ASARA RESOURCES LIMITED — Capital/Financing Update 2016

Sep 4, 2016

ASX/Media Announcement 5 September 2016

Exploration Camp Opens at Paguanta Zinc - Silver - Lead Project

Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ) is pleased to announce that it has re-established the exploration camp at its newly acquired Paguanta zinc – silver – lead Project and has made a further instalment under the transaction with Herencia Resources plc ( Herencia ).

Preparing for Exploration Program

In addition to opening the camp on site at Paguanta, Golden Rim is setting up an exploration office in Iquique (120km southwest of Paguanta) and in the process of employing a Chilean-based exploration team.

Exploration work envisaged for Paguanta for the second half of 2016 includes:

• geological mapping on-site and re-logging of the existing diamond drill core to better define the extent of and the structural controls on the zinc-silver-lead mineralisation;

• re-opening of the historical Cornishman’s adit to provide further 3D geological information;

• drilling to test the Exploration Target area (see below) and to extend the high grade mineralisation associated with the Cathedral Vein with a program expected to include;

•  reverse circulation (RC) drilling (~18 holes for 2,500m) to test the shallow strike extent of the mineralisation to the east;; and

•  diamond drilling (-7 holes for 2,300m) to test for deeper high grade mineralisation;

• further study to determine a suitable source(s) for mine raw water supply; and

• reconnaissance mapping and sampling of the Loreto porphyry-copper target to the southwest of Paguanta.

Currently, Craig Mackay, Managing Director of Golden Rim, is in-country establishing the local team and office.

Craig Mackay said it was an exciting time for the Company. “ We are looking forward to progressing work at Paguanta. With zinc and silver prices enjoying a tremendous upswing, we are looking forward to the Project delivering value for shareholders”, said Mr Mackay.

The Company looks forward to updating shareholders once field activities commence.

Further Payment

Under the transaction with Herencia, Golden Rim acquired all the issued shares in Herencia’s wholly owned subsidiary Paguanta Resources (Chile) SA ( PRC ). PRC holds 70% of the shares in

Golden Rim Resources Ltd I ABN 39 006 710 774 I Office 7, Level 2, 609 Canterbury Road, Surrey Hills, VIC 3127, Australia www.goldenrim.com.au I info@goldenrim.com.au I T + 61 3 9836 4146

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Compania Minera Paguanta S.A. ( CMP ) which holds mineral concessions at the Paguanta zincsilver-lead project in northern Chile.

The consideration under the transaction is payable in instalments and, as Golden Rim is satisfied that all known outstanding creditors in PRC and CMP have been paid, it has made a further instalment payment of US$413,000. To date Golden Rim has paid US$1,440,000. A final amount of US$50,000 is payable within 3 months of completion. Any unknown costs previously incurred that become evident during this period will be deducted from this amount.

About Paguanta

Paguanta is located in the Tarapacá Region of northern Chile, approximately 120km northeast of Iquique and 30km west of the Chile-Bolivia border. Paguanta is situated approximately 40km northeast of BHP Billiton’s Cerro Colorado Mine, which has a Mineral Resource of 400Mt @ 0.62% copper for 5.5Blb of copper and annual copper cathode production of approximately 175Mlb.

Paguanta is predominantly owned through a joint venture company, CMP, where Golden Rim indirectly holds a 70% interest and an unrelated party, Costa Rica Dos SpA ( Costa Rica ), holds the remaining 30% interest. Costa Rica is a contributing party to the joint venture.

Paguanta is comprised of 14 exploitation concessions covering a total surface area of 3,900ha, and 8 exploration concessions covering a total surface area of 2,100ha. In Chile, an exploitation concession, also known as a mining concession, is granted for an indefinite time period and allows the holder to undertake mining activities on the concession area.

Since acquiring Paguanta in late 2005, CMP has completed approximately 40,000m of drilling, for total expenditure, including the majority of a feasibility study, of approximately US$31.5M ( A$42m[1] ).

