ASARA RESOURCES LIMITED — Capital/Financing Update 2017

Aug 8, 2017

ASX/Media Announcement 9 August 2017

NON-RENOUNCEABLE RIGHTS ISSUE TO FUND RESOURCE DRILLOUT AT KOURI

• Non-renounceable Rights Issue of 2 New Shares for every 5 Shares held at an issue price of $0.003 (0.3 cents) per New Share to raise up to approximately $2.5 million (before costs).

• In addition, one free attaching quoted option for every 2 New Shares subscribed for exercisable at $0.005 (0.5 cents) each on or before 31 January 2019.

• Primary purpose of the Rights Issue is to fund infill drilling to deliver a maiden JORC Mineral Resource at the Kouri Gold Project, in Burkina Faso, by the end of 2017.

Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ) is pleased to announce a nonrenounceable rights issue of 2 fully paid ordinary shares in Golden Rim ( New Shares ) for every 5 fully paid ordinary shares ( Shares ) held at an issue price of $0.003 (0.3 cents) per New Share ( Offer Price ) to raise up to approximately $2.5 million (before costs) ( Rights Issue ). For every 2 New Shares subscribed for, subscribers will also be offered one free attaching option exercisable at $0.005 (0.5 cents) each on or before 31 January 2019 ( Attaching Options ).

The Offer Price represents a 25% discount to the last closing price (7 August 2017) of shares traded on the Australian Securities Exchange ( ASX ), or a 21% discount to the 10 day volume weighted average price (VWAP) of shares traded on the ASX.

Funds raised under the Rights Issue are intended to be used for the following key activities which the Company believes will deliver substantial value to shareholders:

• Infill drilling, both reverse circulation ( RC ) drilling and diamond drilling, at the Kouri Gold Project ( Kouri ) in Burkina Faso (drilling is planned to be deeper than the previous drilling that largely terminated at 70m below surface and will cover a 650m gap in the drilling on the Guitorga Lodes) (Figures 1 and 2);

• Initial metallurgical test work at Kouri;

• JORC Mineral Resource estimation at Kouri by an independent consultant;

• Maintaining and exploring commercial opportunities with respect to Paguanta Zinc-SilverLead Project ( Paguanta ) in Chile; and

• General working capital.

The Company will seek quotation on the ASX for the Attaching Options and the Attaching Options will be the Company’s only class of option quoted on ASX (subject to satisfaction of ASX listing rules).

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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The Rights Issue includes a Top-Up Facility for existing shareholders and a Shortfall Offer in which new shareholders may participate (see Prospectus), should there be a shortfall in the funding raised via the Rights Issue. The Company is currently in discussions with a number of parties regarding the Shortfall Offer.

The Company’s recently conducted RC drilling at Kouri returned very encouraging results (see ASX announcement dated 6 July 2017). Kouri has an existing JORC Exploration Target estimated in a range of 7,954,000 – 9,722,000 tonnes grading from approximately 1.8 g/t to 2.2 g/t gold and containing approximately 500,000 - 611,000 ounces of gold (to ~70m depth). (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 Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources).

With additional drilling the Company intends to convert the Exploration Target to a maiden Mineral Resource by end of 2017. The recent drilling results suggest the Mineral Resource will be larger than the Exploration Target.

Golden Rim’s Managing Director, Craig Mackay, said “Golden Rim is pleased to provide existing shareholders with the opportunity to participate in the Rights Issue prior to the commencement of our resource drilling at Kouri. We believe the pricing of the Rights Issue, combined with the Attaching Options, provides shareholders with an attractive opportunity prior to a period of increased exploration and development activity.”

“The gold intercepts from our recent drilling, including 18m at 5.4 g/t gold from surface, are very significant and following successful completion of this Rights Issue, the Company can look forward to a period of steady news flow from our substantial work program at Kouri.

