Finders Resources : Wetar Copper Project Update October 2016

Operations staff are now targetting to achieve a steady state production rate of 28,000

t.p.a. copper cathode over the coming weeks.

Plant ramp up has now progressed past the usual fine tuning stages involving equipment performance, reagents addition and power variations. It was pleasing that during this phase all copper cathode was able to be sold at or about LME copper price including a proportion as LME grade A with premium. A majority of the copper cathode now produced is LME Grade A and this will continue to improve as the plant approaches steady state operation.

Cathode daily production levels have been steadily increasing to be now regularly within 10% of full production. Parts of the SX-EW plant have at times achieved and even exceeded their required operating parameters. During the coming weeks it is anticipated that this will occur more regularly until full production is achieved.

Finders expects that the Wetar Project will be operating at full capacity during the December 2016 quarter, as indicated in the following graph, at which time there will be more visibility on the actual financial metrics of the project including production costs.

Ore mining continues to perform as expected with a change to an emulsion blasting product delivering improved fragmentation which in turn has had a positive effect on the crush and stack rate from the crushing circuits.

The neutralisation plant is currently being run on a campaign basis, as required by the build up of acid levels in the circuit.

Managing Director Barry Cahill commented: "It has been a very pleasing effort from site management now commencing to achieve nameplate production from the 25,000 tonne SX-EW plant. Investors can now look forward to more positive news in the coming weeks as production is stabilised, completing the transformation of Finders to a significant and profitable copper cathode 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

1,500

1,000

Copper cathode tonnes

2,500

Project nameplate

2,000

500

0

3kt

25kt

Forecast 28,000 t.p.a. copper cathode

Actual copper cathode stripped as at 15/10/2016

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. To date, the plants have produced over 9,000 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$102M (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.

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.

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.

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.