RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

Chairman’s Report	1
Managing Director’s Report	7
Review of Operations	8
Glossary of Terms	33
Native Title Statement	38
Sustainability Statement	39
Diversity Statement	41
Corporate Governance Statement	42
Annual Financial Report	43
- Directors’ Report	44
- Auditor’s Independence Declaration	63
- Income Statement	64
- Statement of Comprehensive Income	65
- Balance Sheet	66
- Statement of Changes in Equity	67
- Statement of Cash Flows	68
- Notes to the Financial Statements	69
- Directors’ Declaration	107
- Independent Auditor’s Report	108
Shareholder Information	113
Corporate Directory	(Back Cover)

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RAMELIUS RESOURCES LIMITED

ACN 001 717 540 ABN 51 001 717 540

ANNUAL GENERAL MEETING

The Annual General Meeting of Ramelius Resources Limited will be held at Pullman Adelaide, 16 Hindmarsh Square Adelaide 5000 SA,

on Thursday 30 November 2017 at 11.00 am Adelaide time.

STOCK EXCHANGE

The Company is listed on the Australian Securities Exchange Limited.

ASX CODE

Shares: RMS

Front Cover: Mt Magnet Operations below the Milky Way Photograph courtesy Ian Beattie, Paramedic – Mt Magnet

CHAIRMAN’S REPORT

Dear fellow shareholders,

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On behalf of the Board of Directors, I present to you the 2017 Annual Report of Ramelius Resources Limited.

I am pleased to report that on the back of improved performance from the Company’s Western Australian gold operations, Ramelius achieved a third consecutive annual profi t. For the year ended 30 June 2017, profi t before tax was $25.1 million which was down slightly on the previous year result of $25.3 million. Profi t after tax was $17.7 million compared to $27.5 million in 2016. Sales revenue for the 2017 fi nancial year increased from $173.7 million to $197.4 million. Cash fl ows from operating activities increased from $65.5 million to $83.4 million, total net assets increased from $127.6 million to $169.8 million and cash at bank increased from $44.3 million to $78.6 million.

The Company’s share price at 30 June 2017 was 45 cents having risen to a high of 74.5 cents in February 2017 compared to 43.5 cents at the end of the previous fi nancial year.

The Australian gold price commenced the 2016/17 fi nancial year at A$1,773 per ounce, rose to a high of A$1,821 per ounce in early July 2016 and remained above A$1,700 per ounce for the whole of the fi rst quarter. Despite the good start to 2016/17, the price of gold fell to a low of A$1,531 per ounce in mid-December 2016 and then remained above that level for the rest of the reporting period, generally trading in the A$1,600 to A$1,700 per ounce range and only exceeded A$1,700 per ounce for short periods on several occasions during the last quarter of the fi nancial year. The gold price at 30 June 2017 closed at A$1,616 per ounce.

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Australian dollar gold price (Source Gold Price .Org)

Operationally, your Company continued mining at Mt Magnet and near Leinster in Western Australia. At the Galaxy mine area located at Mt Magnet, Ramelius continued cut-back mining of the Titan and Perseverance open pits with the latter being completed in February 2017. By year end, Titan had progressed close to the base of the pit where higher grade ore was being accessed.

“AT THE GALAXY MINE AREA LOCATED AT MT MAGNET, RAMELIUS CONTINUED CUT-BACK MINING OF THE TITAN AND PERSEVERANCE OPEN PITS.”

Titan Pit at Mt Magnet

2 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

CHAIRMAN’S REPORT

In the second quarter of 2016/17, Ramelius commenced open pit mining at Blackmans, located 30km to the north of Mt Magnet. Gold ore from Blackmans was hauled to Mt Magnet for processing at the Checkers processing plant. This satellite pit was completed in the June 2017 quarter and was followed by a small extension mining operation of a shallow laterite ore zone stretching approximately 100 metres north of the pit.

During the year, Ramelius also progressed the Vivien underground gold mine and completed open pit mining at Kathleen Valley, both located near Leinster in Western Australia. At Kathleen Valley, the focus during the September 2016 quarter was on mining the two small Yellow Aster North and Nil Desperandum pits followed by rehabilitation and mine closure activities. At the Vivien underground operation, stoping commenced early in the financial year and a significant increase in gold ore production followed from both ore stoping and development activities. The development of the underground decline was also progressed throughout the year, advancing 630 metres to the 200RL by 30 June 2017.

Gold ore from both the Kathleen Valley and Vivien gold mines was trucked to Mt Magnet for processing. The Checkers processing plant processed 1.9 million tonnes of ore during the year at an average grade of 2.17g/t for 124,747 ounces of recovered gold. Fine gold production for the year was 125,488 ounces. This production result was very pleasing and compares to production of nearly 1.7 million tonnes at an average gold grade of 2.2g/t for 110,830 fine ounces of gold in 2016 and approximately 1.63 million tonnes at an average grade of 1.55g/t for 81,683 fine ounces in 2015.

Regarding new project development, Ramelius successfully progressed the Water Tank Hill project located 1.5km to the west of the Mt Magnet township. Mining approvals for an underground mining operation were obtained and Byrnecut Australia Pty Ltd was engaged as the underground mining contractor. Access to the underground deposit was obtained by rehabilitating the nearby St George decline and developing link drives across to Water Tank Hill. Ore development commenced in the last quarter of 2016/17 and by year end, ore was being trucked to the Checkers processing plant.

The Company also successfully progressed the Milky Way project located 3.6km south of the Mt Magnet Checkers processing facility. Geotechnical and hydrological studies and metallurgical test work were completed and as result of successful drilling at the nearby Stellar and Stellar West area as well as at Shannon, some 500 metres to the south-west of Milky Way, a new mining proposal was developed. Mining approval for the new Cosmos mine area comprising Milky Way, Stellar, Stellar West and Shannon open pits together with Brown Hill and Vegas pits in the Galaxy area was obtained in June 2017. Mining at the Milky Way and the Stellar West pits commenced early in 2017/18 and ore from this operation will be processed at the nearby Checkers processing plant. The Cosmos area is expected to underpin production at Mt Magnet over the next 2-3 years.

In addition to drilling at the Cosmos mine area, Ramelius also conducted significant exploration activities at the following targets:

The Morning Star gold project at Mt Magnet, including the Eddie Carson Lode where significant mineralisation was intersected;
The Black Cat Deeps gold project immediately to the south of Morning Star where drilling resulted in encouraging intersections;
The Boogardie Basin area at Mt Magnet including Venus, Zeus, Artemis and Bundy Flats prospects, and
the area east of the Hesperus Pit, where some good drilling results were returned, as well as at the Shannon pit where economic intersections were drilled;
The Paris pit, located half way between Morning Star and the St George/Water Tank Hill underground portal, where very encouraging gold intersections were returned from first pass drill testing;

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 3

“THE FUTURE AUGERS WELL AS WE CONTINUE TO GROW BY ACQUISITION AND DISCOVERY. I HAVE CONFIDENCE IN OUR MANAGEMENT TEAM TO TAKE THE STEPS WHICH WILL ENABLE US TO CONTINUE TO DEVELOP INTO A SIGNIFICANT GOLD COMPANY FOR THE BENEFIT OF SHAREHOLDERS.”

Checkers Processing Plant at Mt Magnet

4 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

CHAIRMAN’S REPORT

The Vivien gold project where successful underground diamond drilling and development sampling was
carried out and a wider quartz vein approximately 200 metres below the mine plan was intersected;
The Yandan North gold project in Queensland where a ground magnetic survey defined several deeper drill targets; and
The Tanami joint venture gold project area in the Northern Territory where reconnaissance air-core drilling was carried out over the Highland Rocks tenement.

The Company’s exploration success resulted in new Ore Reserves being generated for the Stellar, Stellar West, Brown Hill, Vegas and Shannon deposits as well as the Vivien gold mine. For the second successive year, Ramelius increased its Mineral Resource and Ore Reserve gold ounces after producing approximately 125,000 ounces of gold during the financial year, reporting the following estimates as at 30 June 2017:

Total Mineral Resources of 36,351 million tonnes at 2.2g/t for 2,549,000 ounces of gold (2016: 29.305 million tonnes at 2.3g/t for 2,196,000 ounces of gold); and
Total Ore Reserves of 6,583 million tonnes at 2.1g/t for 452,000 ounces of gold (2016: 5.430 million tonnes at 2.3g/t for 405,000 ounces of gold).

In August 2016, the Company sold the Burbanks gold processing plant near Coolgardie in Western Australia for a total consideration of $2.5 million payable by instalments over a two-year period. This plant was originally purchased in late 2006 to process the high-grade gold ore from the Company’s first and very successful open pit and underground mining operation at Wattle Dam in the Eastern Goldfields of Western Australia.

During the year your directors continued their search for new gold opportunities and in September 2017, Ramelius announced the acquisition of the Edna May gold mining operations near Westonia in Western Australian from Evolution Mining Limited for an upfront cash consideration of $40 million plus contingent further payments of up to $50 million including production based royalties above 200,000 ounces.

The future augers well as we continue to grow by acquisition and discovery. I have confidence in our management team to take the steps which will enable us to continue to develop into a significant gold company for the benefit of shareholders.

I thank all our employees and contractors for their ongoing efforts during what has been a busy and interesting year. I also thank our Managing Director, Mark Zeptner for his leadership of the management team and my fellow non-executive directors, Kevin Lines and Mike Bohm.

Finally, on behalf of the Board, I thank all shareholders for your ongoing support and look forward to the year ahead as we integrate the Edna May gold mine with our existing Ramelius operations.

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Bob Kennedy Chairman

“YOUR COMPANY MADE FURTHER PROGRESS TOWARDS BECOMING A MID-TIER PRODUCER IN THE AUSTRALIAN GOLD SECTOR WITH PRODUCTION EXCEEDING 125,000 OUNCES.”

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Galaxy open pits at Mt Magnet
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6 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

MANAGING DIRECTOR’S REPORT

Dear Shareholders,

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During the 2016/17 financial year, your Company made further progress

towards becoming a mid-tier producer in the Australian gold sector with production exceeding 125,000 ounces, up from the 110,000 ounces in the previous year. Supported by a healthy gold price, cash and gold reserves grew further, ending the year close to A$90M. On top of this, the Company delivered a positive Net Profit after Tax for the third year running, something we are obviously proud of and looking to build on.

In the first quarter of the year, Ramelius commenced mining at the Blackmans open pit project and worked to finalise approvals at the Water Tank Hill underground project, both located at Mt Magnet. The Vivien underground mine moved into stoping production after a successful development phase.

The second quarter saw the completion of ore haulage and processing of the Kathleen Valley open pit project, a very successful venture for the Company which delivered almost tenfold returns on the initial $4M purchase price.

Mt Magnet’s Perseverance open pit was completed late in the third quarter with the nearby Titan open pit coming online the following quarter, and mining activities at the new Cosmos Mine Area featuring the Milky Way, Stellar and Shannon open pits commencing immediately prior to the end of the financial year. The Water Tank Hill project intersected first ore during that last quarter and will be set up for stoping production early in the FY2018 year. The management and operations team has become adept at managing the processes involved with regularly commissioning new operations, both open pit and underground.

Ramelius continued to both deliver into and add to its risk mitigating forward gold sales program, with coverage currently out to June 2019 at an average price above A$1,710 per ounce.

The FY2017 year saw a record of almost $16M spent on exploration at Ramelius, with the benefits starting to be realised within a resource and reserve inventory that grew at 16% and 12% respectively, according to the recent inventory update. A further $11M has been budgeted for FY2018 to capitalise on the momentum gained in this area, especially at Mt Magnet, with almost 90% targeted at brownfield style targets.

Subsequent to the end of the 2017 financial period, Ramelius successfully bid and settled on the purchase of the Edna May gold mine in Western Australia from Evolution Mining Limited. The upfront consideration was for $40M cash with further contingent payments up to $50M for production beyond an initial 200,000 ounces. The purchase, effective 3rd October 2017, immediately catapults Ramelius into the +200,000 ounces per year range and effectively doubles the ore reserve to a position exceeding 0.8Moz. The purchase is the next step in the growth ambitions of the Company, made possible by reliable, profitable operations and an enviable balance sheet allowing the upfront consideration to be fully funded from cash reserves.

As always, I would like to thank the Board and staff for their support and ongoing efforts during the year, with the established mining teams at Mt Magnet and Vivien performing well. We look forward to integrating the new team at Edna May into the Ramelius portfolio and to build on the momentum that a 200,000 ounce per annum producer will undoubtedly bring us.

The Aussie gold mid-tier here we come!

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Mark Zeptner Managing Director

REVIEW OF OPERATIONS

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Total consolidated profit before income tax for the year ended 30 June 2017 was $25.1 million compared to $25.3 million in the previous corresponding period.

Revenue from gold sales for the year ended 30 June 2017 increased by 14% to $197.0 million compared to $173.5 million reported in the previous corresponding period for the continuing operation. This increase in gold sales revenue has been driven by higher gold sales (11% to 121,031 ounces compared to 108,711 ounces in the prior period) and a greater average realised gold price of A$1,628/oz which was up 2% from the previous corresponding period.

At 30 June 2017, the group was debt free and held cash assets of $78.6 million (excluding gold on hand of $11.3 million).

Total net assets increased during the year from $127.6 million to $169.8 million. Net assets per share at 30 June 2017 was $0.32 compared to $0.27 at the end of the previous financial year.

At 30 June 2017 forward gold sales totalled 102,000 ounces at an average gold price of A$1,711 for delivery during the period to 28 June 2019.

Operational Summary

Total of 125,488 ounces of fine gold produced during the financial year
Mining activities at Kathleen Valley were completed during the year
following the successful mining and haulage of ore from the Mossbecker, Yellow Aster Deeps, Nil Desperandum and Yellow Aster North open pits
Mining of the high-grade Vivien underground gold mine continued during the year with the mine achieving steady state production following the commencement of stoping in June 2016
Commenced pre-strip mining of the Milky Way open pit ahead of schedule in late June 2017, ensuring a smooth transition from the
current mining activity in Titan open pit. Mining of the Perseverance and Blackmans open pits were both completed during the year
Completed decline rehabilitation and decline access and commenced ore development at the Water Tank Hill underground gold mine at Mt Magnet
Upgraded open pit mineral resource established for the Morning Star gold project

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 9

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REVIEW OF OPERATIONS
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Figure 1: Operations Location

The Mt Magnet gold mine, 600km north-east from Perth in WA, was Ramelius’ core operation for the 2017 financial year, with mining and processing activities ongoing at Mt Magnet, supplemented by high grade ore feed from the Vivien and Kathleen Valley gold mines. Vivien and Kathleen Valley are located 300km and 370km by road from the processing plant at Mt Magnet respectively.

The Kathleen Valley gold project was completed and subsequently sold to Liontown Resources Limited’s (ASX:LTR) subsidiary LRL (Aust) Pty Ltd on 9 December 2016, with Ramelius retaining 100% of the gold rights.

The Blackmans gold project is located some 30km north of Mt Magnet and was developed and mined in the 2017 financial year with only a portion of ore haulage remaining at the end of the period (refer Figure 2).

The Burbanks processing plant, 9km south of Coolgardie, was sold in the first Quarter of the financial year to Maximus Resources Ltd (ASX:MXR) for a total consideration of A$2.5M, to be paid in instalments up to final payment in August 2018 (refer Figure 1).

10 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 2: Mt Magnet & Leinster based project locations

Total fine gold production for the year was 125,488 ounces (refer Table 1).

	2016/17	2015/16
Operation	Dry Tonnes Milled (t) Head Grade (g/t) Recovery (%) Fine Gold Produced (oz)*	Fine Gold Produced (oz)
Mt Magnet Vivien Kathleen Valley Burbanks	1,574,617 1.42 91% 66,073 207,574 7.17 96% 46,144 131,761 3.36 96% 13,271 0 0 - 0	51,636 7,230 51,973 0
Total Production	1,913,952 2.17 93% 125,488	110,839

Calculation difference relates to timing between gold production which includes gold in circuit and fine gold outturned.

Table 1: Total Gold Production

OPERATIONS

Mt Magnet Gold Mine

The Mt Magnet Gold Mine consists of numerous deposits, situated on granted mining leases, covering a total area of 225km². Mt Magnet has produced over 6 million ounces of gold since its discovery in 1891. The Hill 50 underground mine was the major producer until 2007 and was mined to 1,500 metres below surface, whilst the Morning Star underground mine was mined to a depth of 980 metres. Gold is primarily associated with a number of Banded Iron Formation (BIF) units that occur within a typical greenstone stratigraphy of mafic and ultramafic units. In addition, gold occurs in a number of structurally controlled mafic hosted deposits (e.g. Morning Star) and felsic porphyry hosted deposits (e.g. Milky Way).

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 11

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REVIEW OF OPERATIONS
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Mining by Ramelius at Mt Magnet has concentrated on the Galaxy area open pits over the past five years. The Galaxy mining area is located approximately 2 kilometres from the processing plant (Checker). The Cosmos area (Milky Way, Stellar, Stellar West & Shannon pits) is a further 1.5 kilometres south of Galaxy, has been a strong focus for reserve additions and mining approvals during the 2017 financial year, whilst the Water Tank Hill underground project commenced ore production June 2017 (refer Figure 3).

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Figure 3: Mt Magnet key mining areas

During the year, the Mt Magnet operation saw a 13% increase in mill throughput due to changes to the SAG mill liner configuration. This increased ore throughput, combined with Kathleen Valley ore and increasing Vivien ore production lifted total gold production to a new record (refer Figures 4 & 5).

Reconciled mill production for the year was 1.91 million dry tonnes at a head grade of 2.17 g/t Au for 125,488 ounces of fine gold and mill recovery of 93%.

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12 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 4: Mt Magnet mill throughput & head grade by Quarter

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Figure 5: Mt Magnet gold production and unit costs by Quarter

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 13

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REVIEW OF OPERATIONS
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Mining was completed at the Perseverance open pit in March 2017. The pit was mined over 27 months and the presence of significant underground voids from the upper portions of the Hill 50 mine slowed progress toward the base of the pit. Overall production was similar to forecast and mill reconciled total production was 1.11Mt @ 1.75g/t for 59,292 ounces.

The Blackmans satellite open pit (refer Figure 6) located 30km north of Mt Magnet, was also mined within the 2017 FY. Activities commenced in September 2016 and the bulk of mining was completed by June 2017. A small extension of a shallow laterite ore zone was mined just after the end of the financial year. Due to complexity of the mineralisation, which comprises of narrow – discontinuous vein sets, mined ore grade was diluted and lower than reserve, however total claimed ounces were higher. Total high-grade claimed mined for the pit was 356,273t @ 1.61g/t for 18,418oz versus a Reserve of 243,718t @ 2.00g/t for 15,657oz. Milling of high-grade and low-grade ore was still in progress at the end of the financial year.

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Figure 6: Blackmans open pit April 2017

The major open pit focus for the 2017 financial year was at the Titan pit (refer Figure 7). Ore production commenced in July 2016 and ramped up considerably from February 2017, once the cutback reached the base of the old pit. At the end of FY2017 ore grade at Titan was performing significantly better than predicted reserve grades and ore production was exceeding mill capacity. Approximately 400,000 tonnes @ 1.25g/t of ore had been stockpiled at end of June 2017 to assist with transition to the new Cosmos pits.

14 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 7: Galaxy open pits April 2017 with Titan ore stockpiles in foreground

Water Tank Hill

The Water Tank Hill underground project commenced in the December 2016 Quarter. Access was gained via rehabilitation of the St George underground decline, followed by the mining of two link drives 300m across to the Water Tank Hill orebody.

Ore development and initial ore production occurred during June 2017. High grade BIF hosted ore (refer Figure 8) is occurring as modelled and appears to be reconciling well at this early stage. Reconciled mill production was 2,684 tonnes @ 7.19g/t for 583 ounces recovered.

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Figure 8: Water Tank Hill high grade ore face 235 level (yellow is Au g/t)

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 15

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REVIEW OF OPERATIONS
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Vivien Gold Mine

Significant progress was made at Vivien with mining achieving full production rates by the June 2017 quarter. This was later than initially planned, however alterations to the mine plan were made to allow for emplacement of cemented rock fill (CRF) floor pillars (300 & 260 levels) and use of CRF rib pillars in highgrade zones (refer Figure 9). The use of CRF pillars will allow for 100% extraction of high-grade lode zones and improve the project overall value.

Mill reconciled production for the year was 207,574t @ 7.17g/t for 46,144 ounces of fine gold. Stope production accounted for 33% of mined ore.

A resource model update was generated in January 2017 and a new ore reserve generated in February 2017. Inclusion of grade control data and increased geological confidence boosted the Resource and Reserve figures and the net Reserve change for 12 months was +5,000oz after mining depletions. Mine life will be extended to at least late 2019 based on these new Reserves.

Ore Reserves at 30 June 2017 were 440,000 tonnes @ 7.3g/t for 103,000 ounces (refer Table 3).

Eleven underground diamond holes totalling 3,703.1m were completed from the 247mRL hangingwall drill drive, with most holes intersecting the target quartz vein. Three deeper holes intersected a wider quartz vein in the lode position around 200 metres below the current mine plan, with results returned as below:

2.9m at 4.40 g/t Au from 367.09m in VVDD1059
2.8m at 3.10 g/t Au from 344.0m in VVDD1062
5.6m at 5.20 g/t Au from 330.4m in VVDD1064

Further infill drilling is being planned for the 2018 financial year.

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Figure 9: Vivien development progress (grey) – oblique view to west

16 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Kathleen Valley Gold Mine

The Kathleen Valley gold project was completed in September 2016. The project lasted 16 months from initial clearing and setup to completed site rehabilitation (refer Figure 10). Four pits were mined and the project was a major success for Ramelius.

Although it mostly contributed in the 2016 financial year, final mining of the Nil Desperandum pit and ore milling continued into FY2017, with production of 131,761t @ 3.36g/t for 13,271 ounces of fine gold.

Total reconciled production for the project was 468,011t @ 4.53g/t for 65,244 ounces recovered. Ore tonnes, grade and mill recovery were all greater than feasibility figures resulting in a 54% increase over the expected feasibility study cash flow.

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Figure 10: Kathleen Valley rehabilitation – view to west

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RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 17

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REVIEW OF OPERATIONS
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DEVELOPMENT PROJECTS Cosmos Project

Cosmos consists of the Milky Way, Stellar, Stellar West and Shannon deposits located 1.5km south of Galaxy and 3.5km south-west of the Checker mill. The 2017 financial year saw significant progress in drilling, resource modelling, mine design and obtaining mining approval (June 2017) for the project.

Milky Way is a large, lower grade resource, with gold occurring in stockwork style, sericite-silica-pyrite veining and alteration within a thick altered felsic porphyry unit. Stellar and Stellar West are of a similar style. Historic pits exist for Milky Way, Stellar and Shannon. Stellar West is a new pit. The existing 67m deep, Milky Way pit was mined in 1999 to 2000 by Mt Magnet Gold (WMC) and produced 626,723 tonnes @ 1.64 g/t for 33,073 ounces of gold.

Mining of the Milky Way and Stellar West pits commenced in July 2017 at the start of the 2018 financial year. The Milky Way ore reserve is 1.84Mt @ 1.3g/t for 77,000oz, while Stellar West contributes 267,000t @ 1.8g/t for 15,000oz (refer Table 3). The Cosmos pits are expected to provide the major ore sources over the 2018 and 2019 financial years.

The Shannon deposit is located 700m south of Milky Way. Resource drilling conducted during the 2017 financial year has extended and improved the resource considerably and a viable pit cutback was generated (refer Figure 11). Shannon, while also felsic hosted, is a shear or lode style deposit centred on a high-grade quartz vein. It is between 2 and 10m thick strikes north and has a moderate dip of 40 - 45°. Drilling during the year included many economic hits with examples such as:

6m at 14.4 g/t Au from 247m in GXRC0549
4m at 6.13 g/t Au from 104m in GXRC0550  9m at 19.7 g/t Au from 144m in GXRC0553
6.2m at 39.5 g/t Au from 168.8m in GXDD0056

At the end of FY2017 further drilling was in progress and a new resource update was planned. Potential for an underground mine will be evaluated.

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Figure 11: Shannon cross section

18 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Morning Star Open Pit

A new open pit resource model was generated for Morning Star in April 2017, incorporating a significant amount of new drilling completed in the 2017 financial year. The total mineral resource is now 9.19Mt @ 1.7g/t for 506,000 ounces (refer Table 2).

Pit optimisation and design work generated an updated Ore Reserve as shown below. Work has also commenced on environmental requirements with a view towards submitting a Mining Proposal in the 2018 financial year.

Mineral Resources and Ore Reserves

New estimates of Mineral Resources and Ore Reserves as at 30[th] June 2017 are shown below in Table 2 and 3 respectively.

3 respectively.
	MINERAL RESOURCES AS AT 30 JUNE 2017 - INCLUSIVE OF RESERVES
Deposit	Measured	Indicated	Inferred	Total Resource
	Tonnes Au Au ('000s) g/t Oz	Tonnes Au Au ('000s) g/t Oz	Tonnes Au Au ('000s) g/t Oz	Tonnes Au Au ('000s) g/t Oz
Galaxy Morning Star Bartus Group Boomer Britannia Well Bullocks Eastern Jaspilite Eclipse Golden Stream Hill 60 Lone Pine Milky Way O'Meara Group Shannon Spearmont - Galtee Stellar Stellar West Welcome - Baxter	92 1.8 5,000 49 2.2 4,000 146 2.2 10,000 199 2.5 16,000 222 1.6 11,000	5,254 1.9 318,000 4,866 1.9 301,000 115 2.1 8,000 1,194 1.8 68,000 179 2.0 12,000 202 3.3 21,000 121 2.8 11,000 167 2.2 12,000 154 2.9 14,000 277 1.7 15,000 2,660 1.3 114,000 231 2.5 18,000 249 3.3 27,000 25 2.9 2,000 637 1.5 32,000 414 1.7 22,000 276 1.6 15,000	4,017 1.2 159,000 4,322 1.5 205,000 238 1.6 12,000 786 1.0 26,000 40 2.5 3,000 134 2.5 11,000 41 2.1 3,000 7 1.7 - 309 4.6 46,000 147 1.7 8,000 1,258 1.2 50,000 151 1.5 7,000 81 3.9 10,000 207 4.3 28,000 124 1.9 7,000 97 1.1 3,000 198 1.8 11,000	9,364 1.6 482,000 9,188 1.7 506,000 402 1.8 24,000 1,980 1.5 94,000 179 2.0 12,000 242 3.2 24,000 401 2.4 32,000 208 2.1 15,000 160 2.8 14,000 309 4.6 46,000 623 1.9 39,000 3,918 1.3 164,000 383 2.1 25,000 330 3.5 37,000 232 4.1 30,000 761 1.6 39,000 511 1.6 25,000 696 1.7 37,000
Total Open Pit Deposits	708 2.0 46,000	17,021 1.8 1,010,000	12,157 1.5 589,000	29,886 1.7 1,645,000
Hill 50 Deeps Morning Star Deeps Saturn UG Water Tank Hill UG	279 5.5 49,000	932 7.0 209,000 195 4.2 26,000 229 6.6 49,000	396 6.4 81,000 334 5.0 53,000 1,607 2.5 127,000 89 4.9 14,000	1,607 6.6 339,000 528 4.7 79,000 1,607 2.5 127,000 318 6.1 63,000
Total UG deposits	279 5.5 49,000	1,355 6.5 284,000	2,426 3.5 275,000	4,060 4.7 608,000
Mt Magnet Stockpiles	594 1.2 23,000	- -	- -	594 1.2 23,000
Mt Magnet Total	1,581 2.3 118,000	18,376 2.2 1,294,000	14,582 1.8 864,000	34,539 2.0 2,276,000
Western Queen South Coogee Vivien Kathleen Valley		104 3.6 12,000 31 3.6 4,000 530 6.7 114,000 222 3.4 24,000	81 3.4 9,000 65 3.3 7,000 174 5.5 31,000 523 2.5 42,000	185 3.5 21,000 96 3.4 11,000 785 6.9 175,000 745 2.8 66,000
Other Projects Total		886 5.4 154,000	844 3.3 89,000	1,812 4.7 273,000
Total Resources	1,581 2.3 118,000	19,262 2.3 1,448,000	15,426 1.9 953,000	36,351 2.2 2,549,000

Note: Figures rounded to nearest 1,000 tonnes, 0.1 g/t and 1,000 ounces. Rounding errors may occur.

