Gascoyne Resources : Follow-Up Drilling Results Indicate Wide Gold Zones at Hendricks Gold Discovery, 1.6 MB

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April 1st, 2016

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

FOLLOW-UP DRILLING RESULTS INDICATE WIDE GOLD ZONES AT HENDRICKS GOLD DISCOVERY

• First results received from the follow-up Aircore drilling programme at the new Hendricks gold discovery at our Dalgaranga Project extend the zone of gold mineralisation.
• 4m composite samples from the infill Aircore hole DGAC390 drilled 20m west of discovery hole DGAC303 (12m @ 2.2 g/t gold to the end of hole) returned the significant gold intersection;

  o 18m @ 3.0 g/t gold from 28m to the end of hole (EOH), incl. 4m @ 8.9 g/t gold.

• Results indicate potential for a wide (>30m) gold mineralised zone.
• Assays have been received for the first 2 infill Aircore holes to date. In total 38 new Aircore holes have been drilled at Hendricks. Further follow up RC drilling and Aircore drilling to commence in the coming weeks.
• The new Hendricks gold discovery is located less than 2km from the proposed Dalgaranga processing plant, and remains open along strike and at depth
• Hendricks is just one of several new prospects in the vicinity of the existing 1Moz Dalgaranga Gold Resource, and this confirmation of Hendricks as a new gold discovery highlights the significant potential for Resource growth and mine life extensions at the Dalgaranga Project.
• Follow up drilling has also been completed at Beefeater and the first drilling at Caorunn with results awaited.

Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to advise that it has received the 4m composite sampling assay results for the first 2 infill Aircore holes at the Hendricks prospect within the Company's 80% owned Dalgaranga Gold Project in the Murchison region of Western Australia. The Dalgaranga Gold Project contains a Measured, Indicated and Inferred Resource of 23.7Mt @ 1.4 g/t gold for 1.05 million ounces of contained gold including an initial Proved and Probable Ore Reserve of 442,000 ounces of gold (see Figure 1 & Table 3 & 4).

Hendricks Gold Discovery Details

The significant discovery at the Hendricks prospect is only 3km east of the Gilbeys deposit and less than 2km east of the proposed Processing Facility for the Dalgaranga Project; and is the result of testing a NE "magnetic low" trend similar to the 1.2Moz Gilbeys shear trend and magnetic signature (Figure 2).

As announced to the ASX on 14th January 2016 an initial three lines of aircore drilling were completed over the target, with the discovery Aircore intersection of 12m @ 2 2 g/t gold from 35m to the EOH, including 2m @ 11.3 g/t gold from drillhole DGAC303 occurring on the southern most line completed to that date (Figure 2). The first follow up program of Aircore drilling commenced with infill drillholes on the 619500N discovery section. New infill Aircore hole DGAC390 has intersected 18m @ 3.0g/t gold from 28m to the EOH, including 4m @ 8.9g/t gold from 32m approximately 20 metres west of discovery hole (see Figure 3) .

Six infill Aircore holes have been completed on the previously drilled sections 50m and 100m north following up anomalous gold intervals, with a further 30 Aircore holes completed on 100m spaced lines at 50m intervals along the lines

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

to the south. Only one aircore hole was able to completed on a line to the north because of wet weather hampering access - this area will be drilled in the coming weeks.

The gold mineralisation intersected in DGAC390 is associated with saprolitic sheared and quartz veined mafic rocks (basalts) to the EOH. An anomalous lateritic gold halo or "mushroom" overlies the deeper saprolite intersections. This result indicates that potentially a very broad zone (>30m) of gold mineralisation has been discovered (Figure 3) subject to confirmation of dip and strike. Logging of holes to the south has recorded the presence of porphyry and black shales indicating a similar geological sequence to that at the Gilbeys and Golden Wings deposits.

Table 1: New Aircore Results from the Hendricks Prospect

Hole ID	From (m)	To (m)	Interval (m)	Au Grade g/t
DGAC390	28	46	18	3.0
includes	32	36	4	8.9
DGAC389	12	16	4	0.65

Table 2: Drill Hole Collar Table for Drill holes with assays returned to date Hendricks Prospect

Prospect	Hole_ID	Depth	GDA East	GDA North	RL	Dip	Azimuth
Hendricks	DGAC389	57	529028	6919501	425	-60	090
Hendricks	DGAC390	46m	528980	6919499	425	-60	090

Beefeater and Caorunn Prospects

Infill and extensional aircore drilling has been completed at the Beefeater prospect. A total of 17 Aircore holes have been drilled including infill drilling around a previously announced intersection of 13m @ 0.9 g/t gold from 16m to the EOH in DGAC323 including 4m @ 1.6 g/t gold from 16m. Two Aircore holes have also been completed at the Caorunn prospect. Results will be announced when they become available.

Further Follow Up Drilling

Planning is well advanced for further follow up the Hendricks gold discovery and the wide zone of gold minerlisation indicated to date. The follow up drilling will be a combination of aircore and RC holes to test the mineralisation at depth and along strike. Programme of works (POW's) have been submitted to and approved by the Department of Mines and Petroleum for the planned drilling which is expected to commence in early April 2016.

Feasibility Study

The Company recently announced the commencement of a full Feasibility Study(FS) in respect of its Dalgaranga Project; see ASX Announcement 31 March 2016 - after the completion of a Pre Feasibility Study which has highlighted a robust development case for the project.

It is expected that the FS will be completed by the end of 2016, with final development decision in early 2017.

RC drilling as part of the feasibility drilling will be undertaken as soon as the initial RC drilling at Hendricks is completed. In addition to the FS activities, an aggressive regional exploration effort will continue at the project.

For further information please refer to the Company's website or contact the Company directly.

On behalf of the board of Gascoyne Resources Limited

Michael Dunbar Managing Director

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

Figure Two: Dalgaranga Project Aeromagnetic Image, Highlighting the Hendricks Discovery and Recent Significant Drill Intersections and Proposed Drilling