Emerald Resources NL : Quadruples Exploration Tenure in Cambodia

ASX Announcement & Media Release

13 July 2017

ASX Code: EMR

Shares on issue: 2,108 million Market Cap: ~$85 million

Cash: A$8.5 million (30 June 2017)

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

• 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 Appendix One)

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

  • Ore Reserve of 14.3Mt & 2.0g/t Au for 0.9Mozs (refer Appendix One) 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

  Emerald Quadruples Exploration Tenure in Cambodia

• Earn-in agreements reached covering five exploration licenses, and the successful granting of a new exploration license application, expands Emerald's exploration ground position in Cambodia from 374km2to 1,500km2

• Earn-in agreement with Australian unlisted company, Mekong Minerals Ltd, over four exploration licences covering 861km2, whereby Emerald may earn up to an 70% interest

• Historical drilling results within the Mekong ground, which have had limited follow up, demonstrate potential for significant new gold discoveries. Historical results include (refer Appendix One for details):

  • 4m @ 11.9g/t gold from 4m o16m @ 2.9g/t gold from 4m o4m @ 10.2g/t gold from 56m o3m @ 8.9g/t gold from 73m o3m @ 12.9g/t gold from 38m o3m @ 8.5g/t gold from 58m o2m @ 13.5g/t gold from 89m

• Earn-in agreement reached with TSX listed company Angkor Gold Corp. (TSXV: ANK) over its Koan Nheak exploration licence covering 189km2located 50 kilometres north-east of the Okvau Gold Project, whereby Emerald may earn up to an 80% interest

• Koan Nheak covers multiple diorite intrusions with strong gold-in-stream sediment anomalies and grab samples to 33g/t gold in previous work completed by Angkor (refer Appendix One for details). No drilling has ever been undertaken

• Emerald granted a new exploration licence covering 75km2of prospective, unexplored ground located 40 kilometres south-west of Okvau Gold Project

• Debt financing proposals received from a number of International financiers. Proposals provide for a significant portion of the Okvau Gold Project development costs to be debt funded, thereby limiting potential equity dilution

• Emerald expects to mandate preferred financier(s) in the coming weeks

• Emerald remains well funded with cash reserves in excess of A$8M to continue to de-risk the Okvau Gold Project and undertake exploration drilling in order to add shareholder value and realise the attractive economics of the Okvau Gold Project

Emerald Resources NL(ASX: EMR)('Emerald') is pleased to provide an update on the permitting and funding from the development of its 100% owned Okvau Gold Project and to announce that it has reached agreements to earn-in to five additional exploration licences covering a combined area of 1,050km2, prospective for large scale Intrusive Related Gold systems. All five of the licence areas are in close proximity to the Okvau Gold Project, as shown in Figure One. In addition, Emerald has been notified by the Cambodian Ministry of Mines & Energy that its application for 75km2of unexplored vacant land located 40 kilometres to the south-west of the Okvau Gold Project, has been successful. The earn-in agreements, along with the new exploration licence granted, will increase Emerald's ground position in Eastern Cambodia from 374km2to 1,500km2.

Australian based unlisted company, Mekong Minerals Ltd ('Mekong Minerals'), holds the rights to four exploration licences in Cambodia covering three projects ('Mekong Projects'); the 'Kratie South Project' (two exploration licences), the 'Kratie North Project' and the 'Memot Project'. The Mekong Projects cover a combined area of 861km2. Historical drilling undertaken at the Mekong Projects has returned highly encouraging gold results which indicate the potential for significant gold discoveries, in close proximity to Emerald's Okvau Gold Deposit.

Under a binding term sheet signed with Mekong Minerals, Emerald has the ability to earn up to a 70% interest in each of the Mekong Projects (refer 'Mekong Earn-In and Joint Venture Terms' below).

Angkor Gold Corp. ('Angkor'), a TSX listed company, holds the rights to 100% of the 'Koan Nheak Project' covering an area of 189km2. The Koan Nheak Project has been subject to limited historical exploration with past work comprising of geophysics (magnetics and IP surveys) and some surface sampling (termite mound sampling and stream sediment sampling), which has defined a number of gold and multi-element anomalies. No historical drilling has been undertaken at the Koan Nheak Project. Emerald and Angkor have entered into Earn-In Agreement whereby Emerald has the ability to earn up to an 80% interest in the Koan Nheak Project (refer 'Angkor Earn-In Agreement Terms' below).

