GOLD MOUNTAIN LIMITED — Capital/Financing Update 2017

Apr 6, 2017

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Suite 2501 Level 25 St Martins Tower 31 Market Street Sydney NSW 2000 Australia (PO Box Q638 QVB Market Street NSW 1230 Australia) Tel: +61 (02) 9283 3880

6[th] April 2017 ASX RELEASE

HIGHER GOLD GRADES EXPECTED FROM GOLD MOUNTAINS STAGE 2 BULK SAMPLING AT CROWN RIDGE

 ACQUISITION OF KNELSON CONCENTRATOR FOR GOLD RECOVERY

 CONSEP PTY LTD PROVIDING PRELIMINARY DESIGNS FOR FULL SCALE PRODUCTION

 CONTINUED EXPANSION OF CROWN RIDGE GOLD RESOURCE

The Board of Gold Mountain Limited, (ASX:GMN) is pleased to announce the recent acquisition of a Knelson Concentrator to treat the bulk sampling campaign at the Crown Ridge resource in Papua New Guinea. Sampling and processing using the Knelson Concentrator is expected to commence in late April 2017. The employment of the Knelson Concentrator is expected to produce higher recoveries than Stage 1 sampling and treatment methods. The Knelson Concentrator is world class technology in the recovery of gravity gold hence the board of Gold Mountain is excited to commence this next phase of the Crown Ridge project.

Gold Mountain secured the Knelson Concentrator from Consep Pty Ltd and are working closely together on the scope and design for a full-scale processing facility to treat the Crown Ridge resource. With over 25 years of experience Consep are global leaders in providing engineering solutions and equipment. Consep provide innovative solutions for mineral processing plants and specialise in gold. Consep have supplied process equipment and engineering support to mines in PNG and in particular in the region of Crown Ridge at the Porgera Gold Mine.

With Stage 2 bulk sampling and treatment underway, Gold Mountain are targeting to achieve a JORC inferred resource by the end of Q4 2017, and complete a mining licence application by Q1 2018.

Doug Smith (Director of Gold Mountain) said ‘The strategic alliance between Gold Mountain and Consep will enhance the viability of the Crown Ridge prospect as well as addressing a “Turn-Key” operation within a 12-month period from the time of order.’

GMN ASX announcement April 2017

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The Gold Mountain team is expected to commence Stage 2 bulk sampling and treatment using the Knelson Concentrator by late April 2017. This includes the inspection from independent geologist, Murray Hutton and a JORC competent external consultant to evaluate the methodology of the sampling program.

The Gold Mountain team are excited to commence the next phase of sampling and to continue working with Consep on the scope and design of the Crown Ridge processing facility.

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For information please see our website www.goldmountainltd.com.au or contact: Doug Smith Tony Teng Shareholder & Media Enquiries Director Explorations Managing Director Six Degrees Investor Relations 0419 414 460 0414 300 044

Tony Teng Shareholder & Media Enquiries Managing Director Six Degrees Investor Relations 0414 300 044 Henry Jordan: 0431 271 538

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Follow Gold Mountain on Twitter: https://twitter.com/GoldMountainASX

GMN ASX announcement April 2017

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