Table 2: 2017 Mineral Resource Statement

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 19

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	ORE RESERVE STATEMENT AS AT 30 JUNE 2017	ORE RESERVE STATEMENT AS AT 30 JUNE 2017	ORE RESERVE STATEMENT AS AT 30 JUNE 2017
	Proven	Probable	Total Reserve
	Tonnes Au Au ('000s) g/t Oz	Tonnes Au Au ('000s) g/t Oz	Tonnes Au Au ('000s) g/t Oz
*Galaxy Pits* Titan Brown Hill Brown Hill North Vegas *Cosmos Pits* Milky Way Stellar Stellar West Shannon *Morning Star Pit* Morning Star *Satellite Pits* Boomer Lone Pine O'Meara Golden Stream *Underground* Water Tank Hill *Stockpiles*	8 1.6 - 594 1.2 23,000	213 1.5 11,000 623 1.6 31,000 18 2.6 2,000 192 1.4 8,000 1,836 1.3 77,000 388 1.5 19,000 267 1.8 15,000 208 2.9 20,000 1,099 1.9 68,000 132 2.9 12,000 258 1.8 15,000 46 3.4 5,000 95 3.0 9,000 167 6.5 34,000	221 1.5 11,000 623 1.6 31,000 18 2.6 2,000 192 1.4 8,000 1,836 1.3 77,000 388 1.5 19,000 267 1.8 15,000 208 2.9 20,000 1,099 1.9 68,000 132 2.9 12,000 258 1.8 15,000 46 3.4 5,000 95 3.0 9,000 167 6.5 34,000 594 1.2 23,000
Mt Magnet Total	602 1.2 23,000	5,541 1.8 326,000	6,143 1.8 349,000
Vivien Underground		440 7.3 103,000	440 7.3 103,000
Total Reserves	602 1.2 23,000	5,982 2.2 429,000	6,583 2.1 452,000

Note: Figures rounded to nearest 1,000 tonnes, 0.1 g/t and 1,000 ounces. Rounding errors may occur.

Table 3: 2017 Ore Reserve Statement

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20 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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EXPLORATION

During the 2017 financial year Ramelius explored a suite of gold exploration projects at various stages of advancement, as shown on Figure 12.

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Figure 12: FY2017 Brownfields & Greenfields Exploration Projects

Mt Magnet (WA) (Ramelius 100%)

Exploration activity at Mt Magnet during the year focused on drilling the shallow depth extensions to the Morning Star deposit ahead of resource modelling as well as exploring the Morning Star Deeps, below 1km from surface, along with scoping for open pittable porphyry hosted gold mineralisation within the larger Boogardie Basin (refer Figure 13).

An aggregate of 43,331m of exploration RC drilling and 7,208.7m of diamond drilling, as part of the Phase 1 Morning Star Deeps programme, was completed.

The Company also commenced an aggressive campaign of Aircore drilling throughout the Boogardie Basin. The drilling aimed to penetrate well into fresh rock below the base of oxidation around 50m below surface. Truly representative fresh drill chip samples amenable to alteration mapping and bottom of hole trace element determinations were collected. An aggregate of 79,106m was drilled throughout the year.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 21

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Figure 13: Location of the Boogardie Basin and Morning Star pit relative to the active mining areas

MORNING STAR OPEN PIT EXTENSION

A series of deeper RC drill holes was completed below the Morning Star pit to test for blind mineralised porphyry and/or banded iron formation units away from the historically mined high grade lode positions (refer Figure 14). Better intersections returned from the Morning Star drilling include:

10m at 6.56 g/t Au from 290m in GXRC1464
21m at 1.91 g/t Au from 225m in GXRC1465 and
11m at 2.21 g/t Au from 259m in GXRC1465
7m at 5.16 g/t Au from 152m in GXRC1470, incl. 1m at 30.2 g/t Au
14m at 40.71 g/t Au from 39m in GXRC1471, incl. 3m at 186.3 g/t Au
12m at 2.06 g/t Au from 47m in GXRC1472
15m @ 3.49 g/t Au from 111m in GXRC1520, incl. 5m @ 6.25 g/t Au
10m @ 2.89 g/t Au from 166m in GXRC1524
3m @ 11.47 g/t Au from 180m in GXRC1524
4m @ 20.21 g/t Au from 113m in GXRC1525, incl. 1m @ 75.5 g/t Au
12m @ 5.53 g/t Au from 173m in GXRC1525, incl. 2m @ 24.48 g/t Au
41m at 1.95 g/t Au from 11m in GXRC0536
20m at 4.20 g/t Au from 24m in GXRC0540

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22 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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BLACK CAT SOUTH

RC drilling targeted the saddle between the Morning Star pit and the Black Cat South pit (refer Figure 15). Drilling was testing the historically mined chert/banded iron hosted mineralisation as well as quartz veins in mafic volcaniclastics and mineralised porphyry lenses in the hangingwall (west of the historically mined main lode). Better reported results include:

7m at 5.98 g/t Au from 100m in GXRC1509, incl. 1m at 27.3 g/t Au
3m at 7.36 g/t Au from 83m in GXRC1510, incl. 1m at 17.35 g/t Au
3m at 9.08 g/t Au from 61m in GXRC1511, incl. 1m at 20.9 g/t Au
7m at 3.25 g/t Au from 109m in GXRC1540
7m at 4.06 g/t Au from 209m in GXRC1541
3m at 15.95 g/t Au from 119m in GXRC1578

PARIS OPEN PIT

RC drilling was completed under the shallow Paris open pit located 1km south of Morning Star, half way towards the Water Tank Hill/St George portal. The mineralisation at Paris is hosted by banded iron formation, believed to be the strike extension of the Nathan BIF at Morning Star that extends southwards to Water Tank Hill/St George. Very encouraging gold intersections were encountered from this first pass test and additional step out drilling is planned during FY2018. Better results include:

22m at 5.85 g/t Au from 31m in GXRC0530, incl. 7m at 13.05 g/t Au
22m at 1.77 g/t Au from 25m in GXRC0533

HESPERUS EAST

Broad zones of significant gold mineralisation were returned from selected RC drilling east of the Hesperus pit (refer Figure 13). The deeper RC holes have shown good dip continuity of mineralised intersections. Gold mineralisation is associated with a series of north-northwest striking felsic porphyry rocks intruding into the mafic/ultramafic stratigraphy. They are disrupted by the north-easterly trending Boogardie Breaks. Better porphyry hosted drill results occur where the Boogardie Breaks intersect the porphyry units, and include:

20m at 1.23 g/t Au from 31m in GXRC1501
16m at 1.32 g/t Au from 105m in GXRC1505
20m at 1.34 g/t Au from 44m in GXRC1506 and
12m at 2.44 g/t Au from 26m in GXRC1507

MORNING STAR UPPER ZONE

Detailed logging and sampling of the Morning Star Deeps parent hole (MSD0056) identified gold mineralisation associated with the down dip projection of the Evening Star Chert around 700mbs (Figure 16). An encouraging drill intersection of 3.75m at 15.58 g/t Au from 714m was returned. While subsequent wedges (I and H) drilled up and down dip (35m away) failed to define any immediate plunge continuity, the result is considered encouraging as it highlights the potential for high grade mineralised shoots to be developed within the upper levels of the Evening Star Chert, between 300 – 700m below surface. The broader target ( Morning Star Upper Zone ) is very poorly drill tested to date. Further exploratory drilling is scheduled during FY2018.

MORNING STAR DEEPS

Deeper exploratory diamond drilling down to 1,500mbs was completed as follow-up to highly encouraging historical diamond drill hole intersections (completed in 1999), including:

16m at 9.05 g/t Au from 1,145m in MSD0044F and
11.6m at 9.99 g/t Au from 1,178m in MSD0044F and
8.0m at 10.20 g/t Au from 1,196m in MSD0044F

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 23

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As part of its Phase 1 drilling campaign, Ramelius completed 13 wedges, including the parent diamond hole, MSD0056, for an aggregate 7,208.7m (refer Figure 17).

Better results from the diamond drilling include:

4.90m at 26.49 g/t Au from 1277.30m in MSD0056C
4.80m at 4.70 g/t Au from 1293.0m in MSD0056C
6.89m at 8.78 g/t Au from 1,355.81m in MSD0056E, including 1.62m at 14.52 g/t Au
7.05m at 9.07 g/t Au from 1202.10m in MSD0056I, including 3.90m at 15.13 g/t Au
4.80m at 9.62 g/t Au from 1183.20m in MSD0056I, including 0.56m at 77.2 g/t Au
10.00m at 5.43 g/t Au from 1128.00m in MSD0056J, including 6.05m at 8.61 g/t Au
8m at 4.65 g/t Au from 1190.00m in MSD0056K
2.13m at 8.19 g/t Au from 1173.92m in MSD0056L

The plunge of the high-grade shoots is depicted in Figure 17. The mineralised keel intersections sit along the folded contact between basaltic flows and andesitic tuffs. Younging indicators suggest the rocks are overturned, hence those lodes that lie above the contact in the overlying (older) basaltic flows are termed hangingwall lodes whilst those that lie below the contact in the underlying (younger) andesitic tuffs and flows are termed footwall lodes.

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Figure 14: Morning Star pit plan view highlighting the Morning Star Deeps section A-B’ and the saddle between Morning Star & Black Cat South pit B-C’

24 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 15: North-south section (B-C’) through the saddle region between the Morning Star and Black Cat South pit looking east (see Figure 14 for location)

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Open pit mining at Mt Magnet Gold Mine

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 25

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Figure 16: Section through A-B’ (see Figure 14 for location) highlighting the recent Morning Star Upper drilling results and historical Deeps drilling assays

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The underground tag board at Vivien Gold Mine

26 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 17: Zoom of Morning Star Deeps section through A-B’ (see Figure 14 for location) highlighting the recent Deeps drilling results. The mineralisation remains open with depth, plunging out of the plane of the diagram

BOOGARDIE BASIN – AIRCORE DRILLING

Regional Aircore drilling traverses within the Boogardie Basin continued throughout the year. The Aircore drilling was targeting porphyry-ultramafic contacts in areas of ineffective historical drilling coverage as well as targeting shallow plus 100ppb gold in regolith anomalies and/or historical bottom of shallow RAB/Aircore anomalies where present. The drilling successfully delineated coherent plus 100ppb gold in saprolite anomalies, below the limit of historical shallow drilling. Significant, mappable geochemical patterns are now being recognised along the northeast trending Boogardie Break corridors.

Several new prospect areas have been identified from the drilling programmes and will be the focus of deeper RC drill testing during FY2018.

ZEUS PROSPECT

Exploration drilling adjacent to the Stellar West deposit delineated significant quartz vein hosted gold mineralisation along the western flank of the newly named Zeus Porphyry. A single reconnaissance RC drill hole (GXRC1492) returned a highly encouraging intersection of 8m @ 12.20 g/t Au from 65m, to end of hole, associated with the abundant quartz veining within altered porphyry on the contact with ultramafics. This intersection correlates well with the significant porphyry hosted Aircore drill results up to 19m @ 1.31 g/t Au from 32m, located 140m further north.

Initial RC drilling showed very encouraging intersections, including 20m at 1.11 g/t Au from 70m in GXRC1542 and 18m at 3.40 g/t Au from 103m in GXRC1543 within broader, mineralised porphyry intervals up to 67m at 1.47 g/t Au from 54m .

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 27

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Subsequent step out RC drilling (50-100m spacings) over the 500m striking trend at Zeus (see Figures 18 and 19) returned broad intervals of gold mineralisation associated with a blue quartz eye diorite porphyry intrusion. Better intersections included:

229m at 0.41 g/t Au from 59m in GXRC1626
9m at 4.59 g/t Au from 116m to EOH in GXRC1634, including 1m at 28.3 g/t Au
101m at 0.59 g/t Au from 115m in GXRC1628, and
141m at 0.59 g/t Au from 36m in GXRC1646

True widths remain undetermined at the time of reporting given the multiple shear/lode orientations interpreted in the data, but the favoured interpretation is a series of tension gashes (ladder vein arrays) dipping 45[0] east and constrained by the quartz eye diorite host (refer Figure 18). Further infill drilling is planned for FY2018.

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Figure 18: RC drilling cross section through the Zeus Prospect. Gold mineralisation is interpreted to be preferentially controlled by zones of tension gashes (ladder vein sets) within the competent quartz eye diorite host

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28 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 19: Overview map of the Boogardie Basin highlighting maximum downhole gold ppm from drilling. The gold geochemistry is overlying a 1VD-RTP aeromagnetic image and the mapped/interpreted extent of the felsic porphyry intrusions; as constrained by the magnetic data and drilling to date. Litho-structural corridors favourable for the ingress and deposition of significant gold mineralisation are now being highlighted. The confluence of structures and/or their intersection with buried porphyry contacts represent primary targets for shallow plunging ore shoots to be developed. This interpretive 3-D modelling is ongoing. The newly discovered Zeus Prospect (highlighted) is shown in the top left hand corner of this figure and now extends over 500m on or near the confluence of the NE trending shear and an inferred NNW trending thrust.

Kathleen Valley Gold Project (WA)

(Ramelius 100% - Gold Rights Only)

No significant results (>0.5 g/t Au) were returned from a programme of 6 deeper RC drill holes (1,267m) early in the year, targeting the down dip faulted offset to the Mossbecker pit mineralisation, referred to as the Boris Zone.

Liontown Resources Limited (ASX: LTR) subsequently acquired the Kathleen Valley Project tenements from Ramelius; including 100% of the rare metal rights (lithium, tantalum and associated metals); see ASX Release from LTR dated 4 August 2016. Under the terms of the Tenement Sale Agreement Ramelius retains 100% of the gold rights to the tenement package and the Company will continue to explore for buried gold mineralisation within the project as new targets are identified.

Coogee Gold Project (WA)

(Ramelius 100%)

Two shallow diamond drill holes were completed early in the year for an aggregate 240m. The drilling was testing below gold anomalous bottom of hole Aircore intersections reporting up to 1m at 1.38 g/t Au from 27m at the Coogee Beach prospect (refer Figure 20). No significant results were returned. Consequently, the decision was made to farm-out the Coogee Project.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 29

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REVIEW OF OPERATIONS
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Figure 20: Coogee Beach (EL26/177) Aircore anomaly draped over a 1VD-RTP aeromagnetic image.

Coogee Beach is 2km west of the now mined Coogee Pit

Tanami JV (NT) (Ramelius 85%)

Ramelius holds 85% equity in the Tanami Joint Venture and continues to sole fund the exploration expenditure, free carrying Tychean Resources Limited (ASX:TYK) through to any decision to mine.

The package of joint venture tenements extends over 1,700km[2] and is located within 100km radius of Newmont’s giant +20 million ounce Callie Gold mine (Figure 21).

An aggregate 5,780m of reconnaissance Aircore drilling was completed over the Highland Rocks ELs during the year (HRAC0001 – 167). Disappointingly, only low order gold anomalism was returned from the drilling program (see ASX Release dated 19 December 2016).

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30 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Figure 21: Tanami JV project location

Vivien Gold Project (WA)

(Ramelius 100%)

No surface gold exploration was undertaken during the year over the Vivien leases. Underground mine extension drilling commenced once a suitable cuddie access was established, see Vivien Gold Mine Operations for details.

Yandan Project (QLD)

(Ramelius 100%)

The Yandan North EPM is located 10km north and along strike of the abandoned Yandan gold mine which historically produced over 350,000oz of gold. Greenfields exploration was undertaken over the Yandan leases that included field mapping and rock chip sampling that identified several areas of outcropping hydrothermal sulphidic breccias. A ground magnetic survey (60 line km) and an induced polarisation (IP) survey (approximately 9 line km) were undertaken that defined several deeper drill targets which will be tested during the first quarter of the 2018 financial year.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 31

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Figure 22: Geology map of the Yandan North EPM showing the mapped hydrothermal breccia outcrops and rock chip sample locations

Drillhole Intercepts Note: All drillhole intercepts listed or displayed above have previously been reported in RMS ASX JORC compliant releases during the 2017 Financial Year.

The Information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Kevin Seymour (Exploration Results), Rob Hutchison (Mineral Resources) and Duncan Coutts (Ore Reserves).

Kevin Seymour, Rob Hutchison and Duncan Coutts are all Members of the Australasian Institute of Mining and Metallurgy and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they have undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Kevin Seymour, Rob Hutchison and Duncan Coutts are full-time employees of Ramelius Resources Limited and consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

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GLOSSARY OF TERMS
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ADSORPTION:	The attraction of molecules (of gold) in solution to the surface of solid bodies
	(carbon).
AEROMAGNETICS:	A geophysical technique measuring changes in the earth’s magnetic field from an
	airborne craft.
AIRCORE:	A method of rotary drilling whereby rock chips are recovered by air flow returning
	inside the drill rods rather than outside, thereby providing usually reliable samples.
ANOMALOUS:	A departure from the expected norm. In mineral exploration this term is generally
	applied to either geochemical or geophysical values higher or lower than the norm.
ANDESITE:	Fine grained intermediate volcanic rock, chemically similar to diorites.
ARCHAEAN:	The oldest rocks of the Earth’s crust – older than 2,400 million years.
AURIFEROUS:	Gold bearing material.
AUGER:	A screw-like boring or drilling tool for use in clay or soft sediments.
AS:	Arsenic.
ASX:	The Australian Securities Exchange Limited (ACN 008 629 691).
AU:	Gold.
AZ:	Azimuth, a surveying term, the angle of horizontal difference, measured clockwise,
	of a bearing from a standard direction, as from north.
BASALT:	Dark coloured fine grained extrusive igneous rock that is the most common rock
	type of lava flows.
BASEMETAL:	Non-precious metal, usually referring to copper, zinc and lead.
BCM:	Bank Cubic Metre. Usually refers to the volume of waste measured in situ.
BERM:	A horizontal bench left in the wall of an open pit to provide stability to the wall.
BIF:	Banded Iron Formation.
BIOTITE:	A mineral of the mica group widely distributed in a variety of rock types.
BRECCIA:	Poorly sorted cemented angular rock fragments.
CALCRETE:	Soil and superficial material cemented by calcium carbonate.
CARBONATE:	A common mineral type consisting of carbonates of calcium, iron and/or
	magnesium.
CHERT:	A microcrystalline sedimentary rock consisting of silica and formed by chemical or
	biological processes.
CHLORITE:	A representative of a group of micaceous greenish minerals which are common in
	low grade schists and is also is a common mineral associated with hydrothermal ore
	deposits.
CIL CIRCUIT:	That part of the gold treatment plant where gold is dissolved from the pulverised
	rock and subsequently adsorbed onto carbon particles from which the gold is
	ultimately recovered.
COMPANY:	Ramelius Resources Limited (ACN 001 717 540)
CONGLOMERATE:	Rock consisting of rounded or sub-rounded fragments
COSTEAN:	A trench dug through soil to expose the bedrock.
CU:	Copper.
CUDDY:	Drill cuddy refers to an underground drill site excavated off the decline/development
	drive.
CUT:	A term used when referring to average assays where the grade of a particularly high-
	grade interval is reduced to a lesser value.
DEADBULLOCKFORMATION:	Tanami Goldfield stratigraphically significant formation comprised of Blake Beds
	interbedded siltstones and carbonaceous siltstones, cherts and Callie laminated
	sedimentary beds/schists overlain by the Davidson Beds including the Orac cherts
	and schist overlain by the Coora Dolerite, in turn overlain by the Schist Hill
	Formation (BIF).
DIAMONDDRILLING	Type of drilling where sample collection gives a continuous run of solid core which
	can be oriented, measured and sampled. Usually half core is sampled for analysis,
	leaving half core for future geological reference.

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GLOSSARY OF TERMS
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DISSEMINATED:	Usually referring to minerals of economic interest scattered or diffused through-out
	the host rock.
DIORITE:	A course grained intermediate plutonic rock (cf andesite).
DIP:	The angle at which rock stratum or structure is inclined from the horizontal.
DYKE:	Tabular igneous intrusive cutting the bedding or planar features in the country rock.
EL:	Exploration Licence.
ELA:	Exploration Licence Application.
EM:	Electromagnetic, a geophysical technique used to detect conductive material in the
	earth.
EOH:	End of Hole.
EPM:	Exploration Permit for Minerals, Queensland State equivalent to an EL
EPMA:	Exploration Permit for Minerals Application
EPITHERMAL:	High level (shallow depths – less than 1km deep), low temperature (< 300deg C)
	hydrothermal (gold) mineralising processes formed in magmatic arc environments
	(including rifts). Distinguished as low or high sulphidation systems.
FAULT:	A fracture in rocks along which rocks on one side have been moved relative to the
	rocks on the other.
F.C.I:	Free carried interest.
FELSIC:	Light coloured rock containing an abundance of any of the following: - feldspars,
	felspathoids and silica.
FERRUGINOUS:	Containing iron.
FLITCH:	A Mining Term for the different levels in an open pit.
FOOTWALL:	Lower surface sitting below an inclined vein or dipping fault, cf hangingwall.
GEOCHEMICALEXPLORATION:	Used in this report to describe a prospecting technique, which measures the content
	of certain metals in soils and rocks and defines anomalies for further testing.
GEOPHYSICALEXPLORATION:	The exploration of an area in which physical properties (e.g. Resistivity, gravity,
	conductivity and magnetic properties) unique to the rocks in the area quantitatively
	measured by one or more geophysical methods.
G/CC:	Grams per cubic centimetre.
G.I.C:	Gold in circuit.
G/T:	Grams per tonne, equivalent to parts per million (ppm).
GOSSAN:	The oxidised, near surface part of underlying primary sulphide minerals.
GROSSGOLDROYALTY:	A royalty payment based on the total amount of product (gold) produced.
GRADE:	g/t – grams per tonne, ppb – part per billion, ppm – parts per million.
GRANITE:	A coarse grained igneous rock consisting of quartz, feldspar and biotite/muscovite
	plus accessory minerals
GRATICULARBLOCK:	With respect to Exploration Licences, that area of land contained within one minute
	of Latitude and one minute of Longitude.
GRAVITYCIRCUIT:	Part of the Gold Treatment Plant where gold particles are accumulated by virtue of
	their density.
GSWA:	The Geological Survey of Western Australia.
HA:	Hectare.
HANGINGWALL:	Upper surface sitting above an inclined vein or dipping fault, cf footwall.
HG:	Mercury.
HYPOGENE:	Term used to describe the formation of mineral deposits originating by ascending
	fluids, below any near surface supergene enrichment.
INTERFACE:	Low level geochemical sampling medium located at the base of transported
	overburden and the top of the prospective host rock lithologies.
IP:	Induced Polarisation, electrical, ground geophysical exploration technique.
3-D IP:	Three dimensional IP survey, designed to detect trends oblique to the IP survey grid,
	of conventional 2-D surveys grids established orthogonal to the targeted trends.

34 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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IRG:	Intrusive related gold mineralised system, associated with vertically zoned (gold and
	base metals), skarned, veined or disseminated, often brecciated within or along
	margins of middle to high level magmatic intrusive rocks, being fractionated
	felsic/granitic plutons.
JORC:	The Australasian Code for Reporting of Mineral Resources and Ore Reserves.
KM:	Kilometre.
KOMATIITE:	An ultramafic rock with high magnesium content extruded from a volcano.
LAG:	A residual deposit remaining after finer particles have been blown away by wind.
LATERITE:	Highly weathered residual material rich in secondary oxides or iron and/or
	aluminium.
LEACHWELL:	An analytical method.
LODEDEPOSIT:	A vein or other tabular mineral deposit with distinct boundaries.
LOWSULPHIDATION:	Developed from near neutral pH circulating geothermal fluids at shallow levels in a
	rift (gold-silver+adularia rich mineralised veins) or an arc environment (quartz-
	sulphides-gold and affinities with magmatic source rocks).
LTI:	Loss Time Injury.
MASSIVE:	Large in mass, having no stratification. Homogeneous structure.
MINERALISED:	Rock impregnated with minerals of economic importance.
M TONNES:	Million tonnes.
M:	Metre.
MBS:	Metres below surface.
MTPA:	Million tonnes per annum.
ML:	Mining Lease.
MLA:	Mining Lease Application.
NATIVE TITLE:	Native Title is the recognition in Australian law of Indigenous Australian’s rights
	and interests in land and waters according to their own traditional laws and customs.
	In June 1992, the High Court of Australia, in the case of Mabo v Queensland (1992)
	175 Commonwealth Law Reports 1, overturned the idea that the Australian
	continent belonged to no one at the time of European’s arrival. It recognised for the
	first time that indigenous Australians may continue to hold native title. Indigenous
	Australians may now make native title claimant applications seeking recognition
	under Australian law of their native title rights.
NATIVE TITLE TRIBUNAL:	The Native Title Tribunal set up under the Native Title Act 1993.
NI:	Nickel.
OPENPIT:	A mine excavation produced by quarrying or other surface earth-moving equipment.
OREGRADE:	The grade of material that can be (or has been) mined and treated for an economic
	return.
OVERCALL:	Refers to more metal (gold) being recovered than anticipated.
OXIDISED:	Near surface decomposition by exposure to the atmosphere and groundwater,
	compare to weathering.
OZ:	Troy ounces = 31.103477 grams.
PALAEO:	Ancient or past times
PB:	Lead.
PEDOGENIC:	The development of soil.
PENTLANDITE:	An important ore of nickel (FeNi)9S8
PETROLOGICAL:	Pertains to a study of the origin, distribution, structure and history of rocks.
PERCUSSIONDRILLING:	Method of drilling where rock is broken by the hammering action of a bit and the
	cuttings are carried to the surface by pressurised air returning outside the drill pipe.
PD:	Palladium.
PL:	Prospecting Licence.
PLA:	Prospecting Licence Application.
PLUNGE	Being the angle between the axis and the horizontal line lying in a common vertical
	plane.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 35

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GLOSSARY OF TERMS
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PORPHYRY:	A felsic or sub volcanic rock with larger crystals set in a fine groundmass.
PPB:	Parts per billion.
PRIMARYGOLD:	Gold mineralisation that has not been subject to weathering processes, as opposed to
	Secondary Gold.
PROTEROZOIC:	The Precambrian era after Archaean.
PT:	Platinum.
PYRITE:	A common, pale bronze iron sulphide mineral.
PYRRHOTITE:	An iron sulphide mineral.
QUARTZ:	Mineral species composed of crystalline silica.
RAB DRILLING:	Rotary Air Blast Drilling: Method of drilling in which the cuttings from the bit are
	carried to the surface by pressurised air returning outside the drill pipe. Most “RAB”
	drills are very mobile and designed for shallow, low-cost drilling of relatively soft
	rocks.
RC DRILLING:	Reverse Circulation Drilling: A method of drilling whereby rock chips are recovered
	by air flow returning inside the drill rods rather than outside, thereby providing
	usually reliable samples.
REIDEL FAULT:	A slip surface that develops during the early stage of shearing.
REGOLITH:	A layer of fragmented and unconsolidated material that overlies or covers basement.
RESERVE:	The mineable part of a resource to which a tonnage and grade has been assigned
	according to the JORC code.
RESOURCE:	Mineralisation to which a tonnage and grade has been assigned according to the
	JORC code.
RHYOLITE:	Fine grained glassy acid (felsic) volcanic rock.
ROCKCHIPSAMPLE:	A series of rock chips or fragments taken at regular intervals across a rock exposure.
SAPROLITE:	A chemically weathered rock typically representing deep weathering of bedrock.
SB:	Antimony.
SECONDARYGOLD:	Gold mineralisation that has been subject to and usually enriched by weathering
	processes.
SEDIMENTARYROCKS:	Rocks formed by deposition of particles carried by air, water or ice.
SERICITE	Mica (layered lattice) mineral of the muscovite group typically found as a
	hydrothermal alteration mineral in gold deposits.
SHEARZONE:	A generally linear zone of stress along which deformation has occurred by
	translation of one part of a rock body relative to another part.
SILICIFIED/SILICA:	Alteration of a rock by introduction of silica.
STOCKWORK:	Large scale ramifying and dichotomising series of fissures filled with mineral
	(silica-sulphides) material.
STRATIGRAPHY:	The study of formation, composition and correlation of sedimentary rocks.
STRIKE:	The direction of bearing of a bed or layer of rock in the horizontal plane.
SULPHIDES:	Minerals consisting of a chemical combination of sulphur with a metal.
SUPERGENE:	Processes involving percolating groundwater including solution, hydration,
	oxidation and typically enrichment of immobile/insoluble metals or ions.
T:	Tonnes.
TEM:	Transient Electromagnetic, a geophysical technique used to detect conductive
	material in the earth.
TENSIONGASHES:	Ladder vein array or joint opened up as a result of tensional forces developed during
	deformation, usually becomes filled with quartz.
TOLL TREATMENT:	The treatment of ores where payment is made to the operator of the treatment plant
	according to the amount of material being treated.
TONNE:	32,125 Troy ounces.
TREMOLITE:	A pale coloured amphibole mineral.
TUFFS:	General term for unconsolidated volcaniclastic/pyroclastic material, which upon
	consolidation becomes a tuff
ULTRAMAFIC:	An igneous rock comprised chiefly of mafic minerals.

