For ASX Market Release: 16 December 2016 Wetar Copper Project Resource Update

Finders Resources Limited (ASX:FND) is pleased to provide the following Mineral Resource and Ore Reserve update for the Wetar Copper Project in which the company holds a 72% interest.

The Measured, Indicated and Inferred Resource as at 30th June 2016 on a 100% equity basis now stands at 8.9 million tonnes at 2.4% copper for 210 thousand contained tonnes of copper metal (Table 1).

The Proved and Probable Reserve as at the 30th June 2016 on a 100% equity basis stands at 8.6 million tonnes at 2.3% copper for 202 thousand contained tonnes of copper metal (Table 2).

A 2% overcall in reconciled copper tonnes mined versus the Ore Reserve Model for the Project to the end of November 2016 demonstrates the robustness of the Mineral Resource and Ore Reserve estimates.

A full summary of the estimates including the methodology, Competent Person's Statements and JORC 2012 Tables is appended to this release.

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

Table 1 : Mineral Resource Estimate

Wetar Copper Project - Mineral Resource Estimate as at 30th June 2016

Measured

Indicated

Inferred

Total

Mt

Cu%

Mt

Cu%

Mt

Cu%

Mt

Cu%

Cu (Kt)

Kali Kuning Resource (COG 0.4% Cu)

Primary

3.6

2.7

0.5

2.8

0.03

2.7

4.2

2.7

114

Transition

0.8

1.2

0.3

1.4

0.08

1.7

1.2

1.3

15

Leached

0.1

0.5

0.01

0.8

0.01

1.1

0.2

0.6

1

Total

4.6

2.4

0.8

2.3

0.1

1.9

5.5

2.4

130

Lerokis Resource (COG 0.5% Cu)

Primary

2.1

2.4

0.4

2.2

0.1

1.5

2.6

2.3

61

Total

2.1

2.4

0.4

2.2

0.1

1.5

2.6

2.3

61

Total Kali Kuning and Lerokis Open Pits

COG as above

6.7

2.4

1.2

2.3

0.2

1.7

8.1

2.4

191

Heap Leach Pads (ex-mine minus cathode production and decommissioned leach pads)

Kali Kuning Valley

0.8

2.4

-

-

-

-

0.8

2.4

18

Total

0.8

2.4

-

-

-

-

0.8

2.4

18

Total Mineral Resource (including Heap Leach Pads)

TOTAL

7.5

2.4

1.2

2.3

0.2

1.7

8.9

2.4

210

Note - Rounding errors may occur. Mineral Resources which are not included in the following Ore Reserve compilation do not have demonstrated economic viability.

The following reconciliation table records the changes from the previous estimate.

Mineral Resource Reconciliation

Cu Metal (Kt)

Mineral Resource Estimate as at 17th July 2013

216

Depletion - Mining at Kali Kuning

(24)

Addition - Heap leach Pads (including pre-treatment stockpiles)

24

Depletion - Decommissioned UDP Pads 5 and 6

(1)

Depletion - Cathode Production

(4)

Reductions/Increases (changes in economic assumptions)

-

Mineral Resource Estimate as at 30th June 2016

210

Table 2 : Ore Reserve Estimate

Wetar Copper Project - Ore Reserve Estimate as at 30th June 2016

Proved

Probable

Total

Mt

Cu%

Mt

Cu%

Mt

Cu%

Cu (Kt)

Kali Kuning Open Pit (COG 0.4% Cu)

Primary

3.6

2.7

0.5

2.7

4.1

2.7

111

Transition

0.8

1.2

0.3

1.3

1.1

1.2

13

Leached

0.1

0.5

0.01

0.8

0.1

0.6

1

Total

4.6

2.4

0.7

2.2

5.3

2.4

126

Waste

3.9

Stripping Ratio

0.7

Lerokis Open Pit (COG 0.5% Cu)

Primary

2.1

2.3

0.4

2.0

2.5

2.3

59

Total

2.1

2.3

0.4

2.0

2.5

2.3

59

Waste

1.9

Stripping Ratio

0.8

Total Kali Kuning and Lerokis Open Pits

COG as above

6.7

2.4

1.2

2.2

7.8

2.3

184

Heap Leach Pads (ex-mine minus cathode production and decommissioned leach pads)

Kali Kuning

0.8

2.4

-

-

0.8

2.4

18

Total

0.8

2.4

-

-

0.8

2.4

18

Total Ore Reserve (including Heap Leach Pads)

COGs as above

7.4

2.4

1.2

2.2

8.6

2.3

202

Notes - The Ore Reserve Estimate for the open pit mines is derived from the Mineral Resource block models for the Kali Kuning and Lerokis deposits. The tonnes and grades are stated to a number of significant digits reflecting the confidence of the estimate. Since each number and total is rounded individually the columns and rows in the above table may not show exact sums or weighted averages of the reported tonnes and grades. "Stripping Ratio" refers to the ratio of the waste to the ore tonnage.

The following reconciliation table records the changes from the previous estimate.

Ore Reserve Reconciliation

Cu Metal (Kt)

Ore Reserve Estimate as at 17th July 2013

209

Depletion - Mining at Kali Kuning

(24)

Additions - Heap Leach Pads (including pre-treatment stockpiles)

24

Depletion - Decommissioned UDP Pads 5 and 6

(1)

Depletion - Cathode Production

(4)

Reductions/Increases (changes in economic assumptions)

-

Ore Reserve Estimate as at 30th June 2106

202

Background Information on Finders

Finders is the operator of the Wetar Copper Project (72% 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.

The project has a total debt of US$100M (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 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.

Distribution Restrictions

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.

Finders Resources Limited published this content on 13 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 January 2017 03:50:07 UTC.

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