CANYON RESOURCES LIMITED — Board/Management Information 2018

Nov 5, 2018

Canyon Resources Limited ACN 140 087 261 Level 9, 863 Hay St Perth, Western Australia, 6000 www.canyonresources.com.au

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6 November 2018

Canyon Resources appoints Tolga Kumova

as a Strategic Advisor

Canyon Resources (ASX: CAY) (Canyon) is pleased to announce the appointment of Mr Tolga Kumova as a Strategic Advisor to the company.

Mr Kumova has significant recent experience in financing and developing tier-one mining projects in Africa and will be a key figure in the Company as it brings The Minim Martap Bauxite Project (“Minim Martap” or “The Project”) in Cameroon to development.

Mr Kumova’s role includes;

1. Providing strategic direction and advice in relation to the Project’s key development activities.

2. Providing strategic advice in relation to the Company’s planned investment marketing program and activities.

3. Introducing Canyon to major Australian and international funds, investment banks and potential offtake partners.

4. Working with management to develop key relationships with stakeholders including the local community, off-take groups, investors, engineering firms and operational partners.

5. Providing advice and support to the Company’s bauxite marketing, price and sales strategy.

Canyon Resources Managing Director Phillip Gallagher said: “To have someone with Mr Kumova’s experience join Canyon confirms our belief that the Minim Martap Bauxite Project has the potential to be a world class mining asset that can be transitioned from exploration to development. Mr Kumova has had recent direct and relevant experience in taking a major undeveloped mineral project in Africa from the exploration and study phase to a fully financed mining project.”

“He will assist us with shaping the strategic direction of the Company and will open doors to leading investment banks, funds and off take groups."

About Tolga Kumova

Mr Kumova has 15 years’ experience in stockbroking, corporate finance and corporate restructuring. He has specialised in initial public offerings and capital requirements of mining focused companies.

He has raised more than $500 million for mining ventures, varying from inception stage through to construction and development – the majority being raised for projects in Africa.

Mr Kumova was a founding shareholder of Syrah Resources in 2010 and served as an Executive Director from May 2013 to October 2016 and as Managing Director from October 2014 to October 2016. Mr Kumova is currently Non-Executive Chairman of European Cobalt Ltd and Corporate Director of New Century Resources.

During his tenure at Syrah Resources, Mr Kumova led the business from resource stage through to full funding through to development, gaining experience negotiating offtake agreements with numerous globally recognised counterparties.

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Mr Kumova said: “It’s very exciting to be working with the Canyon board and management team to develop the world-class Minim Martap Bauxite Project.

“I believe the project will attract significant interest from major aluminium industry participants globally.”

“I look forward to drawing on my experience in developing African mining projects to assist Canyon in implementing their development plan and corporate strategy.”

Issue of Options

In part consideration for the provision of his services, Mr Kumova will be entitled to receive the following options:

Tranche	No. of Options	Exercise Price	Expiry Date
1	10,000,000	$0.35	4 years after the date of grant
2	10,000,000	$0.60	4 years after the date of grant
3	10,000,000	$1.00	4 years after the date of grant

The Options will vest on the earlier to occur of:

• (a) 50% of the three option tranches on the date which is 1 year following the date of signing this agreement; and

• (b) the remaining 50% of the three option tranches on the date which is 2 years following the date of signing this agreement; or

• (c) the price of Shares equalling or exceeding the relevant Exercise Price of the Options, excluding the Tranche 1 options which will only vest following the Shares achieving a price of 35c or greater on a VWAP basis calculated over a continuous 10-day period.

The Minim Martap Bauxite Project

The Minim Martap Project is located in the Adamawa region of Cameroon, alongside Canyon’s existing Birsok Bauxite Project. The Minim Martap Project encompasses two deposits, Ngouandal and Minim Martap, which are located within 25km of each other. The total area of the permits is 1349 km[2] .

The three exploration permits are valid for a three-year period and contain a number of predefined work commitments that are consistent with the Company’s development proposal.

Previous work completed by Canyon Resources on the contiguous Birsok Project, sometimes sharing plateaux with the Minim Martap Project, has given the Company a strong understanding of the physical and geochemical characteristics of the local bauxite. The bauxite is generally high alumina, low total and reactive silica, high gibbsite, low boehmite and low on other contaminants.

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Figure 1: Location map of the Minim Martap and Birsok Bauxite Projects and the Mayouom Kaolin Project in Cameroon.

Enquiries:

Phillip Gallagher

Managing Director T: +61 (0)8 6382 3342 E: pgallagher@canyonresources.com.au