36 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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UNCUT:

VACUUM DRILLING:

VOLCANICLASTIC ROCKS:

YOUNGING:

A term used when referring to average assays where the grade of a particularly highgrade interval is not reduced to a lesser value.

A method of rotary drilling where the drill cuttings are recovered inside the drill rods by a vacuum system.

Pyroclastic rocks where fragments of volcanic material have been blown into the atmosphere by explosive volcanic activity.

Refers to orientation direction of the youngest (uppermost) rocks within the stratigraphic pile based upon volcanic textural evidence.

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Road Train from Blackmans Gold Mine

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 37

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NATIVE TITLE STATEMENT
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Exploration and mining areas held by the Company may be subject to issues associated with Native Title. Whilst it is not appropriate to comment in any detail upon specific negotiations with Native title parties, the directors of Ramelius believe it is important to state the Company’s policy and approach to Native Title and dealings with indigenous communities.

The directors believe that the following native title policy statement summarises the Company’s desire to develop a spirit of cooperation in its dealings with indigenous people, create goodwill, mutual awareness and understanding and most importantly, respect and commitment.

Recognition and Respect

Ramelius recognises Aboriginal regard for land and respects their culture, traditions and cultural sites.

Understanding and Trust

Ramelius listens to Aboriginal community representatives to understand their views and beliefs. Recognising that communities may not be fully appreciative of how the Company’s business and industry operates, Ramelius works towards increasing their understanding, respect and trust and to promote the Company’s obligations and economic constraints amongst indigenous communities.

Ramelius ensures that its employees and contractors approach the Company’s activities at local sites with respect and a clear understanding of important issues and priorities.

Communication and Commitment

Ramelius adopts practical measures to develop trust. Acknowledging that community leaders and representatives have an obligation to consult its people to determine their opinions and wishes and that this may often not be achieved as quickly as is desired, Ramelius uses its best endeavours to expedite the process and ensure that its commercial interests are not adversely impacted.

The Company also uses its best endeavours to ensure reasonable rights of consultation and continued access to land are facilitated and the integrity of land is preserved.

The Company is committed to taking appropriate steps to identify and reduce the effects of any unforeseen impacts from its activities.

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Native vegetation in the Tanami area of Northern Territory

38 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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SUSTAINABILITY STATEMENT
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The Ramelius Board of Directors maintains oversight of sustainability issues. Sustainability embraces how Ramelius conducts business and includes workforce occupational health and safety, social responsibility to the general community, minimising business operational impact on the environment and protecting the Company’s reputation as a gold producer in Australia.

The following is a summary of how Ramelius deals with sustainability.

Workforce health and safety

Ramelius is committed to providing a healthy and safe environment for all employees and contractors. This is achieved as follows.

Creating a culture that promotes health and safety in the best interests of all workforce participants;
Regular site safety meetings which encourage identification of issues and continual improvement;
Strict mine site entry procedures and requirements including enforcement of a drug and alcohol policy and testing of site personnel;
Incident investigations and reporting to the Board;
Documented and regular review of emergency procedures and processes;
Ongoing staff training; and
Risk management.

Social responsibility

Ramelius endeavours to build and maintain a sustainable and diverse workforce focused on high performance. The Company publically reports to shareholders and investors to ensure they are informed on corporate governance issues and the entity’s approach to sustainability matters. The Company’s efforts in regards to social responsibility include the following.

Maintaining and reviewing the Company’s diversity policy which encourages a workforce comprised of individuals with diverse backgrounds, experiences, values and skills;
Encouraging staff training and ongoing professional development;
Acknowledgement of native title which promotes indigenous regard for land and respect of their culture, traditions and cultural sites;
Engagement of shareholders and investors through presentations, roadshows and information booths at various industry conferences;
Encouraging full participation of shareholders at the Annual General Meeting to ensure a high level of accountability and identification with the Company’s strategy and goals; providing security holders with an online voting facility to enable voting through a secure website or mobile device and providing the option to receive and send communications electronically;
Identification and ongoing management of economic and other business related risks including the maintenance of a risk register; and
Community support through sponsorships and donations.

Environmental protection

The Company has policies and procedures in place which aim to protect the environment. Ramelius seeks to comply with legislative requirements and to promote a high regard for the environment in conducting its business. Key areas on which Ramelius focuses to address this important sustainability issue are summarised below.

Environmental incidence documentation and reporting;
Addressing biodiversity issues as part of the Company’s planning for and conduct of exploration and mining activities including flora and fauna studies, native vegetation recording and disturbed land restoration;
Conducting environmental impact studies and preparing reports thereon including rehabilitation measures for government assessment as part of the process in seeking approval for proposed mining activities;
Undertaking appropriate waste product management activities including mine site sewage, tailings and other hazardous materials, dust and general waste;
Landfill rehabilitation and conducting ongoing restoration wherever possible;
Maintaining a focus on the efficient use of resources including water and power;
Implementing water and other resource recycling measures; and
Facilitating environmental pollution audits and reporting.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 39

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SUSTAINABILITY STATEMENT
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Water Resource Management

Ramelius conducts open pit and underground gold mining and processing at Mt Magnet and underground gold mining at Vivien near Leinster in Western Australia where water management is an important and integral part of site operations.

Mt Magnet Gold Project

The Mt Magnet Gold Project is located in the Murchison province of Western Australia, on the border of desert and semi-desert Mediterranean climatic regions. Water availability can be scarce within these regions, particularly during the hotter, drier summer months. Water for the operations is sourced largely from a number of disused open pits which have filled with water over time. Utilising water from the disused pits reduces the operation’s reliance upon finite groundwater resources; however, a small number of groundwater abstraction bores are also maintained to supplement the water from these pits.

A number of diversion drains have been installed to divert surface water into these pits during periods of high rainfall and these diversion drains have been installed in consultation with regulatory authorities.

The majority of water used is in the processing of ore at the Checker Mill (processing plant), with the remainder utilised for dust suppression in surface mining areas and other incidental uses, such as offices and workshops. Water is also sourced from the dewatering of actively mined open pits and underground workings. Water from ore processing operations is recovered from the active tailings storage facility (TSF) and is recycled back through the processing plant.

The project is located upstream from the Genga water reserve, managed by the Department of Water & Environmental Regulation (DWER), for the supply of water to the town of Mount Magnet, located to the south/south-west of the current active mining areas. The key recharge area for the Genga borefield is located approximately 5.3 km from the active mining areas. The wider Genga water reserve area, representing the surface water catchment area for the Genga borefield, is managed as a Priority 2 water source protection area and this is located approximately 1.7 km from current mining operations. Whilst previous hydrological studies by Ramelius and the DWER have determined that it’s unlikely that the active mining areas contribute surface water recharge to the Genga water reserve; Ramelius is committed to ensuring that mining operations do not impact upon the water quality or availability at the Genga borefield.

Site personnel actively monitor groundwater quality and levels at all abstraction points and at a number of regional monitoring bores spread across the operation and also engage groundwater specialists to provide advice on the water supply network and for assessing any potential impacts to ground and surface waters.

All statutory obligations are managed through annual reporting on the management of the Company’s operations activities to regulators responsible for the environment and water across several licence jurisdictions. The Mt Magnet Gold Project to date has not utilised the total volume allocation under its groundwater licence and always seeks where possible to minimise the utilisation of groundwater.

Vivien Gold Project

The Vivien Gold Project is an underground operation located directly below an existing open pit. All surplus water, in excess of site needs such as for dust suppression and mine services, is pumped to the Hidden Secret pit at Gold Fields’ Agnew gold mine approximately 8km away and used as process water for the Agnew processing plant. At mine closure, it is anticipated the local groundwater level will recover to levels similar to those currently seen in the base of the open pit.

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40 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIVERSITY STATEMENT
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Ramelius acknowledges that benefits flow from a workforce comprised of individuals with diverse backgrounds, experiences, values and skills. The Company encourages recruitment based on qualifications, skills, abilities and merit to ensure workforce vacancies are filled with the most suitable employees available. Ramelius also encourages personal development and training of employees to achieve their full potential for the mutual benefit of Ramelius and employees.

Workplace Gender Profile

During the year, the Company updated its workplace gender profile as follows.


WORKPLACE PROFILE
	Women		Men		Casual			%
	Full time	Part time	Full time	Part time	Women	Men	Total Staff	Women	Men
Board*			4				4		100.0
Senior Executives/KMP’s			4				4		100.0
Managers	1		10			1	12	8.3	91.7
Professional Staff	4	1	21		1	6	33	18.2	81.8
Technical Staff	2		33		2	3	40	10.0	90.0
Community & Personal Service Staff	2		1		1		4	75.0	25.0
Clerical & Administrative Staff	6	2	1		3		12	91.7	8.3
Machinery Operators and Drivers	1		24			2	27	3.7	96.3
Other	1		1			1	3	33.3	66.7
Total	17	3	99		7	13	139	19.4	80.6

Board includes Managing Director

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Left to Right: John Dufall, Sarah Ferguson, Paul Marlow (behind), Danny Doherty, Gabe Crowe, Amanda Layther, Kylie Spark, Daniel Rooks and George Munroe at the Vivien Gold Mine near Leinster, WA.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 41

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CORPORATE GOVERNANCE STATEMENT
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Left to Right: Non-Executive Directors Kevin Lines, Mike Bohm and Bob Kennedy (Chairman) with Managing Director Mark Zeptner and Company Secretary Dom Francese

The Board of Directors is responsible for the overall Corporate Governance of the Company including strategic direction, management goal setting and monitoring, internal control, risk management and financial reporting. In discharging this responsibility, the Board seeks to take into account the interests of all key stakeholders of the Company, including shareholders, employees, customers and the broader community.

Ramelius Resources Limited is committed to conducting its business with high standards of ethics and corporate governance in the best interests of all stakeholders.

The 2017 Corporate Governance Statement of Ramelius Resources Limited has been lodged with the Australian Securities Exchange Limited and is publically available from the investors section of the Company’s website at www.rameliusresources.com.au

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42 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

RAMELIUS RESOURCES LIMITED ANNUAL FINANCIAL REPORT 2017

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

Your directors present their report on the consolidated entity consisting of Ramelius Resources Limited and the entities it controlled at the end of, or during, the year ended 30 June 2017. Throughout the report, the consolidated entity is referred to as the group.

Directors

The following persons were directors of Ramelius Resources Limited during the whole of the financial year and up to the date of this report:

Robert Michael Kennedy Mark William Zeptner Kevin James Lines Michael Andrew Bohm

Information on Directors

The following information is current as at the date of this report.

R b	M i	l K	d	I	d	t N E t i C	i
o e r c a e e n n e y Qualifications					e p e n e n o n ‐ x e c u v e a r m a n KSJ, ASAIT, Grad. Dip (Systems Analysis), Dip Financial Planning, Dip Financial Services, FCA, CTA, AGIA, Life member AIM, FAICD, MRSASA
Experience					Mr Kennedy is a Chartered Accountant and brings to the Board his expertise and extensive experience as Chairman and Non‐Executive Director of a range of listed public companies in the resources sector.
Interest in Shares and Options					10,350,789 Ordinary Shares.
Special responsibilities					Board Chairman, member of Audit & Risk Committee, and Nomination & Remuneration Committee.
Directorships held in other listed entities in the last three years					Chairman of Maximus Resources Limited, Monax Mining Limited, Tychean Resources Limited and Non‐Executive Director of Flinders Mines Limited. Previously a Non‐Executive Director of Crestal Petroleum Limited (formerly Tellus Resources Limited and currently Firstwave Cloud Technology Limited) and Marmota Energy Limited.

M k W i l l i Z t	M i D i t
a r a m e p n e r Qualifications	a n a g n g r e c o r BEng (Hons) Mining, MAusIMM, MAICD.
Experience	Mr Zeptner has more than 25 years’ industry experience including senior operational and management positions with WMC and Gold Fields Limited at their major gold and nickel assets in Australia and offshore. He joined Ramelius Resources Limited on 1 March 2012 as the Chief Operating Officer, was appointed Chief Executive Officer on 11 June 2014 and Managing Director effective 1 July 2015.
Interest in Shares and Options	1,512,500 Ordinary Shares, 1,500,000 Options over Ordinary Shares exercisable at $0.299 expiring 11 June 2018, 1,500,000 Options over Ordinary Shares exercisable at $0.20 expiring 11 June 2019, 1,500,000 Options over Ordinary Shares exercisable at $0.20 vesting on 11 June 2018 and expiring on 11 June 2020, and 500,000 Performance Rights over Ordinary Shares vesting on 11 June 2019 and expiring on 11 June 2026.
Special responsibilities	Chief Executive Officer.
Directorships held in other listed entities in the last threeyears	None.

44 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

L i	I d d t N E t i D i t	I d d t N E t i D i t	I d d t N E t i D i t
a m e s n e s ations	n e p e n e n o n ‐ x e c u v e r e c o r BSc (Geology), MAusIMM, MAICD.
nce	Mr Lines is a geologist and has more than 35 years of experience in mineral exploration and mining for gold, copper, lead, zinc and tin. He has held senior geological management positions with Newmont Australia Limited, Normandy Mining Limited and the CRA group of companies. He was the foundation Chief Geologist at Kalgoorlie Consolidated Gold Mines where he led the team that developed the ore‐body models and geological systems for the Super‐Pit Operations in Kalgoorlie and managed the Eastern Australian Exploration Division of Newmont Australia Limited that included responsibility for the expansive tenement holdings of the Tanami region. He brings to the Board his extensive experience in the assessment and evaluation of exploration projects and development of properties and mining operations overseas.
in Shares and Options	1,000,000 Ordinary Shares.
responsibilities	Chairman of Audit & Risk Committee and member of Nomination & Remuneration Committee.
rships held in other listed in the last three years	None.

l A d B h	I	d	d t N E t i D i t
n r e w o m ations	n e p e n e n o n ‐ x e c u v e r e c o r B.AppSc (Mining Eng.), MAusIMM, MAICD.
nce	Mr Bohm is a mining engineer with extensive corporate and operational management experience in the minerals industry in Australia, South East Asia, Africa, Chile, Canada and Europe. He is a graduate of the WA School of Mines and has worked as a mining engineer, mine manager, study manager, project manager, project director and Managing Director. He has been directly involved in a number of project developments in the gold, base metals and diamond sectors in both open pit and underground mining environments.
in Shares and Options	1,237,500 Ordinary Shares.
responsibilities	Chairman of Nomination & Remuneration Committee and member of Audit & Risk Committee.
rships held in other listed in the last three years	Director of ASX‐TSX listed Perseus Mining Limited & ASX listed Mincor Resources NL. Previously a Director of ASX listed Tawana Resources NL and Berkut Minerals Limited.

Directors’ Meetings

The number of directors’ meetings (including meetings of Committees of directors) and number of meetings attended by each of the directors of Ramelius during the financial year are:

t o r	B o a r d o f D i r e c t o r s	A u d i t & R i s k C o m m i t t e e	N o m i n a t i o n & R e m u n e r a t i o n C o m m i t t e e
M Kennedy W Zeptner J Lines A Bohm	A B A C A C 14 14 6 6 6 6 14 14 n/a n/a n/a n/a 14 14 6 6 6 6 14 14 6 6 6 6

A Number of meetings attended

B Number of meetings held whilst a director

C Number of meetings held whilst a member

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 45

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

Company Secretary

Domenico Antonio Francese BEc., FCA, FFin, AGIA, ACIS

Appointed Company Secretary on 21 September 2001. Mr Francese is a Chartered Accountant with an audit and investigations background and more than 12 years’ experience in a regulatory and supervisory role with the ASX.

Principal Activities

The principal activities of the group during the year included exploration, mine development, mine operations and the production and sale of gold. There were no significant changes in those activities during the year.

Operating and Financial Review

Financial Review

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Financial performance Jun‐17 Jun‐16 Movement
Sales revenue $M 197.4 173.7 23.7
Cash cost of production $M (119.0) (102.7) (16.3)
Gross margin excluding “non‐cash” items $M 78.4 71.0 7.4
Amortisation and depreciation $M (60.0) (49.9) (10.1)
Inventory movements and write‐downs $M 10.3 11.8 (1.5)
Gross Profit (Loss) $M 28.7 32.9 (4.2)
Profit before income tax $M 25.1 25.3 (0.2)
Income tax expense $M (7.4) 2.4 (9.8)
Profit for the year from continuing operations $M 17.7 27.7 10.0
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Sales revenue

Sales revenue for the year ended 30 June 2017 increased by 14% to $197.4 million compared to $173.7 million reported in the previous corresponding period for the continuing operation, mainly due to:

greater gold production sold, up 11% to 121,031 ounces compared to 108,711 ounces sold
greater average realised gold prices of A$1,628/oz, up 2% from the previous corresponding period
greater silver sales, up 25% from $0.24 million to $0.30 million

Sales revenue comparison ($M)

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250
$197.4
200 $20.1 $0.1
$3.5
$173.7 Silver
sales
Gold price Production
150
100
50
0
Jun‐16 Jun‐17
Note: Excludes sales revenue from discontinued operations
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Profit after income tax from continuing operations

A profit after income tax was recorded for the year ended 30 June 2017 of $17.7 million, compared to a profit of $27.7 million in the previous corresponding. The gross profit was down on last year by $4.2 million primarily due to increased costs of production which were offset by higher gold sales and average realised gold price. The higher tax expense in the current year was because of a large tax benefit in the prior year due to $10.1 million of previously unrecognised tax losses being recognised in 2016.

46 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

Cashflow

Net cash provided by operating activities for the year ended 30 June 2017 was $83.4 million compared to $65.5 million in the prior year as a result of higher gold production and realised gold price. Net cash used in investing activities (which included development and exploration activities) total $72.7 million for the year compared to $53.4 million in the prior year. In July 2016, $25.0 million (before costs) was raised via the issuance of 50 million Ramelius shares at 50 cents per share.

Cash on hand at the end of the financial year was $78.6 million, an increase of $34.3 million from the prior year.

Operations Review

Vivien mining area

The Vivien mining area performed well during the year and produced 37% of the group’s total fine gold production.

A r e a	T y p e	O p e r a t i o n a	l c o m m e n t a r y
Vivien Underground Mining activity at Vivien continued throughout the year with ore extraction commencing in the September 2016 quarter. Ore production and development have progressed well throughout the year. Ore continues to be hauled to the Checker processing facility at Mt Magnet and has been successfully blended with both Kathleen Valley and Mt Magnet ore. In December 2016 an updated resource model was generated resulting in a significant improvement in the Resource. This led to an updated life of mine plan for the Vivien Mine.

Mt Magnet mining area

Operations at Mt Magnet continued on a multi pit basis throughout the 2017 financial year. A summary of the areas in operation is provided as follows:

A r e a	T y p e	O p e r a t i o n a	l c o m m e n t a r y
Titan Open Pit Initial mining of oxide and transition material saw high productivities with significant low grade tonnages, additional to reserves, being identified and mined. A significant jump in high grade ore production was achieved when operations reached the base of the previous pit. Mining is expected to continue into the second quarter of the 2018 financial year.
Perseverance (Percy) Open Pit Produced the bulk of the ore in the early part of the year with grades performing well although mining rates were lower due to working around stope voids. Operations at the Perseverance pit concluded in February 2017.
Blackmans Open Pit Located 30km north of Mt Magnet. Works commenced in September 2016 with initial ore haulage commencing in November 2016. Mining operations at the Blackmans satellite pit concluded in the June 2017 quarter with ore haulage and processing to continue into the September 2017 quarter.
Water Tank Hill (WTH) Underground Ore development commenced in early June 2017 with initial mill reconciled production of 2,684 tonnes @ 7.19 g/t. Stoping production will commence in the September 2017 quarter.

In conjunction with the Life of Mine (LoM) plan finalised in the June 2017 quarter, a tender process was conducted for the open pit mining contract at Mt Magnet. Mining contractor MACA Mining Limited was the successful tenderer. MACA commenced operations at the Milky Way and Stellar West open pits in July 2017. The incumbent mining contractor,

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 47

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

WATPAC Mining & Civil, will continue operations into the September 2017 quarter at the Titan and Brown Hill North pits and see these pits through to completion.

Kathleen Valley mine

Mining activity at Kathleen Valley concluded late in the September 2016 quarter. Rehabilitation was carried out concurrently with mining activities and therefore final rehabilitation work, other than ongoing monitoring, was also completed. The Kathleen Valley project was very successful with recovered ounces of 65,244 being 22% higher than the February 2015 Feasibility Study.

Processing

Processing at the Checker processing facility at Mt Magnet resulted in robust annual production, which exceeded expectations during the 2017 financial year. The Burbanks processing facility was sold in the September 2016 quarter after being on care and maintenance throughout the 2016 financial year.

Total group fine gold production increased by 13% to 125,488 ounces in the financial year compared to 110,839 ounces in the previous corresponding period.

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Jun‐17 Jun‐16
Production Dry Tonnes Fine Gold Dry Tonnes Milled Fine Gold
Milled (High
Production (oz) (High Grade) Production (oz)
Grade)
Mt Magnet Segment 1,913,954 125,488 1,694,883 110,839
Total Production 1,913,954 125,488 1,694,883 110,839
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Group All‐In Sustaining Cost (AISC) averaged A$1,169 per ounce for the financial year which was below the average realised gold price of A$1,628 per ounce over the same period.

Average Realised Gold Price v All‐In Sustaining Cost A$/oz

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1,800
1,661
1,700 1,604 1,600 1,630
1,600
1,500 1,464
1,400
1,300 1,257
All‐In
1,200 1,168 Sustaining
1,100 Cost
1,000 915
900
800 Average
Realised
700
Gold Price
600
Sep‐16 Dec‐16 Mar‐17 Jun‐17
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Development Projects

Cosmos Project (WA)

The Cosmos Project at Mt Magnet consists of the Milky Way, Stellar, Stellar West, and Shannon open pits plus the Brown Hill and Vegas pits at the Galaxy area. The Cosmos area is located 3.6km south west of the Mt Magnet Checker Processing Plant.

Ramelius has undertaken significant new drilling (including two geotechnical diamond holes), hydrological and geotechnical studies, metallurgical test work, and density measurements. An external consultant was engaged for open pit optimisation and design work with a Pre‐Feasibility study generated.

The Milky Way, Stellar, and Shannon pits were previously mined in the 1990’s with production from this area expected to underpin the Mt Magnet operations over the next 2 – 3 years.

48 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

Approval for the Cosmos – Galaxy Mining Proposal was received from the Department of Mines and Petroleum (“DMP”) (now the Department of Mines, Industry Regulation and Safety (DMIRS)) on the 13[th] June 2017 with mining at the Cosmos area commencing in July 2017.

Morning Star Project (WA)

A new open pit resource model has been generated for Morning Star which incorporated a significant amount of new drilling completed over the last 12 months. Geotechnical diamond drilling was also completed with pit optimisation and design work on going. Work has commenced on the Mining Proposal with a view towards submission later in 2017.

Water Tank Hill (WA)

The Water Tank Hill project lies 1.5km west of Mt Magnet. The deposit is also located 300m west of the St George deposit which was mined by open pit and then underground methods between 2004 and 2007. During the year final approvals were received and operations commenced with ore haulage and processing commencing in the March 2017 quarter.

Exploration

Morning Star (WA)

A series of deeper RC drill holes were completed below the Morning Star pit to test for blind mineralised porphyry and/or banded iron formation units away from the historically mined high grade lode positions. Highly encouraging results continue to be returned from this exploration strategy.

Towards the end of the year, with the delineation of the revised open pit resource model for Morning Star, exploratory RC drilling stepped away from the Morning Star and targeted depth / plunge extensions to the Nathan pit and other shallow targets including Eclipse Ridge. Further drill testing is required to gauge the significance of drilling results to date.

Phase 1 of the drilling campaign at Morning Star Deeps is now complete after drilling 13 wedges off its parent diamond hole (MSD0056) for an aggregate 7,208.7metres. The next stage will be spent compiling all the drill hole lithological, alteration and structural data to generate a 3‐D litho‐structural model of the entire Morning Star system which will provide the framework for future underground mineral resource modelling.

Black Cat (WA)

RC drilling targeted the saddle between the Morning Star Pit and the Black Cat South pit. Drilling is ongoing testing the historically mined chert / banded iron hosted mineralisation’s as well as quartz veins.

Boogardie Basin (WA)

Regional Aircore drilling traverses over the Boogardie Basin commenced during the year targeting porphyry‐ultramafic contacts in areas of ineffective historical drilling coverage as well as targeting shallow plus 100ppb (parts per billion) gold in regolith anomalies and/or historical bottom of shallow RAB / Aircore anomalies where present. Several new target areas including Zeus, Venus, Artemis, and Bundy Flats have been identified for follow up RC drilling.

