Finders Resources : Confirmation of Release - FND - Wetar Copper Project Finance Update

For ASX Market Release: 20th January 2017

Wetar Copper Project Financing Update

• Project ownership increased from 72% to 73.5%

• Project finance facilities finalised following the hedge restructure announced in September 2016

• Total Project debt (inclusive of the VAT loan facility) currently stands at US$91M

  Finders Resources Limited (ASX:FND) is pleased to provide an update on for the Wetar Copper Project ("Project").

  The restructure of the finance facilities for Finders Indonesian subsidiary PT Batutua Tembaga Raya ("BTR") has now been successfully completed. Following the hedge restructure announced on 15 September 2016, which yielded proceeds of US$42.5 million, a number of additional changes were made to the senior debt facilities including:

• Minimum mandatory copper hedging for 2017 - 2019 reduced from 32,951 tonnes to 16,476 tonnes;

• Additional discretionary hedging lines available for up to 6,000 tonnes of copper; and

• Repayment profile amended to reflect the revised cashflow profile of the Project.

Finders also completed a placement of shares to raise A$12 million as previously announced to the market on 10 November 2016. A portion of the proceeds raised from the placement was invested into BTR to be applied towards resource development, new projects and working capital. This investment increased Finders equity ownership in the Wetar Copper Project from 72% to 73.5% following the dilution of joint venture partner Posco Daewoo Corporation.

Managing Director Barry Cahill commented: "With the successful debt restructure behind us and with the new 25,000 t.p.a. copper cathode SX-EW plant operating at nameplate capacity, our efforts can now be redirected towards debt reduction following the recent improvement in the copper price and to growing the Project's mine life. I look forward to providing further details on our resource expansion and exploration initiatives in the near future."

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

Wetar Copper Project Financing Update

Background Information on Finders

Finders is the operator of the Wetar Copper Project (73.5% interest) located in Maluku Barat Daya, Indonesia.

The Wetar Copper Project comprises the development, open pit mining and processing of the high-grade sulphide deposits at Kali Kuning and Lerokis located within 3 kilometres of the coast on Wetar Island. The project benefits from having existing infrastructure in place, particularly a wharf, camp and roads and partially exposed copper ore bodies from a prior gold mining era.

Finders currently operates a 25,000 tonne per annum ("t.p.a") copper cathode solvent extraction-electrowinning ("SX-EW") plant, commissioned in May 2016, and a 3,000 t.p.a SX-EW plant for annual production capacity of 28,000 tonnes copper cathode. To date, the plants have produced over 15,000 tonnes of copper cathode, of which 90% was sold at a premium to the LME price and without specification issues.

The project has a total debt of US$91M (including a VAT facility) repayable over three years to 2019 and has a projected cash operating cost of US$1.05/lb Cu over the life of mine.

Opportunities for extending the mine life past the current 7.5 years are strongly founded on exploration upside, focussing initially on the nearby Meron satellite deposit and other identified VMS copper and gold targets on Wetar Island.

Disclaimer

This announcement may or may not contain certain "forward-looking statements". All statements, other than statements of historical fact, which address activities, events or developments that Finders believes, expects or anticipates will or may occur in the future, are forward- looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "targeting", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could", or "might" occur or be achieved and other similar expressions. These forward-looking statements, including those with respect to permitting and development timetables, mineral grades, metallurgical recoveries, potential production reflect the current internal projections, expectations or beliefs of Finders based on information currently available to Finders. Statements in this document that are forward-looking and involve numerous risks and uncertainties that could cause actual results to differ materially from expected results are based on the Company's current beliefs and assumptions regarding a large number of factors affecting its business. Actual results may differ materially from expected results. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of their likely impact, (ii) the publicly available information with respect to these factors on which the Company's analysis is based is complete or accurate, (iii) the Company's analysis is correct or (iv) the Company's strategy, which is based in part on this analysis, will be successful. Finders expressly disclaims any obligation to update or revise any such forward-looking statements.

No Representation, Warranty or Liability

Whilst it is provided in good faith, no representation or warranty is made by Finders or any of its advisers, agents or employees as to the accuracy, completeness, currency or reasonableness of the information in this announcement or provided in connection with it, including the accuracy or attainability of any Forward Looking Statements set out in this announcement. Finders does not accept any responsibility to inform you of any matter arising or coming to Finders' notice after the date of this announcement which may affect any matter referred to in this announcement. Any liability of Finders, its advisers, agents and employees to you or to any other person or entity arising out of this announcement including pursuant to common law, the Corporations Act 2001 and the Trade Practices Act 1974 or any other applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded.

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The distribution of this announcement may be restricted by law in certain jurisdictions. Recipients and any other persons who come into possession of this announcement must inform themselves about, and observe any such restrictions.

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Finders Resources Limited, Level 1, 5 Ord Street, West Perth WA 6005