ASARA RESOURCES LIMITED — Interim / Quarterly Report 2021

Jan 28, 2021

29 January 2021

QUARTERLY ACTIVITIES REPORT PERIOD ENDED 31 DECEMBER 2020

West African gold explorer Golden Rim Resources Ltd (ASX: GMR; Golden Rim or Company ) is pleased to provide its Quarterly Activities Report for the quarter ended 31 December 2020 ( Quarter ).

Highlights

Kada Gold Project, Guinea

• Golden Rim acquires an initial 25% in Kada Gold Project, Guinea. It 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 100m 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, complementing Golden Rim’s 2Moz Kouri gold project in Burkina Faso.

• Golden Rim to start exploration at Kada, including airborne VTEM and magnetic survey and auger drilling, followed by RC and diamond drilling.

Kouri Gold Project, Burkina Faso

• Kouri Mineral Resource updated to an Inferred and Indicated Mineral Resource of 50 million tonnes at 1.3 g/t gold for 2Moz contained gold (at 0.5g/t Au cut-off within pit shells).

• 43% increase in contained gold on the previous December 2018 Mineral Resource.

• Indicated Mineral Resource increased by 41% to 310,000oz gold at 1.4 g/t gold.

• Golden Rim to recommence drilling at Kouri and aims to further build the resource, with a focus on higher grade gold areas, and to convert various portions of Inferred to Indicated Mineral Resource.

• The commencement of drilling is to be followed by a Scoping Study.

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Kada Gold Project, Guinea

The Kada Gold Project ( Kada ) is located in the central Siguiri Basin, Guinea, 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.

Following completion of due diligence, Golden Rim announced it had executed the Earn-In and Incorporated Joint Venture Agreement ( JVA ) with respect to Kada after the Company first announced its intention to acquire up to 75% interest in the project in July 2020.

Under the JVA, the acquisition of Golden Rim’s initial 25% interest in Kada is subject to conditions which included customary government approvals.

The Company received approvals from the Guinean Government for the Kada Gold Joint Venture to proceed and on 12 January 2021, it announced its acquisition of the initial 25% interest was complete, with all conditions under the JVA with respect to the initial acquisition satisfied or waived. As a result, the Company issued US$2,500,000 worth of shares (Consideration Shares) to the vendor (being 317,203,744 shares at approximately $0.01 per share).

The Company’s due diligence drilling at Kada included three diamond drill holes (KDH001 – KDH003) for a total of 456.8m were completed as twin holes to the historical Newmont drilling located in the centre of the non-JORC Newmont gold resource area.

In general, the twin hole assay results show a reasonable correlation and confirm the multiple zones of broad, predominantly oxide, gold mineralisation identified in the Newmont drill holes.

Best new intersections include:

• 18m at 2.0g/t gold from 1m in KDH003

• 78m at 1.4g/t gold from 71m in KDH003 including:

• 10m at 2.1g/t gold from 72m

• 34m at 2.1g/t gold from 87m

• 7m at 4.3g/t gold from 0m in KDH001 (in laterite)

• 43m at 1.7g/t gold from 109m in KDH001 including:

o 21m at 2.6g/t gold from 130m

Considerable upside to outline additional gold mineralisation drilling is evident. For example, a thick, 70m wide, zone of mineralisation located 200m west of KDH001 – KDH003, which was only drilled by Newmont to ~70m below surface and remains open at depth, offers a priority target for follow-up drilling.

The completion of the acquisition of an initial interest in Kada allows Golden Rim to proceed with its exploration programs at Kada in the March Quarter 2021.

Initial exploration programs are to include an airborne VTEM and magnetic survey over the entire project area and 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.

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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.

Kouri Gold Project, Burkina Faso

Kouri lies on a major mineralised fault zone that extends to the NE into western Niger, where the 2.5Moz Samira Hill gold deposit is located. To the SW, the fault zone is connected to the Markoye Fault system which controls several large gold deposits in Burkina Faso, including Kiaka (5.9Moz gold, B2Gold), Bombore (5.2Moz gold, Orezone) and Essakane (6.2Moz gold, IAMGOLD).

During the Quarter, the Company announced an updated Indicated and Inferred Mineral Resource of 50 million tonnes at 1.3 g/t for 2 million ounces of contained gold (0.5g/t gold cut-off grade within pit shells) for the Kouri Gold Project (Kouri) in Burkina Faso (Table 1).

Contained gold of 2 million ounces represents an increase of 43% from the contained gold in the previous Mineral Resource released in December 2018.

Indicated Mineral Resource increased by 41% to 310,000 ounces at 1.4g/t gold.

Three areas of Mineral Resource defined: West, Central and East Lodes. 95% of the Mineral Resource gold ounces lie in the Central Lodes, which comprises the Banouassi Prospect and the previous Mineral Resource area.

Considerable Mineral Resource upside remains at Kouri including:

• The more densely drilled Indicated Mineral Resource is 17% higher in gold grade than the Inferred Mineral Resource. Planned infill drilling to increase the Indicated Mineral Resource is likely to have a positive impact on gold grade.