Zeus Project (WA)

Exploration drilling adjacent to the Stellar West deposit has delineated significant quartz vein hosted gold mineralisation along the western flank of the newly named Zeus Porphyry. The area became a focus for infill Aircore and deeper RC drill testing with encouraging intersections. Deeper RC drilling returned broad intervals of anomalous gold mineralisation with a blue quartz eye diorite porphyry intrusion. Infill drilling is required to better define continuity of the higher‐grade shoots within the system.

Artemis Prospect (WA)

The Artemis Porphyry was tested by three Aircore traverses 400 to 600m apart. Historical drilling over this target area has been too shallow to identify any gold anomalism. Follow up Aircore and RC drilling is planned.

Bundy Flats (WA)

At Bundy Flats encouraging intersections were returned with infill Aircore and RC drilling planned.

Tanami Joint Venture Gold Project (NT) ‐ Ramelius earning 85%

Reconnaissance drilling was completed during the year with disappointing results. The balance of the Tanami joint venture ELA’s have been delayed pending heritage surveys which are expected to be completed before the 2018 field season allowing further work following up other areas of gold anomalism identified from previous soil sampling programs.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 49

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

Geological and regolith mapping occurred in the year over the Highland Rocks EL ahead of infill soil sampling over a number of low order gold soil anomalies reported from the project in the prior year.

Coogee (WA)

Additional diamond drill holes were completed during the year with no significant results being recorded. In June 2017 a binding term sheet for a Farm‐In and Joint Venture Agreement was executed. The term sheet allows for the third party to earn up to an 80% joint venture interest by spending $2.1 million on the Coogee area over the next five years.

Kathleen Valley Gold Project (WA)

No significant results were returned for the Kathleen Valley gold project. A Tenement Sale Agreement for the sale of the Kathleen Valley Project tenements (including 100% of the rare metal rights (lithium, tantalum, and associated metals)) was completed in December 2016. Under the Tenement Sale Agreement Ramelius retains 100% of the gold rights to the tenement package and will continue to review any deeper gold exploration targets within the project.

Yandan Gold Project (QLD) – Ramelius 100%

Yandan North EPM is located 10km north and along strike of the abandoned Yandan gold mine which historically produced over 350,000oz of gold. Results are awaited from a small, three‐hole diamond drilling programme completed over the Yandan North EPM during the year.

Jupiter Farm‐in & Joint Venture (Nevada) – Ramelius earning 75%

Ramelius has executed a binding term sheet with Kinetic Gold (US) Inc, a wholly owned subsidiary of Renaissance Gold Inc (TSX.V: REN). Ramelius may earn up to 75% interest in the Jupiter gold project, located in Nye County, Nevada USA, by spending US$3 million within 5 years.

The project offers surface rock chip values up to 3.12 g/t Au. Ramelius intends to complete geological mapping, soil sampling and detailed gravity surveys ahead of drill testing several Long Canyon analogous targets along the Cambrian – Ordovician unconformity in three priority areas. The Long Canyon gold mine is owned and operated by Newmont and at December 31, 2016 reported 1.2 million ounces of attributable gold reserves and 2.4 million ounces in resources (source: www.newmont.com).

Corporate

The group finance team is in the process of being relocated from Adelaide, where it has been based since inception in 2003, to Perth alongside the operations and exploration teams. All corporate finance functions will be delivered out of the Perth office, following full recruitment of the new team, expected by 1 September 2017. The Registered Office and Company Secretarial function will remain in Adelaide.

To this end, Mr Tim Manners was appointed Chief Financial Officer effective 31 July 2017. Mr Manners replaces Mr Simon Iacopetta who resigned to pursue Adelaide based opportunities.

Ramelius held forward gold sales contracts at 30 June 2017 totalling 102,000 ounces of gold at an average price A$1,711 per ounce.

In June 2017, the A$10M financing facility with the Commonwealth Bank of Australia (CBA) expired undrawn.

Dividends

Ramelius has not paid, declared or recommended a dividend in the current or preceding year.

Significant Changes in the State of Affairs

On 26[th] July 2016, Ramelius raised $25,000,000 from the issue of 50,000,000 shares at $0.50 per share to various institutional investors.

There were no other significant changes in the state of affairs of the group that occurred during the financial year not otherwise disclosed in this report or the consolidated financial statements.

50 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

Subsequent Events

No matter or circumstance has arisen since 30 June 2017 that has significantly affected the group’s operations, results, or state of affairs, or may do so in the future.

Future Developments

In the 2018 financial year, Ramelius will continue its mining and gold production activities at Mt Magnet with a multi open pit and underground operation incorporating the Titan, Brown Hill North, Milky Way, Stellar, and Stellar West open pits and the Water Tank Hill underground project. Mining activities will also continue at the Vivien Gold Mine.

Exploration activities are mainly expected to be carried out at Mt Magnet and Vivien where further drilling is planned. In addition to this, opportunities in the Tanami region (Northern Territory), Queensland, and the USA are being pursued.

Environmental Regulations and Performance

Regulations

The operations of the group in Australia are subject to environmental regulations under both Commonwealth and State legislation. In the mining industry, many activities are regulated by environmental laws as they may have the potential to cause harm and/or otherwise impact upon the environment. Therefore, the group conducts its operations under the necessary State Licences and Works Approvals to carry out associated mining activities and operate a processing plant to process mined resources. The group’s licences and works approvals are such that they are subject to audits both internally and externally by the various regulatory authorities. These industry audits provide the group with valuable information in regard to environmental performance and opportunities to further improve systems and processes, which ultimately assist the business in minimising environmental risk.

Reporting

Due to the various licences and works approvals the group holds, annual environmental reporting (for a 12 month period) is a licence and works approval condition. The group did not experience any reportable environmental incidents for the reporting year 2016‐2017. Regulatory agencies requiring annual environmental reports are outlined below but are not limited to the following:

Department of Water and Environment and Regulation (DWER);
Department of Mines, Industry Regulation and Safety (DMIRS);
Tenement Condition Report;
Native Vegetation Clearing Report;
Mining Rehabilitation Fund (MRF) Levy;
National Pollution Inventory (NPI); and
National Greenhouse and Energy Reporting (NGERS).

Sustainability

The group is committed to environmental performance and sustainability and works closely with the regulatory authorities to achieve sustainability. Where the business can, continuous improvement processes are implemented to improve the operation and environmental performance. The group seeks to build relationships with all stakeholders to ensure that their views and concerns are taken into account in regard to decisions made about the operations, to achieve mutually beneficial outcomes. This includes current operations, future planning and post closure activities.

Shares Under Option

Unissued ordinary shares of Ramelius under option at the date of this report are as follows:

O t i G t d / I d	V t i D t	E i D t	E i P i	N u m b e r U n d e r O t i
p o n s r a n e s s u e e s n g a e x p r y a e x e r c s e r c e p o n pril 2014 11 June 2016 11 June 2018 0.299 1,500,000 ovember 2015 11 June 2017 11 June 2019 0.200 1,500,000 ovember 2015 11 June 2018 11 June 2020 0.200 1,500,000

No option holder has any right under the options to participate in any other share issue of the company or any other entity.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 51

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

Shares Issued on the Exercise of Options

The following ordinary shares of Ramelius were issued during the financial year ended 30 June 2017 as a result of the exercise of options. No amounts are unpaid on any of the shares.

S h O i G d	E i D	E i P i f O i	O d i S h I d
e a r e p t o n r a n t e x p r y a t e x e r c s e r c e o p t o n s r n a r y a r e s s s u e 4 11 June 2017 0.249 1,500,000

Indemnification and Insurance of Directors and Officers

Indemnification

Ramelius is required to indemnify its directors and officers against any liabilities incurred by the directors and officers that may arise from their position as directors and officers of Ramelius and its controlled entities. No costs were incurred during the year pursuant to this indemnity.

Ramelius has entered into deeds of indemnity with each director whereby, to the extent permitted by the Corporations Act 2001 , Ramelius agreed to indemnify each director against all loss and liability incurred as an officer of the Company, including all liability in defending any relevant proceedings.

Insurance premiums

Since the end of the previous year Ramelius has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses insurance contracts. The terms of the policies prohibit disclosure of details of the amount of the insurance cover, the nature thereof and the premium paid.

Proceedings on Behalf of Ramelius

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of Ramelius or to intervene in any proceedings to which Ramelius is a party, for the purpose of taking responsibility on behalf of Ramelius for all or part of those proceedings. There were no such proceedings brought or interventions on behalf of Ramelius with leave from the Court under section 237 of the Corporations Act 2001 .

Non‐Audit Services

The company may decide to employ the auditor (Grant Thornton) on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the company and/or the group are important. Details of the amounts paid or payable to the auditor for audit and non‐audit services provided during the year are set out below.

The Board of directors has considered the position, and in accordance with advice received from the Audit & Risk Committee, is satisfied that the provision of the non‐audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The directors are satisfied that the provision of non‐ audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

all non‐audit services have been reviewed by the Audit & Risk Committee to ensure they do not impact the impartiality and objectivity of the auditor;
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

During the year the following fees were paid or payable for non‐audit services provided by the auditor of the parent entity, its related practices and non‐related audit firms:

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Non‐assurance services 2017 2016
Tax advice and compliance services 20,220 7,000
Other ‐ 580
Total 20,220 7,580
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Auditor Independence

A copy of the auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 follows the Directors Report.

52 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

Remuneration Report (audited)

The directors are pleased to present your company’s remuneration report which sets out remuneration information for the non‐executive directors, executive directors and other key management personnel of Ramelius. This remuneration report forms part of the directors’ report. It outlines the overall remuneration strategy, framework and practices adopted by Ramelius and its controlled entities for the period 1 July 2016 to 30 June 2017. The remuneration report has been prepared in accordance with Section 300A of the Corporations Act 2001 and its regulations and is designated as audited.

In accordance with the Corporations Act 2001 , remuneration details are disclosed for the group’s key management personnel. The remuneration report:

Details Board policies for determining remuneration of key management personnel,
Specifies the relationship between remuneration policies and performance, and
Identifies remuneration particulars for key management personnel.

1. Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling major activities of the group, directly and indirectly, being the Ramelius directors and senior executives. Directors and senior executives disclosed in this report are as follows:

N a m e s								P o s i t i o n
D i r e c t o r s o f R a m e l i u s
Mr R M Kennedy								Non‐Executive Chairman
Mr M W Zeptner								Managing Director / Chief Executive Officer
Mr K J Lines								Non‐Executive Director
Mr M A Bohm								Non‐Executive Director
O t h e r s e n i o r e x e c u t i v e s
Mr D A Francese								Company Secretary
Mr S Iacopetta								Chief Financial Officer
Mr D J Coutts								Chief Operating Officer
Mr K M Seymour								General Manager ‐ Exploration & Business Development

Changes since the end of the reporting period Mr S Iacopetta resigned as Chief Financial Officer effective 31 July 2017. Mr T Manners was appointed as Chief Financial Officer effective 31 July 2017.

2. Remuneration governance

The Nomination & Remuneration Committee is a committee of the Board. It is primarily responsible for making recommendations to the Board on:

Non‐executive director fees;
Executive remuneration (directors and senior executives); and
The executive remuneration framework and incentive plan policies.

The objective of the Nomination & Remuneration Committee is to ensure that remuneration policies and structures are fair and competitive and aligned with the long‐term interests of the Company. In performing its functions, the Nomination & Remuneration Committee may seek advice from independent remuneration consultants.

During the year the Nomination & Remuneration Committee engaged Godfrey Remuneration Group Pty Limited (Godfrey) to report on and provide recommendations on market competitiveness of non‐executive director remuneration and the Chief Executive Officer remuneration profile, including short‐term incentives. Godfrey was paid $32,000 for these services.

Godfrey has confirmed that any remuneration recommendations have been made free from undue influence by members of the group’s key management personnel.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 53

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

The following arrangements were made to ensure that the remuneration recommendations were free from undue influence:

Godfrey was engaged by, and reported directly to, the chair of the Nomination & Remuneration Committee. The agreement for the provision of remuneration consulting services was executed by the chair of the Nomination & Remuneration Committee under delegated authority on behalf of the board;
The report containing the remuneration recommendations was provided by Godfrey directly to the chair of the Nomination & Remuneration Committee; and
Godfrey was permitted to speak to management throughout the engagement to understand company processes, practices and other business issues and obtain management perspectives. However, Godfrey was not permitted to provide any member of management with a copy of their draft or final report that contained the remuneration recommendations.

As a consequence, the board is satisfied that the recommendations were made free from undue influence from any members of the key management personnel.

3. Executive remuneration policy and framework

Ramelius has adopted a policy that aims to attract, motivate and retain a skilled executive team focused on contributing to its objective of creating wealth and adding value for its shareholders. The remuneration framework is formed on this basis. The remuneration framework is based on a number of factors including the particular experience and performance of the individual in meeting key objectives of Ramelius.

The objective of the senior executive remuneration framework includes incentives that seek to encourage alignment of management performance and shareholder interests. The framework aligns senior executive rewards with strategic objectives and the creation of value for shareholders, and conforms to market practices for delivery of rewards.

In determining senior executive remuneration, the Board aims to ensure that remuneration practices are:

Competitive and reasonable, enabling the company to attract and retain key talent,
Aligned to the company’s strategic and business objectives and the creation of shareholder value,
Acceptable to shareholders, and
Transparent.

The senior executive remuneration framework is designed to ensure market competitiveness and achievement of the remuneration objective. The remuneration of senior executives is:

Benchmarked from time to time against similar organisations both within the industry and of comparable market size to ensure uniformity with market practices;
A reflection of individual roles, levels of seniority and responsibility that key personnel hold;
Structured to take account of prevailing economic conditions; and
A mix of fixed remuneration and at risk performance based elements using short and long‐term incentives.

The executive remuneration framework has three components:

Base pay and benefits, including superannuation;
Short‐term performance incentives; and
Long‐term incentives through participation in the Employee Share Acquisition Plan, Performance Rights Plan and as approved by the Board.

The combination of these comprises a senior executive’s total remuneration package. Incentive plans are regularly reviewed to ensure continued alignment with financial and strategic objectives.

3.1 Remuneration framework

Ramelius remunerates its senior executives with a Total Reward Package (“TRP”) that consists of two components; Total Fixed Remuneration and Total Variable Remuneration. Total Fixed Remuneration (“TFR”) comprises of base salary, superannuation and other fixed executive benefits (such as salary sacrifice). Total Variable Remuneration (“TVR”) comprises of Short Term Incentives (“STI”) and Long Term Incentives (“LTI”).

3.2 Executive remuneration mix

To ensure that senior executive remuneration is aligned to company performance, where appropriate, a portion of selected senior executives’ target pay is “at risk”.

54 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

3.3 Base pay and benefits

Senior executives are offered a competitive base pay that comprises the fixed component of pay and rewards. When required, external remuneration consultants are utilised to provide analysis and advice to ensure base pay reflects the market for a comparable role.

Base pay for senior executives is reviewed annually in order to ensure pay remains competitive with the market. A senior executive’s pay is also reviewed on promotion. There is no guaranteed base pay increase included in any senior executive contracts. The Managing Director/Chief Executive Officer and senior executives may elect to salary sacrifice part of their fixed remuneration for additional superannuation contributions and other benefits.

3.4 Short‐term incentives

Short‐term incentives (STI) are provided to certain executives under the direction of the Nomination & Remuneration Committee. The Nomination & Remuneration Committee may recommend to the Board the payment of cash bonuses from time to time in order to reward individual executive performance in achieving key objectives that are given high levels of importance for the Company’s growth and profitability. To assist in this assessment, the Nomination & Remuneration Committee receives recommendations from the Managing Director/Chief Executive Officer. This may result in the proportion of remuneration related to performance varying between individuals. STI’s are established to encourage the achievement of specific goals that are given high levels of importance in relation to growth and profitability of Ramelius.

From August 2017, a structured set of KPI’s have be adopted for STI measurement which include i) Net profit after tax, ii) Gold production compared to budget, iii) Reserve addition to Life of Mine Plan, and iv) All In Sustaining Cost (AISC) compared to budget. These KPI’s are subject to Threshold, Target and Stretch hurdles, which may be modified downward at the board’s discretion and modified down to zero in the event of serious safety and environmental breaches.

3.5 Long‐term incentives (LTI’s)

Long‐term incentives are provided via the Ramelius Performance Rights Plan, Employee Share Acquisition Plan as approved by the Board. The LTI’s are designed to focus senior executives on delivering long‐term shareholder returns.

Performance Rights Plan

The Performance Rights Plan enables the Board to grant performance rights (being entitlements to shares in Ramelius subject to satisfaction of vesting conditions) to selected key senior executives as a long‐term incentive as determined by the Board in accordance with the terms and conditions of the plan. The plan provides selected senior executives the opportunity to participate in the equity of Ramelius through the issue of rights as a long‐term incentive that is aligned to the long‐term interests of shareholders.

Under the Performance Rights Plan, the number of rights granted to senior executives ranges up to 40% of the executive’s total fixed remuneration (TFR) and is dependent upon each individual’s skills, responsibilities and ability to influence financial or other key objectives of Ramelius. The number of rights granted is calculated by dividing the LTI remuneration dollar amount by the volume weighted average price of Ramelius shares traded on the Australian Securities Exchange during the 5 trading day period prior to the date of the grant.

The vesting and measurement period has previously been set over three years with vesting and measurement for each third of the granted rights occurring at the end of each year during the three year period. From August 2017, the vesting and measurement period has been set at three years.

Rights are subject to vesting conditions related to achievement of total shareholder returns (TSR) and period of service. TSR performance is measured against the TSR of a benchmark peer group. The following companies have been identified by Ramelius to comprise the peer group.

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Company ASX Code Company ASX Code
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C o m p a n y	A S X C o d e	C o m p a n y	A S X C o d e
Northern Star Resources Limited NST Saracen Mineral Holdings Limited SAR Evolution Mining Limited EVN Regis Resources Limited RRL Silver Lake Resources Limited SLR Westgold Resources Limited WGX DorayMinerals Limited DRM		Gold Road Resources Limited GOR Millennium Minerals Limited MOY Resolute Mining Limited RSG Dacian Gold Limited DCN Excelsior Gold Limited EXG St Barbara Limited SBM Blackham Resources Limited BLK

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 55

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

The Nomination & Remuneration Committee may recommend to the Board to either include or exclude gold mining organisations available on this list to reflect changes in the industry.

The proportion of senior executive rights that vest is dependent on how the Ramelius TSR compares to the peer group as follows:

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Relative TSR Over the Vesting and Measurement Period Proportion of Performance Rights Vested
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R e l a t i v e T S R O v e r t h e V e s t i n g a n d M e a s u r e m e n t P e r i o d	P r o p o r t i o n o f P e r f o r m a n c e R i g h t s V e s t e d
Below the 50th percentile 0%
At the 50thpercentile 50%
Between the 50thand 75th percentile Pro‐rata between 50% and 100%
At and above the 75th percentile 100%

Once vested, rights may be exercised within 7 years of the vesting date. During the year 3,572,692 performance rights were granted to employees under the Performance Rights Plan. At the date of this report 379,351 performance rights had been forfeited.

Of these performance rights granted 976,448 vested on 1 July 2017, all other performance rights issued during the year had not vested at the date of this report.

Employee Share Acquisition Plan

The Employee Share Acquisition Plan enables the Board to offer eligible employees ordinary fully paid shares in Ramelius as a long‐term incentive, in accordance with the terms of the plan. Shares may be offered at no consideration unless the Board determines that market value or some other value is appropriate.

Other long‐term incentives

The Board may at its discretion provide share rights/options as a long‐term retention incentive to employees.

3.6 Share trading policy

The trading of shares is subject to, and conditional upon, compliance with the company’s employee share trading policy. The policy is enforced through a system that includes a requirement that senior executive’s confirm compliance with the policy and provide confirmation of dealings in Ramelius securities. The ability for a senior executive to deal with an option or a right is restricted by the terms of issue and the plan rules which do not allow dealings in any unvested security. The Share Trading Policy specifically prohibits an executive from entering into transactions that limit the economic risk of participating in unvested entitlements such as equity based remuneration schemes. The Share Trading Policy can be viewed on the Company’s website.

Relationship between executive remuneration and Company performance

The following table shows key performance indicators for the group over the last five years:

	2 0 1 7	2016	2015	2014	2013
Net profit (loss) after tax ($000) 1 7 , 7 6 5 27,540 16,068 (85,512) (50,792) Dividend / capital return ($000) ‐ ‐ ‐ ‐ ‐ Share price 30 June ($) 0 . 4 5 0 0.435 0.115 0.077 0.110 Basic earnings per share (cents) 3 . 3 9 5.82 3.48 (23.8) (15.1) Diluted earnings per share (cents) 3 . 3 6 5.81 3.48 (23.8) (15.1)

The total remuneration mix for the Managing Director/Chief Executive Officer and other senior executives and the key links between remuneration and performance is detailed and explained according to each type of remuneration referred to in the total remuneration mix below.

The following graph illustrates the total remuneration mix for senior executives shown separately for the Managing Director/Chief Executive Officer and other executives.

56 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

2017 total remuneration mix

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MD / CEO 57% 20% 23%
Other
75% 13% 12%
executives
0% 20% 40% 60% 80% 100%
Base pay & salaries LTI STI
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4.1 Base pay and salaries

Base pay and salary levels have remained reasonably consistent with the remuneration mix in the prior year. Base pay and salary levels are established in accordance with section 3.3 above.

4.2 Short term incentives

Short term incentives in the form of cash bonuses are paid to employees based on the operational achievements of the organisation. Operational achievements epitomise the accomplishment of key milestones including production, financial performance and cost management. These incentives are established in accordance with section 3.4 above.

4.3 Long term incentives

Long term incentives provided via the Ramelius Performance Rights Plan and Employee Share Acquisition Plan as approved by the Board, are granted to employees based on the long term operational performance of the organisation Long term incentives are established in accordance with section 3.5 above.

Non‐executive directors remuneration policy

Non‐executive director fees are determined using the following guidelines. Fees are:

Determined by the nature of the role, responsibility and time commitment necessary to perform required duties;
Not performance or incentive based but are fixed amounts; and
Determined by the desire to attract a well‐balanced group of individuals with pertinent knowledge and experience.

In accordance with the Company’s Constitution, the total amount of remuneration of non‐executive directors is within the aggregate limit of $550,000 per annum as approved by shareholders at the 2010 Annual General Meeting.

Non‐executive directors may apportion any amount up to this maximum level amongst the non‐executive directors as determined by the Board. Remuneration consists of non‐executive director fees, committee fees and superannuation contributions.

Non‐executive directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in performing their duties as directors. Non‐executive directors do not participate in any performance based pay including schemes designed for the remuneration of senior executives, share rights or bonus payments and are not provided with retirement benefits other than salary sacrifice and superannuation.

All Non‐Executive Directors enter into a service agreement with the company in the form of a letter of appointment. The letter summarises the Board policies and terms, including remuneration, relevant to the office of director.

Voting and comments made at the company’s 2016 Annual General Meeting Of the total valid available votes lodged, Ramelius received 90% of “FOR” votes on its remuneration report for the 2016 financial year. The company did not receive any specific feedback at the AGM on its remuneration practices.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 57

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

7. Details of remuneration Details of remuneration fees paid to non‐executive directors are set out below:

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Non‐Executive Directors Financial Year Directors Fees Superannuation Total Remuneration
Mr R M Kennedy 2017 173,363 17,336 190,699
2016 173,395 17,339 190,734
Mr K J Lines 2017 93,666 9,367 103,033
2016 92,477 9,248 101,725
Mr M A Bohm 2017 83,797 17,116 100,913
2016 80,435 19,170 99,605
Total 2017 350,826 43,819 394,645
2016 346,307 45,757 392,064
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Details of the remuneration package by value and by component for executive directors and other senior executives in the current and previous reporting period are set out below:

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Short‐Term EmpPlooystm‐ ent LoBnegn‐eTfeitrsm SPhaayrme‐eBnatsse 1d
Senior Executives
Salary and STI Cash Super‐ Long ServiceTermination LTI
Fees Bonus annuation Leave Benefits Options Rights Total
Mr M W Zeptner [2]
2017 465,000 200,000 30,000 9,872 136,249 38,881 880,002
2016 467,273 22,727 30,000 12,638 ‐ 102,801 ‐ 635,439
Mr D A Francese [3]
2017 299,583 50,000 29,958 8,570 ‐ 62,380 450,491
2016 299,583 3,000 30,258 8,639 ‐ ‐ ‐ 341,480
Mr S Iacopetta [4]
2017 269,155 50,000 25,570 16,654 ‐ 41,587 402,966
2016 133,333 3,000 13,633 5,681 ‐ ‐ ‐ 155,647
Mr D J Coutts [5]
2017 350,000 62,500 35,000 ‐ ‐ 72,777 520,277
2016 134,770 ‐ 13,477 ‐ ‐ ‐ ‐ 148,247
Mr K M Seymour
2017 251,000 50,000 35,000 4,950 ‐ 54,063 395,013
2016 260,000 3,000 26,300 10,356 ‐ ‐ ‐ 299,656
Mr T J Blyth [6]
2017 ‐ ‐ ‐ ‐ ‐ ‐ ‐
2016 185,753 20,000 20,575 1,499 ‐ ‐ ‐ 227,827
Total
2017 1,634,738 412,500 155,528 40,046 136,249 269,688 2,648,749
2016 1,480,712 51,727 134,243 38,813 ‐ 102,801 ‐ 1,808,296
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1 Rights and options relate to rights and options over ordinary shares issued to key management personnel. The fair value of rights and options granted shown above is non‐cash and was determined in accordance with applicable accounting standards and represents the fair value calculated at the time rights and options were granted and not when shares were issued

2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015

3 Mr D A Francese ceased as Chief Financial Officer on 31 October 2015

4 Mr S Iacopetta was appointed Chief Financial Officer effective 1 November 2015 (resigned 31 July 2017)

5 Mr D J Coutts commenced employment with the company on 12 February 2016

6 Mr T Blyth ceased as key management personnel on 12 February 2016

58 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

The relative proportions of remuneration that are ‘at risk’ and those that are fixed are as follows:

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Senior Executives Financial Year Fixed Remuneration At Risk ‐ STI At Risk ‐ LTI 1
Mr M W Zeptner [2] 2017 57.4% 22.7% 19.9%
2016 80.2% 3.6% 16.2%
Mr D A Francese [3] 2017 75.1% 11.1% 13.8%
2016 99.1% 0.9% ‐
Mr S Iacopetta [4] 2017 77.3% 12.4% 10.3%
2016 98.1% 1.9% ‐
Mr D J Coutts [5] 2017 74.0% 12.0% 14.0%
2016 100.0% ‐ ‐
Mr K M Seymour 2017 73.7% 12.7% 13.6%
2016 99.0% 1.0% ‐
Mr T J Blyth [6] 2017 ‐ ‐ ‐
2016 91.2% 8.8% ‐
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1 Since the LTI’s are provided exclusively by way of right and option, the percentages disclosed also reflect the value of remuneration consisting of rights and options, based on the value of rights and options expensed in the year

2 Mr M W Zeptner was appointed Managing Director effective 1 July 2015
3 Mr D A Francese ceased as Chief Financial Officer on 31 October 2015

4 Mr S Iacopetta was appointed Chief Financial Officer effective 1 November 2015 (resigned 31 July 2017)

5 Mr D J Coutts commenced employment with the company on 12 February 2016

6 Mr T Blyth ceased as key management personnel on 12 February 2016

8. Service agreements

Remuneration and other terms of employment for senior executives are formalised in service agreements. The service agreements specify the components of remuneration, benefits and notice periods. Participation in short term and long term incentives are at the discretion of the Board. Other major provisions of the agreements relating to remuneration are set out below. Contracts with executives may be terminated early by either party as detailed below:

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Company /
Name and Position Term of Base Salary incl. Employee Notice Termination
Agreement Super 1 Period Benefit 2
Mr M W Zeptner On‐going commencing 6 months
$495,000 6 / 3 months
Chief Executive Officer 1 Jul 2015 base salary [ 3]
Mr D A Francese On‐going commencing 6 months
$329,541 6 / 3 months
Company Secretary 1 Nov 2015 base salary [ 3]
Mr S Iacopetta On‐going commencing 6 months
$275,000 6 / 3 months
Chief Financial Officer 1 Nov 2015 base salary
Mr D J Coutts On‐going commencing 3 months
$385,000 6 / 3 months
Chief Operating Officer 12 Feb 2016 base salary
Mr K M Seymour
On‐going commencing 3 months
GM ‐ Business Development & $286,000 3 / 3 months
1 Jul 2009 base salary
Exploration
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1 Base salaries quoted are as at 30 June 2017, they are reviewed annually by the Nomination & Remuneration Committee

2 Termination benefits are payable on early termination by the company, other than for gross misconduct, unless otherwise indicated

3 In certain circumstances the termination benefit may be 12 months base salary

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 59

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

9. Details of share‐based compensation and bonuses

For grant of options or rights to deferred shares included in the remuneration tables above, the percentage of available grant that was paid, or that vested, in the financial year, and the percentage forfeited because the person did not meet the service and performance criteria is set out below in section 9.2 The minimum value of the rights yet to vest is nil, as the rights will be forfeited if the key management persons fail to satisfy the vesting conditions. The maximum value of the rights yet to vest has been determined as the amount of the grant date fair value of the rights that is yet to be expensed.

