ORA BANDA MINING LTD — Capital/Financing Update 2018

Sep 2, 2018

ASX ANNOUNCEMENT 3 SEPTEMBER 2018

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OPERATIONAL UPDATE

Eastern Goldfields Limited (ASX: EGS) ( Eastern Goldfields or the Company ) provides the following operational update.

The Company refers to the ASX announcement dated 22 August 2018, informing the market that the Company has taken reasonable steps to mitigate spending, while it is engaged in relation to the proposed recapitalisation fundraising, which includes some aspects of the operations being temporarily suspended (processing operations) and having a number of key contractors placed on standby pending the recommencement of processing operations.

The Company now confirms that all mining operations have now been temporarily suspended. As a result of the temporary suspension, approximately twenty operational staff have been made redundant and approximately sixteen corporate and administrative staff. A number of contractors have been stood down.

The Company will continue to produce gold in the short-term by removing all gold-in-circuit.

The Company considers these operational decisions to be prudent in the shortterm as the Company continues its efforts to finalise the proposed recapitalisation fundraising.

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Enquiries

Campbell Baird Non-Executive Director T: +61 8 6241 1866 E : admin@easterngoldfields.com.au