GEOPACIFIC RESOURCES LTD — Capital/Financing Update 2019

Aug 5, 2019

ASX: GPR 6 August 2019

==> picture [199 x 44] intentionally omitted <==

ITE Complete – Project Financing Advances

Geopacific Resources Limited (Geopacific ASX: GPR ) is pleased to announce that the Independent Technical Experts (ITE) report on the Woodlark Gold Project (Woodlark) has been completed, allowing the next stage of project financing to commence.

Highlights

• ITE reports completed by SRK and ERM

• Completion allows project financing discussions to advance

• Geopacific to commence next phase of project execution

The ITE review was commissioned by a consortium of potential financiers and is a standard form of technical due diligence when seeking project financing in the industry. The completion of the ITE report allows Geopacific to advance Woodlark’s project development by progressing to the next stage of financing.

As previously announced on 21 January, Geopacific received an indicative non-binding term sheet from an international lender. Since then, an additional indicative non-binding term sheet has been received. The ITE report will allow Geopacific to advance discussions with interested parties and work towards a complete project financing solution.

Managing Director, Ron Heeks said

The work program is a significant step forward on Woodlark’s path to gold production and positions the Company to complete project financing and move towards construction.

The November 2018 Definitive Feasibility Study (DFS)[1] confirmed Woodlark to be a high margin development opportunity and now key technical aspects have been independently validated in the ITE report. This allows the Company to work even closer with interested financiers to obtain a project financing solution.

Woodlark generates significant upfront cashflow at the DFS gold price assumption of A$1,650/oz and is exposed to further upside with record highs above A$2,000/oz. The gold price sensitivity analysis[2] indicates a 78% increase in total free cashflows, driving a rapid project payback of 1.4 years (pre-tax).

Completion of the ITE report will allow the commencement of, and guide, the next phase of work that is required to develop and execute the project.

Work program completed

The ITE review commenced in May 2019. It involved a significant body of work and required the Geopacific team to provide further information and clarity as requested. As part of the final stages of the review, a site visit to Woodlark Island was also undertaken.

The scope of the review and final report includes technical aspects such as Geology & Mineral Resources, Metallurgy & Processing, Infrastructure, Logistics, and Environmental & Social.

ITE background

The ITE review is a standard process when seeking project financing in the mining industry. Financiers require the review as a form of technical due diligence. The process involves appointing a team of independent experts to review all technical, financial, and environmental aspects of the project.

Following consultation with a consortium of potential lenders, Geopacific appointed SRK Consulting (SRK) and ERM Consulting (ERM). Appointing preferred experts avoids an unnecessary duplication of work and improves cost and time efficiencies in the project financing process.

1 All material assumptions underpinning the production target and forecast financial information continue to apply and have not changed materially.

2 Refer to Gold Price Sensitivity Analysis of November 2018 Woodlark DFS – announced on 7 November 2018.

Geopacific Resources Limited

www.geopacific.com.au

Representatives from SRK completed the technical aspects of the review and ERM completed environmental and social aspects.

Contact

For further information on this update or the Company generally, please visit www.geopacific.com.au or contact Mr. Ron Heeks, Managing Director.

Company details	Board	Projects
Geopacific Resources Limited	Ian ClyneChairman	PAPUA NEW GUINEAWoodlark Gold
ACN 003 208 393	Ron HeeksManaging Director	CAMBODIAKou Sa Copper
ASX Code: GPR	Colin GilliganNon-Executive Director	FIJINabila Gold
T +61 8 6143 1820	Matthew SmithCompany Secretary
HEAD OFFICE
Level 1, 278 Stirling Highway, Claremont WA 6010.	info@geopacific.com.au
PO Box 439, Claremont WA 6910.	www.geopacific.com.au

2