Finders Resources : Confirmation of Release - FND - Revised Quarterly Activities and Cashflow Report 31 Dec 2016

For Release 31 January 2017

CORRECTION - APPENDIX 5B AND QUARTERLY ACTIVITIES REPORT

Finders Resources Limited ("FND") advises that the Appendix 5B released earlier today contained a number of errors. An amended version has been attached.

In addition the Quarterly Activities Report has been amended to include a clarification that the cash balance includes restricted cash and to correct a typographical error on page 9 where a reference to March 2016 Quarter should have read March 2017 Quarter. An amended version is also attached.

Finders Resources Limited | Level 1 | 5 Ord Street | Perth | West Perth 6005 | Australia

Tel: +61 8 6555 3996 | Fax: +61 8 6555 3998 | PO Box 597 | West Perth 6872 | info@findersresources.com www.findersresources.com

• Copper cathode produced for the quarter was 6,159 tonnes with sales of 4,888 tonnes at an average price of US$2.32/lb
• December quarter C1 cash cost of US$1.08/lb
• EBITDA for the quarter of US$10.9 million
• 12 month rolling LTIFR and Injury Severity rates remain at zero Corporate
• Total project debt reduced to US$91.4 million from the initial US$162 million facility at project commencement
• Debt restructure completed
• Project ownership increased to 73.5% from 72.0%
• Hedge book (copper and diesel fuel) out of the money by US$12.4 million at 31 December 2016
• Cash on hand at quarter end of AU$6.0 million (includes restricted cash)

Managing Director Barry Cahill commented: "This landmark quarter saw our new 25,000

t.p.a. copper cathode SX-EW plant achieve nameplate production capacity and our debt position significantly reduced. We are now well positioned to reward shareholders with increased news flow during 2017 on our resource expansion initiatives along with further reductions in debt off the back of an improving copper price."

Contacts: Mr Gary Comb

Non-Executive Chairman

Mr Barry Cahill

Managing Director Mr James Wentworth Chief Financial Officer

Phil Retter Investor Relations NWR Communications

phil@nwrcommunications.com.au

T: +61 407 440 882

Perth Office: Level 1, 5 Ord Street West Perth WA 6005 T: +61 8 6555 3996

F: +61 8 6555 3998

E: info@findersresources.com

ASX Code: FND

www.findersresources.com

3,000 t.p.a. and 25,000 t.p.a. SX-EW Plant Production Report

While the 3,000 t.p.a. plant operated below expectations, the 25,000 t.p.a. plant continued to ramp up copper cathode production and finished the quarter at nameplate capacity as summarised in the following table:

Table 1: Wetar Quarterly Copper Production

Note 1: includes ore stacked to heap and stockpile leach pads.

Ore mining continued in the Kali Kuning open pit with the initial ore movement required to achieve steady state solution inventory completed by quarter end. Future ore movement will be focussed on maintaining inventory.

Image 1 - Excavating blasted material in Kali Kuning pit

Waste mining focussed on bringing down the pit floor in sequence with the required ore movement and stabilising the northern pit wall as reported in the September quarter.

Excess equipment from the mining fleet will be demobilised during the forthcoming quarter in line with reduced earthmoving volumes.

Ore stacking continued on the Gold Pit Leach Pad (GPLP) and the Kali Kuning Valley (KKV) heap leach pads. Construction of the new DP07 leach pad was completed and stacking has commenced early in 2017.

The 3,000 t.p.a. SX-EW plant performed below expectations and will be shut down for a short time during the March quarter for minor refurbishment work to restore the plant to normal operating capacity.

The 25,000 t.p.a. SX-EW plant continued to perform well with steady state nameplate production achieved during the December quarter. Production from this plant is expected to increase incrementally as efficiency improvements are implemented and site staff gain more experience in the operation of the plant.

Image 2 - Stacked tonnes on the Gold Pit Heap Leach Pad

The neutralisation plant operated as planned during the quarter. Demobilisation of construction personnel and equipment continued as final work was completed to all construction activities.

The copper cathode from the 25kt SX-EW plant continued to produce some minor visual quality and specification issues during ramp up. More than 90% of the copper cathode currently being produced is LME Grade A and has been sold at a premium to the LME price with the balance sold at or about the LME price.

The C1 cash cost for the quarter was US$1.08 per pound of copper produced which is slightly (3%) above forecast life of mine cost estimates. The C1 cost is expected to be in line with forecast during the March quarter.

Project EBITDA for the quarter was US$10.9 million which is in line with expectations for the first full quarter of production.

Image 3 - Stacked tonnes on KKV Leach Pad