Gascoyne Resources : Gilbeys Diamond and South RC results FINAL, 1.9 MB

August 1st 2016

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

• Wide and high grade gold intersections with first assay results from Gilbeys South RC drilling including:
  • DGRC089; 28m @ 3.5 g/t gold from 105m, including 16m @ 5.1 g/t gold
  • DGRC093; 17m @ 3.2 g/t gold from 73m, including 6m @ 7.0 g/t gold
  • DGRC094; 35m @ 1.2 g/t gold from 94m
  • DGRC095; 21m @ 1.4 g/t gold from 117m
• Intersections occur on the southern margin of the existing ~1Moz Gilbeys Resource, 150m south of the historic Gilbeys open pit.
• Exploration drilling is ongoing at Gilbeys South, with two RC drill rigs continuing to test below the recently announced strong shallow Aircore intersections along a 550m extension to the Gilbeys deposit.
• Assay results from further diamond drill holes at the Gilbeys Deposit received, results include:
  • DGDH004; 43m @ 1.0 g/t gold from 262m
  • DGDH006; 22m @ 1.2 g/t gold from 182m and 14m @ 1.3 g/t gold from 215m

    o DGDH009; 13.54m @ 1.4 g/t gold from 256.19m

• All diamond holes intersected mineralisation within a few metres of the expected depths, highlighting the excellent continuity of the deposit, with the results received continuing to confirm or exceed the predicted down dip widths and grades.
• Results are expected to allow for an increase in the confidence in the Resource at depth, allowing an upgrade into the Indicated and Measured categories, and likely to result in an increase in Ore Reserves.
• An Aircore rig is continuing the regional exploration programme at the Dalgaranga Gold Project.
• Feasibility Study progressing on schedule, with completion expected before the end of 2016.
• Environmental Permits to be submitted to the WA DMP within the next 2 weeks.

Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to report on further assay results received from exploration drilling activities at its 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 Figures 1

& 2 & Tables 3 & 4 below).

Dalgaranga Drilling Update

As previously announced, Gascoyne is conducting an ongoing multi-rig programme of RC and diamond core resource drilling, geotechnical and metallurgical drilling at the Gilbeys and Golden Wings Deposits, and RC and aircore exploration drilling at the Hendricks, Beefeater, Vickers, Caorunn and Gilbeys South prospects (see Figure 2).

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

Gilbeys South Prospect

Two RC rigs are currently testing the Gilbeys South area where recently announced Aircore results (ASX release 7 July 2016) demonstrated that gold mineralisation extends a further 550 metres South of the current Gilbeys 949,000 ounce Resource. Importantly the mineralisation in this area is shallow, with many of the intersections starting in the highly weathered oxide zone within 15 metres of the surface.

The first RC results reported from this programme (see Table 1 below) are very encouraging as they occur some 150 metres South East of the historic Gilbeys open pit, on the southern edge of the current Gilbeys Resource.

Pleasingly, these first RC results have indicated that the gold mineralisation is between 20-30 metres wide and well above the average grade for the deposit, which remains open to the south and at depth and as descibed, remains the focus of the current drill program.

Table 1: Significant RC Drill Results: Gilbeys South

Gilbeys Deposit

The diamond core drilling programme targeting resources under the existing Gilbeys pit has now been completed. The drilling was designed to increase the confidence in the Resource at depth to allow conversion of more of the Resource from the Inferred category into the Indicated and Measured categories. This will allow more of the Resource to be converted into Ore Reserves to support a longer mine life. The drilling also targeted Resource extensions, and provided samples required for the Feasibility Study metallurgical testwork.

All of the holes intersected the mineralisation within a few metres of the expected depths, highlighting the excellent continuity of the mineralisation at depth, with the results received continuing to confirm or exceed the predicted down dip widths and grades.

The deposit remains open in all directions with further extensional drilling planned, including deeper RC drilling to test the deposit to the North and South, as well as shallow Aircore and RC drilling to test extensions to the mineralisation on the Eastern side of the deposit, where shallow high grades in the oxide zone remain untested along strike to the North East and South West (see Figure 3).

Table 2: Significant Diamond Drill Results: Gilbeys Deposit

Feasibility Study

The Dalgaranga Feasibility Study (FS) remains on schedule for completion by the end of 2016.

As mentioned above, with the infill resource drilling within Pre-Feasibility pit designs now completed, a resource update is underway. It is expected that this resource update will be completed in the next few weeks and will lead to an increase in the Measured and Indicated portions of the resource. This will result in an increase to the Ore Reserve for the project, underpinning the Feasibility Study. Diamond drill core from these holes is also being used for the metallurgical variability testwork which is well advanced.

The Feasibility team is currently focussing on the statutory approvals required to develop the project, with the Mining Proposal, Mine Closure Plan and the Works Approvals all expected to be submitted to the Department of Mines and Petroleum in the next 2 weeks, and approvals anticipated to be received by the end of 2016.

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