ASARA RESOURCES LIMITED — Interim / Quarterly Report 2015

Jan 28, 2015

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Quarterly Activities Report
For the period ended 31 December 2014
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Golden Rim Resources Ltd (ASX: GMR) is active in West Africa, with a pipeline of gold projects covering over 1,600km[2] in the highly prospective Birimian greenstone belts of Burkina Faso and Mali.

Highlights

Burkina Faso Exploration

Korongou

Golden Rim has an Inferred Mineral Resource of 850,000 tonnes at 6.8 g/t gold for 185,000 ounces of gold for a 0.5 g/t cut-off, at the Balogo Project, Burkina Faso.

At the Korongou Project in Burkina Faso, Golden Rim has recently outlined widespread gold mineralisation, including a large bedrock auger gold anomaly.

Head Office

Level 2 10 Outram Street WEST PERTH WA 6005 AUSTRALIA T: + 61 8 9481 5758 www.goldenrim.com.au

Exploration Office Level 1

19 Prospect Street BOX HILL VIC 3128 AUSTRALIA T: + 61 3 9890 2311

• Auger drilling has successfully identified new zones of bedrock gold mineralisation under shallow cover.

• A significant, new 2.1km x 0.4km auger gold anomaly (Guitorga Line) has been outlined at the Banouassi Prospect.

• The new gold anomalies have a very high gold tenor with results including 7,001 ppb, 2,449 ppb, 1,989 ppb and 1,872 ppb gold .

• Some anomalies remain open along strike.

• The auger drilling confirms significant areas of gold mineralisation away from existing artisanal workings.

• The purchase price for Korongou was renegotiated with the staged cash payments being significantly reduced from US$3m to US$1.4m (US$1.3m paid to date).

Sebba

• An Agreement was signed to consolidate Sebba with permits held by neighbouring permit holders, Predictive Discovery Limited and Roxgold Inc.

Corporate

Contact

Craig Mackay Managing Director info@goldenrim.com.au

• A successful capital raising was completed by the Company with an affiliate of Sprott Inc. raising A$2,626,415 (before costs).

• .

Directors

Rick Crabb, Non Executive Chairman Craig Mackay, Managing Director Glenister Lamont, Non Executive Director Martin Pyle, Non Executive Director

Golden Rim Resources Ltd I ABN 39 006 710 774 I Level 2, 10 Outram Street, West Perth WA 6005, Australia I PO Box 378, West Perth WA 6872, Australia www.goldenrim.com.au I info@goldenrim.com.au I T + 61 8 9481 5758 I F + 61 8 9481 5759

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Balogo Project, Burkina Faso

The Balogo Project covers 360km[2] and is located in southern Burkina Faso (Figure 1). It covers part of a highly prospective Lower Proterozoic Birimian greenstone belt and is traversed for 25km by a significant NE-trending fault splay which is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, including Taparko / Bouroum (1.6 Moz gold), Kiaka (5 Moz gold), Bomboré (5.2 Moz gold) and Essakane (5.6 Moz gold).

No field work was carried out at Balogo during the quarter.

The feasibility study at Balogo remains on hold. The Company continues to look at alternatives to finance the Balogo feasibility study or to otherwise realise value for Balogo in this difficult market for raising capital.

Korongou Project, Burkina Faso

The Korongou Project covers part of a highly prospective Lower Proterozoic Birimian Samira Hill greenstone belt in Burkina Faso and is traversed by a significant NE-trending fault splay which 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) and Essakane (6.2 Moz gold). The mineralised fault system extends into western Niger where the 2Moz Samira Hill is located (Figure 1).

In October 2014, an aggressive systematic regional exploration program commenced at Korongou. It was designed to identify gold mineralisation, under shallow cover, away from the existing (exposed) artisanal workings. The planned exploration program includes 20,000m of regional auger drilling and a ground magnetic and gradient array Induced Polarisation ( IP ) geophysical survey.

Auger Program

To date, the auger program has drilled a total of 1,689 holes (7,834m) using two auger rigs (one belonging to Golden Rim and the other a contractor auger rig). Each hole was drilled through the 5m to 7m of cover material, to the top of the saprolite (weathered bedrock) interface, which was then sampled. A total of 1,745 samples (including quality control standards) were dispatched to BIGS laboratory in Ouagadougou, Burkina Faso, for BLEG analysis for low level gold.

The regional auger drilling has been conducted at variable grid spacings, ranging from 200m x 50m to 200m x 25m. Infill drilling was undertaken in some areas at the Banouassi prospect, such as the Guitorga and Kom lines, where initial auger results are anomalous. The infill drilling has been conducted at both 100m x 25m and 50m x 25m spacings (Figure 2).

Subsequent to the end of the quarter, multiple new auger gold anomalies (>50 ppb gold) have been outlined at Banouassi under shallow laterite and soil cover. The anomalies include peak sample results of 7,001 ppb, 2,449 ppb, 1,989 ppb and 1,872 ppb gold .

