ASX Announcement

20 November 2017

UNSECURED GOLD FORWARD SALES FACILITY FOR UP TO 200,000 OUNCES Highlights
  • Gold Road enters into an unsecured 200,000 ounce Gold Forward Sales Facilities
  • Forward sales completed to date of 25,000 ounces at an average forward price of A$1,705 per ounce
  • Gold Road is reviewing options for standby revolving credit or working capital facilities

Well-funded mid-tier gold development and exploration company, Gold Road Resources Limited (Gold Road or the Company) confirms it has signed margin Gold Forward Sales with two major banks for up to 200,000 ounces of Australian dollar denominated forward sales (100,000 ounces with each bank) (Hedging Facilities).

To date, the Company has locked in forward sales contracts for 25,000 ounces at an average forward price of A$1,705 under the Hedging Facilities.

The Hedging Facilities are unsecured but require cash backing if the mark-to-market increases beyond A$25 million with any bank. The Hedging Facilities expire at 30 June 2018, unless the parties agree to extend the Hedging Facilities.

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

As part of the Company's prudent management of financial risks, Gold Road is currently reviewing options for standby revolving credit or working capital facilities, which would also

include discretionary gold hedging facilities (Standby Facilities). The Company is targeting the end of March 2018 quarter to finalise any Standby Facilities. The intention is to merge these early hedges into the Standby Facility, and to roll the delivery dates of the hedged ounces to meet forecast gold production dates.

Gold Road Managing Director Ian Murray said "Construction at Gruyere is well under way to meet the forecast first gold production in 2019. With the gold price currently 14% above the modelled Gruyere Feasibility Study gold price of A$1,500 per ounce, we believe it is prudent to lock in a small portion of our forecasted production. The combination of these higher gold prices and the Standby Facilities lowers our risk and ensures we have flexibility in an environment which can be volatile."

For further information, please visit www.goldroad.com.au or contact:

Gold Road Resources

Ian Murray

Managing Director & CEO Telephone: +61 8 9200 1600

Media and Broker Enquiries

Warrick Hazeldine - whazeldine@canningspurple.com.au Cannings Purple

Tel: +61 417 944 616

Gold Road Resources Limited published this content on 20 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 November 2017 02:05:04 UTC.

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