9.1 Cash bonuses

Details of cash bonuses paid to key management personnel of the group are set out in Section 7 above. Cash bonuses are paid at the discretion of the Board on achievement of key milestones that are important for the company. The cash bonuses were paid as a short term incentive in December 2016 for reasons set out in Section 4 above. No cash bonuses have since been paid or recommended.

9.2 Terms and Conditions of Share Based Payment Arrangements Options

The terms and conditions of each grant of options affecting remuneration in the current or a future reporting period are as follows:

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|||||||
|---|---|---|---|---|---|
|Vesting and|Value Per Option|
|Grant Date|
|Exercise Date|Expiry Date|Exercise Price|at Grant Date|Vested|
|26 November 2015|11 June 2017|11 June 2019|$0.200|$0.087|100%|
|26 November 2015|11 June 2018|11 June 2020|$0.200|$0.095|n/a|

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Details of options over ordinary shares in the company provided as remuneration to key management personnel are shown below. Options granted under the plan carry no dividend or voting right. When exercisable, each option is convertible into one ordinary share of Ramelius. The options were provided at no cost to the recipients.

The assessed fair value at grant date of options granted to the individual is allocated equally over the period from grant date to vesting date, and the amount is included in the remuneration tables above. Fair values at grant date are determined using a Black‐Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free rate for the term of the option.

Performance Rights

The terms and conditions of each grant of performance right affecting remuneration in the current or a future reporting period are as follows:

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||||||||
|---|---|---|---|---|---|---|
|Vesting and|Value Per|
|Exercise Date|Expiry Date|Exercise Price|Performance|Vested|
|Grant Date|
|Right at Grant|
|Date|
|23 November 2016|[1]|1 July 2017|1 July 2024|$nil|$0.33|0%|
|23 November 2016|1 July 2018|1 July 2025|$nil|$0.32|0%|
|23 November 2016|1 July 2019|1 July 2026|$nil|$0.37|0%|
|22 December 2016|11 June 2019|11 June 2026|$mil|$0.36|0%|

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1 These performance rights vested subsequent to the end of the financial year on 1 July 2017.

Rights to deferred shares under the Performance Rights Plan are assessed against vesting criteria (and vested accordingly) in July each year. One third of the performance rights granted vest one year from the grant date, another third vest two years from the grant date, and the final third vest three years from the grant date. On vesting, each right must be exercised within seven years of the vesting date. The performance rights carry no dividend or voting rights. If an employee ceases employment before the performance rights vest, the rights will be forfeited, except in limited circumstances that are approved by the board on a case‐by‐case basis.

As this is the first year in which the Performance Rights Plan has been in place the grant date for the first grant of performance rights for valuation purposes is deemed to be the date on which the shareholders approved the Performance Rights Plan. This approval occurred at the AGM held on 23 November 2016.

60 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ REPORT

Reconciliation of options held by KMP

The table below shows a reconciliation of options held by each KMP from the beginning to the end of the 2017 financial year. All vested options were exercisable.

2 0 1 7 N a m e & g r a n t d a t e s e	y e a r V e s t e d & x e r c i s a b l e U	n v e s t e d N u m b e r %	E x e r c i s e d V e x	y e a r e s t e d & e r c i s a b l e	U n v e s t e d
Mr M W Zeptner 16 April 2014 16 April 2014 26 November 2015 26 November 2015	1,500,000 1,500,000 ‐ ‐ ‐ 1,500,000 1,500,000 ‐ ‐ 1,500,000 ‐ ‐ ‐ 100 ‐ (1,500,000) ‐ ‐ ‐ 1, 1,			‐ 500,000 500,000 ‐ ‐ ‐ ‐ 1,500,000

The number of ordinary shares in the company provided as a result of the exercise of remuneration options to key management personnel during the financial year is shown below.

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Key Management Personnel Date Options Ordinary Shares Exercise Price per Value of Options at
Exercised Issued on Exercise of share Exercise Date 1
Options
Mr M W Zeptner 8 Jun 2017 1,500,000 $0.24689 $256,965
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1 The value at the date of exercise of options that were granted as part of remuneration and exercised during the year has been determined as the intrinsic value of the options at the exercise date

Reconciliation of performance rights held by KMP

The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of the 2017 financial year.

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2017 Balance at the start of Vested Balance at the end of
Name & grant dates the year Exercised the year
Vested & Unvested Number % Vested Unvested
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2 0 1 7 N a m e & g r a n t d a t e s	B a a n c e a t t e t h	s t a r t o V e s t e n v e s t e d N u m b e r %	E x e r c i s e d V	a a n c e a t t e e n o t h	a a n c e a t t e e n o t h
	e y e a V e s t e d & U			e y e a e s t e d U	n v e s t e d
Mr M W Zeptner 22 December 2016 ‐ 500,000 ‐ ‐ ‐ ‐ 500,000 Mr D A Francese 23 November 2016 ‐ 303,413 ‐ ‐ ‐ ‐ 303,413 Mr S Iacopetta 23 November 2016 ‐ 202,276 ‐ ‐ ‐ ‐ 202,276 Mr D J Coutts 23 November 2016 ‐ 353,982 ‐ ‐ ‐ ‐ 353,982 Mr K M Seymour 23 November 2016 ‐ 262,958 ‐ ‐ ‐ ‐ 262,958

Reconciliation of ordinary shares held by KMP

2 0 1 7 N a m e	e i v e d	B a
	n g t h e o n t h e
	c i s e o f t i o n s	D i s p o s a l o f s h a r e s t h t h
Mr R M Kennedy 10,350,789 ‐ ‐ ‐ 10,350,789 Mr M W Zeptner 2,037,500 1,500,000 ‐ 2,025,000 1,512,500 Mr K J Lines 1,000,000 ‐ ‐ ‐ 1,000,000 Mr M A Bohm 1,037,500 ‐ 200,000 ‐ 1,237,500 Mr D A Francese 1,314,922 ‐ ‐ ‐ 1,314,922 Mr S Iacopetta 280,000 ‐ ‐ ‐ 280,000 Mr D J Coutts ‐ ‐ ‐ ‐ ‐ Mr K M Seymour 224,860 ‐ ‐ ‐ 224,860

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 61

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ANNUAL FINANCIAL REPORT 2017
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DIRECTORS’ REPORT

Loans to key management personnel

There were no loans made to key management personnel or their personally related parties during the current or prior period.

Other transactions with key management personnel

Lease payments were made during the year to an entity related to the Chairman, Mr R M Kennedy. The lease agreement is for the office property in Adelaide, SA and has been based on normal commercial terms on conditions on an arm’s length basis.

Aggregate amounts of each of the above types of transactions with key management personnel of Ramelius Resources Limited:

	2 0 1 7 $	2016 $
ounts recognised as an expense t of office building 9 7 , 7 4 9 93,816 ounts recognised as current other debtors urity deposit on premises 1 3 , 9 3 5 13,935

The Chairman, Mr R M Kennedy, is the Chairman of Maximus Resources Limited. During the year Ramelius Resources Limited entered into a Share Sale Agreement with Maximus Resources Limited for the sale of Ramelius Milling Services Pty Limited (the owner and operator of the Burbanks Mill). The Share Sale Agreement was made on normal commercial terms and conditions on an arm’s length basis.

	2 0 1 7 $	2016 $
ounts recognised as other receivables rent 4 5 0 , 0 0 0 ‐ n ‐ current 1 2 8 6 2 1 7 ‐

Remuneration report ends.

Rounding of Amounts

Ramelius Resources Limited is a type of company referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest $1,000, or in certain cases, to the nearest dollar.

The directors’ report, incorporating the remuneration report is signed in accordance with a resolution of the Board of directors.

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________ Robert Michael Kennedy Chairman Adelaide 24 August 2017

62 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Grant Thornton House Level 3 170 Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au

Auditor’s Independence Declaration

to the Directors of Ramelius Resources Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Ramelius Resources Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD

J L Humphrey Partner – Audit & Assurance Adelaide, 24 August 2017

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Our Ref: Ramelius Resources Limited_Indepedence Declaration_Jun 17.Docx

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 63

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ANNUAL FINANCIAL REPORT 2017
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CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2017

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2017 2016
Note $000’s $000’s
Sales revenue 5(a) 197,358 173,744
Cost of production 5(b) (168,615) (140,839)
Gross profit 28,743 32,905
Other expenses 5(c) (5,946) (7,303)
Other income 5(d) 1,790 7
Operating profit before interest income and finance cost 24,587 25,609
Interest income 5(e) 1,154 568
Finance costs 5(e) (681) (834)
Profit before income tax 25,060 25,343
Income tax (expense) benefit 7 (7,418) 2,422
Profit for the year from continuing operations 17,642 27,765
Profit (loss) for the year from discontinued operations 32 33 (225)
Profit for the year 17,675 27,540
Earnings per share (cents per share)
Basic earnings per share
- Continuing operations 8 3.38 5.87
- Discontinued operations 8 0.01 (0.05)
Total basic earnings per share 3.39 5.82
Diluted earnings per share
- Continuing operations 8 3.35 5.86
- Discontinued operations 8 0.01 (0.05)
Total diluted earnings per share 3.36 5.81
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The above Consolidated Income Statement should be read in conjunction with the accompanying notes

64 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

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2017 2016
$000’s $000’s
Profit for the year 17,675 27,540
Other comprehensive income, net of tax
Items that may be reclassified to profit or loss:
Change in fair value of available‐for‐sale assets (280) (202)
Other comprehensive income for the year, net of tax (280) (202)
Total comprehensive income for the year 17,395 27,338
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The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 65

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ANNUAL FINANCIAL REPORT 2017
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CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 30 JUNE 2017

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2017 2016
Note $000’s $000’s
Current assets
Cash and cash equivalents 9 78,567 44,272
Trade and other receivables 10 1,914 1,836
Inventories 11 29,231 18,947
Other assets 12 891 868
Assets and disposal group classified as held for sale 32 ‐ 3,225
Total current assets 110,603 69,148
Non‐current assets
Other receivables 10 1,286 ‐
Other assets 12 412 526
Available‐for‐sale financial assets 13 292 132
Property, plant and equipment 14 19,239 20,539
Development assets 15 53,455 60,634
Intangible assets 16 ‐ 73
Exploration and evaluation expenditure 17 19,101 7,784
Deferred tax assets 7 30,944 35,410
Total non‐current assets 124,729 125,098
Total assets 235,332 194,246
Current liabilities
Trade and other payables 18 22,398 22,255
Provisions 19 2,714 3,392
Liabilities included in disposal group held for sale 32 ‐ 2,070
Total current liabilities 25,112 27,717
Non‐current liabilities
Provisions 19 21,429 22,336
Deferred tax liabilities 7 18,989 16,605
Total non‐current liabilities 40,418 38,941
Total liabilities 65,530 66,658
Net assets 169,802 127,588
Equity
Share capital 20 149,122 125,080
Reserves 21 920 423
Retained profits 19,760 2,085
Total equity 169,802 127,588
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The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes

66 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2017

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Share‐based Available‐ Asset
Share payment for‐sale revaluation Retained Total
capital reserve 1 reserve 1 reserve 1 profit (loss) equity
$000’s $000’s $000’s $000’s $000’s $000’s
Balance at 30 June 2015 124,251 2,545 (93) 634 (28,033) 99,304
Profit for the year ‐ ‐ ‐ ‐ 27,540 27,540
Other comprehensive income ‐ ‐ (202) ‐ ‐ (202)
Total comprehensive income ‐ ‐ (202) ‐ 27,540 27,338
Transactions with owners in their
capacity as owners:
Share capital 832 ‐ ‐ ‐ ‐ 832
Transaction costs net of tax (3) ‐ ‐ ‐ ‐ (3)
Share‐based payments ‐ 117 ‐ ‐ ‐ 117
Transfer of reserves [2] ‐ (2,578) ‐ ‐ 2,578 ‐
Balance at 30 June 2016 125,080 84 (295) 634 2,085 127,588
Profit for the year ‐ ‐ ‐ ‐ 17,675 17,675
Other comprehensive income ‐ ‐ (280) ‐ ‐ (280)
Total comprehensive income ‐ ‐ (280) ‐ 17,675 17,395
Transactions with owners in their
capacity as owners:
Share capital 25,373 ‐ ‐ ‐ ‐ 25,373
Transaction costs net of tax (1,331) ‐ ‐ ‐ ‐ (1,331)
Share‐based payments ‐ 777 ‐ ‐ ‐ 777
Balance at 30 June 2017 149,122 861 (575) 634 19,760 169,802
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1 Refer Note 21 for description of reserves.

2 Represents the portion of share based payments which have either expired or vested.

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notesThe above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 67

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ANNUAL FINANCIAL REPORT 2017
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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

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2017 2016
Note $000’s $000’s
Cash flows from operating activities
Receipts from operations 197,589 176,288
Payments to suppliers and employees (115,160) (111,027)
Interest received 1,189 531
Finance costs (280) (116)
Net cash provided by (used in) discontinued operations 92 (160)
Net cash provided by operating activities 25 (b) 83,430 65,516
Cash flows from investing activities
Payment for derivatives (80) (186)
Payments for property, plant and equipment (4,850) (5,152)
Payments for development (52,407) (43,104)
Proceeds from sale of property, plant and equipment 5 1
Proceeds from the sale of subsidiary 527 ‐
Payments for available‐for‐sale financial assets (15) ‐
Payments for mining tenements and exploration (14,840) (4,795)
Payments for site rehabilitation and demobilisation (946) (203)
Net cash used in investing activities (72,606) (53,439)
Cash flows from financing activities
‐
Repayment of borrowings (1,062)
Proceeds from issue of shares 25,373 832
Transaction costs from issue of shares (1,902) (4)
Net cash provided by (used in) financing activities 23,471 (234)
Net increase in cash and cash equivalents 34,295 11,843
Cash at beginning of financial year 44,272 32,425
Effects of exchange rate changes on cash held ‐ 4
Cash and cash equivalents at end of financial year 25 (a) 78,567 44,272
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The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes

68 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

The financial report of Ramelius Resources Limited for the year ended 30 June 2017 was authorised for issue in accordance with a resolution of the directors on 24 August 2017. Ramelius Resources Limited is a listed public company, incorporated and domiciled in Australia whose shares are publicly listed on the Australian Securities Exchange Limited (ASX).

1 Summary of Significant Accounting Policies

The principal accounting policies adopted in the preparation of this financial report are presented below. These policies have been consistently applied to all years presented, unless otherwise stated. This annual financial report includes the consolidated financial statements and notes of Ramelius Resources Limited and its controlled entities.

a) Basis of preparation and statement of compliance

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standard Board (AASB) and the Corporations Act 2001 . Ramelius is a for‐profit entity for the purposes of preparing the financial statements. The financial report has been presented in Australian dollars and rounded to the nearest $1,000 unless otherwise stated.

(i) Compliance with IFRS The consolidated financial statements of the group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

(ii) Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available‐for‐sale financial assets, financial assets and liabilities at fair value through profit and loss and certain classes of property, plant and equipment.

(iii) New and amended standards adopted by the group There were no material new and revised standards which were effective for annual periods beginning on or after 1 July 2016 that were adopted by the group.

(iv) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2017 reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new standards and interpretations is set out below.

AASB 9 Financial Instruments (December 2014)

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities and introduces new rules for hedge accounting. In December 2014, the AASB made further changes to the classification and measurement rules and also introduced a new impairment model. These latest amendments now complete the new financial instruments standard. This standard does not apply mandatorily for reporting periods beginning before 1 January 2018. A preliminary assessment undertaken by management suggests that adoption of this amendment will not result in a material impact on the Group’s financial statements.

AASB 15 Revenue from Contracts with Customers

AASB 15 replaces AASB 118 Revenue and AASB 111 Construction Contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer ‐ so the notion of control replaces the existing notion of risks and rewards. The standard permits a modified retrospective approach for the adoption. Under this approach entities will recognise transitional adjustments in retained earnings on the date of initial application, i.e. without restating the comparative period. They will only need to apply the new rules to contracts that are not completed as of the date of initial application. This standard does not apply mandatorily for reporting periods beginning before 1 January 2018. A preliminary assessment undertaken by management suggests that adoption of this amendment will not result in a material impact on the Group’s financial statements

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 69

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

AASB 16 Leases

AASB 16 replaces AASB 117 Leases and some lease related Interpretations. The new standard requires all leases to be accounted for as ‘on‐balance sheet’ by lessees, other than short term and low value asset leases. The standard provides new guidance on the application of the definition of lease and on sale and lease back accounting. The standard also requires new and different disclosures about leases. This standard does not apply mandatorily before 1 January 2019. Adoption of this amendment will not result in a material impact on the Group’s financial statements.

AASB 2016‐2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 AASB 2016‐2 amends AASB 107 Statement of Cash Flows to require entities preparing financial statements in accordance with Tier 1 reporting requirements to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non‐cash changes. When these amendments are first adopted for the year ending 30 June 2018, there will be no material impact on the financial statements.

AASB 2016‐5 Amendments to Australian Accounting Standards – Classification and Measurement of Share based Payment Transactions

This Standard amends AASB 2 Share‐based Payment to address: a.) The accounting for the effects of vesting and non‐ vesting conditions on the measurement of cash‐settled share‐based payments; b.) The classification of share‐based payment transactions with a net settlement feature for withholding tax obligations; and c.) The accounting for a modification to the terms and conditions of a share‐based payment that changes the classification of the transaction from cash‐settled to equity‐settled.

When these amendments are first adopted for the year ending 30 June 2019, there will be no material impact on the financial statements

(v) Critical accounting estimates

The preparation of financial statements requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4.

b) Principles of consolidation

The consolidated financial statements incorporate the financial statements of the parent entity, Ramelius Resources Limited, and its controlled entities (referred to as the ‘consolidated group’ or ‘group’ in these financial statements). A list of controlled entities is contained in Note 28 to the consolidated financial statements. All controlled entities have a 30 June financial year end.

(i) Subsidiaries Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the group.

Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries are consistent with those adopted by the group.

(ii) Changes in ownership interests

When the group ceases to have control, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.

70 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

c) Joint arrangements

Under AASB 11 Joint Arrangement investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. Ramelius has exploration related joint arrangements which are considered joint operations. Ramelius recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings. Details of the joint operations are shown in Note 29.

d) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director/Chief Executive Officer.

e) Foreign currency

(i) Functional and presentation currency

Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in Australian dollars ($), which is Ramelius Resources Limited and its controlled entities functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency at exchange rates prevailing at the date of the transaction. The subsequent payment or receipt of funds related to a transaction is translated at the rate applicable on the date of payment or receipt. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the reporting date. Non‐monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

All exchange differences in the consolidated financial report are taken to the Income Statement.

(iii) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet,
income and expenses for each income statement and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and
all resulting exchange differences are recognised in other comprehensive income.

f) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods or rendering of a service is recognised upon delivery of the goods or service to customers as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement with those goods.

Revenue from gold bullion and silver sales is brought to account when the significant risks and rewards of ownership have transferred to the buyer and selling prices are known or can be reasonably estimated. Interest revenue is recognised as it is accrued using the effective interest rate method. All revenue is stated net of goods and services tax (GST).

g) Government grants

Grants from the government are recognised at their fair value when there is a reasonable assurance that the grant will be received and the group complies with the attached conditions. Government grants relating to exploration and evaluation expenditure are recognised against the exploration and evaluation asset to match the grants with the costs that the grants are intended to compensate.

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h) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

i) Income tax

The income tax expense (benefit) for the year comprises current income tax expense (benefit) and deferred tax expense (benefit). Current and deferred income tax expense (benefit) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

(i) Current income tax

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates that have been enacted, or substantially enacted by the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretations. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

(ii) Deferred income tax Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profits will be available against which the benefits of the deferred tax asset can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

(iii) Tax consolidated group Ramelius Resources Limited and its wholly‐owned Australian subsidiaries have formed an income tax consolidated group under tax consolidation legislation. Each entity in the group recognises its own current and deferred tax assets and liabilities. Such taxes are measured using the ‘stand‐alone taxpayer’ approach to allocation.

Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred to the head entity.

The tax consolidated group has entered into a tax funding arrangement whereby each company in the group contributes to the income tax payable by the group in proportion to their contribution to the group’s taxable income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts recognised pursuant to the funding arrangement are recognised as either a contribution by, or distribution to the head entity.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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j) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services tax, unless the GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated in the Consolidated Balance Sheet inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Consolidated Balance Sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

k) Cash and cash equivalents

Cash and cash equivalents in the Consolidated Balance Sheet comprise cash at bank, demand deposits held with banks, other short‐term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in values. For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

l) Trade and other receivables

Trade receivables comprising bullion awaiting settlement are initially recorded at the fair value of contracted sale proceeds expected to be received only when there is a passing of significant risks and rewards of ownership to the customer. Collectability of debtors is reviewed on an ongoing basis. Receivables which are known to be uncollectible are written off and an allowance account (provision for impairment of trade receivables) is raised where objective evidence exists that the debt will not be collected. Other receivables are initially measured at fair value then amortised at cost, less an allowance for impairment.

m) Inventories

Gold ore, gold in circuit and poured gold bars are physically measured or estimated and valued at the lower of cost and net realisable value. Cost represents the weighted average cost incurred in converting ore into finished goods and includes direct costs and an appropriate allocation of fixed and variable production overhead costs, including depreciation and amortisation.

By‐products inventory on hand obtained as a result of the gold production process are valued at the lower of cost and net realisable value. Consumables and stores are valued at the lower of cost and net realisable value. Costs of purchased inventory are determined after deducting any applicable rebates and discounts. A periodic review is undertaken to establish the extent of any surplus or obsolete items and where necessary a provision is made.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion of sale.

Gold ore represents stockpiled ore that has been mined or otherwise acquired and is available for further processing. If there is significant uncertainty as to whether the stockpiled ore will be processed, it is expensed. Where future processing of ore can be predicted with confidence (e.g. it exceeds the mine cut off grade), it is valued at the lower of cost and net realisable value. If ore is not expected to be processed within 12 months after reporting date, it is classified as non‐ current assets. Ramelius believes processing ore stockpiles may have a future economic benefit to the group and accordingly ore is valued at lower of cost and net realisable value.

n) Property, plant and equipment

Cost

Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Properties are shown at fair value based on valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

The net carrying amount of property, plant and equipment is reviewed for impairment in accordance with Note 1(u).

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Major spares purchased specifically for particular plant are capitalised and depreciated on the same basis as the plant to which they relate when in use. Assets are depreciated or amortised from the date they are installed and are ready for use, or in respect of internally constructed assets, from the time the asset is completed and deemed ready for use.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Income Statement during the financial period in which they are incurred.

Depreciation

Items of plant and equipment are depreciated on a straight line basis over their estimated useful lives, the duration of which reflects the useful lives depending on the nature of the asset. The group uses the straight line method when depreciating property, plant and equipment, resulting in estimated useful lives for each class of depreciable assets as follows:

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Class of fixed asset Useful life
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C l	a s s o f f i x e d	a s s e t	U s e f	u l l i	f e
Properties 40 years Plant and equipment – mine camp 2 ‐ 15 years Plant & equipment – mill refurbishments 5 years Plant & equipment – tailings dam 5 years Plant & equipment – computers 4 years Plant & equipment – office equipment 3 – 10 years Plant & equipment – office furniture 10 – 25 years Plant & equipment – other 2.5 – 25 years Mine and exploration equipment 2 ‐ 33.3 years Motor vehicles 8 ‐ 12years

Estimates of remaining useful lives and depreciation methods are reviewed bi‐annually for all major items of plant and equipment. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Income Statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

o) Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys the right to use the asset.

Leases of plant and equipment under which the group assumes substantially all the risks and benefits incidental to ownership are classified as finance leases. Other leases are classified as operating leases.

Finance leases are capitalised, with a lease asset and a lease liability equal to the fair value of the leased asset, or if lower, at the present value of the minimum lease payments determined at the inception of the lease. Lease payments are apportioned between the finance charges and reduction of the lease liability. The finance charge component within the lease payments is expensed. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term if there is no reasonable certainty that the group will obtain ownership by the end of the lease term.

Payments made under operating leases are expensed on a straight line basis over the leased term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

74 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

p) Exploration, evaluation and feasibility expenditure Exploration and evaluation

Exploration and evaluation costs related to areas of interest are capitalised and carried forward to the extent that:

(i) Rights to tenure of the area of interest are current; and
(ii) a) Costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively by sale; or
b) Where activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, active and significant operations in, or in relation to, the areas are continuing.

Such expenditure consists of an accumulation of acquisition costs and direct net exploration and evaluation costs incurred by or on behalf of the group, together with an appropriate portion of directly related overhead expenditure.

Deferred feasibility

Feasibility expenditure represents costs related to the preparation and completion of feasibility studies to enable a development decision to be made in relation to an area of interest and is capitalised as incurred.

When production commences, relevant past exploration, evaluation and feasibility expenditure in respect of an area of interest that has been capitalised is transferred to mine development where it is amortised over the life of the area of interest to which it relates on a unit‐of‐production basis, refer Note 1(r).

