ASARA RESOURCES LIMITED — Interim / Quarterly Report 2018

Oct 29, 2017

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Quarterly Activities Report
For the period ended 30 September 2017
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Golden Rim Resources Ltd (ASX: GMR) ( Golden Rim or Company ) is developing its project portfolio. The Company has advanced exploration projects in Burkina Faso and Chile.

The Kouri Gold Project, in Burkina Faso, has widespread gold mineralisation and Golden Rim has outlined a considerable JORC Exploration Target. The Company is conducting drilling to outline a maiden JORC Mineral Resource.

Overview

Kouri Gold Project, Burkina Faso (Kouri)

• Further drilling program comprising ~12 diamond holes (1,500m) and ~120 reverse circulation ( RC ) holes (15,000m) commenced at the Banouassi Prospect ( Banouassi ).

• High grade gold results received from previous RC drilling program at Banouassi, including 10m at 11 g/t gold, 7m at 8.4 g/t gold and 2m at 45.6 g/t gold from a 19 hole (2,747m).

The Paguanta Zinc-Silver-Lead Project, in Chile, has a significant JORC Mineral Resource and US$35m in past expenditure.

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Head Office

Office 7, Level 2 609 Canterbury Road SURREY HILLS VIC 3127 AUSTRALIA T: + 61 3 9836 4146 www.goldenrim.com.au

Contact

Craig Mackay Managing Director info@goldenrim.com.au

Paguanta Zinc-Silver-Lead Project, Chile (Paguanta)

• Geological mapping has outlined extensive zinc-silver-lead veining at the Cumbre Prospect ( Cumbre ) highlighting the potential for further exploration to add to the zinc-silver-lead resource inventory at Paguanta.

Corporate

• Acorn Capital, one of Australian’s largest microcap investors became a cornerstone investor in the Company.

• A successful rights issue and shortfall placement was completed raising a total of approximately $2.57 million (before costs).

• Leading Australian broking house, Hartleys Limited, acted as Broker with respect to the placement of the shortfall under the rights issue.

• Golden Rim announced a shift in focus to West Africa and to Kouri where it is conducting an extensive drilling program. The Company is seeking a corporate transaction for Paguanta.

Directors

Glenister Lamont, Non-Executive Chairman Craig Mackay, Managing Director Rick Crabb, Non-Executive Director Kathryn Davies, Non-Executive Director

Golden Rim Resources Ltd I ABN 39 006 710 774 I Office 7, Level 2, 609 Canterbury Road, Surrey Hills VIC 3127, Australia I PO Box 378, West Perth WA 6872, Australia www.goldenrim.com.au I info@goldenrim.com.au I T + 61 3 9836 3146

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This report relates to the activities of the Company for the quarter commencing 1 July 2017 to 30 September 2017 ( Quarter ).

Kouri Gold Project, Burkina Faso

Kouri lies on a major mineralised fault zone that extends to the north-east into western Niger, where the 2.5Moz Samira Hill gold deposit is located. To the south-west, the fault zone is connected to the Markoye Fault system which controls several large gold deposits in Burkina Faso, including Kiaka (5.9Moz gold), Bombore (5.2Moz gold) and Essakane (6.2Moz gold).

In July 2015, an initial Exploration Target of approximately 500,000 ounces to 611,000 ounces of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold was outlined at Banouassi (ASX Announcement 16 July 2015).

During the Quarter, the Company received all of the gold assays from a 19 hole (2,747m) RC drilling program conducted in the previous quarter at Banouassi.

New high-grade intercepts include:

• 10m at 11.0 g/t gold from 111m, including 1m at 104.7 g/t gold (Hole BARC118);

• 7m at 8.4 g/t gold from 34m, including 2m at 27.3 g/t gold (Hole BARC125);

• 2m at 45.6g/t gold from 18m, including 1m at 82.9g/t gold (Hole BARC114); and

• 2m at 11.6g/t gold from 38m, including 1m at 22.5g/t gold (Hole BARC114).

Additional significant intercepts include:

• 6m at 3.8 g/t gold from 109m, including 1m at 22.1g/t gold (Hole BARC112);

• 10m at 3.0g/t gold from 67m, including 1m at 12.0g/t gold (Hole BARC114); and

• 11m at 1.3g/t gold from 98m (BARC116).

