Doray Minerals : Annual Resource and Reserve Statement

ASX: DRM

• 17% increase in Group Resource Inventory to 1.38Moz Au and 27,000t Cu1
• 33% increase in Andy Well Resource Inventory (including Gnaweeda) after mining depletion
  • 46% classified as "Measured and Indicated" (1.18Mt @ 9.6g/t Au for 368,000oz)
  • Inferred Resource of 5.34Mt @ 2.4g/t (419,000oz) includes maiden Gnaweeda Resource
• Group Ore Reserves of 2.51Mt @ 5.8g/t Au (467,000oz) 2
  • Andy Well Reserve of 145,000oz @ 6.1g/t Au equates to a further 2 years mine life before potential additions from Gnaweeda
• Andy Well gold endowment (Resource plus production to date) reaches 1Moz

Doray Minerals Ltd (ASX: DRM, Doray, the Company), today announced an updated Resource and Reserve estimate as at 30 June 2016, including a 17% increase to the Group Mineral Resource Inventory, which now totals approximately 1.38 million ounces contained gold across the Andy Well and Deflector Projects.

Doray has increased the total Andy Well Resource inventory by 33% over the past 12 months, net of mining depletion. The Andy Well Resource (excluding Gnaweeda) now stands at 1.9Mt @ 8.4g/t Au for 520,000 ounces with approximately 368,000 ounces (46%) classified as "Measured and Indicated" and with an average grade of approximately 9.6g/t Au.

The increase in the total Andy Well Resource to 6.5Mt @ 3.7g/t Au (786,000 ounces) has come through:

• Replacement of Resources within the Wilber, Judy and Suzie Lodes depleted by mining; and

• Addition of the maiden Inferred Resource for the Turnberry deposit at Gnaweeda

The Andy Well Ore Reserve has been maintained at approximately 145,000 ounces @ 6.1g/t Au after production of over 84,000 ounces in the financial year ending 30 June 2016 and approximately 250,000 ounces to date.

Doray's Managing Director, Mr Allan Kelly, said that the Andy Well Project had exceeded expectations when compared with the original BFS, completed in 2012, prior to the commencement of mining and construction.

"Since commencement of production in August 2013, Andy Well has produced over 250,000 ounces of gold and has at least a further 2 years of Reserves remaining, compared with the BFS estimate of 256,000 ounces and mine life of 3.7 years," Mr Kelly said.

"If we look at the cumulative production to date, when combined with the current Resource, the total number exceeds 1 million ounces for the first time in the Project's short history," he added.

Combined with Deflector, the Group Ore Reserve Inventory totalled 467,000 contained ounces @ 5.8g/t Au at 30 June 2016, before the commencement of production from Deflector.

There has been no change to the Mineral Resource / Reserve at the Deflector Project at 30 June 2016, as the Project had only recently commenced mining and production at that date, however upcoming exploration programs have the potential to add to the mining inventory in the near‐term.

1 See Tables 1 and 2 below 2 See Table 6

Table 1. Doray Minerals Ltd Gold Mineral Resource Inventory - as at 30 June 2016.

Doray Minerals Ltd, 28 September 2016

Table 2. Doray Minerals Ltd Copper Mineral Resource Inventory - as at 30 June 2016.

2 | P a g e

1. Mineral Resources Andy Well Gold Project

Total Mineral Resources for the Andy Well Gold Project now incorporate Resources at both Andy Well, as well as those at the nearby Gnaweeda Project for the first time.

Total Mineral Resources for the Project are now estimated at 6.52Mt @ 3.7g/t Au for 786,000 contained ounces, a net increase of 197,000oz Au from the 30 June 2015 position, after depletion due to mining during the year.

The breakdown of the Andy Well Mineral Resource inventory is detailed in Table 3 below. Figure 1 illustrates the reconciliation between the Andy Well Gold Project Mineral Resource inventory between 30 June 2015 and 30 June 2016.

Mineral Resources at Andy Well itself include re‐estimation of the Wilber, Judy and Suzie Lodes utilising data generated through the extensive on‐going underground diamond drilling programme at the mine.

