwork vein zones. Paguanta is situated approximately 40km northeast of BHP Billiton s Cerro Colorado Mine, which has a Mineral Resource of 400Mt @ 0.62% copper for 5.5Blb of copper and annual copper cathode production of approximately 175Mlb. No drilling was carried out as part of the survey. No drilling was carried out as part of the survey, therefore no data aggregation was required. No drilling was carried out as part of the survey. Maps are provided in the main text. All results of significance have been included in this report. Page 10
widths should be practiced to avoid misleading reporting of Exploration Results. Other Other exploration data, if meaningful and material, should be reported including (but not substantive limited to): geological observations; geophysical exploration data survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. No significant exploration data has been omitted. RC drilling and diamond drilling will be used to test the geophysical anomalies for economic Ag-Zn-Pb mineralisation. Further work will be dependent on the results from this work. Page 11