REACH RESOURCES LIMITED — Capital/Financing Update 2017

Aug 8, 2017

==> picture [488 x 82] intentionally omitted <==

ASX ANNOUNCEMENT/MEDIA RELEASE

9 August 2017

Cervantes Paynes Find Project Progressing

Corporation Ltd (ASX:CVS) (“the Company” or “Cervantes”) is pleased to announce that it has signed a Confidentiality Agreement (CA) with private Company Minjar Gold Pty Ltd (Minjar) in relation to the Payne’s Find Gold Project.

Minjar is a private corporation that among other assets, owns and operates two mills (Kirkalocka and Golden Dragon) within economic trucking distance of Payne’s Find on existing good quality haul roads.

Kirkalocka is currently under care and maintenance while Golden Dragon is fully operational, but requiring more feed to secure its long term future.

Cervantes and Minjar have signed a CA to jointly explore potential near term production opportunities that may arise from Cervantes’ exploration programs at Payne’s Find. This co-operation will initially focus on the Pansy Deposit, but may extend to other opportunities that may arise during the exploration program.

Pansy was drilled in 1987 to produce a small historical mineralised estimate (non-JORC) of 18,568t at 4.28g/t gold for 2,875 ounces (Refer Cervantes previous Announcement 4[th] May 2017).

While small, this estimate was based only upon a rudimentary drilling program, however the high grade and simple metallurgy are potentially attractive to Minjar to enhance the operational metrics of its mills which are facing declining grades.

In addition, Cervantes feels the geology of Pansy has been misinterpreted, offering the opportunity for expansion and/or repetitions that will be the object of planned exploration programs.

Cervantes, through the Payne’s Find acquisition, and with the addition of several other key leases in the region, now effectively controls the entire Payne’s Find Greenstone belt ( Refer Figure 1. & 2. and Schedule of Tenements) .

Cervantes is looking toward discovery of major stand-alone gold deposits, however, forming an alliance with the only major gold miner in the district is an important and prudent step as it potentially offers processing options and thereby de-risking the exploration process.

==> picture [488 x 75] intentionally omitted <==

==> picture [488 x 82] intentionally omitted <==

==> picture [239 x 343] intentionally omitted <==

==> picture [240 x 345] intentionally omitted <==

Fig 1. Regional Tenements Fig 2. Project Tenements and Geology

Cautionary Statement

The estimates referenced in this announcement are historical estimates and are not reported in accordance with the JORC Code. A competent person has not done sufficient work to classify these historical estimates as mineral resources in accordance with the JORC Code.

Competent Persons Statement.

Information contained in this report that relates to the summarizing of Historical Estimates is based on information compiled by Mr. Bradley George, a competent person who is a member of the Australian Institute of Geoscientists. Mr. George is an employee of Total Earth Solutions Pty Ltd and consults to Cervantes Gold Limited on a part time basis. Mr. George has sufficient experience that is relevant to the style of mineralization 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”.

Mr. George attests that the information in this announcement related to Historical Estimates is an accurate representation of the available data and studies for the Pansy project. Mr.George consents to the inclusion in the report of the matters based on this information in the form and context in which it is appears.

==> picture [488 x 75] intentionally omitted <==

==> picture [488 x 82] intentionally omitted <==

SCHEDULE OF TENEMENTS

Project / Tenement	Project / Tenement			TenementInterest
Western Australia
Paynes Find Project(*subject to finalisation		of acquisition from European Lithium Ltd)
Paynes Find	P59/2101*	-	-	100%*	-
Paynes Find	P59/1959*	-	-	100%*	-
Paynes Find	P59/1958*	-	-	100%*	-
Paynes Find	P59/1957*	-	-	100%*	-
Paynes Find	P59/1956*	-	-	100%*	-
Paynes Find	P59/1942*	-	-	100%*	-
Paynes Find	P59/1941*	-	-	100%*	-
Paynes Find	P59/1924*	-	-	100%*	-
Paynes Find	P59/1909*	-	-	100%*	-
Paynes Find	P59/1908*	-	-	100%*	-
Paynes Find	P59/1907*	-	-	100%*	-
Paynes Find	M59/663*	-	-	100%*	-
Paynes Find	M59/662*	-	-	100%*	-
Paynes Find	M59/396*	-	-	100%*	-
Paynes Find	M59/244*	-	-	100%*	-
Paynes Find	M59/235*	-	-	100%*	-
Paynes Find	M59/10*	-	-	100%*	-
Paynes Find	M59/2*	-	-	100%*	-
Paynes Find Project
Paynes Find	E59/2242	-	-	100%	-
Paynes Find	E59/2130	-	-	100%	-
Paynes Find Project(*subject to exercise of		option agreement)
Paynes Find	E59/2076*	-	-	100%*	-
Paynes Find	E59/2094*	-	-	100%*	-

• Denotes, as indicated above, particular tenements that are secured, however they remain subject to settlement or finalisation of acquisition and exercise of option agreement.

END

For further information, please contact: Collin Vost Executive Chairman

Cervantes Corporation Ltd Email: admin@cervantescorp.com.au

==> picture [488 x 75] intentionally omitted <==