Resolute Mining Limited — Interim / Quarterly Report 2017

Oct 26, 2016

for the period ended 30 September 2016

27 October 2016

Resolute performance builds foundation for growth Positive feasibility study for the Ravenswood Extension Project

Successful institutional placement to raise A$150M

Underground mine development commences at Syama A$273M in cash, bullion and listed investments

Highlights

• Total quarterly gold production of 79,334 ounces (June 2016: 83,087 ounces) achieved at an All-In Sustaining Cost of A$1,173 per ounce (US$889 per ounce).

• Successful institutional placement completed raising A$150 million to secure growth project funding.

• Gross operating cash flow of A$67.3 million (June 2016: A$67.8 million).

• Cash, bullion and listed investments of A$273 million (June 2016: A$104 million) and net cash of A$235 million (June 2016: A$75 million).

• Final dividend for FY16 declared of 1.7c per share in cash or bullion through an innovative gold sales-linked dividend policy.

• Ravenswood Extension Project boosts mine-life at Ravenswood by 13 years until at least 2029.

• Total annual production at Ravenswood to increase to more than 130,000 ounces of gold with a Life of Mine All-In Sustaining Cost of A$1,166 per ounce (US$880 per ounce).

• Total Ravenswood Ore Reserves increased to 1.8 million ounces.

• Underground mine development commences at the Syama underground project.

• New zone of mineralisation discovered south of the Syama Gold Mine and separate from the main ore shoot.

• FY17 gold production guidance is maintained at 300,000 ounces at an All-In Sustaining Cost of A$1,280 per ounce (US$934 per ounce) and annual gold shipped guidance is maintained at 325,000 ounces.

Resolute Mining Limited (Resolute or the Company) (ASX:RSG) is pleased to present its Quarterly Activities Report for the period ended 30 September 2016. Managing Director & CEO, Mr. John Welborn, commented that the September 2016 quarter was another dynamic period for Resolute:

“Resolute has again achieved a number of crucial milestones on our journey to establish a long life, low cost future for our business. A 13 year mine life extension was announced for Ravenswood that will take annual site production at Ravenswood to more than 130,000 ounces of gold. A 12 year mine life extension was confirmed for Syama that will take annual site production to more than 250,000 ounces of gold. Both developments are fully funded following successful completion of a heavily oversubscribed institutional placement which raised A$150 million. Operations are continuing to produce ahead of guidance at lower costs. Our treasury at the end of the quarter comprised cash, bullion, and investments totalling a very healthy A$273 million. A final dividend of 1.7 cents per share was declared for FY16 with shareholders having the option to receive payment in bullion.”

“Our business is being transformed by the imaginative work of our project delivery team and the skill and diligence of our operating team. We have started the new financial year by establishing, and fully funding, exciting development

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for the period ended 30 September 2016

plans to ensure long life, low cost operations at our Syama and Ravenswood gold mines. Having secured our diversified production in Australia and Africa we will now explore further growth opportunities with confidence.”

Quarterly Summary

Operations

Strong performance in the September 2016 quarter from the Ravenswood Gold Mine (Ravenswood) and Syama Gold Mine (Syama) operations has contributed to a further strengthening of the Company’s financial position. Total quarterly gold production of 79,334 ounces (oz) (June 2016: 83,087oz) was achieved at an All-In Sustaining Cost (AISC) of A$1,173/oz (US$889/oz).

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Figure 1: Location map of Resolute’s gold mines and major gold projects

			Ore Mined	Ore Milled	Head Grade	Recovery	Total Production	Cash Cost	Cash Cost	**AISC	**AISC
			(t)	(t)	(g/t)	(%)	(Gold oz)	A$/oz	US$/oz	A$/oz	US$/oz
Syama
SepQuarter		Sulphide	44,318	520,363	2.83	73.4	34,729	798	605	1,048	793
		Oxide	477,036	331,149	2.85	81.4	24,704	1,054	798	983	744
		Total	521,354	851,512	2.84	76.5	59,433	905	685	1,021	773
Jun Quarter		Sulphide	298,776	480,842	3.65	77.4	43,648	368	277	552	414
		Oxide	185,382	378,416	1.72	85.0	17,811	1,356	1,011	1,921	1,432
		Total	484,158	859,258	2.80	79.4	61,459	655	489	949	709
Ravenswood
SepQuarter			296,330	416,011	1.58	94.6	19,901	1,302	986	1,508	1,143
Jun Quarter			196,838	464,363	1.54	93.9	21,628	1,233	919	1,468	1,095
Total Resolute Production
SepQuarter			817,684	1,267,523	2.42	80.4	79,334	1,004	761	1,173	889
Jun Quarter			680,996	1,323,621	2.36	82.7	83,087	805	601	1,107	827