“With peer group ASX listed gold companies currently trading at an enterprise value of approximately $32/ounce for gold resources[1] , we believe the delineation of a Mineral Resource at Kouri represents an important value driver for the Company” said Mr Mackay.

Further Details of the Rights Issue

To be eligible to participate in the Rights Issue, a shareholder must be on Golden Rim’s share register as at 7.00 pm AEST on 15 August 2017 and have an address in Australia or, subject to certain offer restrictions, New Zealand, United Kingdom, Germany, Switzerland and Singapore ( Eligible Shareholders ).

The Directors have reserved their right to place any shortfall arising from the Rights Issue.

Those Directors who hold shares in the Company have indicated they will take up either all or the majority of their entitlement under the Rights Issue. The Directors of the Company currently hold 3.61% of the issued shares in Golden Rim.

Further information regarding the Rights Issue is included in the Prospectus which will be lodged with the Australian Securities and Investments Commission and released to ASX later today ( Prospectus ). A copy of the Prospectus will be sent to Eligible Shareholders on 18 August 2017.

Following completion of the Rights Issue, and assuming Eligible Shareholders take up their entitlement in full, Golden Rim will have issued approximately 858,153,600 New Shares, resulting

1 PCF Capital Group, PCF Resources Thermometer July 2017.

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in a total of approximately 3,004 million Golden Rim shares on issue. This number excludes any allowance for shares issued in the event that any option holders exercise their right to convert their securities to ordinary shares prior to the Record Date. All entitlements will be rounded up to the nearest whole number of New Shares. The New Shares will rank equally with all other fully paid ordinary shares of Golden Rim from the date of allotment.

Like many investments in mining exploration companies, an investment in the Company involves risks. A number of these are summarized in the Prospectus, including but not limited to risks associated with exploration activities, approvals and permitting processes, reliance on key management personnel, and commodity price and exchange rate risks.

The timetable for the Rights Issue is set out in the table below:

Event	Date
Lodgement of Prospectus with ASX Lodgement of Appendix 3B with ASX Option holders notified of Offers	Wednesday, 9 August 2017
Notice of Offers sent to Shareholders	Friday, 11 August 2017
Securities quoted on an "Ex" basis	Monday, 14 August 2017
Record Date for determining Entitlements	Tuesday, 15 August 2017
Prospectus and Application Form despatched to Eligible Shareholders	Friday, 18 August 2017
Last day to extend the Closing Date of Entitlement Offer	Wednesday, 30 August 2017
Closing Date of Entitlement Offer	Monday, 4 September 2017
Securities quoted on a deferred settlement basis	Tuesday, 5 September 2017
Notification of Shortfall	Thursday, 7 September 2017
Issue date of Securities under the Entitlement Offer Deferred settlement trading ends	Monday, 11 September 2017
Commencement of Securities trading on ordinary settlement basis	Tuesday, 12 September 2017

This announcement effects the end of the Company’s trading halt.

- ENDS –

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Figure 1. RC drill collars labelled with >10 m x g/t gold intercepts and the interpreted zones of gold mineralisation at the Banouassi prospect at Kouri. The plan depicts the current 650m gap in the drilling on the Guitorga Lodes.

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Figure 2. Section 11,500N with new significant gold intersections 150m NE of the current Exploration Target at Kouri. Note the current Exploration Target has only been calculated to ~70m below surface. Golden Rim is currently envisages an open pit development at Kouri to at least 120m below surface.

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Contact Information

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

Richard Glass Citadel-MAGNUS +61 8 6160 4902 rglass@citadelmagnus.com

Competent Persons Statement

The information in this report relating to previous exploration results and the Exploration Target are extracted from the announcements Initial Exploration Target Defined for Korongou dated 16 July 2015 (note, Korongou now called Kouri); and Gold Intercepts move Kouri Closer to Maiden Resource dated 6 July 2017, and has been reported in accordance with the 2012 edition of the JORC Code. These announcements are available on the Company’s website (www.goldenrim.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in these announcements.

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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