January 10th 2017

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

FURTHER STRONG GOLD RESULTS FROM GILBEYS SOUTH AT DALGARANGA
  • New results from Gilbeys South resource drill out include:
    • 5m @ 5.2 g/t gold from 40m o 14m @ 1.4 g/t gold from 14m o 12m @ 1.7 g/t gold from 18m o 10m @ 1.3 g/t gold from 16m o 11m @ 1.4 g/t gold from 23m o 10m @ 1.6 g/t gold from 83m o 8m @ 1.9 g/t gold from 110m o 9m @ 1.5 g/t gold from 188m
    • 15m @ 1.1 g/t gold from 147m
    • 18m @ 1.0 g/t gold from 148m
  • Results from a further 40 RC holes still outstanding, and will be reported when available
  • Drilling to follow up the new Sly Fox gold discovery to commence in late January
  • Following the recent completion of the positive Feasibility Study for the Dalgaranga Gold Project, the appointment of key management for project development, and the securing of 100% ownership of the 1.12Moz resource, Gascoyne is progressing towards development of the Dalgaranga Gold Project through finalisation of permitting and acquisition of long lead time items as well as an aggressive exploration effort.

Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to advise that it has completed the purchase of the Dalgaranga Gold Project and has moved to 100% ownership, through finalising the purchase of the minority joint venture partner's 20% interest in the Mining Lease and miscellaneous leases. The Dalgaranga Gold Project already contains a Measured, Indicated and Inferred Resource of 25.7Mt @ 1.4 g/t gold for 1.12 million ounces of contained gold including Proved and Probable Ore Reserve of 552,000 ounces of gold (see Figures 1 & 2 & Tables 3 & 4 below). Drilling is ongoing on the 100% owned Dalgarana Gold Project with assay results awaited and a resource and reserve update planned for this quarter. In addition to the 100% owned Dalgaranga Gold Project, the Company also has two separate 80% owned joint ventures on the surrounding exploration licences which are considered to be highly prospective for additional gold mineralisation. The results reported herein are not included in the current mineral resource at Dalgaranga, and provide indications of significant potential upside.

Gilbeys South Drilling update

Significant new results have been received from a further 30 RC holes at Gilbeys South (See Table 1 & 2 and Figure 3). Results continue to show broad zones of strong gold mineralisation south of the existing Gilbeys open pit and resource. The Company has been advised by the assay laboratory that results outstanding from a further 40 RC holes from the Gilbeys South area are expected to be received in the next 2 weeks. Soon after receipt of these additional results, the Company expects to report a maiden Mineral Resource estimate for the Gilbeys South area.

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

Sly Fox Prospect

The Company expects to commence RC drilling to follow up the new Sly Fox gold discovery in late January. Sly Fox is located only 600m south of Gilbeys deposit, and 500m south east of the Gilbeys South prospect.

Initial aircore drilling reported by the Company on 15 December 2016 intersected very near surface and significant downhole thicknesses of gold mineralisation, with 4m composite results including:

  • 36m@ 2.3 g/t Au from 16m, including 16m @ 4.2g/t
  • 39m @ 1.1 g/t gold from 8m to EOH
  • 47m @ 0.5 g/t gold from surface to EOH Significant Newsflow over the Coming Months

    As announced to the ASX on the 25th November, 2016 the Gascoyne Board has approved the Feasibility Study and subject to obtaining a suitable financing arrangement, has approved the project to proceed to construction.

    Whilst financing is progressed over the coming months, the Company expects to deliver significant and regular news flow as it continues to make strong progress on early development activities and continues to progress an extensive exploration programme, with key news flow to be reported including:

  • Completion of project permitting and securing of long lead time items required for construction of the plant;

  • Release of a large number of drill results that are pending, including:

    • More than 40 RC holes from Gilbeys South and

    • Approximately 300 Aircore holes from regional and sterilisation drilling

  • Release of results from ongoing drilling at near-resource drill targets and regional drill targets at Dalgaranga;

  • Mineral Resource update at Gilbeys, including a maiden resource in respect of Gilbeys South;

  • Results from initial metallurgical testwork at Gilbeys South;

  • An update to the Ore Reserve, Open Pit Mine Designs and Mine Schedule.

All of these activities will be completed with the Company's existing funds as well as continuing to maintain an aggressive exploration programme over the coming months.

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 Gold Project Deposit and Prospect Layout

Figure Three: Dalgaranga Gold Project, Gilbeys South - Recent RC Drill Intersections

Gascoyne Resources Ltd. published this content on 10 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 January 2017 02:43:02 UTC.

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