GBM RESOURCES LIMITED. — Capital/Financing Update 2017

Aug 30, 2017

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ABN 91 124 752 745
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ASX Release

31 August 2017

ASX Code: GBZ

Program update on the Mount Coolon Gold Project, QLD

Australian Resources company GBM Resources Limited (ASX: GBZ ) (“ GBM ” or “ the Company ”) is pleased to give an update on the Mt Coolon Scoping Study.

Scoping Study

The Mount Coolon Scoping Study has been rescheduled to be completed by the end of September to review the potential of new development options that have arisen out of the Study. The Scoping Study is designed to bring together key aspects of the work completed to date into one coherent document providing a blue print for the future redevelopment of the Mount Coolon Project.

New developments under review include:

• i. Inclusion in the Study of a starter pit south of the current Koala North pit which may represent a lower start-up capital cost and an improved time line regarding the environmental approval processes.

• ii. At Koala the main decline and shaft are reported to be in good condition and there is potential to go underground to access ore below the current pit optimisation floors, potentially increasing gold production at Koala.

• iii. Consideration of a staged approach to construction of the processing facility which has been designed based on a relocatable CIL plant. The CIL circuit to be constructed as phase one which would provide the flexibility to initially treat the old tailings material.

COMPANY DIRECTORS

Peter Thompson Managing Director/ Executive Chairman

Neil Norris Exploration Director – Executive

Hun Seng Tan 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

Fax +61 (8) 9315 5475

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

The second construction phase to follow with the crushing and grinding circuits to process fresh ore.

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Key tasks being undertaken in the Scoping Study to include:

• Re-optimisation of the Koala, Glen Eva and Eugenia open pit designs based on upgraded resources using inputs derived from recently completed metallurgical testwork, current plant design and geotechnical data from recent drilling.

• Preliminary treatment plant design and scale.

• Mine layout design and infrastructure.

• Tailings Storage.

• Water management plan.

• Ore sale and or toll milling opportunities.

Since acquiring the Mount Coolon Gold project the Company has been updating and expanding the known resources at Koala, Glen Eva and Eugenia, to support options for near term production. In conjunction with the Scoping Study, the Company is developing an exploration strategy with the aim of extending the current resource base on the Mount Coolon tenements to in excess of 1 Million ounces of contained gold.

For Further information please visit our website at www.gbmr.com.au or

contact: Peter Thompson Karen Oswald Managing Director Marko Communications GBM Resources Limited Tel: 0423 602 353 Tel: 08 9316 9100 Email: Karen.oswald@markocommunications.com.au

About GBM Resources

GBM Resources Ltd (ASX: GBZ) is an Australian resource company that listed on the ASX in 2007, headquartered in Perth WA, with exploration operations in Queensland and Victoria.

The Company’s primary focus is in key commodities of gold and copper-gold, assets in Australia. GBM tenements cover an area greater than 3,200 square kilometres in eight major projects areas in Queensland and Victoria.

GBM is prioritising the exploration and development of the Mount Coolon Gold Project and Mount Morgan Gold Copper Project.

Project	Location	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	000' t Aug/t Au ozs Total	000' t Aug/t Au ozs Total	000' t Aug/t Au ozs Total	Cut-off
		000' t Aug/t Au ozs Measured			000' t Aug/t Au ozs Indicated			000' t Aug/t Au ozs Inferred
Koala	Open Pit				370	2.8	33,500	750	2.1	51,700	1,110	2.4	85,000	0.4
	Undergrou	nd Extension			50	3	5,100	230	3.9	28,500	280	3.7	33,700	2.0
	Tailings	114	1.6	6,200	9	1.6	400				124	1.6	6,600	1
	Total	114 1.7 6,200 429 2.8 39,000 980 2.5 80,200 1,514 2.6 125,300
Eugenia	Oxide				1,305	0.9	39,300	219	0.7	5,100	1,524	0.9	44,400	0.4
	Sulphide				2,127	0.9	62,300	1,195	1.2	45,500	3,322	1.0	107,800	0.4
	Total	3,432 0.9 101,600 1,414 1.1 50,600 4,846 1.0 152,200 0.4
Glen Eva	Open Pit				700	2.2	48,800	232	2.3	17,200	932	2.2	66,000	0.7
Total		114 1.7 6,200 4,561 1.3 189,400 2,626 1.8 148,000 7,291 1.5 343,500

Table: Revised (1 June 2017) global resource table for Mt Coolan Gold Project. Please note rounding; tonnes

(1,000t), grade (0.1g/t) and contained gold (100 ounces).

The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the respective announcements and all material assumptions and technical parameters underpinning the resource estimate with those announcements continue to apply and have not materially changed.

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