Rimfire Pacific Mining NL : New Gold Inc. Completes Strategic Withdrawal from Australia

Company Announcement Office Australian Securies Exchange

New Gold Inc. Completes Strategic Withdrawal from Australia

Announces its withdrawal from Fifield Project Earn-In

Rimfire Pacific Mining NL (ASX code "RIM" or the "Company") advises it has been nofied during the weekend by New Gold Inc. (TSX/NYSE code: NGD) of its intenon to not proceed with the next stage (Year 2) of the Fifield Earn-In Agreement, effecve immediately.

New Gold Inc. spent more than $2M in the Fifield project area during the 12 month period to 31st December 2017. By withdrawing at this stage of the earn-in, this leaves Rimfire with 100% retained interest in the enre Fifield project area, and therefore no project diluon.

The withdrawal from the Rimfire Earn-in Agreement follows the earlier divestment decision by New Gold Inc. on21 November 2017 to sell (to Aurelia Metals) its only other project area in Australia, The Peak Mines, Cobar NSW.

Mark Petersen, VP Exploraon, New Gold Inc. stated:

"As a result of a recent change in New Gold's strategic direcon, the company has determined that it will not be connuing with its opon to earn an interest in the Fifield property."

John Kaminsky, CEO, Rimfire commented:

"We have valued the contribuon made by the New Gold Inc. Team in the $2M spend during 2017, with excellent progress on the Fifield project achieved. At the same me we are sympathec to New Gold Inc.'s decision to withdraw from Australia, given their changed strategic direcon.

"A strong foundaon for discovery growth has now been built in the Fifield project, and Rimfire has 100% of the benefit of this work, going into 2018.

"One of the key operaonal benefits of the earn-in agreement for Rimfire during 2017, was that Rimfire never lost touch with the project area, with our personnel and program ideas being used to service the New Gold Inc. interests in the Fifield Project.

"Accordingly, we will connue with the compleon of drilling programs in the Tout East and Area 2 locaons, with recommencement of this work due next week. A new mapping program is due to commence in March, and the historic review of Cobalt observaons connues within the Fifield project area.

"We expect a consistent newsflow reporng and addional program iniaves to follow for the key target domain areas that will be further tested in 2018, including the importantSteeton and Transit Gold-Copper areas."

"The Company may also examine addional partnership opportunies for the progression of the Fifield project area, in what is now a greatly improved climate for junior companies."

Key Summary of Highlights of the Project Benefits to Rimfire aſter the 2017 earn-in period

•  Detailed airborne geophysics survey and interpretaon for enre tenement package (669km2)

•  Regional Aircore and auger drilling geochemistry and lithology programs (Phase 1 and Phase 2)

  • o Leading to a greater understanding of the underlying geology of the project area

  • o Idenficaon of specific "key target domains" for further discovery potenal

•  Extensive prospecng, sampling and mapping idenfying new prospecve targets in structural locaons

•  Successful Transit gold-copper prospect RC drilling program produced the largest widths for gold intersecons seen to date in the Fifield district, and 4km east of Sorpresa

•  Detailed alteraon studies, looking for addional target vectors for large scale mineralising systems

•  Overall refinement of discovery concept and targeng criteria

•  Expenditure by New Gold Inc. in these combined programs of $2M

•  100% of the Project area remains with Rimfire

Rimfire will continue to develop a process of review, rating and prioritization of its key target domain opportunities to progress and grow the pipeline for new discoveries.

The large number and diverse nature of the regional targets forms an important element of the Company's prospect portfolio strategy helping mitigate discovery risk by reducing dependency on any one prospect or commodity. The Fifield area is well supported with access to infrastructure and skills suitable for any potential mining scenario and this adds further validity to the pursuit of mineralisation in the district.

Shareholders should be encouraged by the mineralisation demonstrated on a large scale within the Fifield district. Rimfire believes a company making discovery opportunity exists within its tenements.

JOHN KAMINSKY

CEO and Managing Director

Figure 1: Fifield District Prospect Map - with neighbouring activity - on geology and structure background

Sunrise (Syerston) Project 28.2Mt @ 419ppm Sc for 11,819 tonnes of Scandium 77Mt @ 0.73% Ni & 0.13% Co

108.3 Mt @ 0.21 g/t Pt for 0.73 Moz of Pt

Platina Resources (ASX: "PGM") - Owendale

24Mt @ 380ppm Sc for 9,100 tonnes of scandium; 31Mt @ 0.52g/t Pt, 0.15% Ni, 0.05% Co for 0.52 Moz of Pt Incl. reserve of 3990Kt @550ppm Sc, 0.09% Co, 0.13% Ni

Pluto

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Figure 2: Some Key Targets shown on Geology, Structure Interpretations with Phase 1 & 2 Aircore (Au) at Fifield (Northern and Central Tenement Location

CleanTeQ (ASX: "CLQ")

Sunrise (Syerston Deposit)

Co, Ni, Sc & Pt

Pluto

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ABOUT RIMFIRE

Rimfire Pacific Mining is an ASX listed (code: RIM) resources exploration company that has its major focus at Fifield in central NSW, located within the Lachlan Transverse Zone (LTZ). In 2010~11 the Company made a greenfields gold and silver discovery, named "Sorpresa", announcing a JORC Compliant Inferred & Indicated Maiden resource in 2014.

The current main Sorpresa trend containing gold and silver mineralisation is approximately 1.5km in length and is at various stages of further discovery growth assessment, including the larger 7km x 2km Sorpresa corridor.

Multiple prospects involving hard rock potential for Gold, Silver, Copper and Platinum have been established within a >6km radius of the Sorpresa discovery at Fifield, which is part of the contiguous 669km2 tenement position held.

More recently, Rimfire is also examining for cobalt potential within its tenements.

Aspiration target in the wider Fifield District

The discovery aspiration for the Fifield area is an aggregate discovery outcome in excess of 4 million ounces of gold equivalent metal, being capable of supporting a mine life in excess of 10 years, and within the lower third of industry costs of production.

Recent Presentation and ASX Activity Summary Reports and Analyst hyperlinks related to Rimfire



The Company released itsInvestor Forum Presentation on 31st January 2018

An analyst update was provided on the Company,through Share Café, Gavin Wendt (of Minelife)



ASX Release December 2017 Quarterly Acvies

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