GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2020

Sep 16, 2020

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ABOUT CALIDUS RESOURCES

Calidus Resources is an ASX listed gold development company that controls the Warrawoona Gold Project in the East Pilbara district of the Pilbara Goldfield in Western Australia.

DIRECTORS AND MANAGEMENT

Mr Mark Connelly NON-EXECUTIVE CHAIRMAN

Mr David Reeves MANAGING DIRECTOR

Mr Keith Coughlan NON-EXECUTIVE DIRECTOR

Mr Paul Brennan PROJECT DEVELOPMENT

Mr Richard Hill

CHIEF FINANCIAL OFFICER

Ms Julia Beckett COMPANY SECRETARY

17 September 2020

Warrawoona Gold Project, Pilbara WA

Construction underway at Warrawoona Gold Project

Preferred tenderers appointed for open pit mining contract and processing plant

HIGHLIGHTS

• Initial construction activities have commenced to provide base infrastructure for main construction in Q1 2021

• Macmahon Holdings Limited (Macmahon) awarded preferred tenderer status for open pit mining

• GR Engineering Services Ltd (GRES) awarded preferred tenderer status for process plant EPC

calidus.com.au

Calidus Resources Limited (ASX:CAI) is pleased to announce that construction has started ahead of schedule at the Company’s Warrawoona Gold Project in WA’s Pilbara.

This construction activity will provide the base infrastructure, including an Access Road, Accommodation Village, Communications and Water Supply in preparation for main Project construction activities to commence in Q1 2021.

The Company has also issued preferred tenderer status to the mining and process plant EPC contractors to allow finalisation of major contracts as part of the ongoing Feasibility Study , which is due for completion this month.

ASX : CAI

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info@calidus.com.au

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Suite 12, 11 Ventnor Ave West Perth WA 6005 AUSTRALIA

Calidus Managing Director Dave Reeves said: “The commencement of construction activities at Warrawoona is a major milestone for Calidus. Installing the base infrastructure this year will provide a springboard to allow on-ground activities to kick off in earnest in Q1 2021, subject to finalisation of all permits and financing.

“We are also pleased to announce the preferred tenderers for our two largest value contracts, the open pit mining contract and the EPC process plant contract. The open pit preferred tenderer is Macmahon and the EPC process plant preferred tenderer is GR Engineering. Both of these companies have exceptional track records in the gold mining industry and we look forward to our journey together in building Warrawoona into a cash generative gold miner in the not too distant future”.

ADDITIONAL INFORMATION

Early Works

Early works includes:

• The construction of a 7km long access road to the village and process plant;

• The installation of the 240 room village that has been previously purchased by Calidus;

• The installation and operation of communications by Telstra;

• The installation and equipping of water bores.

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New access road construction commenced

*Regular photo updates on construction activities will be provided on social media for interested parties

Preferred Contractor

As part of the ongoing Feasibility Study and to facilitate Front End Engineering and Design (FEED) and the placing of long lead items orders, Calidus has awarded preferred contractor status to the two largest value contracts being the open pit mining and EPC process plant contract. Both preferred tenderers have a long and successful track record in Western Australia and gold mining and have the financial, technical and operating experience to deliver on the proposed scope of works.

Macmahon Holdings Ltd (Macmahon) have been awarded preferred tenderer status for the open pit mining. Macmahon is an ASX listed company (ASX:MAH) with a market capitalisation of $564m. Macmahon provides contract mining services Australia wide, employs over 6,000 people and is currently very active in Western Australian Gold with its nearest operation being at Telfer Gold Mine.

GR Engineering Services Ltd (GRES) have been awarded preferred tenderer status for the EPC contract for the process plant. GRES is an ASX listed company (ASX:GNG) and is the pre-eminent gold EPC contractor in Australia having completed the last two gold plants in WA.

For the purpose of Listing Rule 15.5, the Board has authorised for this announcement to be released.