REGIS RESOURCES LIMITED — Capital/Financing Update 2016

Apr 13, 2016

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ABN 28 009 174 761

14 April 2016

Manager Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

www.regisresources.com Level 1 1 Alvan Street Subiaco WA 6008 Australia P 08 9442 2200 F 08 9442 2290

DIESEL HEDGING

The board of Regis advises that the Company recently took advantage of historically low oil prices by entering into a commodity swap transaction to partially hedge future fluctuations in the AUD diesel price for the operating requirements of the Duketon Gold Project.

A chart showing the history of the benchmark oil price (WTI crude in USD) and the base diesel price[*] (AUD$/litre) paid by Regis on a monthly basis (before delivery charges) since the start of FY2012 is shown below. This shows the strategic medium term risk management and value proposition presented by the diesel hedging programme undertaken.

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----- Start of picture text ----- Oil Price & Regis Diesel Price 110.00 1.050 100.000.950 90.000.850 80.00 70.00 0.750 60.00 0.650 50.000.550 40.000.450 30.00 20.00 0.350WTI Oil Regis DieselLITRE)WTI OIL PRICE (USD PER BARREL) REGIS BASE DIESEL PRICE* (AUD PER----- End of picture text -----

The Company has hedged a total of 4 million litres of diesel per month from 1 May 2016 to 31 April 2017 and a further 2 million litres per month from 1 May 2017 to 31 October 2017. The hedging programme has been implemented in two tranches as shown below:

**Volume per month **	**Tenor **	Price
2 million litres	1 May2016 to 31 April 2017	A$0.404/L
2 million litres	1 May2016 to 31October 2017	$A0.419/L

The total amount hedged over the 12 month period represents approximately two thirds of total annual usage at the Duketon operations.

* Base diesel price represents Singapore Gasoil 10ppm (the product Regis purchases) expressed in AUD. Base price does not include Government excise, GST (both claimable) or freight.

_____________________________________________________________________________________________________ Regis Executive Chairman, Mark Clark commented:

“Between our three Duketon processing facilities and the contractor open pit earth moving fleet, for which Regis buys the fuel, diesel is the largest individual cost line in our operating cost base. We believe that this 12-18 month hedge, undertaken at close to the lowest ever base diesel cost recorded at Duketon to date, is a strong medium term risk management and value creation opportunity for Regis.”

Yours sincerely Regis Resources Limited

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Mark Clark Executive Chairman

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