GEOPACIFIC RESOURCES LTD — Capital/Financing Update 2017

Aug 31, 2017

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Oversubscribed placement raises $10.5m

1 September 2017

Geopacific is funded to deliver its strategy and unlock the potential of Woodlark

The board of Geopacific Resources Limited (Geopacific) is pleased announce the placement, which was well supported by existing and new specialist resource sector investors and generalist Australian institutional investors. The placement will be made pursuant to the Company’s 15% placement capacity under Listing Rule 7.1 (210,931,722 shares) and Listing Rule 7.1A (139,068,278 shares).

Geopacific’s voting power in Kula Gold Limited (Kula) (ASX:KGD) is over 75%, through the off-market takeover (Takeover). Kula is a subsidiary and Geopacific has three representatives on the board.

Highlights

• $10.5m raised in oversubscribed placement

• Placement priced ‘at market’ – no discount

• Strong support from high-calibre investors

• Strategy funded

• Regional exploration to assess the true potential of Woodlark’s scale

• SPP for $1m to be offered to eligible shareholders

Strategy and use of funds

Geopacific’s primary aim is to advance the Woodlark Gold Project (Woodlark) towards production in the most effective manner. Woodlark’s development approvals include a circa 1.8 million tonne per annum conventional Carbon-in-Leach processing plant.

Drilling designed to upgrade the resource category of inferred mineralisation continues to identify depth extensions within and surrounding the 2012 pit designs with the ongoing identification of broad zones of mineralisation.

Recent metallurgical drilling results continue to highlight the wide zones of gold mineralisation previously identified.

A 16-week metallurgical testwork program is underway. Aspects of the results will be used to calculate independent reserve estimates, with all results to be used in the Definitive Feasibility Study.

The exploration potential of the region is historically and recently known to be significant.

A substantial proportion of the circa 275,000 metres of historic drilling at Woodlark explored outside the areas of current resources and in many cases identified gold mineralisation. Geopacific is currently assessing which of those areas present attractive exploration targets. The Company plans to initiate exploration drilling to test the expansion potential of Woodlark, on completion of resource drilling.

Geopacific Resources Limited ASX Code: GPR www.geopacific.com.au

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SPP for $1m to be offered to eligible shareholders

Geopacific plans to offer a Share Purchase Plan (SPP) to eligible shareholders on the same terms as the placement, to raise up to one million dollars at $0.03.

Remaining Kula shareholders who ACCEPT Geopacific’s Takeover offer and are issued Geopacific shares as consideration, before the record date will have the opportunity to participate in the SPP.

Geopacific will release details of the SPP, offer documentation and an updating Supplementary Bidder’s Statement shortly.

Managing Director, Ron Heeks said

“We are delighted with the level of support we have seen in this placement – We have achieved an oversubscribed capital raise, offered without a discount to the closing price on the day prior to the placement.

“The strength of support from specialist resource sector investors and generalist Australian institutional investors demonstrates that Geopacific presents a value proposition.”

Details of the placement

The placement was oversubscribed with offers from a wide range of high-calibre investors, the majority of which were shareholders prior to the placement.

Petra Capital acted as exclusive Manager and Bookrunner to the raising.

Offer price	$0.03
Shares issued	350,000,000
Capital raised	$10,500,000

Capital structure following the placement

Capital structure
Shares on issue (pre-placement)	1,406,211,481
Options (pre-placement)	2,688,768
Shares issued in placement	350,000,000
Fully diluted number of shares	1,758,900,249

Geopacific holds no debt in the form of convertible notes or any other instrument.

As a result of the successful completion of the placement, it is expected that the ASX will lift the Trading Halt on the Company’s securities.

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Contact

For further information on this update or the Company generally, please visit our website at www.geopacific.com.au or contact:

Mr. Ron Heeks

Ms. Philippa Leggat

Managing Director Executive Director Corporate

Company details	Board	Projects
Geopacific Resources Limited	Milan JerkovicChairman	PAPUA NEW GUINEA
ACN 003 208 393	Ron HeeksManaging Director	Woodlark Island Gold
ASX Code: GPR	Philippa LeggatExecutive Director	CAMBODIA
		Kou Sa Copper
info@geopacific.com.au	Mark BojanjacNon-Exec Director
		FIJI
http://www.geopacific.com.au	Ian ClyneNon-Exec Director	Nabila Gold, Rakiraki Gold, Sabeto Gold-
T +61 8 6143 1820	Matthew SmithCompany Secretary	Copper, Vuda Gold-Copper, Cakaudrove
		Gold-Silver
HEAD OFFICE
Level 1, 278 Stirling Highway, Claremont WA 6010.
PO Box 439, Claremont WA 6910.

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