GOLDEN CROSS RESOURCES LTD — Capital/Financing Update 2012

May 15, 2012

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GOLDEN CROSS RESOURCES LTD

ABN 65 063 075 178

ASX Announcement - 16 May 2012

22 Edgeworth David Ave Hornsby NSW 2077 Phone (02) 9472 3500 Fax (02) 9482 8488

GCR granted PACE Funding for Drilling in South Australia

In January 2012, Golden Cross Resources (GCR) made a submission to the South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) for funding to undertake a co-operative exploration drilling program funded by GCR and the South Australian government under its PACE 2020 initiative.

PACE Discovery Drilling embodies a supportive partnership with industry to undertake drilling in areas determined by DMITRE to have economic mineral potential, but currently hampered by cover rocks or other factors that discourage investment. PACE Discovery Drilling 2012 preferentially funds high quality, technically and economically sound projects that promote greenfields exploration targets.

Successful proposals are assessed as those containing the highest quality exploration targets based on sound technical, scientific and commercial criteria. The successful applicants have approximately one year to complete their programs and submit reports and drilling samples.

In 2011 Golden Cross reviewed geophysical data to identify six targets with similar characteristics to known IOCG prospects and deposits elsewhere in the Gawler Craton as shown in Figure 1. These were reported to the ASX on 29 August, 2011. A further fourteen targets have since been identified in 2012 from images prepared by Melbourne-based consultants, PGN Geoscience. Some of the various models used are shown in Figure 2.

Golden Cross has been advised that funding of $75,000 has been approved towards the drilling costs of the 2011 targets. Accordingly the company will progress access requirements for the sites and relevant clearances under agreements it signed with Native Title Claimants during 2011, with a view to commencing drilling as soon as practical.

GCR continues to progress its 100%-owned Copper Hill project with metallurgical testing at ALS Metcon in Sydney and ALS Ammtec in Burnie delivering improved results. Potential exists to considerably reduce the Mill and Plant capital costs for Copper Hill if an existing one, currently for sale, proves suitable. An inspection has been carried out and financial studies are underway.

GCR will soon announce new resource estimates for its Cargo Gold Project.

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Figure 1: Map showing Golden Cross Tenements and Targets

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Figure 2. PGN Geoscience modelling, GCR’s Northern Gawler Tenements

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CORPORATE DIRECTORY

Board of Directors

Kim Stanton-Cook Managing Director Li Xiaoming Non Executive Director Jingmin Qian Non Executive Director Suzanne Qiu Non Executive Director David Timms Non Executive Director Li Yan Alternate Director for Mr Li

Company Secretary

Simon Lennon

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Issued Share Capital

Registered Office

Golden Cross Resources Ltd Golden Cross Resources Ltd has 1,361 million ordinary 22 Edgeworth David Avenue shares on issue listed on the Hornsby NSW 2077 ASX. Australia

Share Registry Boardroom Limited Level 7 207 Kent Street Sydney NSW 2000

Phone: (61 2) 9472 3500 Fax: (61 2) 9482 8488 www.goldencross.com.au

Please direct shareholding enquiries to the Share Registry.

Phone (61 2) 9290 9600 Fax (61 2) 9279 0664

About Golden Cross Resources Ltd

Golden Cross Resources (ASX:GCR) is a mineral explorer with a copper-gold focus. Its major project is the Copper Hill copper-gold deposit in central NSW. GCR also has many other high quality projects across Australia as well as prospective joint ventures funded and managed by GCR’s partners.

The Copper Hill Constrained Resource, (Lewis Mineral Resource Consulting, ASX announcement 13 Dec. 2011) of 153 million tonnes, contains 511,000 tonnes of copper and 1.35 million ounces of gold. The initial 30 million tonne planned open pit contains 120,000 tonnes copper and 480,000 ounces of gold.

Future drilling efforts will be aimed at extending the size and grade of the mineralisation. Metallurgical studies are continuing, to maximise copper and gold recoveries.

Completion of the Scoping Study was achieved at the end of 2011 with a Feasibility Study, acceptable to financiers, now scheduled for late-2012. Now the Scoping Study review is complete, GCR has more certainty regarding the potential for the project to become an operating mine. Studies are on-going and remain encouraging.

About China United Mining Investment Corporation (CUMIC)

CUMIC is a privately owned, Beijing-based investment company specialising in mineral and mining investment. CUMIC has a portfolio of exploration and mining assets in various parts of the world, focusing on iron, copper and gold. CUMIC developed and controls the Mongolia Eleet River Iron and Steel Company, a major iron ore mining company.

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