Gold mineralisation occurs in multiple parallel zones over 3km within a major shear zone corridor. The combined true width of the mineralisation in this corridor ranges approximately from 20m to 40m.

Golden Rim believes several of the new high-grade gold intercepts and some of the high-grade intercepts from previous drilling may be influenced by their proximity to several distinct east-south-east trending cross-structures. Further drilling along the trend of these cross-structures is required to assess the continuity of the high-grade mineralisation in these areas.

Subsequent to the end of the Quarter, Golden Rim commenced a 1,500m (~12 hole) diamond drilling program and a 15,000m (~120 hole) RC drilling program at Banouassi (Figure 1). The drilling program comprises both infill and extensional drilling on the gold mineralisation comprising the Guitorga Lodes and is expected to enable Golden Rim to calculate a maiden Mineral Resource at Kouri.

Paguanta Zinc-Silver-Lead Project, Chile

Paguanta lies in the Tarapacá Region of northern Chile, approximately 120km northeast of Iquique and 30km west of the Chile-Bolivia border. The project area hosts both epithermal silver-lead-zinc-gold mineralisation and porphyry copper mineralisation.

Paguanta is situated approximately 40km northeast of BHP Billiton’s Cerro Colorado Mine, which is exploiting a large porphyry copper deposit with a Mineral Resource of 400Mt @ 0.62% copper for 5.5Blb of copper and annual copper cathode production of approximately 175Mlb.

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Using a cut-off grade of 6% zinc equivalent, the 2012 JORC Mineral Resource is 2.4Mt at 5.0% zinc, 1.4% lead, 88 g/t silver and 0.3 g/t gold (or 2.4Mt at 8.0% Zn Eq ) for 190,000t of contained Zn Eq metal. Almost 50% of the resource is in the Measured and Indicated categories (Figure 2). The resource estimate for the Patricia Prospect ( Patricia ) at Paguanta remains open at depth and along strike.

Re-logging of the previous diamond core is currently underway so a more robust geological model can be prepared for Patricia. To date more than 5,000m of drill core has been re-logged.

Regionally, Cumbre, located 1km south of Patricia and which has received no drilling to date, has become a high priority target for the next drilling campaign. Cumbre contains highly base metal anomalous, east-west-trending sheeted veins (similar orientation to the veins at Patricia), which outcrop at an elevation some 200m higher than the Patricia vein outcrops. Mapping and geochemical/XRF sampling has been carried out across Cumbre.

Babonga Gold Project, Burkina Faso (Babonga)

Babonga is located 70km northeast of Golden Rim’s primary project in Burkina Faso, Kouri. Babonga has a highly coherent gold-in-soil anomaly approximately 2.1km long and 300m wide, located in the southern part of the licence. This anomaly is coincident with a major regional fault that is connected to the major fault zone that hosts gold mineralisation at Kouri.

Aircore drilling has discovered widespread bedrock gold mineralisation, including a coherent zone of bedrock gold mineralisation (comprised of a series of stacked gold mineralised veins) over an area of 1km x 200m.

During the Quarter, no field work was completed at Babonga.

Yako Gold Project, Burkina Faso (Yako)

During the Quarter the Company relinquished the licence comprising Yako.

Corporate

During the Quarter the Company undertook fundraising activities.

Notably, the Company raised approximately $1.27 million (before costs) under a rights issue following which it raised a further $1.3 million from the shortfall under the rights issue. Combined, the rights issue and shortfall placement, raised a total of approximately $2.57 million (before costs), enabling the Company to conduct drilling at Kouri.

Leading Australian broking house, Hartleys Limited, acted as Broker with respect to the placement of the shortfall.

Previous to the rights issue and shortfall placement, Acorn Capital, one of Australian’s largest microcap investors became the Company’s largest shareholder following a share placement raising up to $446,955 (before costs).

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Significantly, during the Quarter the Company shifted its focus to West Africa and Kouri where it is now conducting an extensive drilling program. Given the change in focus, Golden Rim is seeking a corporate transaction for Paguanta and has executed a mandate with leading Canadian broking firm, Eight Capital.

-ENDS-

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Figure 1. RC drill collars labelled with >10 m x g/t gold intercepts and the interpreted zones of gold mineralisation over a satellite image at Banouassi. The location of the proposed RC holes and diamond holes for the current drilling program are shown in green and red circles respectively.