Table 1: Production and Cost Summary

** AISC has been calculated in accordance with World Gold Council guidelines.

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for the period ended 30 September 2016

Financial Performance/Position

Cash, bullion and listed investments at the end of the quarter increased to A$273 million (M) (June 2016: A$104M), bolstered by the recent A$150M capital raising settled on 30 September 2016.

September 2016 Quarter	Units	Syama Sulphide	Syama Oxide	Syama Total	Ravens- wood	GROUP Total
UG lateral development – operating	m	-	-	-	-	-
UG ore mined	t	-	-	-	251,063	251,063
UG grade mined	g/t	-	-	-	2.46	2.46
OP operating waste	BCM	41,280	1,000,004	1,041,284	147,967	1,189,251
OP ore mined	BCM	17,525	250,822	268,347	21,592	289,939
OP grade mined	g/t	2.32	2.49	2.48	0.49	2.33
Total ore mined	t	44,318	477,036	521,354	296,330	817,684
Total tonnes processed	t	520,363	331,149	851,512	416,011	1,267,523
Grade processed	g/t	2.83	2.85	2.84	1.58	2.42
Recovery	%	73.4	81.4	76.5	94.6	80.4
Gold produced	oz	34,729	24,704	59,433	19,901	79,334
Gold in circuit drawdown/(addition)	oz	(185)	(51)	(236)	1,491	1,255
Gold shipped	oz	34,544	24,653	59,197	21,392	80,589
Gold bullion in metal account movement (increase)/decrease	oz	1,716	1,287	3,003	(5,592)	(2,589)
Gold sold	oz	36,260	25,940	62,200	15,800	78,000
Achieved gold price	A$/oz	1,790	1,790	1,790	1,793	1,790
	US$/oz	1,355	1,355	1,355	1,365	1,357
Cost Summary
Mining	A$/oz	53	548	259	715	373
Processing	A$/oz	434	292	375	533	414
Administration	A$/oz	141	125	134	215	155
Stockpile Adjustments	A$/oz	204	(219)	28	(120)	(9)
Amortisation/(Deferral) of stripping costs	A$/oz	(6)	308	125	(41)	83
Transfer of underground development costs to development	A$/oz	(27)	0	(16)	0	(12)
Cash Cost	A$/oz	798	1,054	905	1,302	1,004
	US$/oz	605	798	685	986	761
Royalties	A$/oz	121	121	121	71	116
By-product credits	A$/oz	0	0	0	(8)	(2)
Amortisation/(Deferral) of stripping costs	A$/oz	6	(308)	(125)	41	(83)
Sustaining capital + others	A$/oz	104	97	101	101	102
Overhead costs	A$/oz	18	18	18	1	37
AISC	A$/oz	1,048	983	1,021	1,508	1,173
	US$/oz	793	744	773	1,143	889
Depreciation and amortisation	A$/oz	58	23	44	126	64

Table 2: Detailed Production and Cost data

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for the period ended 30 September 2016

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Table 3: Cash flow waterfall for September Quarter

Resolute Quarterly Conference Call

Resolute’s Managing Director and CEO John Welborn will host a Conference Call for investors and media at 07h30 AWST / 10h30 AEST today, Thursday 27 October, 2016 to discuss the Company’s progress followed by a question and answer session.

Teleconference details:

Toll-free local dial-in number: 1800 123 296

Toll-free international access numbers:

Canada	1855 5616 766	New Zealand	0800 452 782
China	4001 203 085 8008702 411	Singapore	800 616 2288
HongKong	800 908 865	United Kingdom	0808 234 0757
India	1800 3010 6141	United States	1855 293 1544
Japan	0120 477 087

For other countries use international access number: +61 2 8038 5221

Conference ID: 7039 354

Please dial in five minutes prior to the conference start time and provide the operator with your name and the Conference ID as shown above.