Development Financing

Emerald has received indicative debt financing proposals from a number of well-regarded International mining project financiers. The financing proposals provide for the debt funding of a significant portion of the Okvau Gold Project development costs thereby limiting potential equity dilution to existing shareholders.

Emerald expects to mandate the preferred debt financier(s) in the coming weeks to allow for completion of technical due diligence, final lender approvals and documentation.

Development Permitting

As previously advised, Emerald has submitted to the Ministry of Mines & Energy of Cambodia an application for an Industrial Mining Licence over an area of approximately 11km2within the existing Okvau Exploration Licence. Emerald continues to have positive discussion with the Ministry of Mines & Energy and understands that the application for the Industrial Mining Licence is well advanced and is confident of it being granted shortly following environmental approval of the Okvau Gold Project.

A comprehensive Environment & Social Impact Assessment ('ESIA') has been submitted to the Ministry of Environment for approval. The ESIA has undergone a number of revisions following numerous workshops with the Ministry of Environment. The ESIA is now in its final form and Emerald negotiating the terms and conditions of the environmental approval (the 'Environmental Contract') which will then allow for the ESIA and Environmental Contract to be presented to the Minister of Environment for approval.

In addition, Emerald is in discussions with the Royal Government of Cambodia regarding the negotiation of a Mineral Investment Agreement to provide all stakeholders long term certainty regarding the operation of the Okvau Gold Project and the fiscal regime.

Emerald is confident all the key elements of the approvals and material licences will be in place by 3rd Quarter of 2017 and not hinder the development of the project scheduled to commence towards the end of the 4th Quarter 2017.

Mekong currently holds an interest in four exploration licences covering; the 'Kratie South Project' (two exploration licences), the 'Kratie North Project' and the 'Memot Project'. The two licences covering the Kratie South Project require the completion of an 'exploration environmental impact assessment' to be approved by the Cambodian Ministry of Environment.

Kratie South Project

The Kratie South Project displays similar mineralisation characteristics to Emerald's 1.1Moz Okvau Gold Deposit (refer Appendix Two) and is located just 15 kilometres to the south of the Okvau deposit.

Systematic soil sampling has been completed within the Kratie South Project area, principally over mapped and interpreted intrusives and associated alteration haloes with the aim of identifying near surface gold and base metal mineralisation. Although relatively shallow style soils sampling, the work seems to have highlighted several mineralised systems well.

Within the western licence of the two exploration licences that make up the Kratie South Project, airborne magnetics have identified two areas of interpreted intrusive with hornfels alteration haloes (refer Figure Two). The two prospect areas identified are the 'Preak Khlong NW Prospect' and the 'Gossan Prospect'. At the Preak Khlong NW Prospect, a 100 metre wide alteration zone hosts a consistent gold mineralised corridor with a thickness of 10 to 30 metres. A total of 7 RC holes and 6 diamond holes have been drilled at the Preak Khlong Prospect which returned highly encouraging results. Significant results (+10 gram metre)included (refer Appendix One for complete results):

 1m @ 16.16g/t gold from 74m (RC09-PKL-001)

 3m @ 8.92g/t gold from 73m (DD10-PKL-002)

 4m @ 10.25g/t gold from 56m (DD11-PKL-006)

Artisanal workings at the Gossan Prospect contain quartz-galena-pyrite veins. Sections of the area have a well formed laterite cover which was previously mapped as gossanous material, hence the name of the prospect. A total of 17 diamond holes have been drilled at the Gossan Prospect. Significant results (+10 gram metre)included (refer Appendix One for complete results):

• 3m @ 12.94g/t gold from 38m (DD10GSN003A)

• 3m @ 8.51g/t gold form 58m (DD11GSN009)

• 2m @ 13.49g/t gold from 89m (DD11GSN015)

Within the eastern of the two exploration licences that make up the Kratie South Project, soil sampling has identified several north east trending zones with anomalous gold plus silver, copper, lead, zinc and arsenic (refer Figure Two). A gold-in-soil anomaly delineated at the 'O'Khtung SE Prospect' extends for an area of 800 metres x 100 metres. A gold-in-soil anomaly at the 'Big Toe Prospect' extends for an area of 950 metres x 300 metres. A total of 19 diamond holes and 3 RC holes have been drilled in these areas which returned anomalous but not significant gold results. This drilling was based almost solely on soil geochemistry rather than geological structural mapping and interpretation. Emerald believes its geological understanding of the region will provide valuable insight into future exploration and drilling programs. In addition a high priority gold anomaly has been detected at the 'Panther Prospect' which remains 'open'. No drilling has been undertaken on this prospect.