Golden Saint Resources : Licence Renewal and Operational Update

18 August 2016

Golden Saint Resources Ltd

('Golden Saint' or the 'Company')

Licence Renewal and Operational Update

Further to the Company's announcement of 19 July 2016, Golden Saint Resources Ltd (AIM:GSR), the West-African focused diamond and gold exploration company quoted on AIM, is pleased to update the market in relation to the renewal of its three exploration licences in Baja, Tongo and Moa and its operations in Tongo:

Exploration licence renewals

On 2 August 2016, the Company paid, to the National Minerals Agency ('NMA'), the annual licence fees for its three exploration licences in Sierra Leone being Baja, Tongo and Moa for the periods to 11 December 2016, 23 November 2016 and 26 January 2017respectively. Going forward, the Company will be required to pay annual licence payments until the final licence expiry on 12 December 2020 for Baja, 24 November 2020 for Tongo and 14 December 2020 for Moa.

Operational update - Tongo

The bulk sampling operations in Tongo are ongoing and in addition to the 8.21 carats of diamonds of varying sizes, weights and colours recovered from the 120 tonnes of gravels washed as announced on 19 July 2016, the Company has recovered a further 4.58 carats (4 stones of 1.96 carat, 0.12 carat, 1.26 carat and 1.24 carat) of diamonds by washing an additional 36 tonnes of gravels from 19 July to 10 Aug 2016. In addition, the Company has also recovered a total of 5.37 grams of gold, from the Tongo exploration licence area, since the commencement of bulk sampling operations on 27 June 2016. In the coming months, the Company plans to acquire a 20 tonne excavator to maximise digging to the basal gravels in the low terraces commencing in the Tongo and Baja licence areas.

A picture of the recovered rough diamonds can be found on the Company website atwww.goldensaintresources.com.

Site visit report from Rock Forage Consulting Services ('Rock Forage')

Rock Forage conducted a site visit to the Company's field operations in Tongo and Baja at the end of June 2016 and provided the following executive summary and conclusions and recommendations:

Executive Summary

Rock Forage conducted a site visit to Golden Saint's field operations at the end of June 2016, the principal objectives being to inspect the upgraded Dove Jig Treatment Plant ('Dove Explorer')ahead of re-commencing the treatment of the Stockpile 1 alluvial bulk sample from the Woa River lowterrace gravels in the Tongo licence area, evaluate the sample setting and excavated gravels from the lowterrace of the Sewa River at Site 2 in the Baja licence area and to inspect several second-hand excavatorsavailable in Sierra Leone for use in the mini-bulk sampling campaigns planned initially for the Tongoand Baja licence areas. The site visit was conducted by Mr Pierre Fourie, Mining Engineer, with resourceaspects of this trip followed up with Dr John Ward in South Africa. Due to the onset of the wet seasonat the time of the visit, only the Tongo and Baja licence areas were visited.

The Dove Explorer, currently located in the Tongo licence area, had been upgraded to improve the screening and the gold recovery efficiencies. Treatment of the Stockpile 1 alluvial mini-bulk samplefrom the Woa River low terrace gravels, which commenced on 27 June 2016, was subsequentlycompleted on 10 August 2016 with alluvial diamonds and fine gold recovered from 140 tonnes underwell-controlled conditions. A recovered diamond grade of 9.1carats per hundred tonnes (0.47 carats per stone) was realised with agold grade of 0.04grams per tonne.

The Site 2 alluvial bulk sampling locality on the low terrace of the Sewa River in the Baja licence area was visitedon foot. Access to this site will not be possible until the onset of the dry season, but all plantequipment destined for this campaign was recovered successfully from the Zimmi project in spite ofthe wet season rains in early August 2016.

None of the second-hand excavators screened in Sierra Leone were suitable for the exploration programme and thus alternative sources in the Far East and South Africa are being investigated.

Conclusions and Recommendations

With the Dove Explorer upgraded and modifications completed under Rock Forage's guidance, the first well-controlled alluvial mini-bulk sample of 140 tonnes (dry weight) of gravels from the Woa River low terrace in the Tongo licence area was completed between 27 June 2016 and 10 August 2016. This small sample, fed manually through the Dove Explorer, yielded 27 diamonds weighing 12.79 carats, giving an initial grade of 9.1 carats per hundred tonnes at an average stone size of 0.47 carats per stone. Some 5.37 grams of gold were also recovered, giving a grade of 0.04 grams per tonne. Some 15% of the stones were between 1 - 2 carats, with a further 15% falling in the 0.5 - 0.99 range. This represents the start of systematic exploration to determine the alluvial diamond and gold resource potential of the Woa River valley deposits on the Tongo licence area.

Cleaning of the bedrock to ensure that the basal gravel is extracted is critical although difficult during the wet season. Proper bedrock cleaning might represent some upside to the diamond and gold grades. Test pits to establish the depth of the basal gravel in the stripped pit should be considered.

Sampling of the Sewa River low terrace alluvial gravels, using a second plant, at Site 2 has been postponed until the onset of the dry season as vehicular traffic is currently impassable in the wet season. The routing of a suggested vehicular road access to Site 2 should be reconsidered in line with the overall exploration strategy on the licence.

A second-hand, 20 tonne (approximately) excavator to speed up the alluvial mini-bulk sampling programme is likely to be acquired from South Africa or the Far East, as these earthmoving machines are, to date, not in price-worthy conditions in Sierra Leone.

The full site visit report submitted by Rock Forage (which includes a full glossary of technical terms) can be downloaded from the Company's website atwww.goldensaintresources.comand can also be accessed through the link on this announcement.

http://www.rns-pdf.londonstockexchange.com/rns/5619H_-2016-8-18.pdf

The information in this announcement that relates to the site visit by Rock Forage is based upon information compiled by Dr John D Ward (Pr. Sci. Nat; PhD) who is an Independent Consultant employed by Rock Forage Mining Limited and is a Fellow of The Geological Society of South Africa. Dr Ward has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and the activity in which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Dr Ward consents to the inclusion in a release of the matters based on his information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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