ASARA RESOURCES LIMITED — Capital/Financing Update 2019

Mar 3, 2019

ASX/Media Announcement 4 March 2019

$2.25 Million Placement to Advance Kouri Gold Project

Highlights:

• Commitments received for a Placement to raise approximately $2.25 million.

• LSE listed Capital Drilling to become a cornerstone investor with a ~12% shareholding in Golden Rim.

• Strengthened balance sheet will allow Golden Rim to rapidly advance the Kouri Gold Project ( Kouri ) in Burkina Faso.

• Drilling at Kouri to be conducted on four key target areas:

• Footwall Shear that lies adjacent the 1.4Moz Mineral Resource to follow-up a recent intercept of 4m at 44.7g/t gold ;

• The northeast strike extent of the Mineral Resource into the Goueli and Margou permits; 3. The Red Hill discovery area to follow-up new intercepts including 10m at 4.1g/t gold* ; and 4. Granite Target area in the Margou permit where artisanal miners are extracting gold from a large granite intrusion.

Emerging West African gold developer, Golden Rim Resources Ltd (ASX: GMR, Golden Rim , Company ), is pleased to advise that it has completed a bookbuild for a placement to raise approximately $2.25 million (before costs) through the issue of approximately 173 million fully paid ordinary shares in the Company ( Shares ) at an issue price of 1.3 cents per Share ( Placement ).

Hartleys Limited acted as Lead Manager and Adelaide Equity Partners Limited acted as Co-Manager to the Placement.

Commenting on the strong support for the Placement, Golden Rim’s Managing Director, said:

“This is a very exciting time for Golden Rim. We have worked hard over the past 12 months to define a 1.4 million ounce Mineral Resource at Kouri which remains open at depth and along strike. We have also made a new gold discovery at Red Hill, negotiated the acquisition of the neighbouring Goueli and Margou permits and have undertaken a structural interpretation which has identified a number of high priority areas for drill testing.

The strong support for the Placement not only validates our strategy but will allow us to undertake a significant drilling program to target our four highest priority target areas over the forthcoming drilling season. I would like to thank our existing shareholders who supported this raising and welcome our new investors to Golden Rim, in particular, Capital Drilling, who took a cornerstone position in the Placement.”

• Intended drilling on the Goueli and Margou permits is subject to completion of the Lafi Transaction (described below).

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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New Cornerstone Investor

As part of the Placement, Capital Drilling will become a cornerstone investor in Golden Rim with a ~12% holding in the Company (subject to shareholder approval of Tranche 2, described below).

Capital Drilling is a company listed on the London Stock Exchange and has a focus on drilling in Africa. Capital Drilling commenced operations in 2005 and has a fleet of 91 rigs, offering a range of services across exploration drilling, delineation drilling, underground, grade control and blast hole drilling, as well as ancillary services including minerals laboratory testing. The company has extensive operations across the African continent including Egypt, Botswana, Tanzania, Mali, Mauritania, Cote d’Ivoire, and Burkina Faso, employing 1,000 people in Africa. Capital Drilling is an investor and partner with a number of early-stage exploration companies and provides ongoing support to assist the management teams in their exploration activities.

Use of Funds

The majority of the funds raised from the Placement will be used for work programs at Kouri where the Company believes there is significant potential to expand the current Mineral Resource of 1.4Moz of gold (Figure 2). In particular, the funds will be used for the following key activities:

• reverse circulation and diamond drilling;

• exploration work including trenching and auger drilling;

• completion of the acquisition of the Goueli and Margou permits (Figure 1); and

• general working capital.

The Company’s drilling at Kouri will focus on four key areas:

1. Footwall Shear

The Footwall Shear lies immediately west of the Mineral Resource and in a recent structural study (SRK Consulting) has been identified as a potential feeder structure for the gold mineralising fluids. Drilling is planned to follow-up recent high grade intercepts of 4m at 44.7g/t gold from 34m, including 2m at 89.5g/t gold (BARC327) and 3m at 8.4g/t gold from 10m (BARC278) (Figure 2).

2. Northeast strike extent to the Mineral Resource

Drilling of the northeast strike extent of the multiple parallel gold lodes that comprise the Mineral Resource into the Goueli and Margou permits (subject to completion of the Lafi Transaction (see further information below)) and to follow-up previous intercepts such as 18m at 1.1g/t gold from 8m (MGRC022), 10m at 2.0 g/t gold from 38m (MGRC025) and 2m at 13.4 g/t gold from 2m (MGRC019) (Figure 2).