When an area of interest is abandoned or the directors decide it is not commercial, any accumulated costs in respect of that area are written off in the year the decision is made. Each area of interest is reviewed at the end of each reporting period and accumulated costs written off to the extent they are not expected to be recoverable in the future.

q) Mineral rights

Mineral rights comprise identifiable exploration and evaluation assets, mineral resources and ore reserves, which are acquired as part of a business combination or a joint venture and are recognised at fair value at date of acquisition. Mineral rights are attributable to specific areas of interest and are classified within exploration and evaluation assets.

Mineral rights attributable to each area of interest are amortised when commercial production commences on a unit‐of‐ production basis over the estimated economic reserve of the mine to which the rights related.

r) Mine development

Development assets represent expenditure in respect of exploration, evaluation, feasibility and development incurred by or on behalf of the group, including overburden removal and construction costs, previously accumulated and carried forward in relation to areas of interest in which mining has now commenced. Such expenditure comprises net direct costs and an appropriate allocation of directly related overhead expenditure.

All expenditure incurred prior to commencement of production from each development property is carried forward to the extent to which recoupment out of future revenue from the sale of production, or from the sale of the property, is reasonably assured.

When further development expenditure is incurred in respect of a mine property after commencement of production, such expenditure is carried forward as part of the cost of the mine property only when future economic benefits are reasonably assured, otherwise the expenditure is classified as part of the cost of production and expensed as incurred. Such capitalised development expenditure is added to the total carrying value of development assets being amortised.

Amortisation and impairment

Development assets are amortised based on the unit‐of‐production method which results in an amortisation charge proportional to the depletion of the estimated recoverable reserves. Where there is a change in the reserves the amortisation rate is adjusted prospectively in the reporting period in which the change occurs. The net carrying values of development expenditure carried forward are reviewed half‐yearly by directors to determine whether there is any indication of impairment, refer Note 1(u).

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s) Deferred mining expenditure

Pre‐production mine development

Pre‐production mining costs incurred by the group in relation to accessing recoverable reserves are carried forward as part of ‘development assets’ when future economic benefits are established, otherwise such expenditure is expensed as part of the cost of production.

Surface mining costs

Mining costs incurred during the production stage of operations are deferred as part of determining the cost of inventories. This is generally the case where there are fluctuations in deferred mining costs over the life of the mine, and the effect is material. The amount of mining costs deferred is based on the ratio obtained by dividing the amount of waste mined by the quantity of gold ounces contained in the ore. Mining costs incurred in the period are deferred to the extent that the current period waste to contained gold ounce ratio exceeds the life‐of‐mine waste‐to‐ore (life‐of‐mine) ratio. The life‐of‐mine ratio is based on economically recoverable reserves of the operation.

The life‐of‐mine ratio is a function of an individual mine’s design and therefore changes to that design will generally result in changes to the ratio. Changes in other technical or economic parameters that impact reserves will also have an impact on the life‐of‐mine ratio even if they do not affect the mine’s design. Changes to the life‐of‐mine ratio are accounted for prospectively.

In the production stage of some operations, further developments of the mine require a phase of unusually high overburden removal activity that is similar in nature to pre‐production mine development. The costs of such unusually high overburden removal activity are deferred and charged against reported profits in subsequent periods on a unit‐of‐ production basis. The accounting treatment is consistent with that of overburden removal costs incurred during the development phase of a mine, before production commences.

Deferred mining costs that relate to the production phase of the operation are carried forward as part of ‘development assets’. The release of deferred mining costs is included in site operating costs.

t) Intangible assets

Costs incurred in acquiring software are capitalised as intangible assets. Costs capitalised include external costs of materials and services. Costs associated with administration and maintenance of software is expensed as incurred in other expenses in the Income Statement. Amortisation is calculated on the useful life, ranging from 3 to 5 years.

u) Impairment of non‐financial assets

The carrying amounts of all non‐financial assets are reviewed half‐yearly to determine whether there is an indication of impairment. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made. The recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash‐generating units). Any excess of the asset’s carrying value over its recoverable amount is expensed as an impairment loss to the Income Statement. Non‐financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

v) Available‐for‐sale assets

The group’s investments are designated as available‐for‐sale financial assets. The group’s investments in listed securities are initially measured at fair value. Subsequent to initial recognition, available‐for‐sale financial assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the Income Statement. Impairment losses on equity instruments that were recognised in profit or loss are not reversed through profit or loss in a subsequent period. The fair value of listed equity securities are determined by reference to quoted market prices.

w) Trade and other payables

Liabilities for trade and other payables are initially recorded at the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the group, and then subsequently at amortised cost.

76 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

x) Employee benefits

Wages, salaries, salary at risk, annual leave and sick leave

Liabilities arising in respect of wages and salaries, salary at risk, annual leave and any other employee benefits expected to be wholly settled within 12 months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liabilities are settled. These amounts are recognised in ‘trade and other payables’ (for amounts other than annual leave and salary at risk) and ‘current provisions’ (for annual leave and salary at risk) in respect of employee services up to the reporting date. Costs incurred in relation to non‐accumulating sick leave are recognised when the leave is taken and are measured at the rate paid or payable.

Long service leave

The liability for long service leave is measured at the present value of the estimated future cash outflows to be made by the group resulting from employees’ services provided up to the reporting date. Liability for long service leave benefits not expected to be settled within 12 months are discounted using the rates attaching to high quality corporate bonds at the reporting date, which most closely match the terms of maturity of the related liability. In determining the liability for these long term employee benefits, consideration has been given to expected future increases in wage and salary rates, the groups experience with staff departures and periods of service. Related on‐costs have also been included in the liability.

Provision is made for the group’s liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be settled within one year are measured at the amounts expected to be paid when the liability is settled, plus related on‐costs. Employee benefits payable later than one year are measured at the present value of the estimated future cash outflows to be made for those benefits. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Those cash flows are discounted using market yields on high quality corporate bonds with terms to maturity that match the expected timing of cash flows. The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Defined contribution superannuation plans

Contributions to defined contribution superannuation plans are expensed when incurred.

Share‐based payments

The group provides benefits to employees (including the executive director/chief executive officer) in the form of share‐ based compensation, whereby employees render services in exchange for shares or options and/or rights over shares (equity‐settled transactions).

The cost of these equity‐settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The group issues share‐based remuneration in accordance with the employee share acquisition plan, the performance rights plan or as approved by the Board as follows:

(i) Employee share acquisition plan

The group operates an Employee Share Acquisition Plan where employees may be issued shares and/or options. Fair value of the equity to which employees become entitled is measured at grant date and recognised as an employee benefits expense over the vesting period with a corresponding increase in equity. Fair value of shares issued is determined with reference to the latest ASX share price. Options are valued using an appropriate valuation technique which takes vesting conditions into account.

(ii) Performance rights plan

The group has a Performance Rights Plan where key management personnel may be provided with rights to shares in Ramelius. Fair values of rights issued are recognised as an employee benefits expense over the relevant service period, with a corresponding increase in equity. Fair value of rights are measured at effective grant date and recognised over the vesting period during which key management personnel become entitled to the rights. There are a number of different methodologies that are appropriate to use in valuing rights. Fair value of rights granted is measured using the most appropriate method in the circumstances, taking into consideration the terms and conditions upon which the rights were issued.

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(iii) Other long‐term incentives

The Board may at its discretion provide share rights either to recruit or as a long‐term retention incentive to key executives and employees.

The fair value of options and/or rights granted is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options and/or rights granted, which includes any market performance conditions and the impact of any non‐vesting conditions but excludes the impact of any service and non‐market performance vesting conditions.

Non‐market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options and/or rights that are expected to vest based on the non‐market vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

Upon exercise of the rights, the balance of the Share‐Based Payments Reserve relating to those rights remains in the share‐based payments reserve until it is transferred to retained earnings.

Termination benefits

Termination benefits are payable when employment is terminated by the group before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The group recognises termination benefits at the earlier of the following dates: (a) when the group can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of AASB 137 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

y) Provisions

Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provision for restoration and rehabilitation

Estimated costs of decommissioning and removing an asset and restoring the site are included in the cost of the asset as at the date the obligation first arises and to the extent that it is first recognised as a provision. The group records the present value of the estimated cost of constructive and legal obligations to restore operating locations in the period in which the obligation is incurred. The nature of decommissioning activities includes dismantling and removing structures, rehabilitating mine sites, dismantling operating facilities, closure of plant and waste sites and restoration, reclamation and revegetation of affected areas.

Typically, the obligation arises when the asset is installed or the environment is disturbed at the development location. When the liability is initially recorded, the present value of the estimated cost is capitalised by increasing the carrying amount of the related mining assets. Over time, the discounted liability is increased for the change in the present value based on the discount rates that reflect the current market assessments and the risks specific to the liability. Additional disturbances or changes in decommissioning costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred.

The unwind effect of discounting the provision is recorded as a finance cost in the Income Statement and the carrying amount capitalised as a part of mining assets is amortised on a unit‐of‐production basis. Costs incurred that relate to an existing condition caused by past operations, but do not have future economic benefits are expensed as incurred.

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z) Financial instruments

Initial recognition and measurement

Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or at cost. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Quoted prices in an active market are used to determine fair value where possible. The group does not designate any interest in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments.

(i) Loans and receivables

Loans and receivables are non‐derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Non‐derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

(iii) Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The group uses derivative financial instruments to hedge its exposure to changes in commodity prices arising in the normal course of business. The group does not trade in derivatives for speculative purposes. Derivative financial instruments are recognised at fair value on the date a derivative contract is entered into. Derivatives are valued on a mark‐to‐market valuation and the gain or loss on re‐measurement to fair value is recognised through the Income Statement.

(iv) Available‐for‐sale financial assets

Available‐for‐sale financial assets include any financial assets not included in the above categories. The group’s accounting policy for available‐for‐sale financial assets is discussed at Note 1(v).

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment

At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired. If there is objective evidence of impairment, the cumulative loss ‐ measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously not recognised in the profit or loss, is removed from equity and recognised in profit or loss.

aa) Derivative activity

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Changes in the fair value of any derivative instrument (which does not qualify for hedge accounting) are recognised immediately in profit or loss and are included in other income or other expenses.

bb) Share capital

Ordinary share capital is classified as equity and is recognised at fair value of the consideration received by the group. Any transaction costs arising on the issue of ordinary shares and the associated tax are recognised directly in equity as a reduction of the share proceeds received.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 79

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

cc) Earnings per share

Basic earnings per share is calculated by dividing:

the profit attributable to owners of the company, adjusted to exclude costs of servicing equity other than ordinary shares,
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share adjusts the figures used in determining basic earnings per share to take into account the:

after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,
weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

dd) Non‐current assets and liabilities classified as held for sale and discontinued operations

When the Group intends to sell a non‐current asset or a group of assets (a disposal group), and if sale within twelve (12) months is highly probable, the asset or disposal group is classified as ‘held for sale’ and presented separately in the Balance Sheet. Liabilities are classified as ‘held for sale’ and presented as such in the Balance Sheet if they are directly associated with a disposal group.

Assets classified as ‘held for sale’ are measured at the lower of their carrying amounts immediately prior to their classification as held for sale and their fair value less costs to sell. However, some ‘held for sale’ assets such as financial assets or deferred tax assets, continue to be measured in accordance with the Group's accounting policy for those assets. Once classified as ‘held for sale’, the assets are not subject to depreciation or amortisation. Any profit or loss arising from the sale or re‐measurement of discontinued operations is presented as part of a single line item, profit or loss from discontinued operations.

ee) Parent entity information

The financial information of the parent entity, Ramelius Resources Limited, disclosed in Note 31 has been prepared on the same basis as the consolidated financial statements, other than investments in controlled entities which were carried at cost less impairment.

ff) Rounding of amounts

Ramelius Resources Limited is a type of company referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and therefore the amounts contained in the financial report have been rounded to the nearest $1,000, or in certain cases, to the nearest dollar.

2 Financial Risk Management Policies

The group’s management of financial risk is aimed at ensuring cash flows are sufficient to:

Withstand significant changes in cash flow at risk scenarios and meet all financial commitments as and when they fall due; and
Maintain the capacity to fund future project development, exploration and acquisition strategies.

The group continually monitors and tests its forecast financial position against these criteria.

The group is exposed to the following financial risks: liquidity risk, credit risk and market risk (including foreign exchange risk, commodity price risk and interest rate risk).

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

The directors are responsible for monitoring and managing financial risk exposures of the group. The group holds the following financial instruments:

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2017 2016
$000’s $000’s
Financial assets
Cash at bank 71,752 35,781
Term deposits 6,815 8,491
Trade and other receivables (including refundable deposits) 3,612 2,362
Available‐for‐sale financial assets 292 132
Total financial assets 82,471 46,766
Financial liabilities
Trade and other payables 22,398 22,255
Total financial liabilities 22,398 22,255
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a) Liquidity risk

Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. Prudent liquidity risk management implies maintaining sufficient cash to meet obligations when due. The group manages liquidity risk by regularly monitoring forecast cash flows.

i. Maturities of financial liabilities
- (a) Payables
Trade and other payables are expected to be settled within 6 months.
- (b) Borrowings

The group has no outstanding borrowings as at 30 June 2017.

b) Credit risk exposures

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial assets of the entity which have been recognised in the Consolidated Balance Sheet is the carrying amount, net of any provision for doubtful debts. Credit risk is managed through the consideration of credit worthiness of customers and counterparties. This ensures to the extent possible, that customers and counterparties to transactions are able to pay their obligations when due and payable. Such monitoring is used in assessing impairment.

i. Past due but not impaired

As at 30 June 2017, there were no trade or other receivables considered past due but not impaired (2016: nil).

ii. Impaired trade receivables

Individual receivables which are known to be uncollectable are written off by reducing the carrying amount directly. The other receivables are assessed to determine whether there is objective evidence that an impairment has been incurred but not yet identified. For these receivables, the estimated impairment losses are recognised in a separate provision for impairment. The group considers that there is evidence of impairment if any of the following indicators are present:

significant financial difficulties of the debtor,
probability that the debtor will enter bankruptcy or financial reorganisation, and
default or delinquency in payments (past due)

Receivables for which an impairment provision was recognised are written off against the provision when there is no expectation of recovering additional cash. Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts previously written off are credited against other expenses.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

c) Market risk

i. Foreign currency risk

The group undertakes transactions impacted by foreign currencies; hence exposures to exchange rate fluctuations arise. The majority of the group’s revenue is affected by movements in USD:AUD exchange rate that impacts on the Australian gold price whereas the majority of costs (including capital expenditure) are in Australian dollars. The group considers the effects of foreign currency risk on its financial position and financial performance and assesses its option to hedge based on current economic conditions and available market data.

ii. Commodity price risk

The group’s revenue is exposed to commodity price fluctuations, in particular to gold prices. Price risk relates to the risk that the fair value of future cash flows of gold sales will fluctuate because of changes in market prices largely due to demand and supply factors for commodities. The group is exposed to commodity price risk due to the sale of gold on physical delivery at prices determined by market at the time of sale. The group manages commodity price risk as follows:

Forward sales contracts

Gold price risk is managed through the use of forward sales contracts which effectively fix the Australian Dollar gold price and thus provide cash flow certainty.

Put options

Gold price risk may be managed with the use of hedging strategies through the purchase of gold put options to establish gold “floor prices” in Australian dollars over the group’s gold production; however, this is generally at levels lower than current market prices. These put options enable Ramelius to retain full exposure to current, and any future rises in the gold price while providing protection to a fall in the gold price below the strike price. Gold put options are marked to market at fair value through profit and loss.

Gold prices, cash flows and economic conditions are constantly monitored to determine whether to implement a hedging program. At 30 June 2017, the group had 102,000 ounces in forward sales contracts at an average price of A$1,711. Refer to note 23 for further details.

Gold price sensitivity analysis

The group has performed a sensitivity analysis relating to its exposure to gold price risk at reporting date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result in a change in these risks. Any impacts from such hedging would be in relation to revenue from gold sales.

Based on gold sales of 25,185oz (121,031oz less forward sales of 95,846oz) in 2017 and 40,635oz (108,711oz less forward sales of 68,076oz) in 2016, if gold price in Australian dollars changed by + / ‐ A$100, with all other variables remaining constant, the estimated realised impact on pre‐tax profit (loss) and equity would have been as follows:

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2017 2016
$000’s $000’s
Impact on pre‐tax profit (loss)
Increase in gold price by A$100 2,519 4,064
Decrease in gold price by A$100 (2,519) (4,064)
Impact on equity
Increase in gold price by A$100 2,519 4,064
Decrease in gold price by A$100 (2,519) (4,064)
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d) Capital risk management

The objective when managing capital is to maintain a strong capital base capable of withstanding cash flow variability, whilst providing flexibility to pursue its growth aspirations. Ramelius aims to maintain an optimal capital structure to reduce the cost of capital and maximise shareholder returns. The capital structure is equity as shown in the Balance Sheet. The group is not subject to any externally imposed capital requirements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

e) Fair value measurement

The financial assets and liabilities of the group are recognised on the Consolidated Balance Sheet at their fair value in accordance with the accounting policies in Note 1. Measurement of fair value is grouped into levels based on the degree to which fair value is observable in accordance with AASB 7 Financial Instruments: Disclosure.

Level 1 ‐ fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 ‐ fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 ‐ fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Fair value measurement of financial instruments

Derivative financial assets are measured at fair value using the valuation provided from the relevant financial institution. The valuations would be recognised as a Level 2 in the fair value hierarchy as they have been derived using inputs from a variety of market data. Available‐for‐sale financial assets are measured at fair value using the closing price on the reporting date as listed on the Australian Securities Exchange Limited (ASX). Available for sale financial assets are recognised as a Level 1 in the fair value hierarchy as defined under AASB 7 Financial Instruments: Disclosures. The carrying amounts of trade receivables and payables are assumed to approximate their fair values due to their short‐term nature.

Fair value measurement of non‐financial instruments

Properties are measured at fair value using 2011 valuations made by an independent valuer. At 30 June 2017, the directors are of the opinion that the carrying amounts of properties approximate their fair value. The valuations would be recognised as a Level 2 in the fair value hierarchy.

The valuation depends on a number of characteristics of observable market transactions in similar properties that are used for valuation. Although this input is a subjective judgement, management considers that the carrying amounts would not be materially affected by reasonably possible alternative assumptions.

3 Operating Segments

Management has determined the operating segments based on internal reports about components of the group that are regularly reviewed by the Chief Operating Decision Maker (CODM), the Managing Director/Chief Executive Officer, in order to make strategic decisions. Reportable operating segments are Mt Magnet, Burbanks and Exploration. The group operates primarily in one business segment, namely the exploration, development and production of minerals with a focus on gold.

The CODM monitors performance in these areas separately. Unless stated otherwise, all amounts reported to the CODM are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the group. Operating segment performance details for financial years 2017 and 2016 are set out below:

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Mt Magnet Burbanks Exploration Total
2017 Segment performance $’000 $’000 $’000 $’000
Segment revenue
Sales revenue 197,358 ‐ ‐ 197,358
Segment cost of production
Cost of production before: (160,027) (13) ‐ (160,040)
Amortisation and depreciation (59,972) ‐ ‐ (59,972)
Movement in inventory 10,343 ‐ ‐ 10,343
Deferred stripping costs 41,054 ‐ ‐ 41,054
Segment cost of production (168,602) (13) ‐ (168,615)
Gross margin 28,756 (13) ‐ 28,743
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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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Mt Magnet Burbanks Exploration Total
2017 Segment performance (continued) $’000 $’000 $’000 $’000
Impairment and exploration write‐off (8) (1,312) (1,320)
Reversal of prior period impairments 1,581 47 ‐ 1,628
Segment margin 30,329 34 (1,312) 29,051
Interest income 1,154
Finance cost (681)
Other expenses (4,464)
Profit before income tax from continuing operations 25,060
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Mt Magnet Burbanks Exploration Total
2016 Segment performance $’000 $’000 $’000 $’000
Segment revenue
Sales revenue 173,744 ‐ ‐ 173,744
Segment cost of production
Cost of production before: (151,898) (20) ‐ (151,918)
Amortisation and depreciation (49,880) ‐ ‐ (49,880)
Movement in inventory 11,763 ‐ ‐ 11,763
Deferred stripping costs 49,196 ‐ ‐ 49,196
Segment cost of production (140,819) (20) ‐ (140,839)
Gross margin 32,925 (20) ‐ 32,905
Impairment and exploration write‐off (183) 53 (1,441) (1,571)
Segment margin 32,742 33 (1,441) 31,334
Interest income 568
Finance cost (834)
Other expenses (5,725)
Profit before income tax from continuing operations 25,343
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Mt Magnet Burbanks Exploration Total
2017 Segment position $’000 $’000 $’000 $’000
Capitalised expenditure
Property, plant, and equipment 4,681 ‐ 254 4,935
Site development 43,219 ‐ ‐ 43,219
Exploration assets ‐ ‐ 15,422 15,422
Segment assets
Segment assets from continuing operations 102,258 ‐ 19,653 121,911
Total segment assets 102,258 ‐ 19,653 121,911
Corporate and unallocated assets
Cash and cash equivalents 78,567
Trade and other receivables 3,112
Other current assets 259
Available for sale financial assets 292
Property, plant, and equipment 246
Deferred tax assets 30,944
Total consolidated assets 235,332
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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Mt Magnet Burbanks Exploration Total
2016 Segment position $’000 $’000 $’000 $’000
Capitalised expenditure
Property, plant, and equipment 4,865 ‐ ‐ 4,865
Site development 51,004 ‐ ‐ 51,004
Exploration assets ‐ ‐ 5,270 5,270
Segment assets
Segment assets from continuing operations 100,296 176 8,100 109,202
Assets and disposal group classified as held for sale ‐ 3,225 ‐ 3,225
Total segment assets 100,926 3,401 8,100 112,427
Corporate and unallocated assets
Cash and cash equivalents 44,272
Trade and other receivables 1,608
Other current assets 198
Available for sale financial assets 132
Property, plant, and equipment 199
Deferred tax assets 35,410
Total consolidated assets 194,246
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Mt Magnet Burbanks Exploration Total
2017 Segment position $’000 $’000 $’000 $’000
Segment liabilities
Segment liabilities from continuing operations (43,359) (21) (2,123) (45,503)
Total segment liabilities (43,359) (21) (2,123) (45,503)
Corporate and unallocated liabilities
Trade and other payables (206)
Current provisions (728)
Non‐current provisions (104)
Deferred tax liabilities (18,989)
Total consolidated liabilities (65,530)
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Mt Magnet Burbanks Exploration Total
2016 Segment position $’000 $’000 $’000 $’000
Segment liabilities
Segment liabilities from continuing operations (45,162) (133) (1,342) (46,637)
Liabilities included in disposal group held for sale ‐ (2,070) ‐ (2,070)
Total segment liabilities (45,162) (2,203) (1,342) (48,707)
Corporate and unallocated liabilities
Trade and other payables (665)
Current provisions (621)
Non‐current provisions (60)
Deferred tax liabilities (16,605)
Total consolidated liabilities (66,658)
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The Burbanks operating segment includes assets, liabilities, revenues and expenses of the asset and disposal group which are classified as held for sale and discontinued operations (Note 32).

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 85

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

Major customers

Ramelius provides goods that are more than 10% of external revenue through the Western Australian Mint in Perth, Australia. Goods provided through the Western Australian Mint account for 100% (2016: 100%) of sales revenue.

Segments assets by geographical location

Segment assets of Ramelius are geographically located in Australia.

4 Critical Accounting Judgements, Estimates and Assumptions

Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances. Estimates and assumptions made assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group. The judgements, estimates and assumptions will, by definition, seldom equal actual results. The judgements, estimates and assumptions having a significant risk of causing material adjustments to the carrying amount of assets and liabilities within the next financial year are detailed below.

a) Exploration and evaluation expenditure

The group’s policy for exploration and evaluation is discussed at Note 1(p). Application of this policy requires management to make estimates and assumptions as to future events and circumstances, in particular the assessment of whether economic quantities of reserves will be found. Any such estimates and assumptions may change as new information becomes available.

b) Deferred mining expenditure

The group defers mining costs incurred during the production stage of its operations, which are calculated in accordance with accounting policy Note 1(s). Changes in an individual mine’s design will generally result in changes to the life‐of‐ mine waste to contained gold ounces (life‐of‐mine) ratio. Changes in other technical and economic parameters that impact reserves will also have an impact on the life‐of‐mine ratio even if they do not affect the mine’s design. Changes to the life‐of‐mine are accounted for prospectively.

c) Ore reserve estimates

The group estimates ore reserves and mineral resources each year based on information compiled by Competent Persons as defined in accordance with the Australian code for reporting Exploration Results, Mineral Resources and Ore Reserves 2012 (‘JORC code’). Estimated quantities of economically recoverable reserves are based upon interpretations of geological models and require assumptions to be made including estimates of short and long‐term commodity prices, exchange rates, future operating performance and capital requirements. Changes in reported reserve estimates can impact the carrying value of plant and equipment and development, provision for restoration and rehabilitation obligations as well as the amount of depreciation and amortisation.

d) Recovery of deferred tax assets

Deferred tax assets, including those arising from unutilised tax losses require management to assess the likelihood that the group complies with the relevant taxation legislation and will generate sufficient taxable earnings in future periods, in order to recognise and utilise those deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and existing tax laws in the relevant jurisdictions. To the extent that cash flows and taxable income differ significantly from estimates, the ability of the group to realise the net deferred tax assets reported at the reporting date could be impacted.

Additionally, future changes in tax laws in the jurisdictions in which the group operates could limit the ability of the group to obtain deductions in future periods.

e) Impairment of assets

The group assesses each Cash‐Generating Unit (CGU), at least annually, to determine whether there is any indication of impairment or reversal of a prior impairment. Where an indicator of impairment or reversal exists, a formal estimate of the recoverable amount is made, which is deemed as being the higher of the fair value less costs to sell and value in use calculated in accordance with accounting policy Note 1(u). These assessments require the use of estimates and assumptions such as ore reserves, future production, commodity prices, discount rates, exchange rates, operating costs, sustaining capital costs, any future development cost necessary to produce the reserves (including the magnitude and timing of cash flows) and operating performance.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

f) Unit‐of‐production method of depreciation and amortisation

The group uses the unit‐of‐production basis when depreciating / amortising mine specific assets which results in a depreciation / amortisation charge proportional to the depletion of the anticipated remaining life‐of‐mine production. Economic life, which is assessed annually, has due regard to both its physical life limitations and to present assessments of economically recoverable reserves of the mine property. These calculations require the use of estimates and assumptions.

g) Provision for restoration and rehabilitation

The group assesses its mine restoration and rehabilitation provision bi‐annually in accordance with the accounting policy Note 1(y). Significant judgement is required in determining the provision for restoration and rehabilitation as there are many transactions and other factors that will affect the ultimate liability payable to rehabilitate and restore the mine sites. The estimate of future costs therefore requires management to make assessment of the future restoration and rehabilitation date, future environmental legislation, changes in regulations, price increases, changes in discount rates, the extent of restoration activities and future removal technologies. When these factors change or become known in the future, such differences will impact the restoration and rehabilitation provision in the period in which they change or become known. At each reporting date the rehabilitation and restoration provision is remeasured to reflect any of these changes.

h) Share based payments

The group measures the cost of equity settled transactions with employees by reference to the fair value of equity instruments at the date at which they are granted. Fair value is determined using assumptions detailed in Note 22.

i) Impairment of available‐for‐sale financial assets

The group follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement to determine when an available‐for‐sale financial asset is impaired. This determination requires significant judgement. In making this judgement, the group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost and the financial health of and short‐term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows.

