REGIS RESOURCES LIMITED — Annual Report 2018

Aug 27, 2018

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REGIS RESOURCES LTD

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2018 FULL YEAR FINANCIAL RESULTS

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DISCLAIMER & COMPETENT PERSONS STATEMENT

This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’ projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification.

This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Regis’ control, may cause the actual results, performance and achievements of Regis to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law, Regis does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Regis, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Regis or its activities.

The information in this presentation that relates to Mineral Resources or Ore Reserves is extracted from the Mineral Resource and Ore Reserve Statement released to the Australian Securities Exchange on 27 July 2018 and for which Competent Person’s consents were obtained. The Competent Person’s consents remain in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 27 July 2018 and, in the case of estimates or Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original ASX announcement.

ASX announcements are available on the Company’s website at www.regisresources.com.au

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33

FY2018 – FINANCIAL RESULTS HIGHLIGHTS

RECORD FINANCIAL RESULTS

• Gold revenue up 11% to $604.4 million

• 14% higher gold sales volume and delivered gold price of $1,676/oz in line with prior year

• Net profit after tax up 26% to record $174.2 million

• Earnings per share up 25% to 34.60cps

• EBITDA up 23% to $312.5 million

• Strong EBITDA margin of 51.5%

• Net cash from operating activities of $259.7 million up 26% from the previous year • Record gold production of 361,373 at AISCs of $901 per ounce

• Cash and bullion at 30 June 2018 of $208.8[*] million, up $57.1 million after the payment of $81 million in dividends and $33 million in exploration expenditure

• DIVIDEND

• Final dividend of 8cps ($40.4 million) payable on 26 September 2018

• Dividends declared for FY2018 of 16cps up 7% from FY2017

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• Includes bullion on hand classified as inventory and valued at the delivered gold price subsequent to 30 June 2018 (ie 3,838oz’s at $1,700/oz)

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STRONG PERFORMANCE ON ALL PROFIT MEASURES

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Earnings & Dividend per Share

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40.0
34.6
27.6
30.0
22.4
17.4
20.0 15.0 16.0
13.0
11.0
10.0 6.0
0.0
0.0
2014 2015 2016 2017 2018
EPS Dividend per share
CENTS PER SHARE
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1 FY2014 NPAT, EBITDA & EPS adjusted to underlying result by excluding $202.7m after tax impairment charge

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CASHFLOW WATERFALL

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Strong cash-flow from operations of $300.8m for FY2018 underpinned payment of $80.7 million in dividends during the year.

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1 Operating cash flow differs from the statutory Statement of Cash Flow “net cash from operating activities” as it is quoted under the Appendix 5B classification protocol and includes movement in gold bullion on hand.

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DIVIDEND

• Final dividend declared

• Interim dividend

   - **8 cents per share fully franked** ($40 million)
  
   - 8 cps fully franked ($40m paid March 2018)
  

• Full year (16cps) payout key metrics:

• 13.4% of FY18 revenue and 25.8% of EBITDA[+]

• 4.0% basic dividend yield*

• 5.7% grossed up (for 100% franking) dividend yield*

  • Annualised dividend yield of 16cps at a closing share price of $4.00 on 27 August 2018

COMMITMENT TO DIVIDENDS

• Regis has paid &/or declared 65 cps - $326 million in dividends since 2013

• Regis is an Australian gold industry leader on dividend payment metrics

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Dividends Declared Cumulative Dividends Paid
20 350
300
15
250
8
8
10 200
9
326
150
5
6 4 7 8 100 245
170
0
50 105
2015 2016 2017 2018 75 75
0
interim final 2013 2014 2015 2016 2017 2018
CENTS PER SHARE $ MILLIONS
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• EBITDA is an adjusted measure of earnings before interest, taxes, depreciation and amortisation. EBITDA is non-IFRS financial information and is not subject to audit. The measure is included to assist investors to better understand the performance of the business

