Gascoyne Resources : Sly Fox Discovery Continues to Grow at Dalgaranga, 3.5 MB

April 5th 2017

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

• Further RC results received from the recent Sly Fox gold discovery, less than 2 km from the proposed Dalgaranga mill:
  • 23m @ 1.6 g/t gold from 101m, including
    • 11m @ 2.7 g/t gold
  • 30m @ 1.5 g/t gold from 106m including
    • 14m @ 2.6 g/t gold
• RC drilling confirms significant grade and widths, with the mineralised zone remaining open at depth and along strike;
• These results continue to re-inforce the strong exploration potential at the Dalgaranga Gold Project outside of the known resources, and the likelihood of extensions to mine life;
• A further 8 RC Resource infill and extensional RC holes at Sly Fox have been completed with results expected within the next 2 weeks;
• Aircore drilling testing the Sly Fox Shear zone 700m to the SE has been completed with altered schist/shale sequence similar in appearance to the Sly Fox package intersected, with results expected within 2 weeks;
• A Helicopter Airborne Electromagnetic (HEM) geophysical survey has commenced to help identify/map conductive stratigraphy, in particular graphitic black shales that are intimately associated with gold mineralisation at Dalgaranga.

  Gascoyne Resources Limited ("Gascoyne" or "Company")(ASX:GCY) is pleased to advise that it has received further assay results from RC drilling at the Sly Fox prospect within the Company's 100% owned Dalgaranga Gold Project which contains a Measured, Indicated and Inferred Resource of 29.6Mt @ 1.3g/t Au for 1,230,000 ounces of contained gold including Proved and Probable Ore Reserve of 552,000 ounces of gold (see Figures 1 & 2 & Tables 3 & 4 below).

  Sly Fox

  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 gold 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

An ASX announcement dated 14 March 2017 detailed initial RC drilling results beneath the discovery aircore holes, including; 26m @ 1.8g/t gold from 36m, including 15m @ 2.4 g/t, and 29m @ 1.1 g/t gold from 60m, including 16m @ 1.5g/t. Gold mineralisation occurs within a NW-SE trending fault/shear zone that dips steeply to the NE. The gold occurs in silica-sericite pyrite altered biotite carbonate schists and minor shale zones (See Figures 3, 5 & 6).

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

Better new RC results returned from a further 5 RC holes include; 23m @ 1.6g/t gold from 101m in DGRC300 (including 11m @ 2.7 g/t) and 30m @ 1.5g/t gold from 106m in DGRC302 (including 14m @ 2.6 g/t). These deeper intersections show mineralisation remains open at depth (See Table 1 & 2).

A Resource and extensional drilling programme has been completed a further 8 RC holes have been completed, predominantly testing shallow up-dip oxide zones to better constrain gold mineralisation near surface. Results from this drilling are pending.

A programme of aircore drilling targeting stike extensions of the Sly Fox shear zone and a number of other parallel structures identified in aeromagnetic data has also been completed (see Figure 4). Drilling has identified what is interpreted to be the mineralised Sly Fox structure a further 700m to the SE with a highly altered schist/shale sequence intersected, assay are pending, with results expected to be received within two weeks.

In addition to the ongoing drill programme, a Helicopter Airborne Electromagnetic (HEM) geophysical survey covering approximately 50km2 has commenced on the project (see Figure 7). The survey has been designed to identify/map conductive stratigraphy, in particular graphitic black shales that are intimately associated with gold mineralisation at the Gilbeys, Sly Fox and Golden Wings Deposits. The HEM survey is expected to identify additional structural and stratigraphic targets similar to the recent gold discoveries at Gilbeys South and Sly Fox, which are expected to not only increase the

early production (through an increase is the soft oxide mill feed) but also increase the mine life.

This new data set when coupled with the detailed aeromagnetic data will significantly improve the targeting capability on the project, increasing the potential for additional discoveries which would add to the Dalgaranga mine life.

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

Figure Two: Dalgaranga Gold Project Deposit and Prospect Layout

Figure Three: Dalgaranga Gold Project, Sly Fox - Recent RC Drill Intersections and location of Aircore Drilling

Figure Four: Dalgaranga Gold Project, Sly Fox - Aeromagnetic Image showing the Interpreted Shear Zone