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2017 2016
Note $000’s $000’s
5 Revenue and Expenses
Profit before tax includes the following revenue, income and expenses whose disclosure is relevant in explaining the
performance of the group:
a) Sales revenue
Gold sales 197,012 173,453
Silver sales 304 242
Other revenue 42 49
Total sales revenue from continuing operations 197,358 173,744
b) Cost of production
Amortisation and depreciation 59,972 49,880
Employee benefits expense 16,213 14,168
Inventory movements (10,343) (11,763)
Mining and milling production costs 92,823 83,917
Royalty costs 9,950 4,637
Total cost of production from continuing operations 168,615 140,839
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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

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2017 2016
Note $000’s $000’s
c) Other expenses
Amortisation and depreciation 60 76
Employee benefits expense 3,019 2,446
Equity settled share‐based payments 22 777 117
Exploration costs written off 680 650
Impairment of development assets 15 (1,629) 130
Impairment of exploration and evaluation assets 17 632 791
Impairment of debtors 10 8 ‐
Loss on derivative financial instruments 80 1,196
Loss on disposal of property, plant and equipment assets 16 ‐
Foreign exchange losses 6 8
Other expenses 2,297 1,889
Total other expenses from continuing operations 5,946 7,303
d) Other income
Gain on disposal of tenements 425 ‐
Gain on sale of subsidiary 32 1,362 ‐
Foreign exchange gains 3 7
Total other income 1,790 7
e) Net finance expenses (income)
Discount unwind on provisions and borrowings 19 565 553
Interest and finance charges 116 281
Total finance costs 681 834
Interest income (1,154) (568)
Net finance expenses (income) from continuing operations (473) 266
6 Remuneration of Auditors
Audit and other assurance services
Audit and review of financial statements ($) 99,296 101,500
Non‐assurance services
Tax advice and compliance services ($) 20,220 7,000
Gender survey assistance ‐ 580
Total remuneration of Grant Thornton ($) 119,516 109,080
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88 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

		N o	t e 2 $ 0	0 1 7 201
				0 0 ’ s $000

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7 Income Tax (Benefit) Expense
The components of tax (benefit) expense comprise:
Current tax ‐ ‐
Deferred tax 7,432 (2,519)
Income tax from discontinued operations 32 (14) 97
Income tax (benefit) expense from continuing operations 7,418 (2,422)
Reconciliation of income tax (benefit) expense to prima facie tax payable:
Accounting profit before tax 25,060 25,343
Income tax expense calculated at 30% (2016: 30%) 7,518 7,603
Tax effects of amounts which are not deductible
(taxable) in calculating taxable income:
‐ share‐based payments 233 35
‐ other non‐allowable items 403 77
‐ non‐assessable income from disposal of subsidiary (736) ‐
‐ losses not previously recognised ‐ (10,137)
Income tax (benefit) expense 7,418 (2,422)
Applicable weighted average effective tax rate 30% (10%)
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30 June 2017 deferred tax movement

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Balance Charged / Charged / Balance at
at 1 July (credited) to (credited) to 30 June
2016 income equity 2017
$000’s $000’s $000’s $000’s
Deferred tax liability
Exploration and evaluation 2,096 3,634 ‐ 5,730
Development 14,405 (1,278) ‐ 13,127
Inventory ‐ consumables 103 31 ‐ 134
Unrealised foreign exchange gain (loss) 3 (3) ‐ ‐
Group deferred tax liability (DTL) 16,607 2,384 ‐ 18,991
DTL from discontinued operation (Note 32) (2) ‐ ‐ (2)
DTL from continuing operations 16,605 2,384 ‐ 18,989
Deferred tax asset
Equity transaction costs 78 (143) 568 503
Inventory ‐ deferred mining costs 1,149 600 ‐ 1,749
Property, plant and equipment 1,179 100 ‐ 1,279
Receivables ‐ 3 ‐ 3
Provisions 8,339 (476) ‐ 7,863
Tax losses 25,447 (5,053) ‐ 20,394
Borrowing costs 91 (91) ‐ ‐
Other 129 12 ‐ 141
Group deferred tax asset (DTA) 36,412 (5,048) 568 31,932
DTA from discontinued operation (Note 32) (1,002) 14 ‐ (988)
DTA from continuing operations 35,410 (5,034) 568 30,944
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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

30 June 2016 deferred tax movement

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Balance Charged / Charged / Balance at
at 1 July (credited) to (credited) to 30 June
2015 income equity 2016
$000’s $000’s $000’s $000’s
Deferred tax liability
Exploration and evaluation 1,511 585 ‐ 2,096
Development 10,734 3,671 ‐ 14,405
Inventory ‐ consumables 136 (33) ‐ 103
Unrealised foreign exchange gain (loss) 95 (92) ‐ 3
Group deferred tax liability (DTL) 12,476 4,131 ‐ 16,607
DTL from discontinued operation (Note 32) (2) ‐ ‐ (2)
DTL from continuing operations 12,474 4,131 ‐ 16,605
Deferred tax asset
Equity transaction costs 285 (209) 2 78
Inventory ‐ deferred mining costs 2,678 (1,529) ‐ 1,149
Property, plant and equipment 1,160 19 ‐ 1,179
Receivables 65 (65) ‐ ‐
Provisions 7,988 351 ‐ 8,339
Tax losses 17,463 7,984 ‐ 25,447
Borrowing costs ‐ 91 ‐ 91
Other 160 8 (39) 129
Group deferred tax asset (DTA) 29,799 6,650 (37) 36,412
DTA from discontinued operation (Note 32) (1,136) 134 ‐ (1,002)
DTA from continuing operations 28,663 6,784 (37) 35,410
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Tax effects relating to comprehensive income


a t i n g t o c o m p r e h e n s i v e i n c o m e
	2 0 1 7							2016
		P	r e ‐ t a	x	T	a x e f f e	c t N e t o f t a x	Pre‐tax T	ax effect	Net of tax
$ 0 0 0 ’ s $ 0 0 0 ’ s $ 0 0 0 ’ s $000’s $000’s $000’s

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2017 2016
$000’s $000’s
Franking credits
Franking credits available for subsequent years based on a tax rate of 30% (2016: 30%) 21,826 21,826
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The above represents the balance of the franking account as at the end of the reporting period, adjusted for: a) franking credits (debits) that will arise from payment of the current tax liability (current tax asset), and b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date.

Tax losses Unused tax losses for which no deferred tax asset has been recognised 4,080 3,137 Potential tax benefit at 30% 1,224 941

All unused tax losses have been recognised as a deferred tax asset, with the exception of capital losses. The Directors have assessed that it is probable the group will generate sufficient taxable profits to utilise the losses recognised as a deferred tax asset. All unused tax losses were incurred by Australian entities that are part of the tax consolidated group. See Note 4(d) for information about recognised tax losses and significant judgements made in relation to them.

90 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

8 Earnings Per Share

Classification of securities

All ordinary shares have been included in basic earnings per share.

Classification of securities as potential ordinary shares

Rights to shares granted to executives and senior managers are included in the calculation of diluted earnings per share and assume all outstanding rights will vest. Rights are included in the calculation of diluted earnings per share to the extent they are dilutive. Options have been included in determining diluted earnings per share to the extent that they are in the money (i.e. not antidilutive). Rights and options are not included in basic earnings per share.

Earnings used in the calculation of earnings per share

Both the basic and diluted earnings per share have been calculated using the profit after tax as the numerator.

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2017 2016
Weighted average number of shares used as the denominator
Number for basic earnings per share
Ordinary shares 521,082 473,328
Number of dilutive securities
Share rights and options 5,629 838
Total number of securities for dilutive earnings per share 526,711 474,166
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2017 2016
$000’s $000’s
9 Cash and Cash Equivalents
Cash at bank and in hand 71,752 35,781
Deposits at call 15 15
Secured deposits [1] 6,800 8,476
Total cash and cash equivalents 78,567 44,272
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1 Includes $2,687,312 (2016: $2,595,145) of deposits provided as security against unconditional bank guarantees in favour of the Minister for Mines and Energy (Northern Territory), Central Land Council in the Northern Territory for exploration purposes and in favour of other entities to secure supply of gas and electricity. Also includes a minimum reserve amount of $2,500,000 (2016: $5,000,000) as security under the finance facility.

Risk exposure

The group’s exposure to interest rate risk is discussed in Note 2. Maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents disclosed above.

10 Trade and Other Receivables

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Current
Trade receivables 32 106
Provision for impairment (8) ‐
Trade receivables 24 106
Other receivables 1,890 1,730
Total current trade and other receivables 1,914 1,836
Non‐current
Other receivables 1,286 ‐
Total non‐current trade and other receivables 1,286 ‐
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RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 91

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Classification of trade and other receivables

Trade receivables are amounts due from customers for goods sold and services performed in the ordinary course of business. Trade receivables are generally due for settlement within 30 days and therefore classified as current. The group’s impairment and other accounting policies for trade and other receivables are outlined in Notes 1(l) and 2(b). Other receivables comprise accrued interest and amounts due from taxation authorities. If collection of the amounts is expected in one year or less they are classified as current assets. If not, they are classified as non‐current assets.

Fair values of trade and other receivables

Due to the short‐term nature of the current receivables, their carrying amount is assumed to be the same as their fair value. For non‐current receivables, the fair values are also not significantly different to their carrying amounts.

Impairment and risk exposure

Refer Note 2 for more information on the risk management policy of the group and credit quality of trade receivables.

Other receivables – Share Sale Agreement – Ramelius Milling Services Pty Limited

Other receivables include $450,000 (current) and $1,286,000 (non‐current) receivable from Maximus Resources Limited in relation to the Share Sale Agreement for Ramelius Milling Services Pty Limited.

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2017 2016
$000’s $000’s
11 Inventories
Gold nuggets at cost 80 80
Ore stockpiles 12,824 7,410
Gold in circuit 8,097 7,343
Bullion 3,623 ‐
Consumables and supplies 4,607 4,114
Total inventories from continuing operations 29,231 18,947
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Inventory expense

There were no write‐downs of inventories to net realisable value during the year ended 30 June 2017 (2016: Nil).

12 Other Assets

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Current
Prepayments 891 868
Non‐current
Refundable deposits 412 526
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Fair values of other assets

Due to the short‐term nature of other assets, their carrying amount is assumed to be the same as their fair value. For non‐current other assets, the fair values are also not significantly different to their carrying amounts.

13 Available‐For‐Sale Financial Assets

Shares in listed corporations at fair value 292 132

Classification of financial assets as available‐for‐sale

Investments are designated as available‐for‐sale financial assets if they do not have fixed maturities and fixed or determinable payments, and management intends to hold them for the medium to long‐term. The financial assets are presented as non‐current assets unless they mature, or management intends to dispose of them within 12 months of the end of the reporting period.

92 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Risk exposures and fair value measurements

Available‐for‐sale financial assets are recognised as a Level 1 in the fair value hierarchy as defined under AASB 7 Financial Instruments: Disclosures. Information about the group’s exposure to credit risk and the methods and assumptions used in determining fair values is provided in Note 2.

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2017 2016
$000’s $000’s
14 Property, Plant and Equipment
Property
Properties at fair value (a) 1,588 1,588
Additions 30
Less accumulated depreciation (210) (170)
Total property 14(d) 1,408 1,418
Plant and equipment
Plant and equipment at cost 60,246 55,470
Less accumulated depreciation (42,415) (36,349)
Total plant and equipment 14(d) 17,831 19,121
Total property, plant and equipment 19,239 20,539
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(a) Valuation of property

Properties are recognised as a Level 2 in the fair value hierarchy as defined under AASB 13 Fair Value Measurements. The valuation basis of property is fair value being the amounts for which the assets could be exchanged between willing parties in an arm’s length transaction, based on current prices in an active market for similar properties in the same location and condition. The 2011 valuations were made by independent valuers. At 30 June 2017, the directors are of the opinion that the carrying amounts of properties approximate their fair values.

(b) Carrying amounts that would have been recognised if land and buildings were stated at cost

If properties were stated on the historical cost basis, the amounts would be as follows:

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Property
Properties at cost 666 607
Additions 30 59
Accumulated depreciation (81) (65)
Total property assets 615 601
(c) Assets in the course of construction
Plant and equipment includes the following expenditure which is in the course of construction:
Plant and equipment in the course of construction 1,744 625
(d) Property, plant and equipment asset reconciliation
Property asset reconciliation
Balance at beginning of financial year 1,418 1,397
Additions 30 59
Depreciation (40) (38)
Total property 1,408 1,418
Plant and equipment asset reconciliation
Balance at beginning of financial year 19,121 24,486
Additions 4,863 4,903
Disposals (21) (1)
Depreciation (6,132) (8,604)
Plant and equipment from discontinued operation ‐ (1,663)
Total plant and equipment 17,831 19,121
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RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 93

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

(e) Re‐assessment of depreciation

In July 2016, the group reassessed the useful life of a fixed asset class and made adjustments to the net book value through depreciation. The asset class is depreciated using the straight line method and the useful life of the asset reflects the revised life of mine plan. The overall impact is a $1.0 million reduction in depreciation in the 2017 financial year (2016: $2.3 million).

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2017 2016
$000’s $000’s
15 Development Assets
Development assets at cost 164,230 117,537
Less accumulated amortisation (110,775) (56,903)
Total development assets 53,455 60,634
(a) Development asset reconciliation
Balance at beginning of financial year 60,634 46,607
Additions 43,392 50,678
Restoration and rehabilitation adjustment (1,802) 456
Impairment 1,629 (130)
Transfer from exploration and evaluation expenditure 3,474 4,429
Amortisation (53,872) (41,406)
Total development assets 53,455 60,634
16 Intangible Assets
Software at cost 874 874
Accumulated amortisation (874) (801)
Total intangible assets ‐ 73
(a) Intangible asset reconciliation
Balance at beginning of financial year 73 191
Amortisation (73) (118)
Total intangible assets ‐ 73
17 Exploration and Evaluation Expenditure
Exploration and evaluation 19,101 7,784
(a) Exploration and evaluation expenditure reconciliation
Balance at beginning of financial year 7,784 7,734
Additions 15,423 5,270
Transfers to development assets (3,474) (4,429)
Impairment expense [1] (632) (791)
Total exploration and evaluation expenditure 19,101 7,784
1 Impairment of specific exploration and evaluation assets during the year have occurred where Directors have concluded that capitalised
expenditure is unlikely to be recovered by sale or future exploitation
18 Trade and Other Payables
Trade payables 5,008 9,192
Other payables and accrued expenditure 17,390 13,063
Total trade and other payables 22,398 22,255
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94 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Classification of trade and other payables

Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to their short‐term nature.

Risk exposure

The group’s exposure to cash flow risk is discussed in Note 2.

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2017 2016
$000’s $000’s
19 Provisions
Current
Employee benefits 2,693 2,408
Rehabilitation and restoration costs 21 984
Total current provisions 2,714 3,392
Non‐current
Employee benefits 536 444
Rehabilitation and restoration costs 20,893 21,892
Total non‐current provisions 21,429 22,336
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Provision for long service leave

Provision for long service leave is recognised for employee benefits. In calculating its present value, the probability of leave being taken is based on historical data. Refer Note 1(x) for measurement and recognition criteria.

Provision for rehabilitation and restoration

Provision for rehabilitation and restoration represents management’s assessment of expenditure expected to be incurred for various mines and processing plant. Refer Note 1(y) for measurement and recognition criteria.

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Rehabilitation and restoration reconciliation
Current
Balance at beginning of financial year 984 ‐
Revision of provision [1] (257) 983
Expenditure on restoration and rehabilitation (725) ‐
Discount unwind 19 1
Total current provision for rehabilitation and restoration 21 984
Non‐current
Balance at beginning of financial year 21,892 24,111
Revision of provision [1] (1,545) (551)
‐
Expenditure on restoration and rehabilitation (203)
Discount unwind 546 603
Provision associated with assets from discontinued operation ‐ (2,068)
Total non‐current provision for rehabilitation and restoration 20,893 21,892
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1 Represents amendments to future restoration and rehabilitation liabilities resulting from changes to the approved mine plan in the financial year, initial recognition of new rehabilitation provisions as well as a change in provision assumptions. Key provision assumption changes include reassessment of costs and timing of expenditure.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 95

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

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Number of
Shares $
20 Share Capital
a) Ordinary shares
Share capital at 30 June 2015 469,217,969 124,251,185
Share capital during the 2015‐16 financial year
‐
Issue of shares resulting from vesting of rights 70,000
Shares issued from exercise of options 5,946,279 831,588
Less cost of share issues (net of tax) ‐ (2,483)
Share capital at 30 June 2016 475,234,248 125,080,290
Share capital during the 2016‐17 financial year
Shares issued from exercise of options 1,500,000 373,035
Shares issued under placement 50,000,000 25,000,000
Less cost of share issues (net of tax) ‐ (1,331,374)
Share capital at 30 June 2017 526,734,248 149,121,951
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Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings other than voting exclusions as required by the Corporations Act 2001 . In the event of winding up of the Company, ordinary shareholders rank after all creditors and are fully entitled to any proceeds of liquidation.

b) Options over shares

Refer Note 22 for further information on options, including details of any options issued, exercised and lapsed during the financial year and options over shares outstanding at financial year end.

c) Rights over shares

Refer Note 22 for further information on rights, including details of any rights issued, exercised and lapsed during the financial year and rights over shares outstanding at financial year end.

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2017 2016
$000’s $000’s
21 Reserves
Share‐based payments reserve [1] 861 84
Available‐for‐sale reserve [2] (575) (295)
Asset revaluation reserve [3] 634 634
Total reserves 920 423
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1 Share‐based payments reserve records items recognised as expenses on valuation of employees share options and rights.

2 Available‐for‐sale reserve records changes in the fair value of available‐for‐sale financial assets.

3 Asset revaluation reserve records revaluations of non‐current assets.

22 Share‐Based Payments

Under the Employee Share Acquisition Plan, which was approved by shareholders in November 2007, eligible employees are granted ordinary fully paid shares in Ramelius for no cash consideration. All Australian resident permanent employees who are employed by the group are eligible to participate in the plan. Members of the plan receive all the rights of ordinary shareholders. Unrestricted possession of these shares occurs at the earliest of, three years from date of issue or the date employment ceases.

No shares were issued to employees during the 2017 financial year (2016: nil).

96 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Options

No employees were granted options in the 2017 financial year. Details of the movements in options issued in prior years and those outstanding at the end of the financial year are detailed below.

Effective			Fair					Vested	Unvested
grant date			value		Options at		Options	options at	options at
	Expiry	Exercise	per	Number	start of	Options	exercised or	end of	end of	Vesting
2017	date	price1	option	granted	year	vested	lapsed	year	year	date
16 Apr 14	11 Jun 17	$0.249	$0.027	1,500,000	1,500,000	‐	(1,500,000)	‐	‐	11 Jun 15
16 Apr 14	11 Jun 18	$0.299	$0.029	1,500,000	1,500,000	‐	‐	1,500,000	‐	11 Jun 16
26 Nov 15	11 Jun 19	$0.200	$0.087	1,500,000	1,500,000	1,500,000	‐	1,500,000	‐	11 Jun 17
20 Nov 15	11 Jun 20	$0.200	$0.095	1,500,000	1,500,000	‐	‐	‐	1,500,000	11 Jun 18
Total				6,000,000	6,000,000	1,500,000	(1,500,000)	3,000,000	1,500,000

1 The exercise price of the options has been adjusted for a 1 for 4 pro‐rata rights issue in the 2015 financial year in accordance with the terms of the options.

Effective			Fair					Vested	Unvested
grant date			value		Options at		Options	options at	options at
	Expiry	Exercise	per	Number	start of	Options	exercised or	end of	end of	Vesting
2016	date	price1	option	granted	year	vested	lapsed	year	year	date
16 Apr 14	11 Jun 16	$0.199	$0.028	1,500,000	1,500,000	‐	(1,500,000)	‐	‐	11 Jun 14
16 Apr 14	11 Jun 17	$0.249	$0.027	1,500,000	1,500,000	‐	‐	1,500,000	‐	11 Jun 15
16 Apr 14	11 Jun 18	$0.299	$0.029	1,500,000	‐	1,500,000	‐	1,500,000	‐	11 Jun 16
26 Nov 15	11 Jun 19	$0.200	$0.087	1,500,000	‐	‐	‐	‐	1,500,000	11 Jun 17
20 Nov 15	11 Jun 20	$0.200	$0.095	1,500,000	‐	‐	‐	‐	1,500,000	11 Jun 18
Total				7,500,000	3,000,000	1,500,000	(1,500,000)	3,000,000	3,000,000

1 The exercise price of the options has been adjusted for a 1 for 4 pro‐rata rights issue in the 2015 financial year in accordance with the terms of the options.

Weighted average remaining contractual life of granted options at the end of the period is 1.95 years (2016: 1.77 years). The fair value at grant date is independently determined using a Black‐Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, expected price volatility of the underlying share and the risk free rate for the term of the option. The expected price volatility is based on historic volatility (based on the remaining life of the options). Model inputs for options granted are as follows:

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Options expiring Options expiring Options expiring Options expiring
Metric
11 June 2017 11 June 2018 11 June 2019 11 June 2020
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M e t r i c	O p t i o n s e x p i r i n g 1 1 J u n e 2 0 1 7	O p t i o n s e x p i r i n g 1 1 J u n e 2 0 1 8	O p t i o n s e x p i r i n g 1 1 J u n e 2 0 1 9	O p t i o n s e x p i r i n g 1 1 J u n e 2 0 2 0
Exercise price $0.25 $0.30 $0.20 $0.20 Grant date 16 Apr 2014 16 Apr 2014 26 Nov 2015 26 Nov 2015 Expiry date 11 Jun 2017 11 Jun 2018 11 Jun 2019 11 Jun 2020 Share price at grant date $0.11 $0.11 $0.18 $0.18 Expected price volatility 65.83% 62.79% 70.48% 68.46% Risk free rate 2.74% 2.93% 2.06% 2.13%

Performance Rights

Under the Performance Rights Plan, which was approved by shareholders at the 2016 Annual General Meeting, eligible employees are granted performance rights (each being an entitlement to an ordinary fully paid share) subject to the satisfaction of vesting conditions and on the terms and conditions as determined by the board. Performance rights are issued for no consideration and have a nil exercise price.

The amount of performance rights that vest depends on Ramelius Resources Limited’s total return to shareholders (TSR), including share price growth, dividends and capital returns, and ranking within a peer group. Once vested performance rights remain exercisable for a period of seven years.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 97

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

Performance rights issued under the plan carry no voting or dividend rights.

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Performance rights at Performance rights at
start of year end of year
Fair value per Performance
performance Number Vested Unvested rights vested Vested Unvested Vesting &
Effective grant date Expiry date right granted exercise date
23 November 2016 1 July 2024 $0.333 976,448 ‐ ‐ ‐ ‐ 976,448 1 July 2017
23 November 2016 1 July 2025 $0.325 976,443 ‐ ‐ ‐ ‐ 976,443 1 July 2018
23 November 2016 1 July 2026 $0.365 976,439 ‐ ‐ ‐ ‐ 976,439 1 July 2019
22 December 2016 11 June 2026 $0.363 500,000 ‐ ‐ ‐ ‐ 500,000 11 June 2019
Total 3,429,330 ‐ ‐ ‐ ‐ 3,429,330
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The fair value at grant date is independently determined using a Monte Carlo Simulations pricing model that takes into account the exercise price, the term of the performance right, the share price at grant date, expected price volatility of the underlying share and the risk free rate for the term of the performance right. The expected price volatility is based on historic volatility (based on the remaining life of the performance right). Model inputs for performance rights granted are as follows:

Metric	Performance rights granted 23 November 2016	Performance rights granted 22 December 2016
Exercise price	$nil	$nil
Grant date	23 November 2016	22 December 2016
Life	0.6 yrs / 1.6 yrs / 2.6 years	2.6 years
Share price at grant date	$0.49	$0.49
Expected price volatility	68.4%	68.4%
Risk free rate	1.70%	1.70%

Expenses arising from share‐based payment transactions

Total expenses arising from share‐based payment transaction recognised during the period as part of employee benefits expense.

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2017 2016
$000’s $000’s
Rights ‐ 13
Performance rights 641 -
Options 136 104
Total share‐based payment expense 777 117
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23 Commitments

a) Gold delivery commitments

Forward sale contracts are accounted for as sale contracts with revenue recognised once gold has been physically delivered. The physical gold delivery contracts are considered own use contracts and therefore do not fall within the scope of AASB 139 Financial Instruments: Recognition and Measurement. As a result no derivatives are required to be recognised. Forward gold sale contract delivery commitments are shown below:

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Gold Delivery Gold for Physical Contracted Sale Price Committed Gold Sale Value
Commitments Delivery A$/oz $000’s
oz
As at 30 June 2017
Within one year 67,000 1,714.87 114,896
Between one and five years 35,000 1,702.89 59,601
Total / weighted average 102,000 1,710.76 174,497
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98 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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Gold Delivery Gold for Physical Contracted Sale Price Committed Gold Sale Value
Commitments Delivery A$/oz $000’s
oz
As at 30 June 2016
Within one year 73,846 1,598.06 118,010
Between one and five years 32,000 1,608.72 51,479
Total / weighted average 105,846 1,601.28 169,489
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2017 2016
$000’s $000’s
b) Capital expenditure commitments
Capital expenditure contracted but not provided for in the financial statements.
Within 1 year 868 1,058
Later than 1 year but not later than 5 years ‐ 800
Total capital expenditure commitments 868 1,858
c) Operating lease commitments
Future minimum rentals payable on non‐cancellable operating leases due:
Within 1 year 585 739
Later than 1 year but not later than 5 years 161 782
Total operating lease commitments 746 1,521
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Significant operating leases include the following:

The group has a 3 year non‐cancellable operating lease for office space in Adelaide effective from December 2014 at a cost of $91,067 per annum plus CPI adjustments.

The group has a 3 year non‐cancellable operating lease for office space in Perth effective from May 2016 at a cost of $144,075 per annum plus CPI adjustments.

The group has a 2 year non‐cancellable operating lease for the hire of two items of plant and equipment at Mt Magnet effective from April 2016 at a cost of $204,600 per annum.

d) Minimum exploration and evaluation commitments

In order to maintain current rights of tenure to exploration tenements, the group is required to perform minimum exploration work to meet minimum expenditure requirements. These obligations are subject to renegotiation and may be farmed out or relinquished. These obligations are not provided for in the financial statements.

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Within 1 year 3,198 3,193
Later than 1 year but not later than 5 years 11,094 14,541
Due later than 5 years 23,329 27,257
Total minimum exploration and evaluation commitments 37,621 44,991
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e) Other commitments

The group has contractual obligations for various expenditures such as royalties, production based payments, exploration and the cost of goods and services supplied to the group. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. These obligations are not provided for in the financial statements.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 99

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

24 Contingent Liabilities

The directors are of the opinion that the recognition of a provision is not required in respect of the following matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

(a) Bank guarantees

The group has negotiated a number of bank guarantees in favour of various government authorities and service providers. The total nominal amount of these guarantees at the reporting date is $2,687,312 (2016: $2,595,145). These bank guarantees are fully secured by cash on term deposit.

