RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2021

Jan 24, 2021

25 January 2021

ISSUED CAPITAL Ordinary Shares: 809M

DIRECTORS

NON-EXECUTIVE CHAIR: Bob Vassie MANAGING DIRECTOR: Mark Zeptner NON-EXECUTIVE DIRECTORS: Michael Bohm David Southam Natalia Streltsova

COMPANY SECRETARY: Richard Jones

www.rameliusresources.com.au

ramelius@rameliusresources.com.au

RAMELIUS RESOURCES LIMITED

Registered Office

Level 1, 130 Royal Street East Perth, WA 6004 Tel +61 8 9202 1127 PO Box 6070 East Perth, WA 6892

10% MINORITY INTEREST & FREEHOLD LAND PURCHASED AT TAMPIA

HIGHLIGHTS

25 January 2021

• Purchase of the remaining 10% minority interest in the Tampia project for a total of A$10.75M, comprising:
  • o A$1.0M cash already paid
  • o A$2.0M cash to be paid by 2 February 2021
  • o 5,000,000 RMS shares to be issued under the Company's capacity under Listing Rule 7.1 (value based on $1.55 per RMS share)
  • o 2% Net Smelter Return Royalty on any gold production above 186,000 ounces as contemplated in the April 2020 Feasibility Study*. No value has been ascribed.
• Purchase of primary freehold land associated with Tampia project for A$6.0M
  • o Consideration to be paid in cash, split over two payments, with settlement anticipated for 31 March 2021
  • o Allows immediate access to Tampia project area for site preparations, in line with previously disclosed production schedule
  • o Win/win for both parties, whereby landowner avoids receiving potentially less through Warden's Court process and Ramelius is guaranteed access in line with its planned production schedule

Ramelius Resources Limited (ASX:RMS) ("Ramelius", "the Company") is pleased to announce that it has agreed terms for the purchase of both the 10% minority interest and the primary freehold land associated with the Tampia gold project, part of its portfolio of projects in Western Australia (refer Figure 2).

The 10% minority interest was previously held by Tampiagold Pty Ltd and Goldoro Pty Ltd ("Tampiagold Parties"). Agreement has been reached whereby Ramelius will acquire the remaining 10% of the Tampia project and operate it independently whilst the Tampiagold Parties will benefit from an upfront payment and ongoing project exposure via shares in RMS and a Royalty over any additional ounces being produced above the Feasibility Study amount (186,000 ounces).

Landowner negotiations had been ongoing since Ramelius acquired the project, with the outcome being positive for both parties. Importantly, the project remains on schedule.

Managing Director, Mark Zeptner, today said:

"We are pleased to have completed both transactions allowing Ramelius to press ahead with the Tampia project, in line with our planned schedule. Tampia represents approximately 60,000 ounces in our FY2022 production profile and will be our first mine in the Western Australian wheatbelt, where we hope to build further on our existing relationships with the Narembeen, Merredin & Westonia townships. We believe the project will deliver significant returns for all stakeholders."

[Type here] * See RMS ASX Release "Ramelius Life of Mine Update" 30 April 2020

TAMPIA GOLD PROJECT (WA) – FEASIBILITY STUDY RESULTS

Summary

The Tampia gold project is located near Narembeen in Western Australia. The Feasibility Study was completed in April 2020 and focused on the option to haul ore to Ramelius' Edna May processing facility, as chosen based on the Strategic Review carried out in the first half of 2019. The results are shown in Table 1 below.

Parameter	Unit	Feasibility Study(April 2020)
Mining
Ore tonnes (high grade)	Mt	2.5
Grade	g/t	2.65
Contained Gold	koz	210
Processing
Ore processed	Mt	2.5
Grade	g/t	2.65
Recovery	%		88.4
Gold Production	koz		186
Financial
Upfront Capital Cost	A$M	26.4
AISC	A$/oz		1,167
Gold Price	A$/oz	2,100	2,300
Cashflow	A$M	139	175
NPV @ 5%	A$M	116	148
IRR	%	155.7	199.1

Table 1 – Tampia Gold Project Feasibility Study Summary
---------------------------------------------------------

The project financials are calculated on Ore Reserves only and are shown on a 100% basis.

