Augur Resources : Updated Internal Scoping Study Delivers Positive Results

ABN 79 106 879 690

30 August 2016

The Manager Companies ASX Limited

20 Bridge Street

Sydney NSW 2000 (11 pages by email)

The Directors of Augur Resources Ltd ('Augur' or 'the Company') are pleased to advise that the original Scoping Study on its Randu Kuning deposit located within the Wonogiri project (ASX announcement dated 11 March 2014) has been updated to include the significantly enhanced project economics resulting from the aggregate potential of the project (ASX announcement dated 6 July 2015), metallurgical studies (ASX announcements dated 28 October 2015 and 29 April 2016) and current costings for fuel and equipment. The results of the internal Scoping Study confirm the potential for the development of the deposit at Randu Kuning.

As part of the update a JORC compliant resource estimate of the Randu Kuning deposit was completed by Trevor Leahey of Computer Aided Geoscience Pty Ltd, Australia, a Competent Person as defined under JORC 2012, the results of which are detailed below.

Level 2, 66 Hunter Street Sydney NSW 2000

Phone: +61 2 9300 3310 Facsimile: +61 2 9221 6333 Web: www.augur.com.au

The Scoping Study was undertaken by Augur technical staff and based on comparable mining operations in Indonesia and Australia. Metallurgical data was provided by testwork completed by Pt. Geoservices in Jakarta under the guidance of qualified independent consultants MetChem Consultants of Perth, Australia and also PWA Limited of Kuala Lumpur, Malaysia.

The project is supported by a low strip‐ratio, good metallurgical recoveries, excellent access to infrastructure and national grid power. The study focused on an open pit mining operation with material treated by gravity concentration and flotation to produce a gold (+ silver)‐rich gravity concentrate and a copper (+ gold, silver bearing) concentrate. The Scoping Study assumed 50% of in‐pit waste rock would be sold as aggregate.

As Augur does not currently have adequate capital and operational finance to develop the Wonogiri project and scoping studies are not at a stage to secure project financing, the Company is precluded by the recently released ASIC Information Sheet 214 concerning forward looking statements by mining and resource companies from announcing details of the Scoping Study and its related cautionary statements.

Operating costs were estimated at a preliminary level based on local benchmarked costs and comparable mining costs. Capital expenditure costs to develop the project were estimated based on comparable mining industry costs with allowances for second hand equipment and local costs. No contingency was used in the capital cost estimates.

Despite the fact that, as outlined above, the Company is precluded from providing details about its Scoping Study, the enhanced economics result in a revised JORC 2012 compliant resource estimate for Randu Kuning, completed by Computer Aided Geoscience Pty Ltd, as follows:

At 0.2 g/t AuEq1 cut‐off grade the total contained resource is 81.56 million tonnes at 0.38 g/t Au and 0.11% copper. This represents 1.15 million ounces of AuEq consisting of 996.5 thousand ounces of gold and 190 million pounds of copper. At 0.5 g/t AuEq1 cut‐off grade, the cut‐off grade used in the Scoping Study, the total contained resource is 20.95 million tonnes at 0.85 g/t Au and 0.16% copper. This represents 573 thousand ounces of AuEq1 consisting of 533 thousand ounces of gold and 74 million pounds of copper. Details of the resource estimate for Randu Kuning are as follows:

Augur has previously reported on the metallurgical testing of the Randu Kuning Au‐Cu mineralised rock completed by ALS‐Ammtec in 2012. This work indicated recoveries of over 89.0% of gold and 95.0% of copper. Concentrates of up to 90.6 g/t gold and 21.2% copper were achieved during initial concentrate optimisation studies. Selected assays of concentrates have shown low arsenic and other deleterious elements.

The Scoping Study used a similar recovery model assuming 87% recovery for both gold and copper to produce a constant concentrate copper grade of 20% and a gold grade of between

60.0 g/t and 90.0 g/t.