Beadell Resources : Clarification Statement

20 NOVEMBER 2018

ASX LIMITED

MARKET ANNOUNCEMENTS OFFICE

Dear Sir/Madam

CLARIFICATION TO PREVIOUS STATEMENT AND ANNUAL RESOURCES AND RESERVES UPDATE

Beadell Resources Limited (Beadell or Company) wishes to provide clarification to a statement made to the market on 26 February 2018 in its "Corporate Presentation - 27th BMO Conference" on slide 3. The statement is as follows:

'Resource increased by 420,000 ounces in 2017 at a cost of approximately $10 per ounce discovered.'

The Company wishes to clarify that the increase was 412,000 ounces and that this increase was calculated taking into consideration total resources as at 30 June 2017 (released to the ASX on 19 December 2017) minus total resources as at 31 December 2015 (released to the ASX on 14 April 2016) after allowing for depletion from 1 January 2016 to 30 June 2017.

Additionally, during the 18-month period the Company spent US$4,096,848 in exploration costs (see December 2016 Quarterly Report and June 2017 Quarterly Report), which when divided by the total resource ounces increased in the period equals to approximately US$10 per ounce discovered.

Beadell management also advises that the 2018 resource and reserve update should be released by the end of December 2018 and it will be a depletion statement of the 30 June 2017 resources and reserves. A depletion only statement is being provided due to a number of reasons, including the recent change in management and budget constraints, which has limited the ability to conduct sufficient additional resource and reserve drilling to properly undertake a full resource and reserve update."

Yours faithfully

GREG BARRETT Company Secretary Beadell Resources Limited