Alternatively, the Resolute teleconference will be streamed live at: http://www.openbriefing.com/OB/2327.aspx

For further information, contact:

John Welborn | Managing Director and CEO

Telephone : +61 8 9261 6100 | Email : contact@rml.com.au | Web : www.rml.com.au

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for the period ended 30 September 2016

Mali

Operations

Syama, Mali

Syama is located in the south of Mali, West Africa approximately 30km from the Côte d’Ivoire border and 300km southeast of the capital Bamako. The Syama operation comprises two separate processing plants: a 2.1 million tonne per annum (Mtpa) sulphide processing circuit and a 1.3Mtpa oxide processing circuit. Mining at the main Syama open pit was completed in May 2015 with ore for the sulphide circuit being sourced from stockpiled material. Ore for the oxide circuit is provided by mining activity at the A21 satellite ore body. A definitive feasibility study completed in June 2016 confirmed the opportunity for a new underground operation to extend mine life at Syama beyond 2028.

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Figure 2: Location map of Resolute’s Syama Gold Mine in Mali

Sulphide Operations

Gold produced from the sulphide circuit during the quarter was 34,729oz of gold (June 2016: 43,648oz) from 520,363t (June 2016: 480,842t) of milled ore at a head grade of 2.83grams per tonne (g/t) (June 2016: 3.65g/t). Sulphide gold production was lower and in line with a planned reduction in head grade as higher grade stockpiles are depleted. Lower overall gold recovery of 73.4% (June 2016: 77.4%) was due to a drop in flotation recovery associated with a lower sulphur grade in the mill feed. The deslime circuit was brought online to upgrade the sulphur content in concentrate feeding the roaster which ensured the heat balance was maintained. Higher carbon in leach recoveries were achieved due to improvements to the roaster carbon burning efficiency.

At the end of the quarter the Syama open pit sulphide ore stockpile totalled approximately 193,000oz (4.0Mt at 1.5g/t) and the sulphide ore stockpiled from the A21 satellite pit totalled approximately 31,000oz (0.4Mt at 2.34g/t). The total sulphide ore stockpile at Syama totalled approximately 224,000oz (4.4Mt at 1.6g/t). The sulphide ore stockpiles will provide feed material for the sulphide processing circuit while the Syama underground mine is being established.

The September 2016 quarter cash cost for the sulphide operation was US$605/oz (US$277/oz) and AISC was US$793/oz (US$414/oz). The previous quarter was favourably impacted by a higher proportion of stockpiles being processed which had been written down to a nil accounting value.

The Syama roaster is now operating above design capacity. This excess capacity is being used to drawdown the substantial inventory of sulphide concentrate stocks that have accumulated at Syama during previous years when the roaster represented a bottle neck in the processing circuit. As a result, Resolute’s current year guidance

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for the period ended 30 September 2016

statements have identified that gold shipments are expected to be 25,000oz in excess of gold produced (325,000oz v 300,000oz). This follows the pleasing results in FY16 where gold sales of 340,540oz exceeded gold produced of 315,169oz by a similar amount of approximately 25,000oz. The additional 25,000oz of gold shipped and sold mainly related to drawdowns of sulphide circuit stocks.

Resolute has previously advised that, following major refurbishment and technical improvements to the roaster, increased efficiency in the sulphide processing circuit now allows the Company to drawdown on sulphide concentrate stocks. The large accumulation of sulphide concentrate stocks has resulted in an abnormally high quantity of goldin-circuit (GIC) inventory at Syama. The current estimate of recoverable ounces of GIC at Syama is approximately 50,000oz of gold of which more than 47,000oz represent sulphide circuit stocks. Based on current roaster efficiency, approximately 25,000oz of the sulphide circuit stocks are expected to be drawn down over FY17. The ability to draw down on this GIC inventory is currently providing the Company with gold available for sale which is greater than reported gold production and will provide Resolute with a cash boost.

The September 2016 quarter cash cost for the sulphide operation was US$605/oz (US$277/oz) and AISC was US$793/oz (US$414/oz). The previous quarter was favourably impacted by a higher proportion of ore stockpiles being processed which had been written down to a nil accounting value.

