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ARUMA RESOURCES LIMITED Interim / Quarterly Report 2016

Jan 28, 2016

64273_rns_2016-01-28_900f3712-7782-454e-9aac-2e32f66f2c49.pdf

Interim / Quarterly Report

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ASX ANNOUNCEMENT 29 January 2016

QUARTERLY ACTIVITIES STATEMENT FOR THE QUARTER ENDED 31 DECEMBER 2015

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QUARTERLY ACTIVITIES STATEMENT For the quarter ended 31 December 2015

HIGHLIGHTS

Glandore Gold project

  • 1,200m diamond hole EIS funded and drilled for $200,000

  • State Government subsidised 50% of direct drilling costs ($90,000)

  • Nine sulphidic mineralised alteration zones intersected

  • 240m of sulphide rich alteration zones assayed

  • Six mineralised zoned intersected with values up to 2.58g/t Au

Corporate

  • Approximately $463,000 raised from rights issue

  • R and D refund for $530,684 after costs (received 8[th] January)

Glandore Deep Drilling

Co-Funded Drill Program / Exploration Incentive Scheme

As previously advised, Aruma was successful in its application for Round 11 of the WA Governments Co-funded exploration drilling programme under the Exploration Incentive Scheme (EIS).

Aruma secured funding for 50% of direct drilling cost up to $200,000 at Aruma’s ongoing Glandore Project. The funding was utilised for a single deep diamond drill hole designed to test for parallel lodes under the lake surface.

The Glandore deep drilling intersected ~1,200m of coarse grained mafic sediment with 240m of shaly chloritic altered zones with copper and tellurium anomalism detected by portable XRF. The core from these areas was cut and sampled for assay. The significant (>0.1g/t Au) results are detailed in table 1 below.

Aruma Resources Limited ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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ASX ANNOUNCEMENT 29 January 2016

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QUARTERLY ACTIVITIES STATEMENT

FOR THE QUARTER ENDED 31 DECEMBER 2015

Depth m d/h Zone Alteration Trace Au-FA25 Au-Rp1 Au-Rp2
89-90 Supergene Cb-Qz-Py Cpy-Ep 0.17
111-112 Supergene Cb-Qz-Py Cpy-Ep 0.14
138-139 Supergene Cb-Qz-Py Cpy-Ep 0.15
150-151 Supergene Cb-Qz-Py Cpy-Ep 0.16 0.46 0.98
223-224 MZ 2 Cb-Qz-Py 0.11
308-309 Axial Planar Cb-Qz-Py-Bt Cpy 0.61 0.62
309-310 Axial Planar Cb-Qz-Py-Bt Cpy 0.16
873-874 Eastern Cb-Qz-Py-Bt Cpy 0.5 0.59
996-997 Johnston Cb-Qz-Py-Bt 2.58 2.56
997-998 Johnston Cb-Qz-Py-Bt 0.23
1000-1001 Johnston Cb-Qz-Py-Bt 0.12
1063-1064 MZ 5 Cb-Qz-Py-Bt 1.07 0.91

Table 1 ADH 001 Intersection Summary for Au over 100ppb, showing the 4 expected zones and the additional 2 mineralised zones (MZ 2 and MZ 5). All measurements are in meters down hole.

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Figure 1 Google Earth image of total drilling at Glandore with latest air core holes in blue. The arrow displays the projection of the drill hole.

Aruma Resources Limited

ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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ASX ANNOUNCEMENT 29 January 2016

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QUARTERLY ACTIVITIES STATEMENT

FOR THE QUARTER ENDED 31 DECEMBER 2015

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Figure 2

The assay intersections (dashed shapes) from the Table 1 Projected onto the diagrammatic drill hole section.

Results

The drillhole was completed on time and on budget, with full core recovery achieved with orientation. The very thick sequence of Mafic Sediment (Volcanic Wacke similar to the Golden Mile Dolerite) had sulphide and carbonate throughout with nine zones of mineralised (pyrite – biotite – carbonate ± chalcopyrite – quartz) shaly material totalling nearly 240m.

The assay grades returned two assays above one gram per tonne with the full assays above 100ppb Au showing the continuous mineralisation trends which demonstrate that the mineralising trends are consistent along strike and down structure.

The Glandore system is a mineralised gold-sulphur system and has many locally mineralised smaller shoots such as Axial Planar and Supergene. The focus of the next phase of exploration will be the evaluation of the smaller near surface gold mineralisation.

Aruma Resources Limited

ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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ASX ANNOUNCEMENT 29 January 2016

FOR THE QUARTER ENDED 31 DECEMBER 2015

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QUARTERLY ACTIVITIES STATEMENT

Projects Summary

EASTERN GOLDFIELDS Glandore Hub Glandore Gold Project- 40km east of Kalgoorlie-Boulder
 EIS Application successful
 Deep Diamond hole intersected nine parallel mineralised
structures
 JV discussions inprogress
Clinker Hill GoldLease - 35km east of Kalgoorlie-Boulder
 Soil Samples planned to the east to cover possible extensions
Regional
Projects
Bulloo Downs Copper Project– 100km south of Newman
 Deep Diamond drilling completed to test emissivity targets

Table 2 Project Status and Activity Table

Proposed Exploration Activities for Q3 FY2015-16

Aruma's lease holdings are constantly being appraised and currently total approximately 2,700km[2] .

All of Aruma’s projects have strong metal indicators and proven high grade potential. The ongoing work comprises:

  • Bulloo Downs Copper Project – JV discussions.

  • Glandore – Deep diamond hole completed and assays received, LA-ICP-MS Pyrite Study underway.

  • Glandore Hub – Clinker Hill – Soil sampling program and data interpretation.

The Company is considering joint venture partners on all projects due to the scale and scope of work required.

