Ramelius Resources : $25M Placement to Institutional Investors

Microsoft Word - ASX RELEASE 20160726 Placement to Institutional Investors F 26 July 2016 For Immediate Release Not for release or distribution in the United States $25M PLACEMENT TO INSTITUTIONAL INVESTORS

• 50,000,000 new shares to be issued at $0.50 per share to raise A$25 million

• Funds raised will be used to fast-track both Mt Magnet project development and brownfields exploration

• Potential to increase production up to 150,000oz in FY2018 and extend Mt Magnet mine life at the same time

• Shares placed to a select group of high quality institutional investors, primarily in North America and Australia

26 July 2016

ISSUED CAPITAL

Ordinary Shares: 475M

DIRECTORS

NON-EXECUTIVE CHAIRMAN:

Robert Kennedy

NON-EXECUTIVE DIRECTORS:

Kevin Lines Michael Bohm

MANAGING DIRECTOR:

Mark Zeptner

www.rameliusresources.com.au info@rameliusresources.com.au

RAMELIUS RESOURCES LIMITED

Registered Office

Suite 4, 148 Greenhill Road Parkside, Adelaide

South Australia 5063

Tel +61 8 8271 1999

Fax +61 8 8271 1988

Operations Office

Level 1, 130 Royal Street East Perth WA 6004

Tel +61 8 9202 1127

The Directors of Ramelius Resources Limited (ASX: RMS) are pleased to announce that the Company has received commitments for A$25 million in additional capital through the placement of 50,000,000 new shares to institutional investors ("Placement"). The issue price of $0.50 per share equates to a 5.5% discount to the Company's 20-day VWAP of

$0.529 per share on ASX to Thursday 21st July 2016. Settlement for the Placement is expected to occur on 29th July 2016.

Use of Funds

Funds raised from the Placement will be used to accelerate the Water Tank Hill and Milky Way developments and significantly increase resource extension drilling of brownfield targets at Mt Magnet and Vivien with a focus on further improving the overall resource position and associated mine life.

The accelerated development program at Milky Way will enable the Company to potentially increase production up to 150,000 ounces in FY2018 with a commensurate reduction in All- in Sustaining Cost (AISC) per ounce.

Ramelius Managing Director Mark Zeptner said today:

"We are very pleased with the support received for our new 4 year mine plan and the possibilities of increased production going forward. This has transferred directly into demand for the Placement, which was heavily oversubscribed, and Ramelius welcomes the addition of some of the world's most respected general and precious metals funds as shareholders of the Company.

Supporting our long-term growth aspirations, the funds provide us with additional capital flexibility to fast-track multiple project developments at Mt Magnet without compromising our ability to move on current and future opportunities we have identified.

Additionally, we have been able to increase institutional investor representation, which was low relative to most of our peer group companies, from around 10% to closer to 20% with the intent of further growing this over time.

It is important to note, whilst always recognising our current shareholder base, that greater institutional investor representation should enable Ramelius to go to the next level and realise the Company's full value for all shareholders."

Jett Capital Advisors LLC acted as Lead Manager for the Placement whilst Adelaide Equity Partners acted as Corporate Advisors. The Placement was completed within the Company's placement capacity under ASX Listing Rule 7.1.

For further information, contact:

Mark Zeptner Duncan Gordon

Managing Director Executive Director

Ramelius Resources Limited Adelaide Equity Partners Limited

Ph: (08) 9202 1127 Ph: 0404 006 444

Important Notes:

This announcement has been prepared for publication in Australia and may not be released to any newswire service in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.

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