Resolute Mining Limited — Capital/Financing Update 2013

Aug 26, 2013

01

==> picture [562 x 116] intentionally omitted <==

----- Start of picture text ----- ASX Announcement----- End of picture text -----

27 August 2013

SYAMA DEVELOPMENT UPDATE AND FY2013 RESERVES AND RESOURCES STATEMENT

HIGHLIGHTS

• Modified mine plan for Syama with removal of Stage 3 open pit cutback from expansion project delivering capital management benefits

• Substantial reduction in capital expenditure as relocation of the sulphide crushing circuit is no longer required

• Revised Syama mine schedule ensures strong positive cash flows for the next 8 years

• Positive independent conceptual underground study completed on exploiting the almost 3.0Moz of Resources beneath the planned open pit.

• Underground prefeasibility study commenced to determine optimal stoping method, mine layout, production rate and updated Ore Reserves

• Total Group Resources increased by 40% and Reserves reduced by only 20% (including mine depletion), following revised mine plans and successful drilling campaigns in Queensland, Mali and Tanzania during FY2013

Resolute Mining Limited (ASX: RSG, “Resolute” or the “Company”) is pleased to announce additional operational and capital management initiatives for Syama and the updated Group Reserves and Resources Statement for the year ended 30 June 2013.

SYAMA CAPITAL MANAGEMENT

Following the deferral of US$113M from the capital expenditure program announced on 28 June 2013, a comprehensive review of the Syama Expansion Project has continued. The Company evaluated the optimal approach to future mining and treatment of the delineated oxide-sulphide reserve inventory to deliver strong positive cashflow for Resolute in the medium term.

Based on the results of this review, the Company has modified its Syama open pit mining plan and decided to remove Stage 3 of the cutback from the life of mine plan (see Figure 1) delivering both cash flow and capital management benefits to the Company. The removal of Stage 3 reduces the requirement to mine an extensive volume of pre-strip waste to gain access to deep ore and ensures the Company maintains solid positive cash flows during a period of weaker commodity prices.

The outcome of the review is off the back of a full evaluation of the Syama project resource and reserve inventory recently completed to incorporate the FY2013 drilling results. The evaluation was conducted as part of an updated life of mine plan for the Syama project that included the main sulphide open pit and nearby satellite deposits. All cost inputs were reviewed in detail and pit optimisation studies were completed at a range of gold prices. Various open pit mining scenarios were considered for Syama along with the original 400m deep pit design.

==> picture [562 x 72] intentionally omitted <==

02

==> picture [562 x 60] intentionally omitted <==

----- Start of picture text ----- ASX Announcement----- End of picture text -----

==> picture [462 x 34] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

==> picture [462 x 34] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

==> picture [462 x 33] intentionally omitted <==

Figure 1: Revised Syama Pit Expansion

The significant benefits in the modification to the Syama open pit mining plan include:

• Over 200Mt reduction in waste stripping requirements, which reduces mining costs particularly for long-haul waste material at depth in the open pit

• Significant improvement in the waste to ore ratio from 9.0 to 6.4

• Optimisation of the mining fleet and manpower, in line with a revised material movement schedule

• Improvements in the ore delivery profile to the process plant through the elimination of any delays associated with mining of a large pit cutback

• Overall reduction in pit depth decreases the geotechnical risk associated with mining

With removal of the Stage 3 east wall cutback there is no requirement for relocation of the sulphide crushing circuit. As a consequence, this gives rise to a material saving in the capital expenditure associated with that component of the expansion project. The quantum of the capital expenditure savings will be detailed following completion of a detailed engineering review, currently being undertaken to determine the changes that are now necessary to the front end of the sulphide circuit. This review is expected to be completed in the upcoming December quarter.

Syama Underground Opportunity

With the removal of the Syama Stage 3 cutback, Resolute has the opportunity to consider alternatives to exploit the 2.9Moz of Resources that lie beneath the planned open pit.

