Finders Resources : Confirmation of Release - Quarterly Activities Report 30 June 2017

• Record copper cathode production of 6,804 tonnes with record sales of 7,419 tonnes at an average realised price of US$2.60/lb Cu
• C1 cash cost of US$1.02/lb and AISC cost of US$1.33/lb
• EBITDA of US$22.5 million
• Unsold finished product inventory of 1,729 tonnes copper cathode with a value of US$10.3 million at quarter end
• Consistent mining and processing rates maintained throughout the quarter
• 12 month rolling LTIFR and Injury Severity rates remain at zero Corporate
• Total project debt reduced to US$73.6 million as at 7 July 2017 from the initial US$162 million facility
• Project Completion under the Bank Facility achieved in July
• Indonesian tax incentive received, reducing taxes payable over the life of the mine by more than US$10 million
• Cash on hand at quarter end of US$3.3 million

Managing Director Barry Cahill commented: "The June result consolidates what has been a transformational half for Finders as it moves from an exploration and development company to a significant copper producer with robust financial and production metrics. Finders in now a standout value proposition amongst its ASX-listed copper peers. Our focus now turns to extending the mine life beyond the current 7 years with drilling underway testing for extensions to the Lerokis Ore Reserve."

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:

25 Colin 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

Both the 3,000 t.p.a. and the 25,000 t.p.a. plants continued to operate as expected, as summarised in the following table:

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

Note 2: due to a change in accounting standards during 2017, figure includes 990 tonnes of copper sold that was recognised upon the issuance of an invoice to customers rather than when the sales proceeds were collected.

Ore and waste mining continued at Kali Kuning, with ore mined as required to meet crusher feed requirements.

Tonnes and grades mined from the open pit continued to be in line with those estimated by the Ore Reserve, with reconciliations remaining positive for the project to date (an additional 4% more copper metal extracted). The mining schedule has now progressed through the higher, northern part of the pit and grades will continue to improve as mining proceeds into the massive sulphide zone of the orebody.

Ore stacking on the DP07 leach pad, GPLP leach pad and the Kali Kuning Valley (KKV) heap leach pads was ongoing. The crushed and stacked quantities were as per forecast for the quarter. Leach pad extension work was completed on the KKV leach pads and to the front and rear of pads 1 and 2, with stacking of crushed tonnes underway in these areas by quarter end.

The 25,000 t.p.a. SX-EW plant and the neutralisation plant continued to perform well. The SX-EW plant is now operating consistently above nameplate. Ongoing enhancement programmes to the design and operation of the plant to improve consistency will continue throughout the remainder of the year.

Performance of the 3,000 t.p.a. SX-EW plant improved during the quarter and this is trend expected to continue commensurate with the completion of the refurbishment projects during the second half.

During the quarter, over 50% of the copper shipped was sold as LME Grade A Cathode at a premium to the LME copper price. The balance was sold as Standard Grade Copper at or around the LME copper price.

The C1 cash cost for the quarter was US$1.02 per pound of copper produced and the AISC cost was US$1.33 per pound of copper produced, which has benefited from modest levels of capital and exploration expenditure during the first half of this year.

Costs for the Wetar Copper Project are summarised in Table 2 below:

Note 1: 2016 Year still under construction and commissioning

Note 2: due to a change in accounting standards during 2017, figure includes 990 tonnes of copper sold that was recognised upon the issuance of an invoice to customers rather than when the sales proceeds were collected.