Aruma will also be appraising leases that are becoming available in the Wiluna-Kalgoorlie terrain, especially where adjacent to current projects or with resources or intersections.

In addition to its current projects in Western Australia, Aruma continues to evaluate other potential project opportunities.

Aruma Resources Limited

ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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ASX ANNOUNCEMENT 29 January 2016

QUARTERLY ACTIVITIES STATEMENT FOR THE QUARTER ENDED 31 DECEMBER 2015

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Corporate

The Company completed pro-rata non-renounceable rights offer on the basis of 1 new share for every 2 shares held at an issue price of 0.6 cents per share. The rights issue was underwritten up to $290,000 by Peter McSweeney and an entity associated with an Aruma director, Paul Boyatzis. The offer raised approximately $463,000 which will be used to identify and evaluate new resource projects as well existing projects, for working capital and to meet offer expenses.

Management has taken measures to significantly reduce administration costs. Staff and directors have taken remuneration cuts of 40% as of September 2015, which together with downsizing the office space, has reduced overheads and costs by some 50% for the foreseeable future.

The Company had cash at 31 December 2015 of $696,000. In early January 2016 the Company received an R&D tax offset payment of some $531,000 after costs.

For further information please contact:

Peter Schwann Managing Director Aruma Resources Limited Ph: +61 8 9321 0177 Mobile: +61 417 946 370 [email protected]

Competent Person’s Statement

The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Schwann who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Schwann is a full time employee of the Company. Mr Schwann has sufficient relevant experience to qualify as a Competent Person as defined in the JORC Code (2012) and consents to the inclusion of this information in the form and context in which it appears. All exploration results reported have previously been released to ASX and are available to be viewed on the Company website www.arumaresources.com.au. The Company confirms it is not aware of any new information that materially affects the information included in the original announcement. The Company confirms that the form and context in which the Competent Person’s findings are present have not been materially modified from the original announcements.

Aruma Resources Limited ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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ASX ANNOUNCEMENT 29 January 2016

QUARTERLY ACTIVITIES STATEMENT

FOR THE QUARTER ENDED 31 DECEMBER 2015

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SUMMARY OF TENEMENTS

AUSTRALIA Interest at beginning of Quarter Interest at end of Quarter
Glandore(Gold)
M25/327 100% Aruma Exploration Pty Ltd
(wholly owned subsidiary of
Aruma Resources Limited)
100% Aruma Exploration Pty Ltd
M25/329
M25/330
P25/2073
P25/2074
P25/2075
P25/2076
P25/2089
P25/2090
P25/2091
P25/2092
P25/2093
P25/2094
P25/2103
P25/2117
P25/2118
P25/2119
P25/2153
P25/2154
P25/2202
P25/2203
P25/2204
P25/2215
P25/2216
Clinker Hill(Gold)
P25/2201 100% Aruma Exploration Pty Ltd 100% Aruma Exploration Pty Ltd
P25/2319 100% Aruma Exploration PtyLtd
- Under application.
100% Aruma Exploration PtyLtd
P25/2320 100% Aruma Exploration PtyLtd
- Under application.
100% Aruma Exploration PtyLtd

Aruma Resources Limited ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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ASX ANNOUNCEMENT 29 January 2016

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QUARTERLY ACTIVITIES STATEMENT

FOR THE QUARTER ENDED 31 DECEMBER 2015

AUSTRALIA Interest at beginning ofQuarter Interest at end ofQuarter
Bulloo Downs Copper Project
E52/2024 Option to earn-in for up to a 90%
interest(Dynasty)
Option to earn-in for up to a 90%
interest(Dynasty)
E52/2283 Option to earn-in up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2317 Option to earn-in up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2327 Option to earn-in up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2328 Option toearn-in for up to a 90%
interest(Atlas/Warwick)
Option toearn-in for up to a 90%
interest(Atlas/Warwick)
E52/2329 Option to earn-in for up to a 90%
interest(Atlas/Warwick)
Option to earn-in for up to a 90%
interest(Atlas/Warwick)
E52/2330 Option to earn-in for up to a 90%
interest(Atlas/Warwick)
Option to earn-in for up to a 90%
interest(Atlas/Warwick)
E52/2332 Option to earn-in for up to a 90%
interest(Atlas/Warwick)
Option to earn-in for up to a 90%
interest(Atlas/Warwick)
E52/2337 Option to earn-in up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2351 Option to earn-in up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2429 Option to earn-in for up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2464 Option to earn-in for up to a 90%
interest(Dynasty)
Option to earn-in for up to a 90%
interest(Dynasty)
E52/2802 Option to earn-in for up to a 90%
interest (Atlas/Warwick) - Under
application
Option to earn-in for up to a 90%
interest (Atlas/Warwick) - Under
application.
E52/2803 Option to earn-in up to a 90%
interest(Atlas/Warwick)
Option to earn-in up to a 90% interest
(Atlas/Warwick)
E52/2887 100% Aruma Exploration Pty Ltd.
Under application and transfer
from Plasia Pty Ltd. Option to
acquire JV interest.
100% Aruma Exploration Pty Ltd.
Transfer from Plasia Pty Ltd. Option to
acquire JV interest.
E52/3096 100% Aruma Exploration PtyLtd-
Under application.
100% Aruma Exploration Pty Ltd- Under
application.
E52/3172 100% Aruma Exploration Pty Ltd-
Under application.
100% Aruma Exploration Pty Ltd- Under
application.

Aruma Resources Limited

ABN 77 141 335 364 ASX: AAJ 1st Floor, 6 Thelma St West Perth W.A. 6005 Locked Bag 2000, Nedlands WA 6909, Australia T+61 8 9321 0177 I F +61 8 9226 3764 I W www.arumaresources.com

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