Finders Resources : Quarterly Activities and Cashflow Report 30 June 2016

• Copper cathode produced for the quarter was 1,067 tonnes. Sales were 612 tonnes at an average price of US$2.22/lb
• 25,000 t.p.a. copper cathode SX-EW plant successfully commissioned and ramping up to nameplate capacity
• The 12 month rolling LTIFR and Injury Severity rates remain at zero Corporate
• A further US$20 million drawn under the Term Loan Facility and VAT Working Capital Facility
• Hedge book (copper and diesel fuel) valued at US$41 million as at 30 June 2016
• Cash on hand at quarter end was AU$28.7 million and unused project finance facilities were US$17 million

Managing Director Barry Cahill commented: "The successful commissioning of the 25,000

t.p.a. SX-EW plant is a fantastic achievement by our staff and contractors. In the short time that the new plant has been operating, copper cathode production has already increased by 90% from the March 2016 quarter. Our focus now turns to ramping up to nameplate capacity during the September 2016 quarter and transforming Finders into a significant ASX listed copper producer."

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

The 3,000 t.p.a. plant operated as expected during the quarter, while the 25,000 t.p.a. plant was commissioned and commenced copper cathode production and as summarised in the following table:

Ore stacking continued on the Gold Pit Leach Pad (GPLP) and the Kali Kuning Valley (KKV) Heap Leach Pads. Productivity improved by 95% from the previous quarter following the commissioning of the new crush, agglomerate and stack circuit. The 3kt crushing circuit continued to perform above expectations.

Copper recoveries and acid neutralisation during the quarter were as forecast.

Image 1 - Aerial view of the Kali Kuning Open Pit

The major event of the quarter was the commencement of operations for the new 25,000 t.p.a. copper cathode SX- EW plant. Production operations took control of the plant during the quarter and commenced the ramp up. Minor issues encountered during the ramp up were overcome in a timely manner by the staff with assistance from the commissioning contractor. The ramp-up is continuing with nameplate capacity expected to be achieved during the September 2016 quarter.

Image 2 - Aerial View of the Gold Pit Heap Leach Pad

Ore mining progress during the quarter was in line with expectations and included the completion of the significant portion of the waste mining in the pit as earthworks is being completed. The completion of this work is intended to expose sufficient ore for mining to feed the planned increase in ore crushed, agglomerated and stacked in the September 2016 quarter.

Copper cathode produced has continued to be exported as LME Grade A copper cathode without any specification issues.

25,000 t.p.a. SX-EW plant Construction Progress

Construction work during the quarter included the KKV leach pad construction with Cell 5 nearing completion.

Image 3 - Kali Kuning Valley Leach Pad

Construction of the 25kt neutralisation plant is well advanced with commissioning to be undertaken in September 2016 quarter.

A majority of the neutralisation plant equipment has been installed and representatives of the vendors have commenced arriving on site for the dry commissioning.

Image 4 - Aerial view of the 25,000 t.p.a. copper cathode SX-EW plant

Coastal construction included final work on the new explosives magazine prior to inspection for permit issuance. Construction of the warehouse/workshop area continued with completion expected in the September 2016 quarter.

Demobilisation of construction personnel commenced during the quarter commensurate with the winding down of major activities on the expansion project.

Image 5 - Aerial view of the Neutralisation plant