ASARA RESOURCES LIMITED — Capital/Financing Update 2017

Jan 19, 2017

ASX/Media Announcement

20 January 2017

Amended: Paguanta Zinc-Silver-Lead Project Update

Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ) refers to its announcement of 22 December 2016 and provides this amended announcement. In particular, this amended announcement includes Appendix 1 with respect to holes PTDD073 and PTDD096.

• Detailed geological mapping has defined significant strike extensions to the mineralisation in the current Mineral Resource[1] , including a major extension to the Cathedral Vein for a further 330m to the ESE.

• Earthworks in preparation for the planned drilling have been completed (repairs to ~20km of access roads and construction of 12 new EIA approved drilling platforms).

• Final permit (PAS93) required for the camp operation expected between Christmas and New Year.

• Final site inspection by authorities as a routine requirement for the permitting conducted on 21 December 2016.

• Diamond drilling contractor selected and drilling start-up scheduled for 5 January 2017.

• Planned drilling expanded with the recent success of the Share Purchase Plan and will now include 7 HQ diamond drill holes (2,900m) and 16 RC drill holes (3,500m).

• Validation exercise on the existing drilling database and laboratory assay certificates has located assays that were not included in the database by the previous owner. These include a highly significant intercept of 13m at 7.4% zinc, 2.6% lead and 133 g/t silver from 154m in hole PTDD096 on the Cathedral Vein that was not included in the current Mineral Resource.

• Golden Rim’s new office in Iquique opened and fully operational.

Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ) today provided an update on the progress of work at the Company’s 70% owned Paguanta zinc-silver-lead project in Chile.

Detailed geological mapping of the Patricia Prospect, which hosts the zinc-silver-lead mineralisation at Paguanta, commenced in early October 2016 and is almost complete (Figure 1). The mapping has demonstrated the strong continuity of the mineralised veins at Patricia and has successfully defined significant surface extensions to the mineralisation included in the current Mineral Resource in the following areas:

• a further 330m of strike to the Cathedral Vein to the ESE, whereupon the mineralisation extends further under younger volcanic cover rocks;

1 Details of the Mineral Resource were previously announced by Golden Rim on 10 May 2016 “Golden Rim to Acquire Advanced Silver-Lead-Zinc-Copper Project in Chile”

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 New Vein, intercepted in previous hole PTDD073 (11m at 5.2% zinc, 2.3% lead and 125 g/t silver from 250m) has been located on surface and mapped for a strike of ~250m to date and remains open to the west;

• the Carlos Vein has been mapped for a strike of ~700m (a further 200m to the west than the interpretation used in the current Mineral Resource);

• outcrops of stock work vein mineralisation have been located south of the New Vein, suggesting the potential for further parallel veins to the south of the current Mineral Resource that remain untested by drilling; and

• a new NNE trending vein set ( New East Veins ) was located ~300m east of the current Mineral Resource area.

A channel rock chip sampling program on the newly mapped vein extensions is currently being conducted. Assay results are expected in late January 2017.

The site preparation for Golden Rim’s planned drilling program at Paguanta is complete. Earthworks for the drilling are finished and included repairs to ~20km of access roads and the construction of 12 new Environmental Impact Assessment ( EIA ) approved drilling platforms.

The field camp is now 100% operational and awaiting issuance of the final permit. The EIA required three new permits, all relating to the camp, before drilling can commence. The PAS91 permit relating to the sewage plant and the PAS93 permit relating to waste disposal have been approved. The PAS96 permit is still being processed and relates to the re-classification of the land for camp use (by default all land in Chile is classified for agriculture use). The PAS96 permit is issued by the Minister of Agriculture and the application can only be submitted once the PAS91 permit is approved first.

Prior to the Minister issuing the PAS96, the site must be evaluated by the Ministry of Housing (Ministerio de Vivienda y Urbanismo) ( MINVU ) and the Agency of Agriculture and Livestock (Servicio Agricola y Ganadero) ( SAG ). SAG conducted a site visit to Paguanta on 13 December 2016 and MINVU conducted its site visit on 21 December 2016. As soon as the Minister of Agriculture receives the evaluation reports from SAG and MINVU, a decision can be made on issuing the PAS96. Golden Rim expects to be issued the PAS96 permit between Christmas and New Year.

With the recent success of Golden Rim’s Share Purchase Plan, the planned drilling at Patricia has now been expanded to include 7 HQ diamond drill holes for 2,900m and 16 reverse circulation ( RC ) holes drill holes for 3,500m (Figure 1).

The diamond drilling will commence first and is expected to take 2.5 months to complete. The drilling start-up is currently scheduled for 5 January 2017. The diamond drill holes are designed to infill and to test for depth extensions of the current Mineral Resource area at Patricia. The diamond drilling includes three deep holes planned on 100m spaced sections in the centre of the current Mineral Resource area and theses proposed holes are depicted on Figures 2, 3 & 4.