• Most of the multiple, parallel lodes of gold mineralisation that comprise the Mineral Resource are open at depth.

• A shallow, maiden, Inferred Mineral Resource of 48,000 ounces at 3.2g/t gold defined at the East Lodes, predominantly on the high-grade Diabatou Gold Shoot. The bottom of the pit shell on the Diabatou Gold Shoot sits in 10g/t gold mineralisation and deeper drilling offers an outstanding opportunity to add additional high-grade gold ounces.

• Drilling of high priority regional target areas also offers potential for additional high-grade gold mineralisation.

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Table 1. Kouri Mineral Resource Estimate by Resource Categories and Material Types (October 2020 Mineral Resource Estimate (0.5g/t Gold Cut-off Reported Within Pit Shells)

Material Type	Measured	Measured	Indicated	Indicated	Inferred	Inferred		Total	Total
	Tonnes Mt	Gold g/t	Tonnes Mt	Gold g/t	Tonnes Mt	Gold g/t	Tonnes Mt	Gold g/t	Gold Ounces
Oxide	-	-	0.5	1.4	2.7	1.3	3.2	1.3	130,000
Transitional	-	-	0.6	1.2	2.7	1.3	3.4	1.3	140,000
Fresh	-	-	5.9	1.4	38	1.2	43	1.2	1,700,000
Total	-	-	7.0	1.4	43	1.2	50	1.3	2,000,000

Notes for Tables 1, 2 and 3:

1. Totals may differ due to rounding to significant figures to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results.

2. Mineral Resources reported on a dry in-situ basis at a 0.5g/t Au cut-off and constrained to the limit of an optimised USD 1,900/oz consensus forward gold price pit shell, based on a gravity/CIL processing route and typical West African open pit mining costs.

3. Reporting cut-off grade within the pit shell was selected by RPM based on the parameters defined by a high level mining study conducted by independent consultants and updated in 2020 plus recent testwork by Golden Rim which supports reasonable expectations of processing via the carbon-in-leach (CIL) route. The selected economic cut-off grade for the Kouri Mineral Resource was 0.5g/t Au. It is based on a CIL processing route, assumed metallurgical recoveries of 95%, Base mining cost of USD3.68/t for fresh waste and USD4.21/t for ore. Processing, GA and additional (to waste dump disposal) costs of USD18.80/t and a consensus forward gold price of USD1,625/oz.

4. The Statement of Estimates of Mineral Resources has been compiled by Mr David Allmark who is a full-time employee of RPM and a Member of the AIG. Mr Allmark has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code (2012).

5. All Mineral Resources figures reported in the tables above represent estimates at 19 October 2020.

6. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).

7. The Indicated Mineral Resource was defined within areas of close spaced diamond and RC drilling of equal or less than 50m by 50m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral Resource was assigned to areas where drill hole spacing was greater than 50m by 50m and up to a maximum spacing of 100m by 50m; where small isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones.

More detail on the Kouri Mineral Resource update is available in the ASX announcement dated 26 October 2020.

The Company intends to re-commence drilling at Kouri during the March Quarter 2021 and will aim to convert various portions of Inferred to Indicated Mineral Resource and to further expand the Mineral Resource, with a focus on higher-grade gold areas.

It is planned to follow the commencement of drilling with a Scoping Study which will be progressively completed and should provide greater technical and costing definition and assist in focussing both the exploration and infill drilling programs. Key elements for more detailed consideration will include metallurgical testwork, site infrastructure requirements, community matters, operating costs, capital costs and tailings storage options.

Babonga Gold Project, Burkina Faso

Babonga is located 70km NE 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 project. This anomaly is coincident with a major regional fault that is connected to the major fault zone that hosts gold mineralisation at Kouri.

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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.

Paguanta Zinc-Silver-Lead Project, Chile

Paguanta lies in the Tarapacá Region of northern Chile, approximately 120km NE 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 NE of the 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.

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

The Company’s focus is currently on its West African gold projects and Paguanta remains on care and maintenance while divestment opportunities are being sought.

CORPORATE

Details of Activities of the Company

Details of the Company’s mining and exploration activities for the Quarter are set out above under each project heading. There were no further material developments and/or material changes in those activities.

The Company did not undertake any substantive mining production and development activities during the Quarter.

Summary of Expenditure

Of the total cash expenditure of the Company during the Quarter, the majority (60%) was expended on exploration activities. Expenditure on exploration mainly comprised the preparation of an updated Mineral Resource at Kouri, and due diligence drilling and other expenses with respect to the proposed acquisition of Kada.

The Company did not incur any expenditure for any mining production and development activities during the Quarter.

