Rimfire Pacific Mining NL : RC and Diamond Drilling Program Commences at Fifield NSW

26/07/2017

Company Announcement Office Australian Securities Exchange

First Target Area - Golden Chrome Prospect

Rimfire Pacific Mining NL (ASX code: RIM) ("Rimfire" or "The Company") advises that Reverse Circulation (RC) drilling has begun at Fifield NSW. The earn-in partners New Gold Inc. (TSX/NYSE: NGD) and Rimfire are jointly undertaking first pass drilling on five targets, using a combination of RC and/or Diamond (DD) drilling, as appropriate to the target.

• 3,000m of Reverse Circulation (RC) drilling

  • Targeted depths of 60m to 275m

  • An initial five target areas are proposed for first pass reconnaissance testing

• 1,000m of Diamond Core drilling (DD)

  • Targeted depths ranging from 400m to 600m as diamond tails from initial RC pre-collars on three of the five proposed targets

• The first drill target is Golden Chrome an 800m diameter alteration and geophysical target

  • The potential is for a porphyry system at depth (>400m)

• This proforma program is subject to review and modification at the discretion of the Fifield project partners (New Gold Inc and Rimfire), and may change according to land access, logistic constraints, permitting or technical variations.

  CEO and Managing Director, John Kaminsky previewed the drilling program developed with New Gold Inc. :

  "This is a very exciting time for the Company with first pass drill testing starting at Fifield on five targets which have now received permits for both RC and Diamond Core drilling. The first drill holes will be on Golden Chrome prospect in the target sequence.

  "Two targets (Golden Chrome and Gravity Thrust) are located along the north-south trending Sorpresa Corridor (currently defined as 7km x 2km area) which hosts a gold and silver resource discovered by Rimfire in 2011.

  "In addition, we have another two targets, the Transit and Moonrise prospects, which are located along the Eclipse gold and copper trend, located a few kilometres east of Sorpresa. The final target area is at the Carlisle gold and copper prospect which is situated seven kilometres southwest of Sorpresa.

  "We intend to remain relatively flexible within these five drilling target areas, in terms of the number of holes and depths of each hole, staying adaptive to the new drilling information as it becomes available during the overall program.

  "Rimfire and New Gold continue to pursue the discovery strategy within the Fifield region as outlined for 2017 (Hyperlink: ASX Announcement 22 February 2017 - Discovery Strategy Outline with Work Programs Commenced)."

  Summary of Golden Chrome Prospect and Drilling Plan (refer Figures 1 & 2)

  The Golden Chrome prospect has been selected based on the integration of multiple data attributes. This includes vectors from regolith mapping, geology, geochemistry, alteration studies, magnetics and gravity geophysics.

  This knowledge was collected over the past several years by Rimfire, including earlier drilling (2014) of 17 shallow percussion holes (deepest 50m) and complemented by additional work more recently through New Gold.

  Drilling Rationale for Two holes at Golden Chrome prospect

  RC Drilling starting at Golden Chrome

  The field work to date supports the model for a buried porphyry system with potential for Au-Cu mineralisation, which could extend to significant depth (>400m) below the current land surface.

  A first pass test involving two 275m RC drill holes will initially test the area, with at least one of the two holes

  subsequently selected for a diamond core tail drilling to a 450m to 500m total depth. These holes will be inclined

  -70 degrees to the NW (roughly perpendicular to the interpreted thrust strike).

  Summary of the Target Prospect Areas involved in the Drilling Program

  Reverse Circulation (RC) and Diamond Core (DD) drilling is expected to be ongoing through July and August. The New Gold Inc. - Rimfire partnership is utilizing a common drilling contractor. The Diamond Core drilling will follow initial pre-collars drilled with Reverse Circulation. Drill hole sequencing and depths may be change as results, logistics, access and ground conditions warrant.

  Golden Chrome 1st Hole

  Figures 1 shows the primary target areas ( ) for RC and DD drilling. All required permits and notifications are in place.

  The initial target areas and sequence planned for drilling is:

• The Golden Chrome target lies within a zone of strong phyllic alteration that has been mapped over an area 800m in diameter, potentially representing the near surface expression of a mineralized porphyry system at depth.

  Additional evidence is provided by primary coarse untraveled ragged gold in the bedrock or base of the Platina Lead historic mine spoils. The Platina Lead follows the soft highly altered ring fault to the Golden Chrome intrusive system.

• The Moonrise area located along the Eclipse trend, centres on a zone of anomalous gold in soil and rock chips near the projected trace of an interpreted thrust fault in close proximity to a dioritic intrusive.

• The Transit area to the north of Moonrise, is a newly defined surface gold anomaly within the Eclipse trend, with adjacent base metal signatures and nearby epithermal boiling textures in rock float.

• The Carlisle target centres on an 800m diameter strong magnetic anomaly partially tested with a series of shallow RC holes drilled by Rimfire in 2015. Previous reconnaissance sampling in the area identified favourable silica alteration and anomalous copper and gold, including up to 23.0 g/t Au in rock chips.

• The Gravity Thrust target, is based on Rimfire's interpretation of gravity and magnetic contrast which suggests a

possible repeat of Sorpresa style mineralization along a 2km subparallel feature to the south of the Trench31 area.

Additional areas may also be considered for drilling. Sincerely

ABOUT RIMFIRE

Rimfire Pacific Mining is an ASX listed (ASX 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 strike line 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 areas 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.

Earn-in by New Gold Inc.

On 28th October 2016, Rimfire and New Gold Inc. (TSX/NYSE: NGD) signed an Earn-in Agreement (ASX Release) under which New Gold Inc. has committed to spend A$2 million during the first 12 month earn-in period (to 21 March 2018) and may choose to spend more on the property (up to $12 million in total within 5 years) to earn up to a 70% interest in Rimfire's tenements in the Fifield district.

The discovery aspiration for the Fifield area is an aggregate discovery 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.

CleanTEQ (ASX: "CLQ") Market Cap $400m 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

Sorpresa Deposit 7.9Moz Ag and 125kOz Au

(at cutoff 0.5g/t Au @ 25g/t Ag)

Tout Intrusive

Rimfire Mineralised Prospects

Rimfire tenement Boundary (Blue)

Tout East Extension?

Transit Gold prospect

Sorpresa Trend Gravity Targets

Golden Chrome Gold prospect

Proposed target areas (not to scale) for RC and Diamond Drilling

Carlisle Gold and Copper prospect

Moonrise prospect Gold & Copper

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