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REVIEW OF FY2018 OPERATIONS

DUKETON CONTINUES TO DELIVER STRONG CASHFLOW

	FY18	FY17	OPERATIONS
Ore mined (Mbcm)	4.6	4.6	FY18 production 361,373 oz at top end of guidance
Waste mined (Mbcm)	20.1	25.6	FY18 grade of 1.19g/t: 7% higher than FY17
			Positive impact of grade from full year production from
Stripping ratio (w:o)	4.4	5.6	Gloster & Erlistoun
Ore mined (Mtonnes)	10.6	10.8	COSTS
Ore milled (Mtonnes)	10.0	9.8	FY18 cash costs $721/oz & AISC $901/oz
Head grade (g/t)	1.19	1.11	Both below bottom of FY18 guidance range
Recovery (%)	94	93
Gold production (ounces ‘000)	361	324	FY18 operating cashflow $301m (FY17: $256m) OPERATING CASH-FLOW
Cash cost (A$/oz)	721	790	Continued strong operating cashflow underpinning cash
Cash cost inc royalty (A$/oz)	794	864	build and dividends
All in Sustaining Cost (A$/oz)1	901	945

• FY18 operating cashflow $301m (FY17: $256m)  Continued strong operating cashflow underpinning cash build and dividends

1 AISC calculated on a per ounce of production basis 2 operating cash flow is quoted under the Appendix 5B classification protocol and as such does not include payments for pre-strip and deferred mining costs as these are classified as investing activities.

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SUMMARY

FINANCIALS

• Record net profit after tax of 174.2 million up 26% from 2017 ($138.2 million)

• EBITDA up 23% to 312.5 million

• Final dividend of 8cps declared taking full year dividend for FY2018 to 16cps

OPERATIONS

• Strong operational performance at Duketon in FY2018 with full year of production from satellite projects Gloster and Erlistoun

• Record annual production of 361,373 ounces of gold produced at AISC of $901/oz

• Board approval for the development of the Rosemont Underground project

• McPhillamys Project advancing with DFS and EIS expected to be completed in the December 2018 quarter

RESERVE GROWTH

• Group Ore Reserves up 104% to 4.07 Moz after mining depletion of 396,000 oz (March17: 2.19Moz)

• McPhillamys maiden reserve and Duketon organic replacement

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APPENDIX 1

JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2018

Group Ore Reserves

Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves	Group Ore Reserves
as at 31 March 2018
Gold			Proved			Probable			Total Ore Reserve			Competent Person3
Project	Type	Cut-Off (g/t)2	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)
Moolart Well1	Open-Pit	> 0.4	1.3	0.91	38	1.4	0.79	36	2.7	0.85	74	C
Garden Well1	Open-Pit	> 0.4	5.6	0.71	128	15.8	0.94	474	21.4	0.88	603	C
Rosemont1	Open-Pit	> 0.4	2.0	1.24	80	6.5	1.32	276	8.5	1.31	356	C
Duketon Main Deposits	Sub Total		8.9	0.86	246	23.7	1.03	787	32.6	0.99	1,033
Tooheys Well5	Open-Pit	> 0.5	0.0	-	0	7.1	1.61	366	7.1	1.61	366	C
Gloster1	Open-Pit	> 0.4	1.0	0.88	28	6.3	0.93	190	7.3	0.93	217	C
Erlistoun1	Open-Pit	> 0.5	0.1	1.10	3	3.4	1.39	154	3.5	1.39	157	C
Baneygo	Open-Pit	> 0.5	-	-	-	4.0	1.22	158	4.0	1.22	158	C
Petra	Open-Pit	> 0.4	-	-	-	0.9	1.11	31	0.9	1.11	31	C
Dogbolter	Open-Pit	> 0.4	-	-	-	1.6	1.18	61	1.6	1.18	61	C
Anchor	Open-Pit	> 0.4	-	-	-	0.1	1.87	7	0.1	1.87	7	C
Duketon Satellite Deposits	Sub Total		1.1	0.90	31	23.4	1.28	966	24.5	1.27	998
McPhillamys4	Open-Pit	> 0.4	-	-	-	60.1	1.05	2,034	60.1	1.05	2,034	C
Regis	Grand Total		10.0	0.86	278	107.2	1.10	3,787	117.2	1.08	4,065
Notes 2. Cutoff grades vary according to oxidation and lithology domains. Refer to Group Ore Reserves Lower Cut Notes. 3. Refer to Group Competent Person Notes. 4. As reported 8th September 2017 5. As reported 4th July 2017 1. Mineral Resources and Ore Reserves are reported inclusive of ROM Stockpiles at cut-off grade of 0.4 g/t. The above data has been rounded to the nearest 100,000 tonnes, 0.01 g/t gold grade and 1,000 ounces. Errors of summation may occur due to rounding.

Notes

The above data has been rounded to the nearest 100,000 tonnes, 0.01 g/t gold grade and 1,000 ounces. Errors of summation may occur due to rounding.