The largest anomaly (Guitorga Line) covers an area of 2.1km x 0.4km (Figure 3). It is located approximately 250m SE of the MCA pit. It extends towards the NE to the centre of the Banouassi area. It includes peak sample values of 1,989 ppb, 1,842 ppb and 1,041 ppb gold and the anomaly remains open to the SW and to the NE.

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The Guitorga gold anomaly is very broad across its centre (400m wide) and then appears to narrow to the SW and NE. It strikes at N70 degrees and cuts across the trend of the known mineralisation exposed in the artisanal workings at Banouassi (N65 degrees). The Guitorga anomaly appears to sit in a possible dilational structural setting which is considered highly prospective for hosting bulk tonnage gold mineralisation.

There has been no previous drilling in the area of the Guitorga anomaly.

The regional auger drilling program is set to continue to cover the entire Banouassi prospect. Further infill auger drilling at 100m x 25m is planned over the Guitorga Line gold anomaly.

Magnetic and Gradient IP Survey

A 447 line km combined ground magnetic and gradient IP survey has been carried out by Sagax to cover the entire 16km long and 3km wide main structural corridor that hosts the known mineralised structures at Korongou.

The survey was carried out on a 100m x 25m grid with N150 degree orientated lines. A 9km N60 degree base line (from the bottom SW of the permit to the top NE corner) was surveyed and used as a reference line for the survey.

Two lines totalling 5km have been surveyed across the Kom Line by pole-dipole IP for a better structural understanding of the auger anomaly outlined.

The final results and a report on the geophysical survey are pending.

Renegotiation of Purchase Price

During the quarter, Golden Rim successfully renegotiated the agreement to acquire Korongou from Epsilon Gold Mines Ltd ( Epsilon ).

Following a previous renegotiation, Epsilon agreed to Golden Rim acquiring a 90% interest in Korongou following staged cash payments of US$3 million.

Under the new renegotiations, Golden Rim will now acquire a 90% interest in Korongou following staged cash payments of US$1.4 million comprising US$1.3 million already made, and US$100,000 payable on 30 June 2015.

In addition to the above staged payments, upon a decision to mine, Epsilon is entitled to receive a discovery bonus of US$1 per ounce on 90% of any JORC gold resource reported to the ASX at the time a decision to mine is made by Golden Rim.

Other terms of the agreement remain unchanged.

Sebba Project, Burkina Faso

During the quarter, Golden Rim signed an Agreement to consolidate its Sebba Project with permits held by neighbouring permit holders, Predictive Discovery Limited (ASX: PDI) and Roxgold Inc (TSX.V: ROG). Under the Agreement, the three parties will cooperatively seek a joint venture partner for their group of exploration permits, covering approximately 1,500km[2] in the Sebba Belt in north-eastern Burkina Faso.

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No field work was completed on Sebba during the quarter.

Babonga Project, Burkina Faso

No field work was completed on the Babonga Project during the quarter. Golden Rim continued its divestment activity for Babonga.

Yako Project, Burkina Faso

No field work was completed on the Yako Project during the quarter. Golden Rim continued its divestment activity for Yako.

The Tanlilli permit was relinquished during the quarter.

Mali Projects (Sepola and Faraba)

No work was completed on the projects in Mali during the quarter.

During the quarter, the Faraba and Niaouleni West permits (Faraba Project) were relinquished. The Kolomba permit (Sepola Project) expired during the quarter.

Golden Rim continued its divestment activity for Sepola and continues with divestment discussions.

Ivory Coast Projects (Kongasso and Koyekro)

No work was completed on the projects in Ivory Coast during the quarter. The Kongasso and Koyekro permits were relinquished and Golden Rim will withdraw from the Ivory Coast.

Bergslagen Joint Venture, Sweden

The Bergslagen Joint Venture ( BJV ) between Royal Falcon Mining LLC ( Royal Falcon ) (Golden Rim’s 35% owned Abu Dhabi alliance company) and Drake Resources Ltd ( Drake ) comprises eight permits covering an area of 19.4km[2] in and around the historic mining centre of Falun, located 200km NW of Stockholm.

Subsequent to the end of the quarter, Golden Rim notified Drake of Royal Falcon’s withdrawal from the BJV.

Corporate

During the quarter, the Company successfully completed a capital raising with an affiliate of Sprott Inc. ( Sprott ). Under the capital raising, 238,765,000 fully paid ordinary shares in the Company were issued at A$ 0.011 per share raising A$2,626,415 (before costs). For every two shares issued under the capital raising, investors received one unlisted option to purchase a further share at an exercise price of A$0.0165 until the third anniversary of issuance. The capital raising was subsequently approved by shareholders, during the quarter.

On 10 September 2014 the Company reported a potential tax liability in Mali. Subsequently, the tax liability became immaterial and the Company settled all withholding tax liabilities in Mali.

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Golden Rim was once again present at the Africa Down Under Conference held in Perth during the quarter. Golden Rim’s Managing Director, Mr Craig Mackay, gave a presentation which was well received.