The RC drilling will commence in March 2017 and is expected to take 1.5 months to complete. The RC program is designed to test for strike extensions of the mineralisation to the ESE and to test for new veins to the south.

The Company will update the market with drilling results as they come to hand and anticipates the regular release of results.

A validation exercise being conducted by Golden Rim on the existing drilling database and laboratory assay certificates has located assays that were not included in the database by the previous owner. Some of these missing assays related to highly mineralised samples where the original assay results reached the upper detection limit of the initial assay technique and as such the samples were sent back

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to the laboratory for re-assay. These include a highly significant intercept of 13m at 7.4% zinc, 2.6% lead and 133 g/t silver from 154m in hole PTDD096 on the Cathedral Vein that was not included in the current Mineral Resource (Figure 4).

Golden Rim has recently opened a small exploration office in the port city of Iquique, which lies ~175km by road from Paguanta. The port of Iquique is permitted to ship concentrates.

Golden Rim’s Managing Director, Craig Mackay, said “The current geological mapping at Patricia is producing excellent results. I have just walked the entire strike extent of the Cathedral, Carlos and New Veins with our Chilean exploration team and I was impressed with the width of the zinc-silver-lead mineralisation and the strong continuity of the mineralisation at surface.”

“We are particularly excited about the discovery of new veins to the south and to the east of the current Mineral Resource area and by the discovery of significant strike extensions to the existing veins, such as the Cathedral Vein. The discovery of this additional mineralisation on surface bodes well for our aim to significantly increase the current Mineral Resource at Patricia.”

“Our preparation for drilling is complete and we are should now secure our last required permit between Christmas and the New Year, which will allow the drilling program to commence on 5 January 2017,” said Mr Mackay.

-ENDS-

For further information, please contact:

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

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Figure 1. Plan showing the mapped zinc-silver-lead veins at Patricia and the location of Golden Rim’s proposed diamond and RC drill holes.

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Appendix 1: JORC Code (2012 Edition), Assessment and Reporting Criteria

Section 1: Sampling Techniques and Data

Criteria	JORC Code Explanation	Explanation
Sampling Techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	 All of the sampling described in this report refers to diamond core (DD) drill samples. The DD drilling was generally sampled at 1m intervals, except when it was more appropriate to sample to a geological boundary.  The DD core was cut in half with a core saw on site. Half of the core was sampled, retaining the other half on site.  Samples were all collected by qualified geologists or under geological supervision.  The samples are judged to be representative of the rock being drilled.  Location of each hole was recorded by hand held GPS with positional accuracy of approximately +/- 5 metres. This was then followed up by surveying with a differential GPS, which is accurate to +/-0.1m in X, Y and Z. Location data was collected in PSAD56, UTM Zone 19S.  All drilling samples were submitted to ALS Laboratory Group, Chile for preparation and analysis.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	 DD drilling was carried out using a UDR-1000 multipurpose rig drilling a 5.25 inch (130mm) diameter hole.  The DD core was collected in aluminium boxes; labelled with the name of the drill hole, identifying the start and end of each segment with wooden blocks.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarsematerial.	 Core recovery was carried out on site by the personnel responsible. This was registered on the wooden core blocks and the drilling reports.  The consistency of the mineralised intervals and density of drilling is considered to prevent any sample bias issues due to material loss or gain.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource	 Detailed geological logging has been carried out on all drill samples, recording lithology, weathering, structure, veining, mineralisation, grainsize and colour.

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Criteria	JORC Code Explanation	Explanation
	estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length and percentage of the relevant intersections logged.	 Logging of sulphide mineralisation and veining is quantitative.  The geological logging was done using a standardised logging system. This information and the sample details were entered into the drilling database.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	 The standard sample interval was 1m in length. The sampling interval is broken at changes in the mineral zone, so the length of the sample interval can vary.  A technician cut the core in half along the axis using a diamond cutting saw, at intervals defined by the geologist during logging.  Half of the core is stored in the tray for backup purposes, while the other half is collected in a plastic bag for chemical analysis. The bag includes a ticket that identifies the sample number. The geologist stores a duplicate of the ticket with the same number, hole-id, from, to, etc.  Samples were put into sealed sacks (max 5 samples per bag) and stored until their transportation to Iquique (usually twice a week in a pick-up truck).  Samples were then transported by road to ALS Chemex laboratory in La Serena. Each shipment is identified with a unique number.  The sample preparation for all samples follows industry best practice.  At the laboratory all samples were weighed, dried and crushed to -2mm in a jaw crusher. A 250g split of the crushed sample was subsequently pulverised in a ping mill to achieve a nominal particle size of 90% passing 75um.  Field QC procedures involve the use of certified reference material as assay standards and blanks. The insertion rate of these averaged 1:20.  The sample sizes are considered to be appropriate to correctly represent the style of mineralisation, the thickness and consistency of the intersections.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysisincludinginstrumentmake and	 The laboratory used Agua Regia digestion and analysis by ICP-ME (method ICP41 for 35 elements).  Over limit results for Zn, Pb, and Ag were analysed using AAS (method AA46) to provide ore grade results in the ranges of Pb 0.01- 30%, Zn 0.01-30%, Ag 1-1500ppm (g/t).  Sample preparation checks for fineness were