Location & Project History

The Tampia deposit is located 12km south-east of Narembeen and 100km south of the Edna May gold mine, in the Wheatbelt region of Western Australia. The deposit was discovered in the 1980s by BHP. Ramelius acquired the project via the takeover of Explaurum Limited ("Explaurum") in early 2019.

Geology and Mineralisation

Tampia is hosted within Archaean mafic-felsic granulite facies units. Gold mineralisation is hosted within a mafic gneiss unit dominated by pyroxene-plagioclase-amphibole minerals. Late granitic sills intrude the mafic gneiss. Gold mineralisation occurs as shallow dipping (20°- 30°), 2-20m thick lode zones, sub-parallel to the granitic sills. Alteration includes silica, microcline, hornblende and clinopyroxene. Gold mineralisation is associated with disseminated pyrrhotite, arsenopyrite, chalcopyrite and rare pyrite. Total sulphide content of mineralised zones is typically 1-3%. Arsenic grade is a good indicator of gold mineralisation, which is frequently nuggety. The resource covers an area of 900m x 500m.

Mineral Resource

Table 2 - Mineral Resource Summary

	Measured			Indicated			Inferred			Total Resource
Deposit	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
	t	g/t	oz	t	g/t	oz	t	g/t	oz	t	g/t	oz
Tampia	390,000	2.4	31,000	7,700,000	1.7	420,000	130,000	1.8	7,400	8,200,000	1.7	460,000

Figures rounded to 2 significant figures. Rounding errors may occur.

Ore Reserve

Table 3: Ore Reserve Summary

Deposit		Proven		Probable			Total Reserve
	Tonnes	Au	AuTonnes		AuAu		TonnesAu		Au
	t	g/t	oz	t	g/t	oz	t	g/t	oz
Tampia	190,000	3.4	20,000	2,300,000	2.6	190,000	2,500,000	2.7	210,000

Figures rounded to 2 significant figures. Rounding errors may occur.

The project financials are calculated on Ore Reserves only.

Figure 1 – Tampia Resource model and open pit design

An Appendix 3B in relation to this transaction follows. Authorised for release by the Board of Directors. For further information contact:

Investor enquiries:

Mark Zeptner

Managing Director Ramelius Resources Ltd Ph: +61 8 9202 1127

Tim Manners

Chief Financial Officer Ramelius Resources Ltd Ph: + 61 8 9202 1127

Media enquiries:

Luke Forrestal

Associate Director Media & Capital Partners Ph: +61 411 479 144

ABOUT RAMELIUS

Ramelius Resources Limited (ASX:RMS) is a Western Australian gold producer that has been listed on the ASX since 2003 and in production since 2006. Ramelius owns and operates the Mt Magnet, Edna May, Vivien and Marda gold mines and owns 100% interests in the Tampia and Penny gold projects, all in Western Australia (refer Figure 2).

Ore from the high-grade Vivien underground mine, located near Leinster, is trucked to the Mt Magnet processing plant where it is blended with ore from both underground and open pit sources. The Edna May operation currently processes ore from its underground and open pit operations as well as hauled ore from the Marda gold mine.

Figure 2 – Ramelius' Production Centre and Development Project locations

FORWARD LOOKING STATEMENTS

This report contains forward looking statements. The forward looking statements are based on current expectations, estimates, assumptions, forecasts and projections and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The forward looking statements relate to future matters and are subject to various inherent risks and uncertainties. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results expressed or implied by any forward looking statements. Such factors include, among others, changes in market conditions, future prices of gold and exchange rate movements, the actual results of production, development and/or exploration activities, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Neither Ramelius, its related bodies corporate nor any of their directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law.

COMPETENT PERSONS

The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Rob Hutchison (Mineral Resources) and Duncan Coutts (Ore Reserves), who are Competent Persons and Members of The Australasian Institute of Mining and Metallurgy. Rob Hutchison and Duncan Coutts are full-time employees of the company. Rob Hutchison and Duncan Coutts have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being 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". Rob Hutchison and Duncan Coutts consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

PREVIOUSLY REPORTED INFORMATION

Information in this announcement references previously reported exploration results and resource information extracted from the Company's ASX announcements (including RMS ASX Release "Resources and Reserves Statement 2020", 28 September 2020). For the purposes of ASX Listing Rule 5.23 the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.