			N o t e	2 0 1 7	2016
				$ 0 0 0 ’ s	$000’s

25 Cash Flow Information

a) Reconciliation of cash

For the purposes of the Consolidated Statement of Cash Flows, cash includes cash on hand and at bank and highly liquid investments in money market instruments, net of outstanding bank overdrafts. Cash at end of the financial year as shown in the Consolidated Statement of Cash Flows is reconciled to the related items in the Consolidated Balance Sheet as follows:

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Cash 71,752 35,781
Cash on deposit 6,815 8,491
Total cash and cash equivalents 9 78,567 44,272
b) Reconciliation of net profit to net cash provided by operating activities
Profit (loss) after income tax 17,675 27,540
Non‐cash items
‐ Share‐based payments 777 117
‐ Depreciation and amortisation 60,057 49,956
‐ Impairment of assets (997) 921
‐ Tenement costs written‐off ‐ 34
‐ Discount unwind on provisions 566 553
‐ Effect of exchange rate 1 (4)
‐ Net fair value of derivative instruments 80 1,196
‐ Discontinued operations 92 215
Items presented as investing or financing activities
‐ (Gain) loss on disposal of non‐current assets 16 ‐
‐ Available for sale investments (425)
‐ Demobilisation and restoration activities 946 203
Changes in assets and liabilities
(Increase) decrease:
‐ Prepayments 3 (120)
‐ Trade and other receivables (1,446) 1,532
‐ Inventories (10,282) (11,104)
‐ Deferred tax assets 5,050 (6,652)
(Decrease) increase:
‐ Trade and other payables 10,480 (3,183)
‐ Provisions (1,546) 180
‐ Deferred tax liabilities 2,383 4,132
Net cash provided by operating activities 83,430 65,516
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100 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

				2 0 1	7 2016
					$ $

26 Related Parties

Transactions with related parties are on normal commercial terms and at conditions no more favourable than those available to other parties unless otherwise stated.

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a) Key management personnel compensation
Short‐term employee benefits 2,398,064 1,878,746
Post‐employment benefits 199,347 180,000
Other long‐term benefits 40,046 38,813
Share‐based payments 405,937 102,801
Total key management personnel compensation 3,043,394 2,200,360
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Detailed remuneration disclosures are provided in the Remuneration Report.

b) Subsidiaries

Interests in subsidiaries are set out in Note 28.

c) Transactions with other related parties

Aggregate amounts of each of the above types of transactions with key management personnel of Ramelius Resources Limited:

	2 0 1 7 $	2016 $
Amounts recognised as an expense Rent of office building 9 7 , 7 4 9 93,816 Amounts recognised as current other debtors Security deposit on premises 1 3 , 9 3 5 13,935

	2 0 1 7 $	2016 $
Amounts recognised as other receivables Current 4 5 0 , 0 0 0 ‐ Non ‐ current 1 2 8 6 2 1 7 ‐

There was no other amount receivable from or payable to directors and their related entities at reporting date.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 101

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

27 Deed of Cross Guarantee Pursuant to Class Order 98/1418, wholly‐owned subsidiary Mt Magnet Gold Pty Ltd (formerly Mt Magnet Gold NL) (Subsidiary) is relieved from the Corporations Act requirements for preparation, audit and lodgement of its financial reports.

As a condition of the Class Order, Ramelius and Mt Magnet Gold Pty Ltd (the Closed Group) entered into a Deed of Cross Guarantee on 15 December 2011 (Deed). The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of winding up of the abovementioned Subsidiary under certain provisions of the Corporations Act 2001. Mt Magnet Gold Pty Ltd has also given a similar guarantee in the event that Ramelius is wound up.

The Consolidated Statement of Comprehensive Income and Balance Sheet of the Closed Group are as follows:

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Closed Group
Consolidated Statement of Comprehensive Income 2017 2016
$000’s $000’s
Sales revenue 197,358 173,744
Cost of production (168,615) (140,839)
Gross profit (loss) 28,743 32,905
Other expenses (5,946) (7,303)
Other income 1,790 7
Operating profit (loss) before interest income and finance cost 24,587 25,609
Interest income 1,154 568
Finance costs (681) (834)
Profit (loss) before income tax 25,060 25,343
Income tax benefit (expense) (7,418) 2,422
Profit (loss) for the year 17,642 27,765
Other comprehensive income
Net change in fair value of available‐for‐sale assets (280) (202)
Other comprehensive income for the year, net of tax (280) (202)
Total comprehensive income for the year 17,362 27,563
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102 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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Closed Group
Consolidated Balance Sheet 2017 2016
$000’s $000’s
Current assets
Cash and cash equivalents 78,567 43,304
Trade and other receivables 1,914 1,772
Inventories 29,231 18,947
Other current assets 891 827
Total current assets 110,603 64,850
Non‐current assets
Available‐for‐sale financial assets 292 132
Trade and other receivables 1,698 1,330
Exploration and evaluation expenditure 19,101 7,784
Property, plant, equipment and development assets 72,694 81,173
Intangible assets ‐ 73
Deferred tax assets 30,944 35,410
Total non‐current assets 124,729 125,902
Total assets 235,332 190,752
Current liabilities
Trade and other payables 22,398 22,268
Provisions 2,714 3,392
Total current liabilities 25,112 25,660
Non‐current liabilities
Provisions 21,429 22,336
Deferred tax liabilities 18,989 16,604
Total non‐current liabilities 40,418 38,940
Total liabilities 65,530 64,600
Net assets 169,802 126,152
Equity
Share capital 149,122 125,080
Reserves 920 423
Retained earnings (losses) 19,760 649
Total equity 169,802 126,152
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28 Investments in Controlled Entities

The consolidated financial statements incorporate assets, liabilities and results of the ultimate parent entity, Ramelius Resources Limited, and the following subsidiaries in accordance with the accounting policy described in Note 1(b).

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Country of Percentage Owned (%) 1
Incorporation 2017 2016
Parent entity
Ramelius Resources Limited Australia
Subsidiaries of Ramelius Resources Limited
Mt Magnet Gold Pty Ltd Australia 100 100
Ramelius Milling Services Pty Ltd [ 2] Australia ‐ 100
RMSXG Pty Limited [3] Australia 100 ‐
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1 Percentage of voting power is in proportion to ownership.

2 Company discontinued and sold to Maximus Resources Limited 31 August 2016, (see Note 32)

3 RMSXG Pty Limited was incorporated on 12 August 2016.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 103

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

29 Interests in Joint Operations

The group has the following direct interest in unincorporated joint operations at 30 June 2017 and 30 June 2016:

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Interest (%)
Joint operation project Joint operation partner Principal activities 2017 2016
Tanami Tychean Resources Ltd Gold 85% 85%
Bonalbo Unlisted entity Gold 80% ‐
Jupiter Kinetic Gold Gold 75% ‐
South Monitor Newmont Gold 51% ‐
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The share of assets in unincorporated joint operations is as follows:

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2017 2016
$000’s $000’s
Non‐current assets
Exploration and evaluation expenditure (Note 17) 2,247 1,112
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30 Subsequent Events

No matters or circumstances have arisen since 30 June 2017 that have significantly affected, or may significantly affect:

(a) The group’s operations in future financial years,
(b) The results of operations in future financial years, or
(c) The group’s state of affairs in future financial years.

31 Parent Entity Information

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Parent entity
2017 2016
$000’s $000’s
a) Summary of financial information
Financial statements for the parent entity show the following aggregate amounts:
Current assets 73,637 37,906
Total assets 163,537 145,980
Current liabilities (5,274) (11,665)
Total liabilities (12,998) (22,311)
Net assets 147,838 123,669
Equity
Share capital 149,122 125,080
Reserves
Share‐based payment reserve 861 84
Available‐for‐sale reserve (575) (295)
Retained losses (1,570) (1,200)
Total equity 147,838 123,669
b) Income Statement
Profit (loss) after income tax (370) 28,539
Total comprehensive income (loss) (650) 28,337
c) Commitments
(i) Operating lease commitments
Future minimum rentals payable on non‐cancellable operating leases due:
Within 1 year 335 442
Later than 1 year but not later than 5 years 135 466
Total operating lease commitments 470 908
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104 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

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Parent entity
2017 2016
$000’s $000’s
(ii) Minimum exploration and evaluation commitments
In order to maintain current rights of tenure to exploration tenements, Ramelius is required to perform minimum
exploration work to meet minimum expenditure requirements. These obligations are subject to renegotiation and may
be farmed out or relinquished. These obligations are not provided for in the parent entity financial statements.
Within 1 year 1,253 1,215
Later than 1 year but not later than 5 years 3,325 6,813
Later than 5 years 2,134 4,990
Total minimum exploration and evaluation commitments 6,712 13,018
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Significant operating leases include the following:

The group has a 3 year non‐cancellable operating lease for office space in Adelaide effective from December 2014 at a cost of $91,067 per annum plus CPI adjustments.

The group has a 3 year non‐cancellable operating lease for office space in Perth effective from May 2016 at a cost of $144,075 per annum plus CPI adjustments.

(iii) Other commitments

Ramelius Resources Limited has contractual obligations for various expenditures such as royalties, production based payments, exploration and the cost of goods and services supplied to the parent entity. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. These obligations are not provided for in the parent entity financial statements.

d) Contingent liabilities

(i) Bank guarantees

Ramelius has negotiated a number of bank guarantees in favour of various government authorities and service providers. The total nominal amount of these guarantees at the reporting date is $2,687,312 (2016: $2,578,145). These bank guarantees are fully secured by cash on term deposit.

e) Guarantees in relation to debts of subsidiaries

Ramelius and Mt Magnet Gold Pty Ltd (the Closed Group) entered into a Deed of Cross Guarantee on 15 December 2011 (Deed) as noted in Note 27. The effect of the Deed is that Ramelius has guaranteed to pay any deficiency in the event of winding up of the abovementioned Subsidiary under certain provisions of the Corporations Act 2001. Mt Magnet Gold Pty Ltd has also given a similar guarantee in the event that Ramelius is wound up.

32 Assets and Disposal Group Classified as Held For Sale and Discontinued Operations

During the financial year the Company decided to sell Ramelius Milling Services Pty Ltd which owns the Burbanks processing facility. This decision was taken in line with the Group’s strategy to focus on its producing operations. Consequently, certain assets and liabilities allocable to Ramelius Milling Services Pty Ltd are classified as a disposal group.

Revenue and expenses, gains and losses relating to the discontinuation of this subgroup have been eliminated from profit or loss from the Group’s continuing operations and are shown as a single line item on the face of the statement of profit or loss.

Ramelius Resources Limited and Maximus Resources Limited (ASX: MXR), a director related entity, signed a Share Sale Agreement in August 2016 whereby Ramelius Milling Services Pty Ltd was sold for a total of $2,500,000 which includes staged payments over a 24 month period.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 105

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ANNUAL FINANCIAL REPORT 2017
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2017

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2017 2016
Note $000’s $000’s
Operating profit of Ramelius Milling Services Pty Ltd are shown below:
Profit and loss
Sales revenue 122 ‐
Cost of production (75) (534)
Other expenses ‐ 243
Net finance costs ‐ (31)
Profit (loss) from discontinued operations before tax 47 (322)
Income tax benefit (expense) 7 (14) 97
Profit (loss) for year from discontinued operations 33 (225)
Assets and liabilities of Ramelius Milling Services Pty Ltd classified as held for sale are below:
Balance Sheet
Current Inventories ‐ 560
‐
Non‐current plant and equipment 1,663
Non‐current deferred tax assets ‐ 1,002
Assets and disposal group classified as held for sale ‐ 3,225
‐
Non‐current provisions 2,068
Non‐current deferred tax liabilities ‐ 2
Liabilities included in disposal group held for sale ‐ 2,070
Cash flows generated by Ramelius Milling Services Pty Ltd are shown below :
Operating activities 92 (160)
Net cash used in discontinued operations 92 (160)
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				30 Aug 2016
				$000’s
sale of subsidiary is reconciled below: ceived d consideration				527 1,976
oceeds received/receivable from sale of subsidiary				2,503
ets of discontinued operation				(1,141)
sale of subsidiary				1,362

33 Company Details

Details of the principal place of business and registered office of Ramelius are as follows:

Head Office Level 1, 130 Royal Street East Perth, Western Australia 6004

Registered Office Suite 4, 148 Greenhill Road Parkside, South Australia 5063

106 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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DIRECTORS’ DECLARATION

FOR THE YEAR ENDED 30 JUNE 2017

In the directors’ opinion:

a) the financial statements and notes set out on pages 64 to 106, are in accordance with the Corporations Act 2001 , including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and
(ii) giving a true and fair view of the consolidated group’s financial position as at 30 June 2017 and of its performance for the financial year ended on that date, and
b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable, and
c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified in Note 27 will be able to meet any obligations or liabilities to which they are, or may become, subject by the virtue of the deed of cross guarantee described in Note 27.

Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Australian Standards Board.

The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001 .

The declaration is made in accordance with a resolution of the directors.

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________ Robert Michael Kennedy Chairman Adelaide 24 August 2017

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 107

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ANNUAL FINANCIAL REPORT 2017
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Grant Thornton House Level 3 170 Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au

Independent Auditor’s Report

to the Members of Ramelius Resources Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of Ramelius Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated balance sheet as at 30 June 2017, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations Act 2001 , including:

a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its performance for the year ended on that date; and
b Complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

Liability limited by a scheme approved under Professional Standards Legislation.

108 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Inventory– Note 1(m) and 11
At 30 June 2017, the Group has inventory in the form of consumable stores including critical spares ($4.61 million), ore stockpiles ($12.82 million), gold in circuit ($8.10 million) and gold bullion on hand ($3.62 million). The determination of the carrying value and existence of ore stockpiles, gold in circuit and ore mined, are significant areas of judgement. This includes consideration of production through the application of IFRIC 20– Stripping Costs in the Production Phase of a Surface Mine. This is a key audit matter due to the estimates utilised in determining the quantities and valuing the inventory from the various mines.	Our procedures included, amongst others: •Documenting the processes and assessing the internal controls relating to the costing of inventory; •Reconciling the costs of production to the inventory costing, including testing a sample of production costs to determine if allocated appropriately; •Attending the stocktake at the Mount Magnet site where a sample of stores and consumable items were selected from inventory records and physically verified; •Attending the Mount Magnet site and physically verifying the ore stockpiles at year end to supporting survey data; •Testing the reasonability of the costs absorbed into year-end ore, gold in circuit and bullion on hand; •Reviewing management’s methodology and assumptions in quantifying stock obsolescence; and •Reviewing the appropriateness of the related disclosures within the financial statements.
Provision for Restoration and Rehabilitation– Note 1(y), 4(g) and 19
As at 30 June 2017, the Group has a liability of $20.89 million relating to the estimated cost of rehabilitation, decommissioning and restoring the Checker Plant site in addition to the current and previous operating mines. The provision is based upon current cost estimates and has been determined on a discounted basis with reference to current legal requirements and technology. At each reporting date the rehabilitation liability is reviewed and re-measured in line with any changes in observable assumptions, timing and the latest estimates of the costs to be incurred based on area of disturbance at reporting date. The area is a key audit matter as the determination of the costs of restoration and rehabilitation involves complexity and significant management judgement.	Our procedures included, amongst others: •Obtaining the restoration provision calculation prepared by management and agreeing to the general ledger; •Undertaking an evaluation of managements experts used in the assessment of the provision and its assumptions; •Testing the additions to the provision against our understanding of the business including new mines commenced during the year; •Recalculating the implied interest charges associated with the time value of money; •Obtaining an understanding of any restoration undertaken during the year; •Considering the inputs into the calculation including the discount and inflation rates for comparison to external sources as well as the expected timing of cash flows; and •Reviewing the appropriateness of the related disclosures within the financial statements.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 109

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Key audit matter	How our audit addressed the key audit matter
Capital & Development Assets– Notes 1(n), (q), (r), (s), 4(b), (c), (e) and (f), 14 and 15
The Group incurred expenditure during the year totalling $43.39 million, associated with stripping of various pits or development of underground mines within the Mount Magnet Gold (MMG) cash generating unit. In addition, there were three exploration interests totalling $3.47 million that were transferred to development relating to interests set to commence stripping or decline within the next 12 months from 30 June 2017. The evaluation of the recoverable amount of the assets requires significant judgement in determining key assumptions supporting the expected future cash flows and the utilisation of the relevant assets. This area is a key audit matter due to the level of judgement and estimation used in the discounted cashflow models supporting the asset recoverable values.	Our procedures included, amongst others: •Documenting the processes and assessing the internal controls relating to management’s assessment of impairment, calculation of deferred stripping costs and amortisation; •Obtaining management's reconciliation of capital and development assets and agreeing to the general ledger; •Assessing the determination of cash generating unit's based on understanding how the Chief Operating Decision Maker monitors the Group's operations and makes decisions about the assets that generate independent cash flows; •Obtaining management's discounted cash flow model for the MMG cash generating unit and analysing for appropriateness against AASB 136 Impairment of Assets, including: - Understanding management’s assumptions; - Performing sensitivity analysis on assumptions; - Comparing forecast production against available reserves; - Comparing realised production data for the year against historical forecasts; •Evaluating management’s experts in relation to compilation of reserves used in the model prepared by management; •Analysing the stripping ratio against management's experts estimates; •Comparing amortisation calculations to production data; •Comparing the market capitalisation of the company at 30 June 2017 against the carrying value of assets_;_and •Reviewing the appropriateness of the related disclosures within the financial statements.
Deferred Tax Assets– Notes 1(i), 4(d) and 7
The Group has recognised deferred tax assets, which include $20.39 million of priorperiod’s losses as at 30 June 2017. Management have brought to account those losses that are estimated to be probable of utilisation over the life of mine within the MMG cash generating unit. This area is a key audit matter given the judgement required by management in the computation of losses to be brought to account.	Our procedures included, amongst others: •Obtaining management's assessment of the ability to utilise tax losses in the future, including continuation of ownership analysis and identifying and assessing the appropriateness of key assumptions utilised in the model; •Obtaining available evidence to support the key assumptions and compared against the life of mine model used for AASB 136 purposes; •Testing the mathematical accuracy of the model used as a basis for the capitalisation of deferred taxes, as well as its inputs to supporting data; •Consulting with Grant Thornton tax specialists, who reviewed the tax computations and undertook discussions with management; and •Reviewing the appropriateness of the related disclosures within the financial statements.

110 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Information Other than the Financial Report and Auditor’s Report Thereon

The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2017, but does not include the financial report and our auditor’s report thereon. The annual report is expected to be made available to us after the date of this auditor’s report.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2017.

In our opinion, the Remuneration Report of Ramelius Resources Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001 .

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 111

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Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

GRANT THORNTON AUDIT PTY LTD

J L Humphrey Partner – Audit & Assurance

Adelaide, 24 August 2017

112 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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SHAREHOLDER INFORMATION
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Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report is set out below.

Shareholdings as at 14 September 2017

Substantial shareholders

The number of shares held by substantial shareholders and their associates as disclosed in substantial holding notices given to the Company are set out below:

Substantial shareholder	Number of fully paid
	ordinary shares held
Ruffer LLP	38,085,104
Van Eck Associates Corporation	31,314,882

Voting rights

Fully paid ordinary shares

Other than voting exclusions as required by the Corporations Act 2001 and subject to any rights or restrictions attached to any class of shares, at a meeting of members, on a show of hands, each member present (in person, by proxy, attorney or representative) has one vote and on a poll, each member present (in person, by proxy, attorney or representative) has one vote for each fully paid share they hold.

Options and performance rights

Details of options and performance rights on issue by the Company as at 14 September 2017 are as follows.

Expiry date	Exercise price	Number of Options	Number of Performance
			Rights
11/6/2018 ^	$0.29869 *	1,500,000
11/6/2019 ^	$0.20	1,500,000
11/6/2020 #	$0.20	1,500,000
1/7/2024 ^	Nil		909,022
1/7/2025 #	Nil		858,451
11/6/2026 #	Nil		500,000
1/7/2026 #	Nil		858,442
1/7/2027 #	Nil		3,257,833

Option and performance right holders will be entitled on payment of the exercise price shown above to be allotted one ordinary fully paid share in the Company for each option/performance right exercised.

As result of 1:4 Rights issue in July 2014, exercise price reduced from $0.30 to $0.29869 in accordance with the terms of the options.

^ These options/performance rights are exercisable in whole or in part at any time until the expiry dates. Any options / performance rights not exercised before expiry will lapse.

These options/performance rights are subject to vesting conditions and once vested are exercisable in whole or in part at any time until the expiry dates. Any vested options/performance rights not exercised before expiry will lapse.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 113

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SHAREHOLDER INFORMATION
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Distribution of equity security holders

Ordinary Shares & Options

Ordinary Shares & Options
Category	Holders of Quoted Ordinary shares	Holders of Unquoted 11 June 2018 $0.29869 Options	Holders of Unquoted 11 June 2019 $0.20 Options	Holders of Unquoted 11 June 2020 $0.20 Options
1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001and over	899 1,702 1,102 2,741 546	1	1	1
Total numberofsecurityholders	6,990	1	1	1

The number of shareholders holding less than a marketable parcel of ordinary shares is 1,027. All unquoted options are held by the Company’s Managing Director and Chief Executive Officer, Mr Mark Zeptner.

Performance Rights

Performance Rights
Category	Holders of Unquoted 1 July 2024 Performance Rights	Holders of Unquoted 1 July 2025 Performance Rights	Holders of Unquoted 11 June 2026 Performance Rights	Holders of Unquoted 1 July 2026 Performance Rights	Holders of Unquoted 1 July 2027 Performance Rights
1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001and over	10 3	9 3	1	9 3	16
Total numberofsecurityholders	13	12	1	12	16

On market buy-back

There is no current on-market buy-back.

114 RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017

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Twenty largest shareholders

The names of the 20 largest holders of fully paid ordinary shares constituting a class of quoted equity securities on the Australian Securities Exchange Limited including the number and percentage held by those holders at 14 September 2017 are as follows.

Australian Securities Exchange Limited including the number and percentage held 2017 are as follows.	by those holders at 14 September
Name	Number of fully paid ordinary shares held Percentage held
HSBC Custody Nominees (Australia) Limited Citicorp Nominees Pty Limited J P Morgan Nominees Australia Limited Stramig Holdings Pty Ltd CS Fourth Nominees Pty Limited BNP Paribas Noms Pty Ltd Mandurang Pty Ltd Bell Potter Nominees Ltd Pershing Australia Nominees Pty Ltd Brispot Nominees Pty Ltd Citicorp Nominees Pty Limited Buttonwood Nominees Pty Ltd ABN Amro Clearing Sydney Nominees Pty Ltd BNP Paribas Nominees Pty Ltd National Nominees Limited Mr George Chien Hsun Lu & Mrs Jenny Chin Pao Lu Aurelius Resources Pty Ltd Pershing Australia Nominees Pty Ltd Southern Cross Capital Pty Ltd Triple Eight Gold Pty Ltd	114,739,955 21.78 49,155,339 9.33 24,461,600 4.64 9,500,000 1.80 9,146,382 1.74 8,372,180 1.59 8,053,570 1.53 5,000,000 0.95 4,250,000 0.81 4,148,977 0.79 3,883,669 0.74 3,255,000 0.62 3,225,000 0.61 3,202,049 0.61 2,648,555 0.50 2,489,000 0.47 2,074,091 0.39 2,000,000 0.38 1,905,000 0.36 1,747,219 0.33
	263,257,586 49.97

Unquoted and restricted equity securities

Fully paid ordinary Shares

There are no unquoted restricted fully paid ordinary shares on issue.

Options and performance rights

Details of options and performance rights on issue as at 14 September 2017 which are unquoted restricted securities held by employees as long term incentives are as follows.

Date until securities	Number of unquoted	Number of	Vesting	Exercise	Exercisable
are restricted	securities on issue	holders	date	Price	until
11 June 2018 *	1,500,000	1	-	$0.29869	11 June 2018
11 June 2019 *	1,500,000	1	-	$0.20	11 June 2019
11 June 2020 **	1,500,000	1	11 June 2018	$0.20	11 June 2020
1 July 2024 ^	909,022	13	-	Nil	1 July 2024
1 July 2025 ^^	858,451	12	1 July 2018	Nil	1 July 2025
11 June 2026 ^^	500,000	1	11 June 2019	Nil	11 June 2026
1 July 2026 ^^	858,442	12	1 July 2019	Nil	1 July 2026
1 July 2027 ^^	3,257,883	16	1 July 2020	Nil	1 July 2027

These securities are vested options which may not be transferred or used as collateral.

** These securities are unvested options exercisable when vested which may not be transferred or used as collateral.

^ These securities are vested performance rights which may not be transferred or used as collateral.

^^ These securities are unvested performance rights exercisable when vested which may not be transferred or used as collateral.

RAMELIUS RESOURCES LIMITED ANNUAL REPORT 2017 115

CORPORATE DIRECTORY

PRINCIPAL REGISTERED OFFICE RAMELIUS RESOURCES LIMITED Suite 4, 148 Greenhill Road PARKSIDE SA 5063 PO Box 506 UNLEY SA 5061 Telephone: (08) 8271 1999 Facsimile: (08) 8271 1988 Email: [email protected] Website: www.rameliusresources.com.au

PERTH OPERATIONS OFFICE

Level 1, 130 Royal Street EAST PERTH WA 6004 PO Box 6070 EAST PERTH WA 6892 Telephone: (08) 9202 1127

DIRECTORS, SENIOR MANAGEMENT AND CONSULTANTS

ROBERT MICHAEL KENNEDY KSJ, ASAIT, Grad. Dip. (Systems Analysis), Dip. Financial Planning, Dip. Financial Services, FCA, CTA, AGIA, Life Member AIM, FAICD, MRSASA Independent Non-Executive Chairman

MARK WILLIAM ZEPTNER BEng (Hons) Mining, MAusIMM, MAICD Managing Director and Chief Executive Officer

AUSTRALIAN SECURITIES EXCHANGE

Code: RMS

Listed on Australian Securities Exchange Limited Exchange Centre, 20 Bridge Street SYDNEY, NSW, 2000

SHARE REGISTRAR Location of Share Register Computershare Investor Services Pty Limited Level 5, 115 Grenfell Street ADELAIDE SA 5000 Telephone: 1300 556 161 (within Australia), + 61 3 9415 4000 (outside Australia) Facsimile: 1300 534 987 (within Australia), + 61 3 9473 2408 (outside Australia) Enquiries: www.investorcentre.com/contact

AUDITORS Grant Thornton

Chartered Accountants Level 3, 170 Frome Street ADELAIDE SA 5000

LAWYERS

DMAW Lawyers Pty Ltd Level 3, 80 King William Street ADELAIDE SA 5000

KEVIN JAMES LINES

BSc (Geology), MAusIMM, MAICD Independent Non-Executive Director

MICHAEL ANDREW BOHM

BAppSc (Mining Engineering), MAusIMM, MAICD Independent Non-Executive Director

DOMENICO ANTONIO FRANCESE BEc, FCA, FFin, ACIS, AGIA Company Secretary

TIMOTHY PETER MANNERS BBus (accounting), FCA, AGIA, MAICD Chief Financial Officer

DUNCAN COUTTS

BEng (Hons) Mining, MAusIMM, MAICD Chief Operating Officer

KEVIN MARK SEYMOUR BSc, (Geology), MAusIMM, General Manager, Exploration & Business Development

AI assistant

RAMELIUS RESOURCES LIMITED — Annual Report 2017

65718_rns_2017-10-26_01d351cd-e849-46b4-91be-083ae3595899.pdf

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