Gascoyne Resources : Exploration Underway at the +1M Oz Glenburg Gold Project, 3 MB

June 27th , 2016

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

• RC Drilling is underway at the +1.0 million ounce Glenburgh Gold Project targeting:
  • Initial follow up drilling at the Chevelle Prospect (4m @ 8.4 g/t)
  • Initial drilling at the strong (+500ppb gold) 6km long North East soil anomaly
• An independent exploration team has been established for Glenburgh to aggressively explore and grow the +1.0 million ounce project. Initial activities include:
  • Ground truthing of historical +1.0 g/t soil anomalies;
  • Review of drilling effectiveness on regional targets;
  • Review of surface sampling within the entire project; and
  • Evaluation of structural and geophysical targets near the existing deposits
• These exploration activities will continue at the Glenburgh Gold Project in parallel with the ongoing Feasibility Study, development and exploration activities of the Company's near term +1.0 million ounce Dalgaranga Gold Project.

Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to advise that the Company has recommenced exploration at the +1.0 million ounce Glenburgh Gold Project in the Gascoyne region of Western Australia. The 100% owned Glenburgh Gold Project is the Company's Phase 2 gold development project and already contains a Measured, Indicated and Inferred Resource of 21.3Mt @ 1.5 g/t gold for 1.0 million ounces of contained gold (see Figure 1 & 2 & Table 2).

RC drilling is underway at the Glenburgh project for the first time in around two years. A number of high priority geochemical targets remain either untested or only partially tested. As a result, a targeted programme has been designed to follow up the Chevelle discovery (4m @ 8.4 g/t gold) and to undertake the initial drill test of a number of high priority geochemical targets (soil anomalies up to 2064 ppb gold) to the north east of the known 1.0 million ounce Glenburgh deposits (see figure 2 & 3). The initial programme of ~2,000m of RC drilling is expected to be completed in around two weeks, with results expected around three weeks later.

A review of previous exploration completed over the project is underway. The initial review has highlighted a number of regional +1.0 g/t gold soil anomalies which remain unexplained. Ground truthing and confirmation sampling is planned over a number of these targets in the next few months with a view to drilling in the current field season.

In addition to the soil anomalies, a number of stream sediment gold anomalies have been identified which are yet to be followed up. Some of these anomalies are larger than the original stream sediment anomaly that resulted in the discovery of the +1.0 million ounce Glenburgh system. Follow up stream sediment sampling and soil sampling is expected to be ongoing for the next six months. It is expecetd that this exploration will lead to developing drill targets for testing in late 2016 or early in the 2017 field season.

Commenting on recommencement of exploration at Glenburgh, the Company's Managing Director Mr Mike Dunbar said

'It is very pleasing to be back on the ground at Glenburgh. Our previous exploration on the project resulted in very rapid low cost resource growth with the Company adding around 800,000 ounces of gold to the resource base between mid 2010 and 2013. As a result of the very tough market conditions over the last few years, the Company was forced to limit

P.O. Box 1449, West Perth, Western Australia 6872 Rust House, Level 2, 33 Ord Street, West Perth, Western Australia 6005 Telephone +61 8 9481 3434, Facsimile +61 8 9481 0411

Email: admin@gascoyneresources.com.au, Web: www.gascoyneresources.com.au

onground exploration at Glenburgh while we focused on the near term development of our +1.0 million ounce project at Dalgaranga. With the recent $15 million capitial raising now completed, we are now in the very fortunate position to have two +1.0 million ounce gold projects on granted Mining Leases in Western Australia, and the funds to allow not only the completion of the Dalgaranga Feasibility Study by the end of the year, but also an aggressive exploration push at both the Glenburgh and Dalgaranga Projects.

Additionally by having two independent exploration teams, both projects can be progressed in parallel without either team losing focus on the task at hand.'

For further information please refer to the Company's website or contact the Company directly. On behalf of the board of

Gascoyne Resources Limited

Figure One: Gascoyne Resources Project Locations in the Gascoyne and Murchison Regions

Figure Two: Glenburgh Project Deposit and Prospect Layout