GBM RESOURCES LIMITED. — Capital/Financing Update 2013

Nov 28, 2013

ASX Announcement

ABN 91 124 752 745

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29 November 2013

ASX Code: GBZ

Hard Rock Drilling in Progress at Lubuk Mandi Gold Mine in Malaysia

Highlights:

COMPANY DIRECTORS

Peter Thompson Managing Director/ Executive Chairman

Neil Norris

• Phase 1 drill program commenced.

• Phase 1 comprises 10 drill holes for approximately 2,000m in total.

• Three targets for initial testing; beneath pit depth extension, and west and east shear zones.

• Laboratory results due January.

• Metallurgical testwork for the Tailings Dam project at Lubuk Mandi is near completion.

Australian resources company GBM Resources Limited (ASX: GBZ) (GBM or the Company) is pleased to announce that it has commenced hard rock drilling at the Lubuk Mandi Gold Mine in Terengganu State in Peninsular Malaysia.

Recent mapping within the mine lease defined two parallel shear zones on either side of the southern pit; the Eastern Shear Zone (ESZ) and the Western Shear Zone (WSZ). The ESZ is up to 70m wide at surface and at least 400m in strike length and is characterized by highly strained graphitic shale with abundant quartz breccia and disseminated sulphides. The Phase 1 drill program is designed to test the ESZ, WSZ and the Main Lode beneath the pit on three drill sections. Multiple intersections on each structure will allow target ranking for further resource definition drilling in Phase 2.

Exploration Director – Executive

Cameron Switzer Non-Executive Director

Guan Huat (Sunny) Loh Non-Executive Director

Chiau Woei Lim Non-Executive Director

CONTACT DETAILS

Principal & Registered Office Suite 8, 7 The Esplanade, Mt Pleasant, WA 6153

Exploration Office 10 Parker Street, Castlemaine, Victoria 3450

Website

www.gbmr.com.au

Email

info@gbmr.com.au

Phone

+61 (8) 9316 9100

The recently completed drill hole LMD0001 successfully intersected the target ESZ, revealing a continuous, intensely deformed, quartz-rich and sulphidebearing zone of approximately 100m downhole width, which correlates well with surface mapping of the zone.

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Fax

+61 (8) 9315 5475

Phone (Exploration Office) +61 (3) 5470 5033

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Photo of representative diamond drill core from drillhole LMD0001 at Lubuk Mandi showing intense shear fabric, quartz breccia and stockwork intersected within the target Eastern Shear Zone.

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Satellite image (Pleiades December 2012 capture) showing the southern open pit at Lubuk Mandi with all historic drill collars, planned drilling and recently completed drillhole LMD0001. The Central Lode in red was mined to approximately 50m below surface. GBM plans to test depth extensions of the Central Lode below the pit base in conjunction with the Western and Eastern Shear Zones (shown in pink), defined from recent mapping work by GBM geologists.

The Phase 1 program is scheduled for completion by Christmas and results from the initial drilling should be received by January.

The promising start to the hard rock drilling program builds on the Company’s recent success defining a gold-intailings resource at Lubuk Mandi. The tailings resource ( refer ASX announcement 26 November 2013 ) of 1.5M tonnes at 0.7 g/t Au for 34,800 contained ounces of gold, was at the upper end of the exploration target range. The hard rock exploration target, which includes depth extensions to the Main Lode and an open pit target for the ESZ, ranges from 151,000 to 405,000 ounces of gold, with the bulk of the estimate derived from the ESZ ( refer ASX announcement 19 August 2013 and see explanatory note on exploration target ).

For further information please visit www.gbmr.com.au or contact:

Investors: Media: Peter Thompson Karen Oswald Managing Director Walbrook IR GBM Resources Tel: + 0423 602 353 Tel: +61 8 9316 9100

About GBM Resources

GBM Resources Limited (ASX: GBZ) is an Australian resources company actively building a gold portfolio of projects within Malaysia and the east coast of Australia.

GBM Resources has a major interest (40%) in the historic Lubuk Mandi Gold Mine in Peninsular in Malaysia which covers 221 hectares and includes over an estimated million tonnes of tailings, which has significant potential for early gold production through the development and recommencement of the mining operations with joint venture partners Angka Alamjaya Sdn Bhd (AASB).

Malaysia is a premier mining country with a stable political regime with production cash costs among the lowest in the world.

The Company also plans to complete an Initial Public Offering of the Lubuk Mandi Project on the Singapore Stock Exchange during 2014.

Explanatory Notes:

Lubuk Mandi

Resource Table

	Indicated + Inferred	Indicated + Inferred
		Contained Gold		Grade
	Tonnes	Grammes	Ounces	ppm Au	% Tonnage
Indicated	1,445,000	1,009,000	32,400	0.70	94%
Inferred	87,000	72,000	2,300	0.80	6%
Total	1,532,000	1,081,400	34,800	0.70	100%

The information in this report that relates to Mineral Resources is based on information compiled by Scott McManus, who is a Member of The Australasian Institute of Geoscientists. Mr McManus is a full-time employee of Skandus. Mr. McManus has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. McManus consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration Targets

The project has two identified hard rock sources of mineralised material that may provide ore for future mining and treatment. Exploration targets have been estimated for these and are summarized below:

• Main Zone - exploration target between 370,000 tonnes averaging 2.9 g/t Au containing 35,000 oz Au and 1,100,000t averaging 3.6 g/t Au containing 127,000 oz Au.

• East Zone - exploration target between 1,440,000 tonnes averaging 2.5 g/t Au containing 116,000 oz Au and 2,400,000 tonnes averaging 3.6g/t Au containing 278,000 oz Au.

Total JORC exploration target for the project is estimated to contain between 151,000 and 405,000 ounces of gold.

Although several resource estimates have been quoted in previous reports by other companies, it not possible to validate any of these to meet JORC requirements as no primary data from drilling is available, nor has the drillcore or other sample material been located. This applies to both hardrock and tailings materials. However, considering the availability of a database of drillhole details and analyses, location of various company reports referring to the drilling and results, existence of a mine and production records quoted by a government company and the credibility of the previous mine operator in the Malaysian Mining Industry, it is considered that this information is of sufficient quality and reliability to be used in the estimation of exploration targets. Exploration Targets have been estimated to JORC standard for the main tailings dam, main pit mineralisation, and a zone of mineralisation on the south east side of the main pit, referred to here as the East Zone. It should be noted that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Norris is a full-time employee of the company. Mr. Norris has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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