Oxide Operations

Gold produced from the oxide circuit was 24,704oz (June 2016: 17,811oz). The significant increase in produced ounces was due to a higher head grade from an older BHP/Randgold stockpile that was milled during the quarter. The mill head grade was 2.85g/t (June 2016: 1.72g/t) with a mill throughput of 331,149t (June 2016: 332,640t). A lower leach recovery of 81.4% (June 2016: 85.0%) was a result of the BHP/Randgold stockpile ore containing some “preg-robbing” carbonaceous material.

The SAG mill continues to operate well and the conversion to three pump cells at the front of the leach circuit will facilitate the continued ramp up to 1.5Mtpa. Mining advanced at the A21 South satellite pit with all benches now intersecting the main ore zone. Drill and blast activity increased as mining areas started to encounter transitional and fresh material as the pit deepens. Preparation activities were also undertaken at the A21_20 pit to expose areas for Grade control drilling. Overall production was above expectations due to lower rainfall than predicted for the 2016 wet season. With the pit deepening, the overall waste to ore strip ratio has decreased which has resulted in an increase in ore production this quarter with 521,354t (June 2016: 484,158t) being mined.

The September 2016 quarter cash cost for the oxide operation decreased to US$798/oz (June 2016: US$1,011/oz) and AISC reduced to US$744/oz (June 2016: US$1,432/oz) primarily due to a 39% increase in production.

Underground Mine Development

During the September 2016 quarter Rock Underground Sarl (RUGS), a subsidiary of Byrnecut Offshore Pty Ltd, began mobilising personnel and equipment to site and commenced works on the development of the 1200RL decline portal located within the Syama pit. Dewatering of the Syama pit continued during the quarter. It is expected that all water will be removed before the end of the current financial year. The water is being used in the processing circuit and is the initial water supply for the underground development. The tender for the contract for construction of the box cut was adjudicated during the quarter. The box cut will be used as the main access to the twin declines in the planned underground development. Negotiations have commenced with the successful tenderer and production is due to start midway through the current quarter.

Health and Safety

The Syama operation had one lost time injury (LTI) during the quarter. The 12 month moving average LTI Frequency Rate was 0.29 (June 2016: 0.0).

Security awareness remains a key focus with Resolute increasing investment and refining operational protocols to ensure the safety of all our personnel. Syama is located in southern Mali in the Sikasso region close to the Côte d'Ivoire border. The majority of expatriate personnel continue to fly to site directly from Accra, Ghana. A memorandum of understanding was signed during the quarter with the Governor of Sikasso, detailing a closer relationship with the

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for the period ended 30 September 2016

Gendarmes and National Guard under the Governor’s control. The development of a Security Operating Level matrix now provides a consistent and proportionate list of security mitigations to potential security threat scenarios that reflects industry best practice. Security infrastructure and procedures are being aligned with the Security Operating Level matrix.

Labour Relations

Resolute has a large and diverse workforce at Syama which includes direct employees and contractors. The Company has a longstanding positive relationship with the large predominately Malian workforce. Operating successfully in a francophone African environment requires a commitment to regular communication and an acceptance of various labour relations challenges. Recent media speculation regarding union threats of a five day national mine worker strike across Mali demonstrate the legal use of strike action by organised labour representatives as a normal function of the grievance and negotiation procedure under Malian law.

Respecting the legal rights of our workers, while maintaining a strong focus on safety, production and costs, is a priority for Resolute. The Company is not currently anticipating any operational interruptions as a result of workforce strike action at Syama. Any such interruption that would have a material financial impact on operations would be immediately notified to the market.

Outlook

Sulphide stockpiles will be managed to provide a consistent feed to the sulphide plant as the new underground operation is developed. Sulphur grades will vary which will impact flotation performance at times. A 10 day cold roaster shut for routine preventative maintenance work is scheduled for the December quarter. Sulphide gold production will be marginally higher in the December quarter. Oxide production will be lower next quarter in line with mined head grades. Mining activities will shift from the A21 pits which are scheduled to be completed by the end of the next quarter to the BA01 satellite pits closer to Syama.

