ASARA RESOURCES LIMITED — Capital/Financing Update 2020

Dec 8, 2020

9 December 2020

GOLDEN RIM EXECUTES KADA GOLD PROJECT JOINT VENTURE AGREEMENT

Highlights

• Golden Rim executes documentation for earn-in and joint venture over Kada Gold Project, Guinea

• Golden Rim can earn up to 75% interest in Kada, an advanced gold project previously explored by Newmont

• Golden Rim’s due diligence drilling at Kada confirmed multiple, broad gold intersections obtained in drilling previously conducted by Newmont and a new deep oxide zone to 130m depth

• More than 33,000m of drilling completed at Kada to date; Golden Rim believes it can be rapidly progressed to a maiden JORC Mineral Resource

• Kada will complement Golden Rim’s 2.0 million-ounce Kouri Gold Project in Burkina Faso

• Golden Rim planning to commence exploration at Kada (airborne VTEM and magnetic survey and auger drilling, followed by RC and diamond drilling) following receipt of customary government approvals and issue of Consideration Shares.

Golden Rim Resources Ltd (ASX: GMR, Golden Rim or Company ) is pleased to advise it has executed the Earn-In and Incorporated Joint Venture Agreement ( JVA ) with respect to the Kada Gold Project ( Kada ) in Guinea.

Golden Rim’s Managing Director, Craig Mackay, said:

“ We are very pleased to have the formal documentation for the acquisition of Kada executed. Kada is an exciting advanced ex-Newmont project where broad and deep zones of soft oxide gold mineralisation have been outlined with ~300 previous drill holes completed and potential for a near-term maiden Mineral Resource. The exploration upside at Kada is considerable. Only 2% of the project area has been subject to any exploration drilling to date. Kada will further diversify the Company’s asset base and provides a second advanced gold project to progress alongside our 2Moz Kouri project in Burkina Faso .”

Golden Rim announced its intention to acquire up to a 75% interest in Kada on 27 July 2020 and further announced that it had successfully completed its due diligence on the project on 24 November 2020.

Next Steps

Under the JVA, the acquisition of Golden Rim’s initial 25% interest in Kada is subject to conditions which includes customary government approvals and a further shareholder approval condition referred to below. As announced on 24 November 2020, due to recent Presidential elections in Guinea, the government

GOLDEN RIM RESOURCES ASX:GMR Level 23, Collins Square Tower Five, 727 Collins Street, Melbourne, VIC, 3008 T + 61 3 8677 0829 | E info@goldenrim.com.au | goldenrim.com.au

9 December 2020

approvals are taking longer than initially expected. The Company understands however, that such approvals are a matter of process.

Upon the JVA conditions being satisfied (or waived), Golden Rim may acquire an initial 25% interest in Kada through the issue of Golden Rim shares of such number as when divided by the 30-day VWAP of Golden Rim shares prior to the date of the conditions precedent being satisfied or waived, equals the Australian dollar equivalent of US$2,500,000 ( Consideration Shares ).

Given that Golden Rim’s existing approval to issue the Consideration Shares under ASX Listing Rule 7.1 expires on 19 February 2021, to be prudent, Golden Rim has included a condition in the JVA for further shareholder approval under ASX Listing Rule 7.1 to issue the Consideration Shares (which will be sought at a general meeting to be held on or before 17 February 2021). The parties have, however, agreed that if the customary government approvals are obtained by 31 January 2020 and the joint venture company is formed (such that it holds Kada) prior to 16 February 2021, this further shareholder approval condition will automatically be waived (and, in these circumstances, Golden Rim will complete its acquisition of an initial 25% interest in Kada by 19 February 2021 and issue the Consideration Shares under Golden Rim’s existing ASX Listing Rule 7.1 shareholder approval).

Following the issue of the Consideration Shares, Golden Rim expects to be able to commence its exploration programs at Kada.

Initial exploration programs include an airborne VTEM and magnetic survey over the entire project area. In addition, an auger drilling program is planned to further define drill targets in areas where previous soil sampling by Newmont outlined significant gold anomalies. The auger drilling is expected to also extend to areas that have had no previous geochemical sampling.

Following the auger drilling, Golden Rim plans reverse circulation ( RC ) and diamond drilling programs to enable the Company to define a maiden JORC Mineral Resource at Kada and to test regional targets over the project area.

-ENDS-

About the Kada Gold Project

The Kada Gold Project ( Kada ) comprises two exploration permits (Kada and Bamfele) and covers an area of 200km[2] in eastern Guinea. It is located in the central Siguiri Basin and it lies 36km along strike from and to the south of the 10Moz Siguiri Gold Mine operated by AngloGold Ashanti (Figure 1). Kada is an advanced project, having previously been explored by Newmont.

Newmont completed 33,857m of drilling ( 297 holes ) and outlined a non-JORC gold resource at Kada. With infill drilling, Golden Rim believes it can calculate a maiden JORC Mineral Resource in the nearterm.

There is considerable exploration upside at Kada. The gold mineralisation in the Newmont gold resource area remains open along strike and at depth. Only around 2% of the project area has been subjected to any exploration drilling and approximately 90% of the gold-in-soil anomalies remain untested at the Kada, including sample sites that have returned values up to 22,470ppb gold (22.5g/t gold) . Granite contact target areas are considered a priority for exploration.

GOLDEN RIM RESOURCES ASX:GMR 2

9 December 2020

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Figure 1. Location of the Kada Gold Project exploration permits.

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9 December 2020

Golden Rim Resources Ltd

ABN 39 006 710 774

Craig Mackay Managing Director +61 3 8677 0829 craig@goldenrim.com.au

This announcement was authorised for release by the Managing Director of Golden Rim Resources Ltd.

ABOUT GOLDEN RIM RESOURCES

Golden Rim Resources Limited is an ASX listed exploration company with a portfolio of advanced minerals projects in Burkina Faso and Guinea, West Africa and in Chile, South America.

The Company discovered and has outlined a 2Moz Mineral Resource at the Kouri Gold Project, located in north-east Burkina Faso. Kouri is currently Golden Rim’s flagship project and it covers 325km2 of highly prospective Birimian greenstones. As exploration progresses, significant additional gold mineralisation, including a high-grade gold shoot, has been discovered and the gold inventory at Kouri is expected to grow.

The Company recently announced an agreement to acquire the Kada Gold Project in eastern Guinea. Guinea remains one of the most under-explored countries in West Africa. Kada was previously explored by Newmont who completed 34km of drilling and defined a non-JORC gold resource. With infill drilling Golden Rim believes a maiden JORC Mineral Resource can be defined at Kada in the nearterm.

In northern Chile, Golden Rim has the Paguanta Silver-Lead-Zinc-Copper Project. Historically a silver mine, the Company has outlined a Mineral Resource comprising 6.8Moz silver, 74Mlb lead and 265Mlb zinc at Paguanta. The Mineral Resource remains open. In addition, the project has several exceptional porphyry-copper targets that remain untested. With Golden Rim’s focus on gold in West Africa, the Company is seeking to divest the project.

ASX:GMR

Market Capitalisation: A$20million Shares on Issue: 1,791million

T + 61 3 8677 0829 | E info@goldenrim.com.au | goldenrim.com.au

Competent Persons Statement

The information in this report relating to Mineral Resource at Kouri and Paguanta are extracted from the announcements: Heads of Agreement to acquire the Kada Gold Project in Guinea dated 27 July 2020; Kouri Mineral Resource Increases by 43% Increase to 2 Million ounces Gold dated 26 October 2020; and New Resource Estimation for Paguanta dated 30 May 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 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.

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