-ENDS-

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Figure 1. Location of Golden Rim’s Burkina Faso permits and projects.

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Figure 2. Location of prospect areas at Korongou.

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Figure 3. Location of auger and RC drill holes and rock chip samples over satellite imagery at the Banouassi Prospect

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Table 1: Tenements (additional information in relation to the Company’s tenements held at the end of the quarter (on a consolidated basis))

Tenement name	Project name	Golden Rim Holding (%)	Golden Rim’s potential equity (%)	Changes in the Quarter
Mali
Kolomba	Sepola	90	90	Expired
Kolumba North	Sepola	90	90
Gourbassi East	Sepola	90	90
Kenibandi East	Sepola	100	100
Faraba	Faraba	90	90	Relinquished
Niaouleni West	Faraba	90	90	Relinquished
Burkina Faso
Yipely	Sebba	100	100
Komondi	Sebba	100	100
Maba	Sebba	100	100
Nasoulou	Sebba	100	100
Babonga	Babonga	100	100
Zanna	Yako	100	100
Tanlili	Yako	0	100	Relinquished
Balogo	Balogo	100	100
Dabiyan III	Balogo	100	100
Korongou	Korongou	0	90
Ivory Coast
Kongasso		100	100	Relinquished
Koyekro		100	100	Relinquished
Sweden (held in a joint venture agreement)*
Falun nr100	Falun	18	18
Falun nr101	Falun	18	18
Falun nr102	Falun	18	18
Falun nr104	Falun	18	18
Falun nr105	Falun	18	18
Haghed	Falun	18	18
Krondiket	Falun	18	18
Skyttgruvan	Falun	18	18
nr2

• Tenements held under BJV between Royal Falcon Mining LLC (Golden Rim’s 35% owned Abu Dhabi alliance company) and Drake Resources Ltd. Royal Falcon Mining LLC’s interest is 51% making Golden Rim’s effective interest 18%.

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The information in this report relating to the exploration results at Korongou is extracted from the announcement Large New Gold Anomalies Outlined at Korongou dated 15 January 2015; 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 this announcement.

Further Company Information

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

Capital Structure

Issued Shares: 1,296,536,216 Unlisted Options: 229,625,067

Major Shareholders

Aurora Minerals 15.9% Sprott 13.7% Acorn Capital 8.6% Royal Group, Abu Dhabi 4.2%

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153 AUSTRALIA T: + 61 8 9315 2333 F: + 61 8 9315 2233 E: registrar@securitytransfer.com.au

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

GOLDEN RIM RESOURCES LTD

ABN 39 006 710 774	Quarter ended (“current quarter”)
39 006 710 774	31 December 2014

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance refunded/(paid) 1.6 Income taxes paid 1.7 Other Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	(950) (370) 5 -	(1,540) (872) 13 90
	(1,315)	(2,309)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(235) (1) 42	(256) ( 3) 54
	(194)	(205)
	(1,509)	(2,514)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,509)	(2,514)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (share issue costs) Net financing cash flows	2,627 (322)	2,822 (426)
	2,305	2,396
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	796 444 (1)	( 118) 1,358 (1)
	1,239	1,239

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

related entities
1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	98
	NIL

• 1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		1,350	1,350
		NIL	NIL

Estimated cash outflows for next quarter

• 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total

$A’000 675 225 900

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	557	412
	682	32
Total: cash at end of quarter(item 1.22)	1,239	444

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	Kolomba Faraba Niaouleni West Kongasso Koyekro	Joint ownership Joint ownership Joint ownership Sole ownership Sole ownership	90% 90% 90% 100% 100%	Nil Nil Nil Nil Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2	Interests in mining
	tenements acquired or
	increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues 31 Oct 2014 (b) Decreases through returns of capital, buy- backs	1,296,536,216	1,296,536,216
	238,765,000	238,765,000	1.1	1.1
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 (Class G) 15,000,000 (Class H) 3,900,000 (ESOP) 2,150,000 (ESOP) 50,000,000 (Class I) 16,366,667 (Class J) 3,000,000 (Class K) 4,500,000 (Class L) 119,382,500 (Class M) 14,325,900 (Class N)		Exercise price (cents) 21 29 29 14 1.5 1.5 0.95 1.45 1.65 1.65	Expiry date 10 July 2015 21 November 2015 21 November 2015 12 January 2017 30 June 2015 20 February 2015 27 November 2016 27 November 2017 30 October 2017 2 November 2016
	3,000,000 (Class K) 4,500,000 (Class L) 119,382,500 (Class M) 14,325,900 (Class N)		0.95 1.45 1.65 1.65	27 November 2016 27 November 2017 30 October 2017 2 November 2016
	600,000 (Class E) 7,000,000 (Class F)		21 27	5 October 2014 22 November 2014
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:

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Date: 29 January 2015

(Company Secretary)

Print name: Hayley Butcher

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

Appendix 5B Page 6

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