1. Mineral Resources and Ore Reserves are reported inclusive of ROM Stockpiles at cut-off grade of 0.4 g/t.

2. Cutoff grades vary according to oxidation and lithology domains. Refer to Group Ore Reserves Lower Cut Notes.

3. Refer to Group Competent Person Notes.

4. As reported 8th September 2017

5. As reported 4th July 2017

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1010

APPENDIX 2 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2018

Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018	Group Mineral Resources as at 31 March 2018
Gold			Measured			Indicated			Inferred			Total Resource			Competent Person2
Project	Type	Cut-Off (g/t)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)	Tonnes (Mt)	Gold Grade (g/t)	Gold Metal (koz)
Moolart Well1	Open-Pit	0.4	5.1	0.82	135	17.1	0.69	377	11.6	0.70	261	33.8	0.71	773	A
Garden Well1	Open-Pit	0.4	6.5	0.71	147	51.6	0.83	1,377	10.8	0.76	264	68.9	0.81	1,787	A
Rosemont1	Open-Pit	0.4	2.5	1.20	95	14.9	1.17	562	0.8	1.36	36.58	18.3	1.20	694	A
Rosemont5	Underground	2.0	-	-	-	-	-	-	1.4	5.10	230	1.4	5.10	230	B
Duketon Main Deposits	Sub Total		14.1	0.83	378	83.6	0.86	2,315	24.6	1.00	792	122.4	0.89	3,485
Tooheys Well3	Open-Pit	0.4	0.0	0.86	0	15.8	1.18	601	1.1	0.89	31	17.0	1.16	633	A
Gloster1	Open-Pit	0.4	1.0	0.88	28	11.7	0.79	297	5.8	0.66	123	18.4	0.75	447	A
Baneygo	Open-Pit	0.4	-	-	-	9.2	0.96	283	1.9	0.95	57	11.1	0.96	340	A
Erlistoun1	Open-Pit	0.4	0.1	1.10	3	5.3	1.27	215	0.6	0.99	19	5.9	1.24	237	A
Dogbolter	Open-Pit	0.4	-	-	-	4.0	1.04	141	0.1	1.39	5	4.1	1.10	146	A
Russells Find	Open-Pit	0.4	-	-	-	2.2	1.06	75	0.3	0.98	11	2.5	1.05	86	A
Petra	Open-Pit	0.4	-	-	-	1.3	1.07	44	0.8	0.67	18	2.1	0.91	62	A
King John	Open-Pit	0.4	-	-	-	-	-	-	0.8	1.56	42	0.8	1.56	42	A
Reichelts Find	Open-Pit	0.4	-	-	-	0.6	2.18	43	0.3	2.26	21	0.9	2.21	64	A
Anchor	Open-Pit	0.4	-	-	-	0.2	1.75	9	0.1	0.95	2	0.2	1.53	11	A
Duketon Satellite Deposits	Sub Total		1.1	0.90	31	50.2	1.06	1,707	11.8	0.87	329	63.2	1.02	2,067
Duketon McPhillamys4	Total Total	0.4	15.2 -	0.84 -	409 -	133.8 67.7	0.93 1.05	4,022 2,282	36.5 1.2	0.96 0.64	1,121 25.46	185.5 68.9	0.93 1.04	5,552 2,307	A
Regis	Grand Total		15.2	0.84	409	201.6	0.97	6,304	37.7	0.95	1,146	254.5	0.96	7,859
Notes The above data has been rounded to the nearest 100,000 tonnes, 0.01 g/t gold grade and 1,000 ounces. Errors of summation may occur due to rounding. All Mineral Resources are reported inclusive of Ore Reserves to JORC Code 2012 unless otherwise noted. 3. As reported 4th July 2017 4. As reported 8th September 2017 5. As reported 12th March 2018 1. Mineral Resources and Ore Reserves are reported inclusive of ROM Stockpiles at cut-off grade of 0.4 g/t. 2. Refer to Group Competent Person Notes.

Notes

The above data has been rounded to the nearest 100,000 tonnes, 0.01 g/t gold grade and 1,000 ounces. Errors of summation may occur due to rounding.

All Mineral Resources are reported inclusive of Ore Reserves to JORC Code 2012 unless otherwise noted.

1. Mineral Resources and Ore Reserves are reported inclusive of ROM Stockpiles at cut-off grade of 0.4 g/t.

2. Refer to Group Competent Person Notes.

3. As reported 4th July 2017

4. As reported 8th September 2017

5. As reported 12th March 2018

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