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Figure 2. Plan showing the mapped zinc-silver-lead veins at Patricia, and the location of Golden Rim’s recent diamond drilling (red circles) and RC drilling (blue circles), and the current Mineral Resource outline .

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Competent Persons Statements

The information in this report relating to Exploration Targets, Mineral Resources and exploration results is extracted from the announcements Korongou Project Delivers Significant RC Drilling Results dated 18 June 2013; Korongou Delivers Significant Drilling Results dated 7 July 2014; Guitorga Delivers Significant Drilling Results 21m at 5.6 g/t gold including 8m at 11.8 g/t gold from 13m dated 11 May 2015; Initial Exploration Target Defined for Korongou dated 16 July 2015; Zinc-Silver-Lead Mineralisation Extended and a New Discovery at Paguanta dated 7 March 2017; Diamond Drilling Significantly Extends Mineralisation at Paguanta dated 3 May 2017; New Resource Estimation for Paguanta dated 30 May 2017; New Ore Grade Intersections to Expand Paguanta Resource dated 14 June 2017; New High Grade Gold Intercepts Move Kouri Closer to Maiden Resource dated 6 July 2017; and Quarterly Activity Report for the period ended 30 June 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.

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.

Contact Information

Contact Information

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

Tony Dawe Citadel Magnus tdawe@citadelmagnus.com +61 405 989 743

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Appendix 1: Golden Rim Tenement Schedule

Additional information in relation to the Company’s tenements/licences 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
Burkina Faso
Babonga	Babonga	100	100
Zanna	Yako	0	0	Relinquished
Kouri	Kouri	100	100
Chile
José Miguel 1 1-30 Exploitation	Paguanta	70	70
JoséMiguel 2 1-30Exploitation	Paguanta	70	70
José Miguel 3 1-20 Exploitation	Paguanta	70	70
JoséMiguel 4 1-30Exploitation	Paguanta	70	70
José Miguel 5 1-30 Exploitation	Paguanta	70	70
José Miguel 6 1-30 Exploitation	Paguanta	70	70
José Miguel 7 1-30 Exploitation	Paguanta	70	70
José Miguel 8 1-10 Exploitation	Paguanta	70	70
CarlosFelipe1 1-30Exploitation	Paguanta	70	70
Carlos Felipe 2 1-30 Exploitation	Paguanta	70	70
Carlos Felipe 3 1-30 Exploitation	Paguanta	70	70
Carlos Felipe 4 1-30 Exploitation	Paguanta	70	70
Carlos Felipe 5 1-30 Exploitation	Paguanta	70	70
CarlosFelipe 61-30Exploitation	Paguanta	70	70
Teki I 1 Exploration	Paguanta	100	100
Teki I 2 Exploration	Paguanta	100	100
Teki I 3 Exploration	Paguanta	100	100
Teki I 4 Exploration	Paguanta	100	100
Teki I 5 Exploration	Paguanta	100	100
Teki I 6 Exploration	Paguanta	100	100
Teki I 7 Exploration	Paguanta	100	100
Teki I 8 Exploration	Paguanta	100	100

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

Mining exploration entity and oil and gas 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, 01/05/13, 01/09/16

Name of entity

GOLDEN RIM RESOURCES LTD

ABN

39 006 710 774

Quarter ended (“current quarter”)

30 September 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (782) - - (166) (216) - - - 1 - -	- (782) - - (166) (216) - - - 1 - -
	(1,163)	(1,163)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	(58) - - -	(58) - - -

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	(58)	(58)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares & options 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	3,140 - - (105) - - - - -	3,140 - - (105) - - - - -
	3,035	3,035
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	702 (1,163) (58) 3,035 (3)	702 (1,163) (58) 3,035 (3)
	2,513	2,513

• See chapter 19 for defined terms

1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	2,483 30	672 30 - -
	2,513	702

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	122
6.2	Aggregate amount of cash flow from loans to these parties included
	in item 2.3	-
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2		-
7.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-

9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	$A’000	$A’000	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows		1,400 - - 225 135 -
		1,760
10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at begin- ing of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	Zanna (Yako Project), Burkina Faso	Direct ownership	100%	0%
10.2 Interests in mining tenements and petroleum tenements acquired or increased

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Sign here: Date: 30 October 2017 (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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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