Gascoyne Resources : High Grades in Resampling Confirms Hendricks Gold Discovery at Dalgaranga, 1.5 MB

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February 22nd, 2016

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

HIGH GRADES IN RESAMPLING CONFIRMS HENDRICKS GOLD DISCOVERY AT DALGARANGA

• 1m resampling results received from the discovery hole at the Hendricks prospect confirm the original 4m composite samples, including individual 1m sample assays up to 21.1 g/t gold
• 1m resampling has resolved the significant gold intersections from discovery hole DGAC303 to the following;
  • 12m @ 2.2 g/t gold from 35m to the end of hole (EOH), incl. 2m @ 11.3 g/t gold, and
  • 12m @ 0.8 g/t incl. 2m @ 2.8 g/t gold from 6m.
• The new Hendricks gold discovery is located only 3km east of the Gilbeys pit and remains open along strike and down dip
• Hendricks is just one of several prospects in the vicinity of the existing Dalgaranga resources and this confirmation of Hendricks as a new gold discovery highlights the significant resource growth potential at the Dalgaranga Project.
• Updated Golden Wings Mineral Resource estimate expected in days
• The Dalgaranga Pre-Feasibility Study is continuing on schedule for completion in Q1 2016.

Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to advise that it has received the 1m resampling assay results from the discovery Aircore hole from the Hendricks prospect at 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 23.0Mt @ 1.4 g/t gold for 1.02 million ounces of contained gold (see Figure 1).

The Hendricks discovery drilling was part of a successful program designed to test multiple high priority targets in the vicinity of the 1Moz Resource base at Dalgaranga. As announced in a number of releases to the ASX on January 14th, February 2nd and February 8th 2016, significant gold zones have been intersected at a number of prospects including Hendricks, Beefeater, Vickers, Golden Wings, Gilbeys North and Tanqueray which have the potential, with further exploration, to lead to additional discoveries and future Mineral Resource growth at Dalgaranga (see Figure 2).

Prior to this recent exploration drilling by Gascoyne, there has virtually been no drilling conducted outside the known deposits at Dalgaranga since the mid 1990s.

Hendricks Gold Discovery

The significant discovery at the Hendricks prospect is only 3km east of the Gilbeys deposit, and is the result of testing a NE "magnetic low" trend similar to the 1.2Moz Gilbeys shear trend and magnetic signature (Figure 2).

Three aircore lines of drilling were completed over the target, with the exciting new Aircore intersection from drillhole DGAC303 occurring on the southern most line completed to date (Figure 2) - there is no drilling south of this line along the magnetic trend to the southwest for over 800m and at depth below this shallow drillhole.

The 1m resampling of the original composite intersection returned a slightly longer (1m) zone of 12m @ 2 2 g/t gold from 35m to the EOH, including 2m @ 11.3 g/t gold for the interval from 35 to 37m. Individual 1m assays splits returned grades from repeats of 21.1 g/t, 10.3 g/t and 14.0 g/t gold.

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

The gold mineralisation is associated with saprolitic sheared and quartz veined mafic rocks to the EOH. Within the same hole an upper gold mineralised zone returned from 1m resampling the interval of 12m @ 0.8 g/t from 6m associated with laterite. Adjacent drill lines to the north contain anomalous gold zones in a number of aircore holes.

Table 1: One Metre Resampling Results from the Hendricks Prospect

Hole ID	From (m)	To (m)	Interval (m)	Au Grade g/t
DGAC303	6	18	12	0.8
includes	9	11	2	2.8
35	47 EOH	12	2.2
includes	35	37	2	11.3

Table 2: Drill Hole Collar Table for DGAC303 Hendricks Prospect

Prospect	Hole_ID	Depth	GDA East	GDA North	RL	Dip	Azimuth
Hendricks	DGAC303	47m	528999	6919499	425	-60	90

Follow Up Drilling

Planning is well advanced to follow up the Hendricks gold discovery and the wide spaced intersection reported above. The followup drilling will be a combination of aircore and RC 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 March 2016.

Pre-Feasibility Study Golden Wings Resource Upgrade

The Dalgaranga Pre-Feasibility Study (PFS) is on schedule for completion in the current quarter. The Golden Wings Resource update is due to be completed in a matter of days, and when completed it will be incorporated into the PFS.

The PFS is investgating the establishment of a 2.5Mtpa processing plant on site, which recent pit optimisation studies suggest will result in production of approximately 100,000ozpa for 6-7 years (see ASX Announcement 19th January 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 Project Aeromagnetic Image, Highlighting the Hendricks Discovery and Recent Significant 1m sample Drill Intersections and Proposed Drilling