A recent conceptual mining study completed by Snowden Mining Consultants indicated potential for an underground operation using a sublevel caving (SLC) mining method. Snowden considered that the large, high grade (>8,000oz per vertical metre) orebody footprint – combined with an appropriate

==> picture [562 x 72] intentionally omitted <==

03

==> picture [562 x 60] intentionally omitted <==

----- Start of picture text ----- ASX Announcement----- End of picture text -----

underground mining method – presented an opportunity for sustained delivery of 1.5-2.0Mtpa over an initial period exceeding 5 years. Underground access could be through a separate boxcut-and-portal or an in-pit portal, which would provide access directly into fresh rock and potentially reduce underground development requirements.

Resolute has commenced a prefeasibility study (PFS) to determine the preferred stoping method, mine layout and production rate. This PFS will take up to six months to complete and will draw on the inhouse mining expertise from the Mt Wright underground SLC operation at Ravenswood. After completing the PFS, Resolute expects to report new Ore Reserves for this part of the ore body.

A21 Deposit

Through a targeted drilling program completed over FY2013, the Company has outlined a notable increase in the A21 open pit ore reserve. The shallow A21 deposit is located less than 10km north of Syama and will provide substantial feed for the project’s parallel oxide circuit.

The opportunity to deliver increasing quantities of sulphide ore from A21 also remains to be fully exploited. Short strike zones of sulphide mineralisation have been included in some parts of the updated A21 pit design, however a targeted drilling program is warranted to identify the potential to outline high grade sulphide shoots within the ore profile.

FY2013 RESERVES AND RESOURCES STATEMENT

Reserves and Resources have now been updated as at 30 June 2013 also incorporating the impact of the revised open cut mine plan at Syama.

The appended Reserves and Resources Statement for FY2013 show that total Proved and Probable Reserves decreased by 20% over the preceding 12 months to 4.30 million ounces of gold, after allowing for mining depletion.

These Reserve reductions are largely attributable to the redesign of the Syama open cut (1.2Moz reduction) which will result in lower unit cash costs and drive strong positive cashflows for the next 8 years of production. At the same time, drilling success during FY2013 has led to a 50% increase in Reserves at A21 in Mali and a first Reserve reported for Nyakafuru in Tanzania.

The successful drilling campaigns across Queensland, Mali and Tanzania in FY2013, together with the impact of the modified mine plan, have also resulted in a strong increase in Resources. Total Mineral Resources (exclusive of Reserves) increased by 40% during the financial year to 8.62 million ounces of gold.

==> picture [71 x 37] intentionally omitted <==

PETER SULLIVAN

Chief Executive Officer

About Resolute:

Resolute is an unhedged gold miner with three operating mines in Africa and Australia. The Company is one of the largest gold producers by volume listed on the ASX. Resolute’s flagship Syama project in Mali is on track for an increase in production to 270,000oz of gold a year following an approved expansion to be undertaken through FY2016. At its Ravenswood mine in Queensland Resolute is investigating a number of opportunities to add value by increasing gold production and lowering operating costs. The Company controls an extensive footprint along the highly prospective Syama Shear and Greenstone Belts in Mali and Cote d’Ivoire. Resolute has also identified a number of highly promising exploration targets at its Ravenswood operations and holds a number of exploration projects in Tanzania surrounding its Golden Pride mine.

==> picture [562 x 72] intentionally omitted <==

04

==> picture [562 x 60] intentionally omitted <==

----- Start of picture text ----- ASX Announcement----- End of picture text -----

RESOLUTE GROUP RESERVES and RESOURCES

Reserves and Resources comply with the Australian code for reporting of Mineral Resources and Reserves

(The JORC Code 2004)

