ASARA RESOURCES LIMITED — Capital/Financing Update 2019

Aug 14, 2019

ASX/Media Announcement 15 August 2019

Golden Rim to Raise $5.3m to Accelerate Drilling at Kouri

Highlights:

• Golden Rim has received firm commitments for a share placement to raise circa $1.82 million in conjunction with a fully underwritten rights issue to raise a further circa $3.45 million (total $5.27 million)

• Significant excess demand for the share placement which was strongly backed by institutional, sophisticated and existing shareholders

• Recent drilling programs at the Company’s Kouri Gold Project ( Kouri ) in Burkina Faso returned exceptionally high-grade gold intercepts[1] , including:

• Diabatou prospect (newly acquired): 7m at 121.2g/t gold from 41m, including 1m at 783.8g/t gold ; and

• Maré prospect: 4m at 9.2g/t gold from 44m and 15m at 3.8g/t gold from 53m.

• A further 14 RC holes have been drilled at the Diabatou and Maré prospects, and the projected northeast strike extension of the existing 1.4Moz Mineral Resource into the new Gouéli Permit, with assays pending and expected in the coming weeks

• The Placement and underwritten Rights Issue enables Golden Rim to accelerate exploration work at Kouri with a further 14,000m RC and diamond drilling program to commence in the coming weeks with the objective of significantly growing the existing Mineral Resource

Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ) is pleased to advise that it has received firm commitments for a share placement to raise approximately $1.82 million (before costs) through the issue of approximately 130 million fully paid ordinary shares in the Company ( Shares ) at an issue price of 1.4 cents per Share ( Placement ). There was significant excess demand for the Placement which was strongly supported by institutional, sophisticated and existing shareholders.

The Company is also pleased to announce a fully underwritten three (3) for eleven (11) pro rata renounceable offer of Shares at an issue price of 1.4 cents per Shares ( Issue Price ) to raise up to approximately $3.45 million ( Rights Issue ) before costs. The Issue Price represents a 17.6% discount to the last traded price of 1.7 cents and a 23.2% discount to the 15 day VWAP (volume weighted average price) of 1.8 cents. Eligible Shareholders may also apply for Shares in excess of their Entitlement at the Issue Price.

1 ASX Announcement 784g/t Gold Bonanza Intercept at Kouri dated 5 August 2019

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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Patersons Securities is acting as Lead Manager to the Placement and Lead Manager and Underwriter to the Rights Issue.

The funds raised under the Placement and Rights Issue are intended to be used for:

• Exploration work at the Company’s Kouri Gold Project ( Kouri ) in Burkina Faso. In particular, drilling, including reverse circulation ( RC ) drilling, diamond drilling and auger drilling and an Induced Polarisation ( IP ) geophysical survey; and

• General working capital.

The Company recently completed a transformational transaction to acquire 2 permits that adjoin Kouri, increasing the project area from 58km[2] to 245km[2 ] (see ASX announcement dated 28 June 2019). Further, the Company has secured the exclusive right to purchase another adjoining permit that will increase the project area by an additional 80km[2] (see ASX announcement dated 18 July 2019).

The first drilling in the new permits has returned exceptional results including a bonanza intercept of 7m at 121.2 g/t gold from 41m , including 1m at 783.9 g/t gold from 44m at the Diabatou prospect (see ASX announcement dated 5 August 2019). A portion of the funds raised will be utilised for diamond drilling follow-up around this high grade intercept and for a systematic auger drilling program and Induced Polarisation (IP) geophysical survey to identify additional target areas in the new permits which remain almost totally unexplored.

Drilling (diamond and RC) will be conducted along the projected northeast strike extension of the 1.4Moz Mineral Resource at Kouri, extending into the new permits and around newly discovered high grade gold mineralisation at Maré which lies 1.5km west of the Mineral Resource.

The Company believes that with further drilling there is extraordinary potential for it to build on its existing Mineral Resource at Kouri.

In addition, infill drilling (diamond and RC) will continue in the Mineral Resource area with the aim of increasing the Company’s confidence in the continuity of the mineralisation.

Drilling is scheduled to commence around mid-September, following the rainy season.

