Beadell Resources : Annual Resource and Reserve Statement Update

ASX Announcement

4 December 2018

ANNUAL RESOURCE AND RESERVE STATEMENT UPDATE

Beadell Resources Limited (Beadell or Company) announces a depletion only Annual Ore Reserve and Mineral Resource update as at 30 June 2018, produced in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

Due to budget constraints (resulting from the Tucano Plant Upgrade and change in mining contractor) and changes in management earlier in the year, Beadell has undertaken insufficient drilling to add to its mineral resources and ore reserves estimates in 2018. This update is a re-statement of the Annual Ore Reserve and Mineral Resource statement as at 30 June 2017, after depletion by mining and processing activities from 1 July 2017 through to 30 June 2018. Initial limited drilling has indicated promising results, but the Company is not able to report exploration results until further drilling and analysis has occurred. Beadell expects to be in a position to undertake this further work throughout 2019 upon completion of the announced transaction with Great Panther Silver Limited (Great Panther) (ASX Announcement 24 September 2018). Beadell plans infill and step out drilling to convert inferred resources to measured and indicated resources and to further define the four discoveries (ASX Announcement 18 September 2018) along the Tucano mine trend. The highest priority step-out target will be the Neo lodes as they occur in the current Tap AB reserve pit outline in an area classified as waste. The Company will update the market on the progress of this drilling once underway.

Dr Nicole Adshead-Bell, CEO & Managing Director of Beadell, commented: "We look forward to demonstrating the potential of the Tucano mine trend upon completion of the transaction with Great Panther. This transaction will result in the creation of a growth-oriented precious metals producer with the balance sheet to prove the potential of the Tucano mine trend via investment in infill and step-out drilling to increase Tucano's reserves, life of mine and net present value, delivering increased value per share to both Beadell and Great Panther shareholders".

TUCANO ORE RESERVES

Total Ore Reserves as at 30 June 2018 were 21.67 million tonnes @ 1.81 g/t gold for 1.26 million ounces compared to 25.06 million tonnes @ 1.83 g/t gold for 1.47 million ounces as at 30 June 2017. This is a decrease of 145,000 ounces due to depletion over the second half of 2017 and first half of 2018 and 67,000 ounces due to a revision of the Urucum Underground Reserve.

Total Open Pit Reserves are 16.52 million tonnes @ 1.74 g/t gold for 924,000 ounces compared to 18.45 million tonnes @ 1.77 g/t gold for 1.05 million ounces as at 30 June 2017.

Total Stockpile Reserves are 2.77 million tonnes @ 0.66 g/t gold for 59,000 ounces compared to 3.64 million tonnes @ 0.66 g/t gold for 77,000 ounces as at 30 June 2017.

Total Underground Reserves as at 30 June 2018 were 2.38 million tonnes @ 3.64 g/t gold for 278,000 ounces compared to 2.97 million tonnes @ 3.61 g/t gold for 345,000 ounces as at 30 June 2017. This is a decrease of 67,000 ounces resulting from a revision of the Urucum Underground reserve by AMC. Please see page 4 of this announcement for further clarification.

MINERAL RESOURCES

The Company's Measured, Indicated and Inferred Mineral Resources as at 30 June 2018 were 59.24 million tonnes @ 1.86 g/t gold for 3.54 million ounces. This is a decrease of 187,000 ounces (5%) after allowing for ounces mined during the second half of 2017 and first half of 2018.

Total Open Pit Resources are 32.09 million tonnes @ 1.62 g/t gold for 1.67 million ounces compared to 35.43 million tonnes @ 1.61 g/t gold for 1.84 million ounces as at 30 June 2017.

Total Stockpile Resources are 4.26 million tonnes @ 0.58 g/t gold for 79,000 ounces compared to 5.23 million tonnes @ 0.59 g/t gold for 99,000 ounces as at 30 June 2017.

Total Underground Resources at Urucum and Tap AB are 16.43 million tonnes @ 2.76 g/t gold for 1.46 million ounces.

TABLE 1: ORE RESERVE

As at 30 June 2018

1 128 29

695548

932740

924

983

278

2781,261

*In order to align with NI43-101 reporting requirements, the Urucum Underground reserves are being reported here without the inclusion of the 67koz of inferred material. Please see page 4 of this announcement for further clarification.

