EMPIRE RESOURCES LIMITED — Capital/Financing Update 2018

Feb 14, 2018

==> picture [174 x 86] intentionally omitted <==

ACN 092 471 513

15 February 2018

ASX Release

PENNY’S FIND GOLD MINE THIRD TREATMENT CAMPAIGN COMMENCED AT LAKEWOOD MILL

Empire Resources Ltd (ASX code: ERL) on behalf of the Penny’s Find Joint Venture (PFJV) has commenced its third toll treatment campaign at the Lakewood Mill located on the southern outskirts of Kalgoorlie-Boulder, WA.

This third campaign at Lakewood is now scheduled to process 30,000 tonnes of highgrade ore. The original allotment for this campaign was 20,000 tonnes but mill rescheduling will allow the PFJV to process an extra 10,000 tonnes.

The average calculated head grade to date is 5.01g/t Au with 55% of the gold recovered by gravity. This increase in the percentage of gravity recovered gold compared to the previous treatment campaign (40%), confirms original testwork which showed an increasing percentage of free gold in the ore as it becomes fresher.

A final processing summary for the current treatment campaign will be issued to the market in early March once Mint and mill reconciliations have been finalised.

The Penny’s Find open pit has now reached 65m depth with fresh high-grade ore being stockpiled in readiness for the next treatment campaign due in April 2018.

==> picture [483 x 271] intentionally omitted <==

Crushed stockpiles of Penny’s Find high-grade ore at the Lakewood Mill

1

In early February 2018, the Company entered into a Repayment Deed with Blue Cap Mining Pty Ltd, the Penny’s Find mining contractor, to reschedule the timing of debt repayment.

Documentation for this agreement has now been signed allowing for a standstill on further debt repayments until proceeds of the current treatment campaign are received. All debts to Blue Cap are to be repaid in full by 28 April 2018.

DAVID SARGEANT MANAGING DIRECTOR

For further information on the Company Phone: +61 8 9361 3100 www.resourcesempire.com.au

2