Sumatra Copper & Gold : Belinau Underground Mine Geotechnical Event

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SUMATRA COPPER & GOLD PLC

Registered No. 5777015

ASX Announcement: 26 July 2016

Belinau Underground Mine Geotechnical Event

Sumatra Copper & Gold plc ("Sumatra" or "the Company") announces that following the introduction of long hole stoping at the Belinau underground mine during the second quarter of 2016 to accelerate ore production, significant unplanned dilution has been experienced above Level 4 in an area of poor ground conditions. This has resulted in undercutting of the cemented rock fill on Levels 2 and 3 breaching to the surface and a localised collapse into a stope on Level 4. The area was being monitored and the safety of our underground crew was not compromised at any time by the incident and no lost time injuries were recorded.

The remaining void above Level 4 will be backfilled with competent rock and is not expected to impact on any long term infrastructure as the decline, escape ways and return air rises are all located in the hanging wall, away from the orebody.

An interim ore extraction method by ore drives between Levels 4 and 5 will be implemented to attain a competent sill pillar through this zone above Level 5. This will provide long term access to the extremities of the orebody on Level 5 and allow the decline to advance so that a more appropriate stoping method to suit the geotechnical conditions in this area can resume. The Level 5 ore drive is expected to be established by early August, with ore development continuing as planned along the Level 4 West drive.

The modification to the stoping method will result in a slightly lower ore tonnage at a higher grade. Increased ore production from the open pits is anticipated due to favourable weather conditions during the current dry season making up for any tonnage shortfall from underground. Further details as to the effect on the Company's production guidance, if any, will be provided as soon as the underground mine plan is updated to reflect these modifications.

Sumatra's Managing Director, David Fowler, commented: "Over the past month we have appointed Rob Gregory as our Chief Operating Officer and have also added two mining engineers with significant underground experience to enhance our planning, design and implementation capability at Tembang. The benefits from this strengthened team will be seen during the September quarter."

For further information please contact:

David Fowler Phil Retter

Managing Director Investor Relations

Sumatra Copper & Gold plc NWR Communications

+61 8 6298 6200 M: +61 407 440 882

dfowler@scgplc.com phil@nwrcommunications.com.au

About Sumatra Copper & Gold plc

Sumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer in southern Sumatra, Indonesia. The Company's flagship asset is its Tembang gold-silver mine, currently in production. The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings.

ASX ANNOUNCEMENT 26 JULY 2016

Directors Steve Robinson	Jocelyn Waller	Gavin Caudle
Non-Executive Chairman	Non-Executive Director	Non-Executive Director
David Fowler Managing Director	Adi Sjoekri Executive Director
Contact
Level 1, 5 Ord Street West Perth WA 6005 Western Australia T: + 61 8 6298 6200 E: info@scgplc.com	Registered address 39 Parkside, Cambridge United Kingdom CB1 1PN Registered Number 5777015 ASX Code: SUM

Web: www.sumatracoppergold.com