See Appendix 1 for JORC Code section criteria

TABLE 2: MINERAL RESOURCE As at 30 June 2018

* The June 2018 Tap AB UG Resource includes 173,000t @ 4.68g/t of Inferred Oxide in the Inferred Fresh Category

CLARIFICATION REGARDING URUCUM UNDERGROUND RESERVES

Beadell also provides clarification to the difference in the Urucum Underground Reserves outlined in ASX Release 31 March 2016 'Positive Urucum Underground Pre-Feasibility Study' and in all news announcements related to Tucano resource and reserves since that date; and those quoted by Great Panther's 6 November 2018 news release titled "Announces Filing of NI 43-101 Technical Report for the Tucano Gold Mine".

The Great Panther Silver release noted corrections to Beadell's previously disclosed Reserves and Resources, stating "the Proven and Probable Mineral Reserves for Urucum Underground reported in the September 23, 2018 news release (dated September 24 in Australia) incorrectly stated the tonnage and grade, resulting in an overstatement of approximately 67 k ounces of contained gold".

This statement was clarified on page viii of NI 43-101 report filed on SEDAR: "The JORC reserve released on 19 December 2017 to the ASX ("Interim Mineral Resource and Ore Reserve Update as at 30 June 2017") stated the total Urucum Underground Reserve was 2,972 kt at 3.61 g/t Au for 345 koz Au. This reserve was reported by AMC inclusive of Inferred Resource blocks captured inside the stope designs that were optimized on Measured and Indicated Resources in the 2016 PFS. The Inferred Resources falling within the stope designs were removed from the estimations and Urucum Underground Reserves reported in accordance with NI 43-101 requirements by AMC in 2018 and has been quoted in the Table 1.3."

The difference in the reserve ounces (67 koz) quoted in the PFS undertaken by AMC in 2016 and prepared under JORC Code 2012 requirements; and the numbers quoted by AMC prepared under NI 43-101 requirements is the result of the different regulatory reporting requirements. AMC have provided the following statement:

'AMC acknowledges the existence of two different Ore (Mineral) Reserves statements for the proposed Underground Urucum mine at the Tucano Gold Mine Property in Brazil. They were reported under different regulatory systems; the JORC Code, and NI 43-101. The Beadell 19 December 2017 ASX Ore Reserve, reported in accordance with the JORC Code, included some Inferred Resources in the stated Ore Reserve. AMC notes that the Inferred Resources reported were not the determining factor in the project economics, and the project was viable even without the Inferred Resources being included. The JORC Code urges caution if using Inferred Resources in studies. Part of the reason for inclusion of Inferred Resource was the distribution of Inferred Resources, that made stope design difficult without the inclusion of some Inferred Resources.

The revised Ore Reserve estimate (as at 30 June 2018) is consistent with the NI 43-101 Technical Report and does not include any Inferred Resources due to specific exclusion of Inferred from the Mineral Reserve process in the CIM Definition Standards.

Both estimates are justifiable under the differing requirements of the reporting standards under which they were produced.'

ABOUT BEADELL

Beadell operates the Tucano Gold Mine in mining-friendly Amapá State, northern Brazil. Tucano occurs within 2,500 km2 of 100%-owned, highly prospective and under-explored 'Birimian age' greenstone terrane. The recently upgraded Tucano plant can process approximately 3.5 million tonnes per year of oxide-sulphide ore feed in a wide range of blends. There is a pregnant pipeline of high potential in-mine and near-mine prospects, anchored by several high-grade gold drill intervals over several metres, that are the near-term opportunity to improve the head grade and prolong the mine life.

FOR FURTHER INFORMATION PLEASE CONTACT:

The information in this report relating to Open Pit Ore Reserves is based on information compiled by Mr Felipe Fernandes who is a member of the Australasian Institute of Mining and Metallurgy and who has sufficient experience which is relevant to the styles of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Fernandes is a full-time employee of the Beadell Brasil Ltd and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report relating to Underground Ore Reserves is based on information compiled by Mr Gary Methven who is a member of the Australasian Institute of Mining and Metallurgy and who has sufficient experience which is relevant to the styles of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Methven is a consultant and a full-time employee of AMC Consultants (Canada) Ltd. and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report relating to Mineral Resources has been approved by Mr Paul Tan who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Tan is a full-time employee of the Beadell Brasil Ltda and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report relating to Urucum Underground, Tap AB Underground, Tap C open pit and Duckhead Open pit Mineral Resources is based on information compiled by Mr Marcelo Batelochi who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Batelochi is a consultant and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report relating to Urucum open pit and Tap AB open pit Mineral Resources is based on information compiled by Mr Brian Wolfe who is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration