GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2019

Nov 4, 2019

==> picture [235 x 74] intentionally omitted <==

ASX RELEASE

5 November 2019

For immediate release to the market

EPC Contract – Carosue Dam Operations Plant Expansion Project

GR Engineering Services Limited (ASX:GNG) ( GR Engineering ) is pleased to announce that it has entered into a contract with Saracen Gold Mines Pty Limited ( Saracen ), a wholly owned subsidiary of Saracen Mineral Holdings Limited (ASX:SAR) for the engineering design, procurement and construction of expansion works on the mineral processing plant at the Carosue Dam gold operations, situated approximately 120km north east of Kalgoorlie in Western Australia.

The works under the contract include the upgrade of the existing processing plant capacity to a nominal throughput of 3.2Mtpa by the installation of secondary grinding equipment, in addition to upgrades to the existing CIL circuit and other process infrastructure.

The contract price is $24.5 million. Work under the contract will start immediately with the completion of the upgrade expected to occur in the first half of FY21.

Commenting on the award, GR Engineering’s Managing Director, Mr Geoff Jones, said:

“GR Engineering is pleased to again be working with Saracen to deliver improvements to its mineral processing facilities at Carosue Dam. Having been involved in the initial development of Carosue Dam in 2000, our team has maintained a strong relationship with Saracen and utilised its understanding of the project to deliver incremental benefits to the project. GR Engineering looks forward to achieving positive outcomes for Saracen through the safe and successful delivery of these expansion works.”

Ends.

For further information please contact:

Geoff Jones Managing Director  +61 8 6272 6000  geoff.jones@gres.com.au

Omesh Motiwalla

CFO & Company Secretary  +61 8 6272 6000

 omesh.motiwalla@gres.com.au

==> picture [53 x 37] intentionally omitted <==

GR ENGINEERING SERVICES LIMITED ABN 12 121 542 738 Tel: +61 8 6272 6000 Fax: +61 8 6272 6001 Email: gres@gres.com.au Website: www.gres.com.au PO Box 258, Belmont WA 6984 71 Daly Street, Ascot WA 6104

==> picture [162 x 32] intentionally omitted <==

GR Engineering Services Limited (ASX:GNG) is an ASX listed engineering design and construction contractor specialising in fixed price engineering design and construction services to the resources and mineral processing industry.

GR Engineering has successfully completed the engineering design and construction of projects for a diverse range of clients, including global mining houses, mid-tier miners and junior developers undertaking their first project. Traditionally an EPC contractor, GR Engineering also has the ability to contract through a variety of models, including EPCM and hybrid contracting arrangements.

GR Engineering also has a long history of providing a diverse range of process engineering consulting services, including feasibility study preparation and management, process design and peer review engagements. These services have been delivered for projects globally and play a key role in delivering organic growth opportunities through design and construction project execution.

The Company also has a presence in the hydrocarbons industry via its wholly owned subsidiary, Upstream Production Solutions. Upstream Production Solutions is a leading provider of operations and maintenance and well management services to the Australian and South East Asian oil and gas industry.

As a group, GR Engineering employs more than 400 professional and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.

Page 2