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 5.00 pm AEST on 23 August 2019 and have an address in Australia or, subject to certain offer restrictions, New Zealand, Guernsey, Hong Kong, Mauritius or the United Kingdom ( Eligible Shareholders ). The Rights Issue is scheduled to close at 5.00pm (AEST) on Wednesday, 11 September 2019 . Settlement of the Placement is scheduled to occur prior to the Record Date, such that Placement participants may participate in the Rights Issue (to the extent they are Eligible Shareholders).

New Shares issued under the Rights Issue will rank equally with existing Shares. Eligible Shareholders may also apply for Shares in excess of their Entitlement at the Issue Price.

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 28 August 2019 . Following completion of the Rights Issue, and assuming Eligible Shareholders take up their entitlement in full, Golden Rim will have issued approximately 246,332,920 Shares, resulting in a total of approximately 1,150 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

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Record Date. All entitlements will be rounded up to the nearest whole number of New Shares. Like many investments in mining exploration companies, an investment in the Company involves risks. A number of these are summarised in the Prospectus, including but not limited to risks associated with operating in particular jurisdictions, capital requirements, exploration and operational, access to land, reliance on key personnel, title risk, and environmental regulation risk.

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

Event	Date
Lodgement of Prospectus with ASIC and ASX	Thursday, 15 August 2019
Notice of Rights Issue sent to Shareholders	Friday, 16 August 2019
New Shares quoted on an "Ex" basis	Thursday, 22 August 2019
Rights trading commences on a deferred settlement basis	Thursday, 22 August 2019
Record Date for determining Entitlements	Friday, 23 August 2019
Prospectus and Entitlement and Acceptance Form despatched to Eligible Shareholders	Wednesday, 28 August 2019
Opening Date	Wednesday, 28 August 2019
Rights trading commences on a normal settlement basis	Thursday, 29 August 2019
Rights trading ends	Wednesday, 4 September 2019
New Shares quoted on a deferred settlement basis	Thursday, 5 September 2019
Last day to extend the Closing Date of Rights Issue	Friday, 6 September 2019
Closing Date of Rights Issue	Wednesday, 11 September 2019
Notification of shortfall	Monday, 16 September 2019
Issue date of New Shares under the Rights Issue Deferred settlement trading ends	Wednesday, 18 September 2019
Commencement of New Shares trading on ordinary settlement basis	Thursday, 19 September 2019

Details of the Placement

The Placement was made at an issue price of 1.4 cents per Share raising approximately $1.82 million (before costs).

The Placement was made to unrelated qualified, institutional, sophisticated and/or professional investors. The Placement was made under the Company’s Listing Rule 7.1 (as to approximately 58,482,906 Shares) and 7.1A (as to approximately 71,517,094 Shares) placement capacity and is therefore not subject to shareholder approval.

The Company also advises that it has issued the 100 Shares pursuant to the cleansing prospectus dated 17 July 2019.

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

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-ENDS-

For Further Information Please Contact:

Golden Rim Resources

Craig Mackay Managing Director Golden Rim Resources +61 3 9836 4146 craig@goldenrim.com.au

About Golden Rim Resources

Emerging West African gold developer, Golden Rim Resources Limited (ASX: GMR), is focused on the discovery and development of gold projects in West Africa.

With a decade of experience working in Burkina Faso, the Company is well placed to turn discoveries into real value for shareholders.

The Kouri Gold Project, located in north-east Burkina Faso, contains over 1.4Moz in defined Mineral Resources, with significant upside potential to grow.

Kouri is traversed by a significant NE-trending fault splay that is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, including Kiaka (5.9 Moz gold), Bomboré (5.2 Moz gold), Essakane (7 Moz gold) and Sanbrado (2.8 Moz gold). The mineralised fault system extends into western Niger where the 2.5 Moz Samira Hill is located.

For more information: www.goldenrim.com.au

ASX Code : GMR Market Capitalisation : A$13.1m Issued Shares : 773m

Competent Persons Statement

The information in this report relating to previous exploration results and the Mineral Resource at Kouri are extracted from the announcements: 784 g/t Gold Bonanza Intercept at Kouri dated 5 August 2019; and 1.4 Million Oz of Gold in Upgraded Kouri Mineral Resource dated 3 December 2018; and has been reported in accordance with the 2012 edition of the JORC Code. This announcement is 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, and in the case of the Mineral Resource estimate, that all material assumptions and technical parameters underpinning estimate continue to apply and have not materially changed.

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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