Development

Syama Underground Mine Development Commenced

The Syama Underground Definitive Feasibility Study (UG DFS) was published immediately prior to the commencement of the September 2016 quarter (see ASX announcement dated 30 June 2016). The Syama UG will be a long life and low cost mine that will continue to deliver a strong operating margin over the next decade. As detailed above, excavation of the decline commenced during the quarter and the first development ore is expected to be delivered in December 2016 with stoping commencing in December 2017. During this period there will be continuous production from Syama through current stockpiled sulphide material and ongoing satellite open pit oxide deposits.

Key outcomes from the Syama UG DFS are summarized on page 8.

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for the period ended 30 September 2016

Underground Development	Units	Value
Decline development	m	8,594
Vertical development	m	3,554
Level Development	m	62,717
Total development	m	74,865
Oreproduction
Development ore	kt	4,195
Stopingore	kt	20,954
Total ore	kt	25,150
Metalgrade(ROM)	g/t	2.81
Metal contained(ROM)	koz	2,271
Metal recovery
Processingrecovery	%	89.4%
Metal(recovered)	koz	2,030
Operating unit cost (including pre-production)
Mining	US$/t	25.2
Processing	US$/t	25.0
G&A	US$/t	4.9
Royalty, refiningcosts & silver credits	US$/t	5.8
Ore
Mine life(incl.pre-production)	Years	13.0
Costs
Pre-production capital	US$M	95
Pre-production operating	US$M	13
Sustainingcapital	US$M	270
Operatingcost(includingroyalties)	US$M	1,519
All-in-Sustaining Costs	US$/oz	881

Table 4: DFS Key Outcomes

Syama Underground Mine of the Future

Preliminary investigations into the potential application of remote and autonomous mobile equipment has continued with equipment manufacturers to enhance both safety and productivity underground. With the increasing confidence of significant extensions to the depth and mine life of the Syama underground mine, a preliminary study into the viability of using underground crushing and conveying instead of truck haulage was completed. A follow up study has been commissioned.

Project 85

Project 85 is targeting a 7% increase in gold recovery in the sulphide treatment plant based on the typical feed grade of the future underground ore. A final design review and a hazard and operability study on the project were completed in July and this was followed by establishing a construction management team on site. The overall project progress is slightly ahead of schedule with 7.6% actual vs 7.5% planned. The focus in the September 2016 quarter was on establishing the civil contractor on site and the early procurement of long lead items. The project remains on schedule for commissioning in October 2017.

Project Reprise

Project Reprise involves reclaiming deslime tailings from the dedicated storage facility and processing this material through the roaster and the sulphide treatment plant. Following successful laboratory testwork, a two tonne sample of deslime tailings was run through the Outotec pilot plant in June 2016. The calcine produced was sent for leach testwork during the quarter, which confirmed the predicted gold recovery could be achieved. Following this successful

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for the period ended 30 September 2016

pilot programme, negotiations were progressed with Outotec to initiate preliminary engineering to develop a Low Carbon Roaster. After being successfully implemented, Project Reprise should see a further improvement in gold recoveries.

Other Projects

Project Phoenix involves the assessment of economically recovering residual gold from the reclamation and treatment of stored flotation tailings. Drill testing of the tailings is planned for the dry season to provide key information on the total depth and gold grade distribution as well as provide samples for testwork. The majority of tailings has been from previous operators and was mined during periods of lower gold prices and higher economic cut-off grades.

Investigative work is in progress on samples taken from the calcine tailings material to determine the nature and mineralogy of the remaining gold. The 5-7g/t residue grade of the tailings material presents an opportunity to extract further value. Diagnostic and metallurgical process testwork was conducted to determine an appropriate method for recovering the remaining gold which is strongly associated with fine grained organic carbon. Flotation to both reduce the mass and concentrate the gold, followed by roasting is being investigated in detail as the preferred option.

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Figure 3: Project 85 - Initial concrete pour

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for the period ended 30 September 2016

Australia

Operations

Ravenswood, Australia

Ravenswood is located approximately 95km south-west of Townsville and 65km east of Charters Towers in northeast Queensland, Australia. Ore sources for the Ravenswood operation include the Mt Wright underground mine and the newly commenced Nolans East open pit mines. The Mt Wright underground mine uses the Sub-Level Shrinkage with Continuous Fill (SLS) mining method which has been successfully pioneered by the Resolute team.