Payments totalling approximately $83,000 were made to related parties of the Company, being director fees and the Managing Director’s salary with respect to the Quarter (Appendix 5B, section 6). As a means of preserving cash, in addition to this, a portion of directors’ fees were paid in shares in lieu of cash under the Company’s Director and Employee Remuneration Share Plan (Remuneration

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Plan). The issue of shares to directors under the Remuneration Plan was approved by shareholders at a general meeting held on 2 June 2020.

-ENDS-

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Figure 1. Kada Gold Project location plan.

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Figure 2. Kouri Project with the location of the 2.0Moz Mineral Resource, drill holes, gold prospects and untested target areas over a greyscale airborne magnetic image.

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Appendix 1: Golden Rim Permit (Tenement) Schedule

Additional information in relation to the Company’s permits held at the end of the Quarter (on a consolidated basis).

Permit name	Project name	Golden Rim Holding (%)	Changes in the Quarter to permits and/or interest
Burkina Faso
Babonga	Babonga	100
Kouri	Kouri	100
Margou	Kouri	100
Gouéli	Kouri	100
Guinea
Kada Joint Venture
Kada	Kada	0%	Joint Venture Agreement entered into but not completed
Bamfele	Kada	100% legal ownership, held in trust for joint venture company.
Chile
José Miguel 1 1-30 Exploitation	Paguanta	74
José Miguel 2 1-30 Exploitation	Paguanta	74
José Miguel 3 1-20 Exploitation	Paguanta	74
José Miguel 4 1-30 Exploitation	Paguanta	74
José Miguel 5 1-30 Exploitation	Paguanta	74
José Miguel 6 1-30 Exploitation	Paguanta	74
José Miguel 7 1-30 Exploitation	Paguanta	74
José Miguel 8 1-10 Exploitation	Paguanta	74
Carlos Felipe 1 1-30 Exploitation	Paguanta	74
Carlos Felipe 2 1-30 Exploitation	Paguanta	74
Carlos Felipe 3 1-30 Exploitation	Paguanta	74
Carlos Felipe 4 1-30 Exploitation	Paguanta	74
Carlos Felipe 5 1-30 Exploitation	Paguanta	74
Carlos Felipe 6 1-30 Exploitation	Paguanta	74
Teki I 1 Exploitation	Paguanta	100
Teki I 2 Exploitation	Paguanta	100
Teki I 3 Exploitation	Paguanta	100
Teki I 4 Exploitation	Paguanta	100
Teki I 5 Exploitation	Paguanta	100
Teki I 6 Exploitation	Paguanta	100
Teki I 7 Exploitation	Paguanta	100

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Competent Persons Statement

The information in this report relating to previous exploration results and the Mineral Resource at Kouri are extracted from the announcements: Golden Rim Receives Government Approvals for Kada Joint Venture dated 14 December 2020; Golden Rim Executes Kada Gold Project Joint Venture Agreement dated 9 December 2020; Broad Zones of Deep Oxide Gold Mineralisation Confirmed at Kada dated 16 November 2020; Kouri Mineral Resource Increases by 43% to 2 Million Ounces Gold dated 26 October 2020; Drilling Commences at the Kada Gold Project in Guinea dated 25 September 2020; Extent of the High-Grade Diabatou Gold Shoot Doubled dated 31 July 2020; Heads of Agreement to Acquire the Kada Gold Project in Guinea dated 27 July 2020; Amended Announcement: $2.7 Million Raised and Commencement of Drilling dated 19 June 2020; New Granite Contact Targets and High-Grade Cold Shoot at Kouri dated 2 June 2020; Drilling Intersects 4m at 12.6g/t Gold at Kouri dated 31 March 2020; Drilling Intersects 6m at 9.5g/t Gold at Kouri, Operation Update – COVID-19 dated 23 March 2020; High-Grade Gold Discovered within Mineral Resource at Kouri dated 10 March 2020; Major Extensions to Gold Lodes Comprising 1.4Moz Mineral Resource at Kouri dated 14 February 2020; Multiple Structures Hosting High-Grade Gold Identified East of 1.4Moz Mineral Resource at Kouri dated 3 February 2020, More High-Grade Gold Results Obtained at Kouri dated 20 December 2019; New High-Grade Gold Zone Discovered at Kouri dated 19 December 2019; Second Extensive High Grade Gold Target Identified at Kouri dated 11 November 2019; 1.6km Geophysical Anomaly Associated with High Grade Gold at Kouri dated 1 November 2019; Major Exploration Campaign Accelerates at Kouri dated 15 October 2019; Drilling Further Extends Gold Mineralisation Beyond Existing 1.4Moz Mineral Resource at Kouri dated 2 September 2019; Second High-Grade Zone Discovered in Granite at Kouri dated 28 August 2019; 784g/t Gold Bonanza Intercept at Kouri dated 5 August 2019; 1.4 Million Oz of Gold in Upgraded Kouri Mineral Resource dated 3 December 2018; 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.

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.

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 325km[2 ] 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 acquired an initial interest in 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 near-term.

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.

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Contact Information:

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.

ASX:GMR

Market Capitalisation: A$23 million Shares on Issue: 2,108 million

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

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