Gascoyne Resources : Maiden Sly Fox Resource and Exploration Aircore Results, 2 MB

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June 14th 2017

Australian Securities Exchange Limited Via Electronic Lodgement

• Maiden Mineral Resource to the current limit of RC drilling (only 270 metres strike) for the Sly Fox deposit; 1.5 Mt @ 1.6 g/t gold for 77,000 ounces of contained gold
• 40,000 ounces (0.8Mt @ 1.5 g/t gold) of the Sly Fox Resource is classified as Indicated
• Total Dalgaranga Gold Project Mineral Resource now stands at 1.31 million ounces, representing a more than 17% increase in Resources since the positive Definitive Feasibility Study was delivered in late 2016
• Geotechnical, Metallurgical and Extensional Diamond Drilling has been completed at Sly Fox to allow for initial pit optimisations, open pit designs and Ore Reserve estimation, with assays awaited for two diamond holes
• Ongoing exploration aircore drilling has intersected several significant zones of near surface gold mineralisation NW and SE along the Sly Fox Shear zone outside the initial Mineral Resource. Composite sampling results include:
  • 12m @ 3.0 g/t gold from 20m
  • 8m @ 1.1 g/t gold from 48m
  • 3m @ 3.0 g/t from 80m to EOH o 3m @ 2.3 g/t from 24m to EOH o 12m @ 1.1 g/t gold from 28m o 4m @ 1.3 g/t gold from surface o 4m @ 1.8 g/t gold from 28m
  • 4m @ 1.3 g/t from 20m
  • 4m @ 2.6 g/t from 56m
  • 2m @ 1.1 g/t gold from 80m to EOH
  • 8m @ 1.2 g/t gold from 12m
• Regional aircore drilling is ongoing at Dalgaranga

Gascoyne Resources Limited ("Gascoyne" or "Company")(ASX:GCY) is pleased to announce a maiden Mineral Resource estimate for the Company's 100% owned Sly Fox gold deposit located less than 2km from the proposed Dalgaranga Gold Project mill. The maiden Sly Fox Mineral Resource is 1.5Mt @ 1.6 g/t Au for 77,000 ounces of gold. The addition of this new Resource increases the global Dalgaranga Gold Project Resource to 31.1Mt @ 1.3 g/t Au for 1,310,000 ounces of contained gold including Proved and Probable Ore Reserve of 552,000 ounces of gold (see Figures 1 & 2 & Tables 1 & 2) below).

Gascoyne's Managing Director Mr Mike Dunbar commented;

"The Maiden Resource estimate of the Sly Fox deposit comes only 3 months after our maiden Resource estimate for the Gilbeys South deposit, which between them have added significant new Resources to the Dalgaranga Gold Project since the

P.O. Box 1449, West Perth, Western Australia 6872 Level 1, 41-47 Colin 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

DFS was completed in late 2016, and is another step forward for the Dalgaranga Gold Project as it demonstrates the potential to further extend the mine life of the Project.

While this initial Resource is modest in size, given it only covers the first 270m of strike defined by RC drilling to date, the shallow mineralisation and the higher than project average grade, mean that it is likely that a pit development at Sly Fox will feature early in the Project's development, further enhancing the early years of production.

The discovery of Sly Fox and the rapid resource delineation also confirms our belief that our dedicated exploration team will continue to deliver further gold discoveries into the future".

The Mineral Resource modelling and estimation has been completed by RungePincockMinarco Limited, now known as RPMGlobal Holdings Limited, an external and leading independent global mining consultancy (see Table 1, 2 for the breakdown of the Mineral Resource classification and Appendix 1 for Notes on Sly Fox and the Mineral Resource estimate).

The maiden Resource for the Sly Fox deposit will form the basis for an initial Ore Reserve for the deposit which is expected to be completed in the next few months once the geotechnical drilling data is compiled. The Ore Reserve will be integrated into the development plan for the Dalgaranga Gold Project. Given the higher grade of the Resource relative the bulk of the Dalgaranga Resources, it is expected that any pit at Sly Fox will be scheduled early in the mine plan, further enhancing the early years of the Projects' development.

• 1.5Mt @ 1.6 g/t gold for 77,000 ounces of contained gold

  o +50% of the Maiden Resource in the Indicated Category (40,000 ounces)

• The Resource only covers the 270m of strike defined to date. Mineralisation remains open along strike

• Total Mineral Resource at Dalgaranga has increased to 31.1Mt @ 1.3 g/t gold for 1,310,000 ounces of contained gold

• Measured and Indicated Mineral Resource at Dalgaranga has now increased to 800,000 ounces of contained gold

• The robustness of the Resource is highlighted in the grade tonnage curves and the ounces per vertical metre graph (see Figure 8 & 9)

Table 1 - Sly Fox June 2017 Mineral Resource Estimate (0.5 g/t Au Cut-off)

Note:

The Mineral Resource has been compiled under the supervision of Mr. Shaun Searle who is an employee of RPM and a Registered Member of the Australian Institute of Geoscientists. Mr. Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code.

All Mineral Resources figures reported in the table above represent estimates at 14th June, 2017. Mineral Resource estimates are not precise

calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.

Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code - JORC 2012 Edition).

Table 2- Dalgaranga Project June 2017 Mineral Resource Estimate (0.5 g/t Au Cut-off)

Foot notes for Table 1also apply to Table 2

Diamond drilling at the Sly Fox deposit for geotechnical, and metallurgical testwork and extensional drilling has been completed. This drilling will allow for initial pit design and optimisations to be completed now that the Mineral Resource has been estimated. As announced by the Company recently (ASX Announcement 11 May, 2017), initial metallurgical recoveries are excellent averaging, well above 90% and as high as 98% in the oxide zone with high gravity gold recovery and low reagent consumption. Assay results for two diamond drill holes (one resource hole and one geotechnical diamond drill hole) are expected to be received in around three weeks.

The results from most of the recently completed Aircore drilling to the NW and SE of the Sly Fox deposit have been received. The drilling was focussed on testing the Sly Fox NW trending shear zone and the structurally complex area where it is interpreted to intersect the NE trending Gilbeys shear zone. Numerous gold mineralised intervals have been intersected associated with altered schist/shale zones along the Sly Fox shear, and parallel trends to the NW and SE of the Sly Fox gold deposit (Figure 3). Of note are the intersections 12m @ 3.0 g/t gold from 20m in DGAC1965, 12m @ 1.1 g/t gold from 28m in DGAC1987, 8m @ 1.1 g/t gold from 48m and 3m @ 3.0 g/t gold from 80m to EOH in DGAC1980. Results from 31 more Aircore holes completed in this area are still to be received. Once the results are to hand follow RC drilling will be planned (See table 3 and 4).

Regional Aircore exploration drilling is ongoing at Dalgaranga.

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

Managing Director

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