ASARA RESOURCES LIMITED — Capital/Financing Update 2017

Aug 1, 2017

ASX/Media Announcement 2 August 2017

CORNERSTONE INVESTOR SECURED AS GOLDEN RIM SHIFTS FOCUS TO KOURI GOLD PROJECT

• Golden Rim has placed A$446,955 with Acorn Capital ( Acorn ), one of the largest specialist microcap investors in the Australian market.

• Kouri Gold Project ( Kouri ) in Burkina Faso to become flagship project with plans to outline a maiden JORC Mineral Resource at Kouri by the end of 2017.

• Leading Canadian broking firm, Eight Capital, has been given an exclusive mandate to secure a corporate transaction on the Paguanta Project (Chile) for Golden Rim.

Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ) is pleased to advise that Acorn Capital ( Acorn ) has become the Company’s largest shareholder following a placement of 178,782,000 fully paid ordinary shares in the Company ( Shares ) at an issue price of 0.25 cents per Share to raise up to $446,955 (before costs) ( Placement ).

Following the placement, Acorn will hold 8.3% of the Company’s shares.

The Shares will be issued shortly under the Company’s 10% additional placement capacity (Listing Rule 7.1A) and is therefore not subject to shareholder approval. The funds raised by the Placement are intended to be used for infill drilling at Kouri, both reverse circulation drilling and diamond drilling; maintaining and exploring commercial opportunities with respect to Paguanta; as well as for general working capital.

Having completed the Placement, Golden Rim also advises of a revised asset focus and change in strategy for the business going forward.

Significant Shift in Company Focus

The Company’s focus will return to West Africa and Kouri, of which it owns 100%, will become its flagship project. Golden Rim plans to outline a maiden JORC Mineral Resource at Kouri by the end of 2017.

While Golden Rim has delivered on its technical goals at the Paguanta Zinc-Silver-Lead-Gold Project ( Paguanta ) in Chile, the Company is receiving little value on the Australian Securities Exchange, as is reflected in its share price. As such, Golden Rim has executed an exclusive mandate with leading Canadian broking firm, Eight Capital to secure a corporate transaction for

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Paguanta. The Company is open to considering various forms of transaction including an investment in Golden Rim directly, project farm-in, full or partial sale.

Golden Rim believes it can generate substantial value from Paguanta, particularly given Canadian listed companies with zinc projects appear to receive far greater support and valuations than in Australia.

While Golden Rim is disappointed to be seeking a transaction for Paguanta it believes this is likely to result in the best outcome for shareholders. The Company’s portfolio continues to provide optionality and has enabled the shift to focus on Kouri with minimum disruption and with the ability to potentially unlock significant value for shareholders.

The Company’s recently conducted reverse circulation ( RC ) drilling at Kouri returned very encouraging results. Kouri has an existing JORC Exploration Target of approximately 500,000 - 611,000 oz of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold (~70m depth). With additional infill and deeper drilling the Company intends to convert the JORC 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, with new intercepts such as 18m at 5.4 g/t gold, from 2m, including 2m at 45.6 g/t gold[1] , located well outside the Exploration Target area (Figure 1).

An updated Company Presentation that provides further details on the Company’s new strategy and on Kouri will be provided shortly.

Golden Rim’s Managing Director, Craig Mackay, said “Golden Rim is very pleased to secure Acorn, one of Australia’s largest microcap investors, as a cornerstone investor in the Company.”

“The Company now looks forward to commencing drilling and outlining a maiden resource at Kouri.”

“Golden Rim also looks forward to working with leading Canadian broking firm, Eight Capital, to develop a transaction that moves Paguanta forward and that benefits our shareholders,” said Mr Mackay.

- ENDS -

Contact Information

Hayley Butcher	Richard Glass
Golden Rim Resources Ltd	Citadel-MAGNUS
Company Secretary	+61 8 6160 4902
+61 0409 880 009	rglass@citadelmagnus.com
E: info@goldenrim.com.au
W:goldenrim.com.au

1 Hole BARC112, intercept announced on 6 July 2017 re-calculated from 2m depth, with maximum of 5m internal dilution.

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Figure 1. 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.

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; and New High Grade 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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