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Criteria	JORC Code Explanation	Explanation
	model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	carried out by the laboratory as part of their internal procedures to ensure the grind size of 90% passing 75 microns.  Internal laboratory QAQC checks were reported by the laboratory.  Review of the internal laboratory QAQC suggests the laboratory is performing within acceptable limits.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 Sample data was compiled and digitally captured by the company’s geologists.  The compiled digital data is verified and validated by the Company’s database geologist.  Reported results were compiled by the Company’s Senior Geologist and the Managing Director.  There were no adjustments to the assaydata.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 Down-hole surveys were completed at the end of every hole (where possible) using a Reflex down-hole survey tool. Measurements were taken at approximately every 12 meters.  At the completion of the program all holes are surveyed with a DGPS, which has locational accuracy of +/- 0.1m, X, Y and Z.  Location data was collected in PSAD56, UTM Zone 19S.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	 The drill intercepts are irregularly spaced.  There was no sample composting.  December 2012 Mineral Resource Estimate (JORC 2004) was calculated using 2m composite data subdivided by the geological interpretation.  The method used to estimate mineral resources for Zinc, Lead and Silver was Ordinary Kriging.  Detailed visual and statistical review of the mineral resource was completed as part of routine validation, and the mineral resources is consideredgloballyrobust.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 All drill holes reported here were drilled approximately at right angles to the strike of the target mineralisation.  No orientation based sampling bias has been identified in the data at this point.
Sample security	 The measures taken to ensure sample	 Samples are stored on siteprior to road

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Criteria	JORC Code Explanation	Explanation
	security.	transport by Company personnel to the laboratoryin La Serena, Chile.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 A review by Golder and Associates was undertaken as part of the 2013 Feasibility Study.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Explanation
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 The DD drilling results are from the Paguanta Project.  The Paguanta Project 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.  Paguanta Resources (Chile) SA (PRC) is a wholly owned subsidiary of Golden Rim. PRC holds 70% of the shares in Compania Mineral Paguanta SA, which holds the mineral concessions at the Paguanta Project.  Tenure is ingood standing.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 The area that is presently covered by the Paguanta Project has undergone someprevious mineral exploration.
Geology	 Deposit type, geological setting and style of mineralisation.	 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.  The Patricia zinc-silver-lead deposit, located in the south of the Project area, is the best explored area at Paguanta.  The epithermal-style 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 semi-massive breccia zones and stockwork vein zones.

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Criteria	JORC Code explanation	Explanation
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain whythis is the case.	 Hole PTDD073: Easting 494550m; Northing 7809600m; RL 3805.3m; Dip – 54 deg; Azimuth 180 deg; EOH 272m.  Hole PTDD096: Easting 494521m; Northing 7809047m; RL 3790.1m; Dip - 47 deg; Azimuth 180 deg; EOH 213m.
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	 Samples were taken at 1m intervals, except when there was a geological change. In this case, the sample was taken to the geological boundary.  No weighting or high grade cutting techniques have been applied to the data reported.  Assay results are generally quoted rounded to 1 decimal place.  Metal equivalent values are not reported in this announcement.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	 The orientation of the mineralised zone has been established and the drilling was planned in such a way as to intersect mineralisation in a perpendicular manner.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	 Maps are provided in the main text.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoidmisleadingreporting of	 All sample results containing significant assays are reported the table in the main text.

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Criteria	JORC Code explanation	Explanation
	Exploration Results.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	 There is no other exploration data which is considered material to the results reported in the announcement.
Further work	 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	 Further infill drilling is planned to follow up the results reported in this announcement.

Competent Persons Statement

The information in this report that relates to exploration results is based on information compiled by Mr Craig Mackay, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is a full-time employee of Golden Rim Resources Ltd. Mr Mackay has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being 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. Mr Mackay consents to the inclusion in the report of the matters based on his information 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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Further Company Information

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

Capital Structure: Issued Shares: 1,787,820,000 Unlisted Options: 172,382,500

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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