Wilber Lode ‐ Drilling has seen the net contained Resources at Wilber essentially remain neutral after mining depletion (317,000ozs Au against 331,000ozs Au as at 30 June 2015). The majority of this Resource added in replacing mine depletion has come from direct extensions to the orebody at depth, as well as extending the known strike of the orebody to the north at depth. Importantly, total Measured and Indicated Resources at Wilber have been slightly increased after mine depletion (227,000ozs Au against 224,00ozs Au as at 30 June 2015). The decrease in Inferred Resource has occurred mainly through the restriction of the Resource estimation into areas of lower drill density. In effect, drilling during FY2016 has been able to convert Inferred Resources into higher confidence categories, but hasn't been able to significantly extend Inferred Resources beyond previous drill coverage. This has occurred as a direct result of the inability to drill significantly further at depth due to limited suitable underground drill positions. Doray is working to alleviate this issue in FY2017 through the instigation of a deep directional drilling campaign from surface. The details of the Wilber Lode re‐estimation are summarised in the Appendix to this release and the updated JORC Table 1.

Judy Lode ‐ In addition to Wilber, Mineral Resources at the Judy Lode have been increased after mining depletion (141,000ozs Au against 126,000ozs Au as at 30 June 2015). Along with a net increase in total endowment, the overall average Mineral Resource grade has been increased from 6.4g/t Au to 8.5g/t Au. The increase in Mineral Resources, and also the increase in overall average grade, is a result of the identification and drilling of the steep‐northerly plunging high‐grade shoots at Judy South, as well as drilling into the higher grade mineralisation at Judy North below the previously defined porphyry hosted mineralisation. In addition to the identification of the high‐grade controls on mineralisation, underground mining of the Judy Lode through the course of FY2016 has allowed significant refinement in the interpretation of the lode. The details of the Judy Lode re‐estimation are summarised in the Appendix to this release and the updated JORC Table 1.

Suzie Lode ‐ As mentioned in the ASX Release dated 2 June 2016, drilling during the year at the Suzie Lode has resulted in a downgrading of the Mineral Resource after depletion for open pit mining carried out during the year. This drilling essentially failed to convert much of the previously Inferred Resource once drill density was increased. As a result, while the total contained ounces in the Suzie Indicated Resource was essentially doubled (44,000ozs against 22,000ozs as at 30 June 2015), and the overall grade increased (6.5g/t Au against 5.9g/t Au) even once mining depletion had been taken into account, the total Inferred Resource has been reduced significantly. The details of the Suzie Lode re‐estimation are summarised in the Appendix to this release and the updated JORC Table 1.

Gnaweeda ‐ The Andy Well Gold Project now incorporates the Inferred Mineral Resource defined for the Turnberry prospect at Gnaweeda, totalling 4.6Mt @ 1.8g/t Au for 266,000ozs. This Resource is based predominately on a series of RC drilling programmes completed at the Project by Doray since acquisition. As detailed in the ASX Release dated 20 July 2016, the Turnberry interpretation is deliberately based on a broad mineralised envelope, and takes a conservative approach to the treatment of drill intersections due to the current irregularity of drill spacing. A comprehensive RC and diamond drill programme is currently

underway at Gnaweeda, with the objective of upgrading confidence in the interpretation, as well as allowing for an initial mining evaluation to be undertaken.

Since commencement of mining operations at Andy Well, Doray has continued to add to the Mineral Resource inventory through drill extensions to the Andy Well Lode system, as well as through the addition of a second Resource centre at Gnaweeda. As illustrated in Figure 2, the Andy Well Gold Project now stands at a total gold endowment of over 1 Million ounces Au (current Mineral Resources and cumulative production to date), confirming its status as a significant gold operation in the Murchison Region of WA.

Total Andy Well Mineral Resources are detailed in Table 3 below, with explanatory notes for the Andy Well Lodes estimation included in Appendix A. Details of the Gnaweeda - Turnberry Mineral Resource estimation are included in the ASX Release dated 20 July 2016.

Figure 1. Reconciliation of the Andy Well Resource inventory between 30 June 2015 and 30 June 2016.

Figure 2. Andy Well Project Total Gold Endowment from discovery (March 2010) to 30 June 2016.