Reserves and Resources Statement as at end of June 2013	Reserves and Resources Statement as at end of June 2013	Reserves and Resources Statement as at end of June 2013
Gold Reserves(includes stockpiles)	ProjectTonnes	ProjectResolute GroupResolute GroupGold gradeContainedShareShare (g/t)Ounces Gold%ounces
RESERVES
Reserves ( Proved)AustraliaMt Wright (insitu)3Sarsfield (insitu)2MaliSyama (insitu)StockpilesSyama Satellites (insitu)Finkolo-Etruscan JV(insitu)	3,271,0002.8290,000100%290,00028,450,0000.8747,000100%747,00011,191,0003.01,077,00080%861,000249,0002.621,00080%17,0003,122,0002.2224,53080%180,0001,335,0003.1133,00051%68,000
Total Proved	47,618,0001.62,492,5302,163,000
Reserves ( Probable)AustraliaMt Wright Stockpiles3Sarsfield (insitu)2MaliSyama (insitu)StockpilesSyama Satellites (insitu)Finkolo-Etruscan JV (insitu)TanzaniaNyakafuru JV (insitu)2Golden Pride (insitu)Golden Pride Stockpiles	60,0002.96,000100%6,00018,640,0000.7423,000100%423,0003,439,0002.6288,00080%230,0002,199,0001.9136,00080%108,0004,986,0002.1337,00080%270,0001,821,0002.8163,00051%83,0007,360,0001.6388,00098%380,000480,0002.030,000100%30,0001,264,0000.937,000100%37,000
Total(Probable)	40,249,0001.41,808,0001,567,000
Total Reserves(Proved and Probable)	87,867,0001.54,300,5303,730,000

Competent Persons :

The information in this report that relates to the Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Andrew Goode, a member of The Australian Institute of Mining and Metallurgy. Mr Richard Bray and Mr Andrew Goode both have more than 5 years’ experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Richard Bray and Mr Andrew Goode are full time employees of Resolute Mining Limited Group and have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears

==> picture [562 x 72] intentionally omitted <==

05

==> picture [562 x 60] intentionally omitted <==

----- Start of picture text ----- ASX Announcement----- End of picture text -----

Gold Resources1(includes stockpiles)	ProjectTonnes	ProjectResolute GroupResolute GroupGold gradeContainedShareShare (g/t)Ounces Gold%ounces
RESOURCES1
Resources (Measured)AustraliaSarsfield (insitu)2MaliSyama (insitu)Syama Satellites (insitu)Finkolo-Etruscan JV (insitu)TanzaniaGolden Pride(insitu)	16,185,0000.8393,000100%393,00014,769,0002.61,256,00080%1,005,0001,051,0001.656,00080%45,000996,0002.787,00060%52,0003,786,0002.0238,000100%238,000
Total(Measured)	36,787,0001.72,030,0001,733,000
Resources (Indicated)AustraliaMt Wright (insitu)3Sarsfield (insitu)2MaliSyama (insitu)StockpilesSyama Satellites (insitu)Finkolo-Etruscan JV (insitu)TanzaniaGolden Pride (insitu)Nyakafuru JV (insitu)2	604,0003.263,000100%63,00020,384,0000.7444,000100%444,00019,285,0002.61,595,00080%1,276,0003,774,0001.3164,00080%131,0004,840,0001.9288,00080%231,0002,674,0002.6224,00060%134,0006,744,0001.8401,000100%401,00019,067,0001.1672,00095%638,000
Total(Indicated)	77,372,0001.53,851,0003,318,000
Total Measured and Indicated	114,159,0001.65,881,0005,051,000

Gold Resources1(includes stockpiles)	ProjectTonnes	ProjectResolute GroupResolute GroupGold gradeContainedShareShare (g/t)Ounces Gold%ounces
Resources (Inferred)AustraliaMt Wright (insitu)3Sarsfield (insitu)2Welcome Breccia (insitu)MaliSyama (insitu)Syama Satellites (insitu)Finkolo-Etruscan JV (insitu)TanzaniaGolden Pride (insitu)Nyakafuru JV (insitu)2	1,090,0003.1108,000100%108,00022,192,0000.7521,000100%521,0002,036,0003.2208,000100%208,0003,425,0002.3251,00080%201,0006,946,0002.1479,00080%383,0003,132,0002.2219,00060%131,00012,945,0001.7724,000100%724,0006,312,0001.1227,00090%204,000
Total(Inferred)	58,078,0001.52,737,0002,480,000
Total Resources	172,237,0001.68,618,0007,531,000

Note :

1. Mineral Resources are exclusive of the Reserves - differences may occur due to rounding.

2. All Resources and Reserves are reported above 1 g/t cut-off except Sarsfield above 0.4 g/t cut off and Nyakafuru above 0.5 g/t cut off.

3. Mt Wright Reserves are reported at 2.3 g/t cut off and Resources above 1.8 g/t cut off.

==> picture [562 x 72] intentionally omitted <==