GODOLPHIN RESOURCES LIMITED

ASX ANNOUNCEMENT – MARKET UPDATE

ASX & Media Release

5 May 2020

ASX Symbol

GRL

3 Barrett Street Orange NSW 2800

PO Box 9497 Orange East NSW 2800 Australia

Telephone

+61 431 477145

LOYALTY OPTIONS

Godolphin Resources Limited (ASX: GRL) ( Godolphin or the Company ) is pleased to announce an update on the issue of Loyalty Options as described in the Company’s Prospectus dated 29 October 2019.

As reported in the March 2020 quarterly report, the Board is progressing with the issue of Loyalty Options .

Following legal advice, it is anticipated that the Loyalty Option Prospectus will be released to the market on Monday 1 June 2020, with the Record Date being Friday 5 June 2020. A detailed timetable is attached.

The Loyalty Options will be issued on a 1 (one) for 3 (three) pro-rata basis to all eligible shareholders and eligible option holders registered on the Record Date. The Loyalty Options will not be transferrable, nor will they be listed on the ASX.

Each Loyalty Option will now be exercisable at any time on or before 24 months from the Issue Date, with an exercise price of $0.20.

The Loyalty Option Prospectus will be solely for statutory compliance, no individual action will be required from Shareholders.

Email

[email protected] Website

www.godolphinresources.com.au

Directors

Jeremy Read Non-Executive Chair

Ian Buchhorn Non-Executive Director

Doug Menzies Non-Executive Director

Management

David Greenwood Chief Executive Officer

Issued Capital

Fully Paid Ordinary Shares 67,957,051

Unlisted options exercisable at $0.25 20,000,000

ABN 13 633 779 950

COVID-19

As outlined in the March quarterly report, in response to the COVID-19 pandemic the Company put in place measures to ensure the health and safety of Godolphin’s staff and contractors, as the priority concern for the Company.

Godolphin began implementing specific COVID-19 policies in March to ensure any risks around COVID-19 are minimised, while at the same time instigating a number of cost saving measures.

COST SAVINGS MEASURES

The Company’s directors have agreed to receive only 50% of their fees for an interim period, to be reviewed after three months pending the status of equity markets.

Recent cost saving measures include deferment of field expenditure until later in 2020 and the removal of certain budgeted costs. FY2020 budgeted expenditure is to be reduced by approximately $500,000.

The Company is continually monitoring the state of the market and will make additional changes if required.

About Godolphin Resources

Godolphin Resources (ASX: GRL) is an ASX listed resources company, with 100% owned projects in the Lachlan Fold Belt (LFB) NSW, Australia’s only world-class gold-copper province. The Godolphin tenements are extremely prospective, including abutting the Lachlan Transverse Zone (LTZ), a fundamental westnorthwest trending structure in the LFB, controlling the distribution of several major gold-copper deposits.

Additionally, significant tenure is held in the emerging Boda-Cadia porphyry gold-copper belt within the eastern Molong Volcanic Belt.

Godolphin’s large tenement holding in the LFB is underpinned by the Company’s JORC 2012 compliant mineral resource. Godolphin has drill ready targets at all of its projects.

This market announcement has been authorised for release to the market by the Board of Godolphin Resources Limited.

For further information regarding Godolphin, please visit www.godolphinresources.com.au or contact: