RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2015

Aug 3, 2015

ASX Release

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4 August, 2015

Kidman Resources Limited ABN 88 143 526 096

Corporate Details: ASX Code: KDR

Issued capital: 119.61M ordinary shares

Substantial Shareholders : Holdex Nominees 11.3m (9.45%)

Directors:

Non-Executive Chairman: Garrick Higgins

Managing Director: Martin Donohue

Non-Executive Director: Brad Evans

Chief Operating Officer (COO): Tony Davis

Chief Financial Officer (CFO): Melanie Leydin

Company Secretary: Justin Mouchacca

Contact Details:

Kidman Resources Limited Suite 3, Level 4 12 - 20 Flinders Lane Melbourne Victoria 3000 Australia

Tel: +61 (0)3 9671 3801 Fax: +61 (0)3 9671 3523

Email: info@kidmanresources.com.au

Website:

www.kidmanresources.com.au

Kidman to cut costs with deal to lease Burbank’s mill

Kidman Resources (ASX: KDR) is pleased to advise that it has agreed to lease and operate the Burbank’s processing plant owned by Ramelius Resources (ASX: RMS) in a move which will further reduce costs at Kidman’s Burbank’s gold mine near Coolgardie.

Kidman is currently stockpiling ore from the Birthday Gift underground mine at Burbank’s as part of its strategy to begin production this quarter.

The Burbank’s mill is located immediately adjacent to the Christmas open pit at Burbank’s (see figure 1.0) and is the original treatment plant for the project.

The mill was refurbished by Ramelius in 2007 to process ore from their Wattle Dam project. It has been on care and maintenance since Wattle Dam was closed in December last year.

Kidman will move immediately to bring the plant back into operation to process ore from the Birthday Gift underground.

The mill is a conventional carbon in leach circuit with crusher, ball mill, gravity circuit and leach tanks. The mill has the capacity to treat up to 180,000 tonnes of material per annum.

Due to its close proximity to Kidman’s Burbank’s mine the cost savings and operational benefits are expected to be significant. Milling costs will be greatly reduced compared to toll treating ore and the additional recoveries expected from the plant versus toll treating will further enhance the projects economics.

Under the deal, Kidman has an initial one year lease with an option to extend by mutual agreement. Kidman will pay Ramelius $5 per dry metric tonne of ore processed and $1 per tonne of capacity utilised in the TSF.

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Figure 1: Burbanks Mine and Milling Operations

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Figure 2: Location map of Coolgardie Project in W.A.

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Figure 3. Active development heading on the 1295 Jesson Lode in the Birthday Gift underground mine. The high grade Jesson lode consists of laminated quartz veins within a steeply dipping biotite-rich shear.

Kidman Background

Coolgardie in WA for production to commence in the September quarter of 2015.

Kidman also owns advanced exploration projects in the Northern Territory (Home of Bullion – Cu, Au, Pb, Zn, Ag/ Prospect D - Ni, Cu) and New South Wales.

In New South Wales the company has the Crowl Creek Project which is host to numerous projects such as Murrays (Au) Blind Calf (Cu, Au) and Three Peaks (Cu, Pb, Ag).

The company also owns the Brown’s Reef project in the southern part of the Cobar Basin (Zn, Pb, Ag, and Cu)

For further information on the Company’s portfolio of projects please refer to the website at: www.kidmanresources.com.au

Martin Donohue (Managing Director) Email: info@kidmanresources.com.au

Media:

Read Corporate

Paul Armstrong / Nicholas Read

+61 8 9388 1474

Cautionary Statement

Readers should use caution when reviewing the exploration and historical production results presented and ensure that the Modifying Factors described in the 2012 edition of the JORC Code are considered before making an investment decision.