3. Red Hill

Drilling is planned at the new Red Hill gold discovery, located only 4.5km from the Mineral Resource, to follow-up recent intercepts such as 10m at 4.1g/t gold from 46m (NKRC054) and 11m at 3.4g/t gold from 16m (NKRC047) (Figure 1).

4. Granite Target

Mapping, rock chip sampling and trenching will be conducted over the Granite Target area, located 10km northeast of the Mineral Resource in the Margou permit and potential follow-up drilling (subject to completion of the Lafi Transaction) (Figure 1).

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Placement

The Placement is to be made at an issue price of 1.3 cents per Share raising approximately $2.25 million (before costs). The Placement is priced at a discount of 13.9% to the 5 day volume weighted average price of Shares traded on the Australian Securities Exchange up to and including 27 February 2019 (the trading day before the commencement of the trading halt prior to the announcement of the capital raising).

The Placement will be made to a number of unrelated qualified, institutional, sophisticated and professional investors and will be completed in two tranches.

The Company will issue up to a total of 117,578,000 Shares at an issue price of 1.3 cents per Share to raise approximately $1.52 million (before costs) ( Tranche 1 ). The Tranche 1 Shares are expected to be issued on Monday, 11 March 2019 under the Company’s Listing Rule 7.1 placement capacity (70,546,921 Shares) and Listing Rule 7.1A additional placement capacity (47,031,079 Shares) and are therefore not subject to shareholder approval. If the issue price of 1.3 cents per Share represents more than a 25% discount to the 15 day volume weighted average price of Shares trading on ASX immediately before the issue date of the Tranche 1 Shares, the Company will not proceed with the issue of the 47,031,079 Shares under its Listing Rule 7.1A additional placement capacity.

The balance of the Placement, comprising a further 55,498,960 Shares at the same issue price as Tranche 1 to raise an additional approximate $721,000 (before costs) ( Tranche 2 ), will be issued subject to shareholder approval. The Company is currently arranging for a general meeting of shareholders to be held around mid to late April 2019, to seek approval to issue the Shares under Tranche 2.

Update on Lafi Transaction

On 11 December 2018, the Company announced its entry into a binding Heads of Agreement ( HoA ) to acquire the Goueli and Margou permits, which adjoin Kouri, through the acquisition of Lafi Gold Limited (see also subsequent announcements of 31 January 2019 and 14 February 2019) ( Lafi Transaction ).

The parties continue to progress the finalisation of the definitive agreement and to work toward completion of the Lafi Transaction. The Company has been informed that it is intended that Hayden Sommer will be nominated as the representative of Westward Investments Limited on the Board upon completion of the transaction. Mr Sommer, through Sommer Consulting Limited, provides management consulting services and guidance to the Pella Group.

This announcement effects the end of the Company’s suspension.

-ENDS-

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Figure 1. Location of the exploration permits and prospect areas at Kouri (acquisition of the Goueli and Margou permits subject to completion of the Lafi Transaction)

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Figure 2. Mineral Resource area at Kouri

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For Further Information Please Contact:

Golden Rim Resources

Media and Broker Enquiries

Craig Mackay Andrew Rowell Managing Director Director – Investor Relations Golden Rim Resources Cannings Purple +61 3 9836 4146 +61 400 466 226 craig@goldenrim.com.au arowell@canningspurple.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 believes it 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

Competent Persons Statement

The information in this report relating to previous exploration results and Mineral Resources is extracted from the announcements Bonanza Intercept of 4m at 44.7g/t Gold at Kouri dated 16 January 2019; 10m at 4.1g/t Gold Intersected at Red dated 15 January 2019; New Gold Intercepts at Red Hill Indicate Potential of Sizable New Gold Discovery dated 14 December 2018; Acquisition of Permits Adjacent to 1.4Moz Kouri Mineral Resource dated 11 December 2018; 1.4 Million Oz of Gold in Upgraded Kouri Mineral Resource dated 3 December 2018; Extensive New Gold Target Identified at Red Hill dated 24 August 2018; New Gold Discovery at Red Hill dated 16 July 2018; High Grade Gold Hits Extend Mineralisation at Kouri dated 12 July 2018, 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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