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Figure 4: Location map of Resolute’s Ravenswood Gold Mine in Queensland, Australia

Mining of the Nolans East open pit commenced during the quarter with contractor mobilization, infrastructure modifications, pre-stripping, road construction and waste dump establishment. A major shutdown of the processing plant was undertaken to upgrade the plant to treat 2.8Mtpa of Nolans East ore.

Gold produced during the quarter was 19,901oz (June 2016: 21,628oz) from 416,011t (June 2016: 464,363t) milled at a head grade of 1.58g/t (June 2016: 1.54g/t). Throughput and ounces produced were down due to the major shutdown. This shutdown was originally scheduled for the December 2016 quarter but construction was completed ahead of schedule allowing for the upgrade to be completed early. Head grade was marginally higher due to a higher percentage of Mt Wright ore feed. Gold recovery was higher at 94.6% (June 2016: 93.9%) also due to the increased proportion of Mt Wright feed.

Ore production from Mt Wright was 251,063t @ 2.46g/t for 19,870oz (June 2016: 196,838t @ 2.66g/t for 16,816oz). The significant production improvement was due to improved drawpoint performance from ongoing innovative drill and blast trials, and scheduling optimisation programs. The number of available drawpoints will vary during the last year of underground mining at Mt Wright and production is planned to be lower than in previous years. The mined grade was slightly down reflecting the areas mined during the quarter. No ore development was required during the quarter. Production from Mt Wright is expected to cease during the June 2017 quarter when the transition to open pit mining at Nolans East will be completed.

The September 2016 quarter cash cost increased to A$1,302/oz (June 2016: A$1,233/oz) and AISC to A$1,508/oz (June 2016: A$1,468/oz) which was primarily attributable to the lower gold production resulting from the major shutdown during the month of September.

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Health & Safety

The Ravenswood operation had no lost time injuries during the quarter. This resulted in the twelve month moving average LTI Frequency Rate decreasing to 6.45 (June 2016: 8.11).

Outlook

Mine production from Mt Wright is expected to be higher in the December 2016 quarter but will continue to fluctuate over the remaining mine life depending on the number of available drawpoints as the mine approaches closure next year. Mine production from Nolans East is expected to increase during the December 2016 quarter as establishment works are completed. Mill throughput and gold production is expected to increase with the recent crushing circuit upgrade and through the addition of a tertiary crusher along with other minor processing circuit modifications.

Development

Ravenswood Extension Project

During the September 2016 quarter the Company completed a feasibility study for the Ravenswood Extension Project (REP) which confirmed a long life, low risk, low cost development plan with robust economics. The study estimated average annual production to increase to approximately 120,000oz of gold and the mine life to be extended by 13 years until at least 2029. The operation will generate a Life of Mine AISC of A$1,166/oz (US$880/oz). Total Ravenswood Ore Reserves increased to 1.8 million ounces (Moz).

The REP Study identified the following development sequence:

• Mt Wright underground operations continuing until eventual closure in mid-2017;

• Mining underway, with first ore processed in September 2016 from Nolans East;

• Increase in processing capacity to 2.8Mtpa from October 2016;

• Approval for mining of Sarsfield open pit in January 2017;

• Approval for mining of Buck Reef West open pit in mid-2018; and

• Expansion of mill capacity to 5.0Mtpa to commence in FY18.

The REP Study envisages an expansion to 5.0Mpta in the year following approval of the Sarsfield open pit. The REP comprises mining operations in three separate open pits which include:

• Nolans East: A small pit being developed at the eastern end of the present Nolans pit which involves a cutback of the eastern and northern walls

• Sarsfield: A cutback of the main Sarsfield open pit

• Buck Reef West: Excavation of a new open pit. The area has previously been the subject of small scale underground and open pit mining

The staged development plan requires no immediate additional capital expenditure during FY17. Start-up capital comprises only A$134M for pre-stripping and staged processing plant expansion to 5.0Mtpa. Life of Mine major project capital comprises of A$258M (including A$134M start-up) staged over six years to 2022. Significant potential remains for economic upside and further extensions.