Geology

The Patricia zinc-silver-lead deposit, located in the south of the Project area, is the best explored area at Paguanta and represents the major economic interest. The mineralisation is hosted in andesite and rhyolite volcanic rocks and consists of silver-lead-zinc sulphides in multiple mineralised vein structures that are typically steep dipping, 3m to 15m in width, and have an eastwest orientation. The style of mineralisation within the vein structures includes massive to semimassive breccia zones and stockwork vein zones.

Exploration Target

Mining Plus Pty Ltd ( Mining Plus ) was contracted by Golden Rim to estimate an initial Exploration Target, for the potential strike and depth extensions to the higher grade mineralisation at Patricia. The results of this study are presented in Table 1 and the area included in the Exploration Target is depicted in Figure 1.

The Exploration Target represents potential polymetallic endowment in addition to the defined Mineral Resource for the Patricia deposit.

1 Calculated at the conversion rate of US$1 = A$0.75

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Table 1. Patricia Exploration Target Estimation

Tonnage Range (Mt)	Tonnage Range (Mt)	Zinc Grade Range (%)	Zinc Grade Range (%)	Lead Grade Range (%)	Lead Grade Range (%)	Silver Grade Range (g/t)	Silver Grade Range (g/t)	Gold Grade Range (g/t)	Gold Grade Range (g/t)
80%	120%	80%	120%	80%	120%	80%	120%	80%	120%
4.5	6.8	4.5	6.7	1.5	2.3	100	150	0.16	0.24

Notes:

• 1) Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources.

• 2) Mining Plus created an indicative mineralisation model to identify the potential location and size of the immediate strike and dip extensions to the current mineralised system utilising Leapfrog Geo implicit modelling software to create solids at a 3% cut-off grade and a maximum vein width of 5m.

• 3) The Exploration Target was based on drilling data, surface geochemical data and a 3D model of Induced Polarisation (IP) chargeability data. The surface geochemical data (1,930 samples) and IP geophysical data (survey by Zonge, Chile, 2012) were utilised to support the continuity of mineralisation in areas where drilling was more sparse.

• 4) A total of 28 RC drill holes (3,626m) and 11 diamond drill holes (1,338m) were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 20m – 250m apart, with spacing along the lines ranging from 30m – 200m. The holes used for the Exploration Target are depicted on Figure 2.

• 5) A base for the Exploration Target was set at 3250mRL – 200m below the base of the current drilling. The Exploration Target extends along strike for 250m from the eastern-most drill hole.

• 6) The Exploration Target was calculated using a SG of 3.2 g/cm[3]

-ENDS-

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Figure 1. Current Mineral Resource Model block (green-yellow). The orange shape represents the extent of the Exploration Target ( Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources ).

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Figure 2. Drill hole collar locations at Patricia. Holes with green collars were used to calculate the Exploration Target.

Competent Persons Statement

The information in this release that relates to the estimation of the Exploration Target has been compiled by Mr. Richard Buerger BSc (Hons). Mr. Buerger is a full-time employee of Mining Plus Pty Ltd and has acted as an independent consultant during the estimation of the Exploration Target for the Paguanta Deposit. Mr. Buerger is a Member of the Australian Institute of Geoscientists and has sufficient experience with the style of mineralisation, deposit type under consideration and to the activities undertaken 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” (The JORC Code). Mr. Buerger consents to the inclusion in this report of the contained technical information relating to the estimation of the Exploration Target in the form and context in which it appears.

Forward Looking Statements

Certain statements in this document are or maybe “forward-looking statements” and represent Golden Rim’s intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Golden Rim, and which may cause Golden Rim’s actual performance in future periods to differ materially from any express or implied estimates or projections. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect and differences may be material. Golden Rim does not make any representation or warranty as to the accuracy of such statements or assumptions.

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For further information, please contact:

Hayley Butcher Golden Rim Resources Ltd Company Secretary +61 0409 880 009

Further Company Information

E: info@goldenrim.com.au W:goldenrim.com.au

Capital Structure: Issued Shares: 1,438,520,000 Unlisted Options: 143,358,400

Share Registry: Link Market Services Limited Central Park Level 4 152 St Georges Terrace Perth WA 6000 Telephone: (+61) 1300 554 474 Fax: 02 9287 0303

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