Emerald Resources NL : Okvau DFS Delivers Ore Reserve of 907,000oz | Emerald to Become +100,000ozpa Gold Producer

ASX Announcement & Media Release

1 May 2017

Fast Facts

ASX Code: EMR

Shares on issue: 2,108 million Market Cap: ~$100 million

Cash: A$10.7 million (31 Mar 2017)

Board & Management

Simon Lee AO, Non-Exec Chairman Morgan Hart, Managing Director Justin Tremain, Executive Director Ross Stanley, Non-Exec Director Ross Williams, Non-Exec Director Mick Evans, Chief Operating Officer Mark Clements, Co. Secretary

Company Highlights

• First mover in an emerging gold province in Cambodia

• Okvau Deposit (100% owned): Indicated and Inferred Mineral Resource Estimate of 1.14Moz at 2.0g/t Au (refer Table Three)

• DFS completed and demonstrates high grade, low cost, compelling development economics:

  • Ore Reserve of 14.3Mt & 2.0g/t Au for 0.9Mozs in a single open pit with waste:ore ratio of 5.8:1

  • LOM average annual production of 106,000ozs pa

  • AISC US$731/oz over LOM

  • Using US$1.250/oz Au gold price:

    • NPV(5%)US$223M pre-tax and US$160M post-tax

    • IRR 48% pa pre-tax and 40% post-tax

    • Payback ~2.2 years pre-tax and

      2.5 years post-tax

• Highly credentialed gold project development team

• Significant resource growth potential.

  Registered Office 1110 Hay Street West Perth WA 6005

  T: +61 8 9286 6300

  F: +61 8 9286 6333

  W: www.emeraldresources.com.au

  Okvau DFS Delivers Ore Reserve of 907,000oz Emerald to Become +100,000ozpa Gold Producer

• Definitive Feasibility Study ('DFS') confirms the 100% owned Okvau Gold Project in Cambodia as a robust and compelling project

• DFS delivers an initial Ore Reserve of 14.3Mt @ 2.0g/t Au for 907,000oz at an average AISC of US$731/oz over an initial 7 year Life-of-Mine ('LOM') operating period

• The DFS is based on a 2.0Mtpa plant to produce approximately 106,000oz pa on average over the initial operating LOM of over 7 years

• Updated Mineral Resource estimate of 17.7Mt at 2.0g/t gold for 1.14Moz (at 0.7g/t cut-off)with 1.01Moz as Indicated and 0.13Moz as Inferred (refer Table Three)

• Key operating and financial results of the DFS (US$1,250/oz gold) include1:

  Development Capital Costs2	US$91M
  Mining Contractor Capital & Pre-Production Mining	US$7M
  US$98M
  LOM C1 Cash Costs3	US$650/oz
  LOM AISC4	US$731/oz
  Operating Cash Flow (pre-tax)	US$419M (A$558M)
  Project Cash Flow After Capital (pre-tax)	US$298M (A$397M)
  NPV(5%) (pre-tax)	US$223M (A$298M)
  NPV(5%) (post-tax)	US$160M (A$213M)
  Payback (pre-tax)	26 months
  Payback (post-tax)	30 months
  IRR (pre-tax)	48% pa
  IRR (post-tax)	40% pa

  1 All economics are 100% attributable to Emerald. Exchange rate of US$0.75. Refer Table One for further details

  2 Includes US$4.4M of capital spares and first fills

  3 C1 Cash Costs include site based mining, processing and admin operating costs plus transport and refining costs

  4 Includes C1 Cash Costs plus royalties, sustaining capital costs and rehabilitation & closure costs

• 90% of Indicated Resources converted to Ore Reserves

• Low development capital intensity of US$122/oz of LOM production

• NPV(5%)to Pre-Production Capital Costs ratio of2.3x

• Operating margin of 46% at US$1,250/oz gold price

• Targeting commencement of project development in late 4Q 2017 with gold production in early 2019

• Financing plans underway, targeting conventional debt and equity funding

• Emerald has cash reserves in excess of A$10M. Well placed to progress pre- development activities and exploration before project funding

Emerald Resources NL(ASX: EMR)('Emerald') is pleased to announce the completion of the DFS on the development of a 2.0Mtpa operation at its 100% owned Okvau Gold Project located in the Mondulkiri province of eastern Cambodia ('Project'). The DFS has been completed to +/-15% level of accuracy. The Board of Emerald has approved the Project to proceed to construction subject to financing arrangement and permitting, including a Mineral Investment Agreement with the Royal Government of Cambodia to support an Industrial Mining Licence.

The DFS confirms the robust nature of the Project with an initial operating LOM of over 7 years, producing approximately 106,000 ounces of gold per annum on average from a single open pit, with ore processed through a plant utilising a single stage crushing circuit and SAG mill, sulphide flotation, regrind mill followed by conventional cyanide leaching.

Key operating and financial outcomes of the DFS, prepared in accordance with the requirements of the JORC Code (2012 Edition), are presented below in Table One.

1 All economics are 100% attributable to Emerald

2 Includes US$4.4M of capital spares and first fills and US$7.0M of mining capital and pre-production mining costs

3 Includes US$14.4M of rehabilitation and closure costs

4 Royalties include Government royalty of 2.5% gross and a third party royalty of 1.5% gross (capped to A$22.5M)

5 Taxation is based on current and draft Cambodian tax law and does not allow for any incentives or tax relief

6 C1 Cash Costs include site based mining, processing and admin operating costs plus transport and refining costs

7 Includes C1 Cash Costs plus royalties, sustaining capital costs, contributions to environmental & community funds and rehabilitation & closure costs

Emerald will manage the construction and development of the Project with its own internal construction team. Key senior members of this team have been actively involved in the DFS and have many years' experience working together on the development of other successful gold projects, within Australia and Overseas. Certain works will be outsourced to independent consultants and contractors as required.

Cambodia is well located for the cost effective procurement of key equipment and materials. An important objective will be to maximise the extent of procurement from within Cambodia.

Table Two shown below outlines the key Project milestones being targeted by the Emerald development team.

2017

Q2 Q3 Q4 Q1

2018

Q2 Q3 Q4

2019

Q1

Regulatory Approvals Granted Project Funding

Commence Plant Construction Processing Plant Commissioned Commence Okvau pit mine dev't First Gold Production

assessment

ongoing discussions

process plant & infrastructure construction

open pit mining

Given the completion of the DFS and the targeted development commencement late in the 4thQuarter of 2017, Emerald is focussed on:

• Procuring project approvals and permitting including environmental approval of the completed Environmental & Social Impact Assessment ('ESIA') and an Industrial Mining Licence which is to be supplemented with a Mineral Investment Agreement with the Royal Government of Cambodia

• Securing requisite project funding

• Identifying additional cost-saving measures from the forecast capital and operating expenditure

• Optimising open pit staging and scheduling

• Pursuing an active exploration program aimed at discovering nearby additional gold deposits that can deliver additional mill feed to the Okvau Gold Project. This will include a dedicated effort to expand Emerald's already substantial 400km2ground position. Significant progress is being made in this area.

This announcement lifts the trading halt that Emerald requested on Friday 28 April 2017. Emerald is not aware of any reason why the ASX would not allow trading to recommence immediately.