The REP will utilise a number of innovative approaches to mine scheduling, tailings management, waste water treatment and open pit blasting practices in order to minimise initial capital costs and ensure best practice environmental and community outcomes are achieved. Mining and processing of Sarsfield ore will include a beneficiation stage for low grade ore, nominally 0.3-0.7g/t, which will reject approximately 30-40% of crushed ore, for the loss of around 4% of contained gold.

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for the period ended 30 September 2016

Key study outputs are summarised below.

Production	Units	LOM Output
Underground Mining
Ore Mined	kt	931
Ore Grade	g/t	2.72
Metal Contained (ROM)	koz	81
Open Pit Mining
Ore Mined:
Run of Mine	kt	35,419
Low Grade	kt	35,269
Waste Mine	kt	96,705
Total Movement	kt	167,392
Life of Mine StripRatio	Waste:Ore	1.3
Ore Grade:
Run of Mine	g/t	0.97
Low Grade	g/t	0.50
Metal Contained(ROM)	koz	1,663
Processing
Total oreprocessed*	kt	58,557
Metalgrade (ROM)	g/t	0.91
Metal contained(ROM)	koz	1,712
Processingrecovery	%	90%
Metal(recovered)	koz	1,536
Mine life (incl.pre-production)	years	13.0
Cost Analysis
Costs	A$M	A$/t
Mining	566	9.7
Processing	861	14.7
G&A	207	3.5
Royalty	126	2.2
Sustainingcapital	30	0.5
Unit Costs	A$M	A$/oz
AISC	1,790	1,166

*= Beneficiated low grade + Open pit ROM + UG ore

Table 5: REP study summary outputs

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for the period ended 30 September 2016

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Figure 5: Ravenswood geology and open pits

The REP is designed to give the Company maximum operational and balance sheet flexibility. It allows Resolute to respond to changes in external circumstances such as gold price movements and internal competition for capital. This flexibility also allows Resolute to consider additional ore sources that may have potential to augment planned production. The Company has re-commenced drilling at the Welcome Breccia Project located 40km north of Ravenswood. Welcome Breccia hosts an underground Mineral Resource of 210,000oz, and has the potential to be developed in parallel with the open pits. The Ravenswood deposits, excluding Mt Wright, have produced over 3.4Moz of gold, from several phases of operation. Despite this, very little deep drilling has been undertaken, and a number of attractive exploration targets remain in the immediate vicinity of the current resources.

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----- Start of picture text -----

Ounces Produced
160,000 95%
140,000 94%
93%
120,000
92%
100,000
91%
80,000
90%
60,000
89%
40,000 88%
20,000 87%
- 86%
Ounces Produced Recovery
Recovery (%)
----- End of picture text -----

Table 6: Ravenswood gold production schedule

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for the period ended 30 September 2016

Ghana

Development

Bibiani Gold Project

The Bibiani Gold Project (Bibiani) is situated in the western region of Ghana, a West African country bordered by Burkina Faso to the north, Côte d'Ivoire to the west and Togo to the east. Resolute believes the Bibiani feasibility study outlines a viable pathway to a low cost operation that is capable of producing in excess of 100,000oz of gold per year.

Following the positive feasibility study (see ASX Announcement dated 23 June 2016) on the re-opening of the Bibiani mine, the Company has submitted approvals to commence additional drilling and the Environmental Impact Assessment. The Company intends to conduct drilling campaigns with the intention of extending the mine life beyond the current five years and identifying further opportunities to reduce expected operating costs.

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Figure 6: Resolute’s Bibiani project location map

Exploration

Resolute reports its exploration activities and results in accordance with the JORC 2012 guidelines. Exploration results that are considered material to the Company are announced to the ASX separately to the quarterly report. Any activities below that do not refer to a separate ASX announcement are not considered material to the Company.

