Gascoyne Resources : Sly Fox initial RC Results, 2.9 MB

March 14th 2017

Australian Securities Exchange Limited Via Electronic Lodgement

57 139 522 900

• First round of RC drilling results from Sly Fox confirm a significant gold discovery less than 2 km from the proposed Dalgaranga mill:
  • 26m @ 1.8 g/t gold from 36m, including
    • 15m @ 2.4 g/t gold
  • 29m @ 1.1 g/t gold from 60m including
    • 16m @ 1.5 g/t gold o 12m @ 1.1 g/t gold from 83m o 8m @ 1.6 g/t gold from 23m o 11m @ 1.2 g/t gold from 49m
• Assays received for the first 8 holes of an initial 13 RC hole program drilled to follow up highly encouraging aircore intersections announced in December including 36m @ 2.3 g/t gold, 39m @ 1.2 g/t gold;
• RC drilling confirms significant grade and widths, the mineralised zone remaining completely open at depth and along strike;
• Over 200 metres of strike confirmed;
• These results re‐inforce the strong exploration potential at the Dalgaranga Gold Project outside of the known resources, and the likelihood of extensions to mine life;
• Sly Fox is oriented NW‐SE, which is a previously untested mineralised trend at Dalgaranga;
• Resource infill and extensional drilling at Sly Fox will commence later this week.

  Gascoyne Resources Limited ("Gascoyne" or "Company") is pleased to advise that it has received the first 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 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).

  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

Follow up RC drilling has just been completed beneath these first pass aircore intersections, and assay results have been received for 8 of the first 13 RC holes confirming this new gold discovery. Drilling has confirmed broad zones of coherent gold mineralisation intersected over an initial strike length of >200m, remaining completely open along strike and at depth.

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

Gold mineralisation occurs within a NW‐SE trending fault/shear zone that dips steeply to the NE ‐ this is a new mineralised trend not previously recognised at Dalgaranga and will be the focus of ongoing exploration in the Sly Fox area at Dalgaranga. Better RC results returned include, 26m @ 1.8g/t gold from 36m in DGRC298 (including 15m @ 2.4 g/t), 29m @ 1.1g/t gold from 60m in DGRC301 (including 16m @ 1.5 g/t), 8m @ 1.6 g/t gold from 23m and 12m @ 1.1 g/t gold from 83m in DGRC293 (See Table 1 & 2). Gold mineralisation occurs in silica‐sericite pyrite altered quartz biotite schists and minor shale zones (See Figures 3, 5 & 6). Results from a further 5 RC holes are pending.

Resource and extensional drilling will commence later this week at Sly Fox, and exploration aircore drilling targeting strike extensions of the Sly Fox shear and a number of other parallel structures identified in aeromagnetic data will get underway shortly (see Figure 4).

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

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