Gold Road Resources : September 2017 Quarterly Activities and Cashflow Report

ASX Announcement

23 October 2017

Quarterly Report

For the period ending 30 September 2017

• High priority Ibanez target: Diamond drilling following up RC programme returned a best intercept of 8 metres at 11.60 g/t Au from 229.67 metres, including 3.33 metres at 27.48 g/t Au from 232.66 metres (17CWDD0015)

• Drilling along Wanderrie Supergroup Trend defined advanced anomalous drill targets over an 11 kilometre strike length.

  Gruyere JV (Gold Road 50%):

• RC and diamond drilling intersected high‐grade gold mineralisation along the strike length of both the Attila‐Alaric and Gruyere‐YAM14 Trends

• Best intersections included 8 metres at 4.95 g/t Au from 205 metres (17ALRC00194) from the Argos Prospect and 11 metres at 2.46 g/t Au from 85 metres (17DHDD0014) from the YAM14 Prospect

• Diamond drilling testing Gruyere underground potential extended the >2.0 g/t Au northern high‐grade zone to over 200 metres below current pit design

  South Yamarna JV (Gold Road 50%):

• Yaffler South: RC drilling extended the strike length of gold mineralisation to

  1.4 kilometres, best intersection of 2 metres at 4.34 g/t Au from 142 metres

  (17SYRC00113)

• Kingston North: New anomalies delineated in aircore drilling, best intersection of 12

  ASX Code GOR

  ABN 13 109 289 527

  COMPANY DIRECTORS

  Tim Netscher

  Chairman

  Ian Murray

  Managing Director & CEO

  Justin Osborne Executive Director, Exploration & Growth

  Brian Levet

  Non-Executive Director

  Sharon Warburton

  Non-Executive Director

  Carol Marinkovich

  Company Secretary

  CONTACT DETAILS

  Principal & Registered Office Level 2, 26 Colin St

  West Perth WA 6005

  www.goldroad.com.au perth@goldroad.com.au

  T +61 8 9200 1600

  F +61 8 9481 6405

  metres at 0.38 g/t Au from 72 metres including 4 metres at 1.00 g/t Au from 80 metres (17SYAC0961)

  Gruyere Gold Project

• ACJV commenced process plant construction, undertaking concrete works on site and steel fabrication in Perth

• MACA earthworks, including airstrip upgrade, clearing for Stage 1 Pit and Tailings Storage Facility and borefield development, progressing well

• Three tenderers shortlisted for mining contract, with contract award expected in December 2017 quarter

• Gruyere Village commissioning completed and officially opened

  Corporate

• Gold Road received Dealer award at the Diggers & Dealers Mining Forum in Kalgoorlie

• The Company had cash and term deposits of A$240.1 million, and current receivables of A$47.3 million at 30 September 2017

Well‐funded mid‐tier gold development and exploration company, Gold Road Resources Limited (Gold Road or the Company), presents its activity report for the quarter ending 30 September 2017.

The September 2017 quarter saw Gold Road continue the acceleration of its planned A$30 million greenfields exploration programme, with seven drilling rigs in operation across the Company's ~5,500 square kilometre tenement holding in Western Australia's underexplored Yamarna Greenstone Belt. The forecast for the annual exploration spend is in the range of A$24 to A$26 million, lower than budgeted due to suspension of the second phase of the Gruyere Deep Drilling programme and a slower than planned ramp up of aircore drilling.

During the period, a total of 331 diamond, reverse circulation (RC) and aircore drill holes for 38,502 metres were completed on prioritised early and advanced stage projects within the tenements. Results returned from drilling again demonstrated the exceptional geological potential of the landholding.

Diamond, RC and Aircore drilling campaign physicals for the September 2017 quarter

Project

Camp Scale Target

Prospect

HoleType Number of Holes

Metres

(m)

The development of the Gruyere Gold Project, a 50:50 Joint Venture with Gold Fields Limited (Gold Fields), progressed to schedule and budget through the quarter, with the shortlisting of three tenderers for the mining contract among the important events.

Figure 1: North Yamarna tenements showing Corkwood and Wanderrie Camps (South Yamarna tenements excluded)

The high priority Ibanez Prospect was the focus of diamond and RC drilling during the quarter as the exploration team sought to improve the understanding of the geological framework and infill areas of broadly spaced drilling in the northern part of the prospect. A total of five diamond holes (1,832 metres) and 10 RC holes (1,981 metres) were completed.

The first diamond hole drilled as part of this program, 17CWDD0015, returned an intersection of 8.20 metres at

11.63 g/t Au from 229.67 metres including 3.33 metres at 27.48 g/t Au from 232.66 metres, confirming the width and grade of the high‐grade mineralisation intersected in RC hole 17CWRC00371, which was drilled 20 metres to the south‐east in the June 2017 quarter.

Four follow up diamond holes and the RC programme also intersected mineralisation2, adding to the encouraging geological picture emerging at Ibanez. The information gathered from these programmes will assist in planning future drilling at the site which will specifically target potential high grade zones within the system.

1 ASX announcement dated 27 June 2017, Yamarna Exploration Update: Significant Intersections Returned

2 ASX announcement dated 11 October 2017, North Yamarna Exploration Update

Exploration activities undertaken during the quarter at the Wanderrie Camp, centrally located on the Yamarna tenements, included bedrock testing of the prioritised Satriani and Santana targets with RC drilling and infill definition of identified anomalies with aircore drilling.

Of the three RC holes drilled at Satriani (for 520 metres), one successfully intersected the southern projection of the main mineralised shear along the Wanderrie Supergroup Trend, returning a best intersection of 2 metres at

14.74 g/t Au from 73 metres, including 1 metre at 28.02 g/t Au from 73 metres (17WDRC0033).

The eight‐hole RC programme completed at Santana (for 1,491 metres) successfully identified the northern projection of the main mineralised shear, while infill aircore drilling along the southern half of the Wanderrie Supergroup Trend taking in the Gilmour and Morello prospects confirmed consistent gold mineralisation along five kilometres of strike. As a result, a coherent 11‐kilometre long gold anomaly has now been delineated along the full length of the Supergroup Trend.

Drilling within the Gruyere Joint Venture (Gruyere JV) tenements during the quarter continued to focus on delineation of additional higher‐grade resources within economic haulage radius of the Gruyere Mill and Open Pit Mine currently under development. A total of 54 diamond and RC holes (12,085 metres) were completed, targeting extensions and infill to existing resources at Attila, Alaric and Gruyere and advanced projects at YAM14 and Argos.

Figure 2: Gruyere JV tenements showing selected diamond and RC intersections from recent drilling programmes

Attila‐Alaric Trend

Argos

A total of 17 RC holes (3,283 metres) and three diamond holes (742 metres) were completed at Argos as part of a programme to improve understanding of the lithology and controls on mineralisation and infill sections of broader drill spacing in preparation for a Mineral Resource update in early 2018. Assay results were returned for six of the RC holes, with results from other holes pending. Best intersections included:

• 8 metres at 4.95 g/t Au from 205 metres (17ALRC0194)

• 3 metres at 11.87 g/t Au from 123 metres (17ALRC0200)