Mali

Syama Mine Extension Drilling

The Syama deep drilling program was commenced in late 2015 with the ambition of substantially expanding the Syama underground resource. Positive results have been reported in two ASX releases on 8 February 2016 and 1 August 2016. The initial success of the program will ensure that drilling will now continue throughout 2016. The planned program will now include step out positions that are expected to deliver major extensions to the Syama deposit, better results included:

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14

for the period ended 30 September 2016

SYDD428 32m @ 2.7g/t Au from 323m 13m @ 3.1g/t Au from 377m SYRD429 28m @ 5.1g/t Au from 708m SYDD431 23m @ 3.56g/t Au from 717m 46m @ 3.11g/t Au from 749m SYDD432 62m @ 6.71g/t Au from 651m SYRD434 31m @ 2.55g/t Au from 781m SYDD436 7m @ 5.00g/t Au from 570m

These intercepts are positioned outside the current Syama mining reserve and significantly extend the known mineralisation. It is expected the Syama resource inventory will increase substantially when these results are incorporated into the model. Of particular relevance is the exceptional intercept in SYDD432 (62m @ 6.7g/t Au) underlying the future high grade potential of the Syama deposit at depth.

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Figure 7: Syama long section showing new diamond drillholes and underground mine design

More recently on October 25 the Company announced high grade results from recent drilling south of the Syama deposit. The intercepts are particularly significant as they occur in an area where no previous drilling has occurred.

Diamond drillhole SYDD442 on section 22800N located 250m south of the current mining reserve intersected two zones of alteration and gold mineralisation which are interpreted to correspond to a new mineralisation lens separate from the main mineralisation zone at Syama.

Significant intercepts assays received from drilling on section 22800N include:

SYDD442 19m @ 2.57g/t Au from 273m; and 18m @ 3.02g/t Au from 372m

These new intersections open up the entire southern areas for extensions to the Syama deposit. South of the identified mineral resource the exploration drilling is extremely limited with only sparse 500m spaced drill sections of reverse circulation holes less than 50m deep. The newly identified zone is intersected at a depth of 200m below surface and does not appear to daylight.

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for the period ended 30 September 2016

The drilling program will continue through FY17 concentrating on outlining the full extent of this new zone of mineralisation as well as extending the resource at depth.

Syama South

A program of RC drilling has been planned as the first phase of infilling the Paysans prospect resource drill spacing to 50 x 50m. The Paysans prospect gold resource is modest, but its proximity to Syama, lying just 4km south of the processing plant justifies further delineation to calculate an oxide reserve.

The drill program commenced in early September to take advantage of the generally dryer than average wet season to date. The program was restricted to areas where access is possible and the remainder of the program will be completed during the dry season. A total of 30 holes for 2,036m were completed during the September 2016 quarter.

Ghana

Bibiani

Planning progressed for a major diamond drilling program which is expected to commence at Bibiani during the December 2016 quarter. A total of 18,800m of drilling is planned including 15,500m of surface drilling and 3,300m of underground drilling.

The planned program represents Resolute’s second phase of drilling since assuming ownership of Bibiani during 2014. The first phase of drilling which commenced during 2015 was highly successful and added significantly to resource inventory. The resulting feasibility study (see ASX Announcement dated 23 June 2016) indicated a viable mining operation could proceed and also demonstrated that incremental increases in the mining reserve would result in much larger increases in project profitability. The new drilling program is designed to upgrade existing inferred mineral resources as well as identify new mineralisation. The goal of the program is to significantly increase the mining reserve with the consequential effect of boosting project economics and mine life to enable a positive development decision.

Côte d'Ivoire

New Projects (Resolute 100%)

The Pongala Research Permit was granted and the final arête was received during the September 2016 quarter. The Pongala permit is located on the northern strike extensions of the structure which hosts the Tongon gold mine operated by Randgold.

On the ground field work commenced in September. Initial work will include geological mapping, rock chip sampling and 1km regional spaced soil sampling. This regional scale geochemistry work is aimed at identifying broad scale geochemically anomalous alteration systems and potential mineralisation targets to follow up. A total of ten research permit applications are awaiting granting by the Department of Industry and Mining.

Australia

Ravenswood - Buck Reef West

A diamond drilling program designed to expand the underground resource potential of Buck Reef West commenced during the quarter. The program commenced on the eastern end of the prospect on a single shift basis due to proximity of the Ravenswood township. Drilling accelerated to double shift when the rig moved to the western end of the Buck Reef West structure. At the end of the quarter a total of five holes for 2,098mm has been completed to date (BRD310 to BRD31445).

All drillholes to date have intersected the Buck Reef Fault as planned outlining a zone of chlorite-pyrrhotite alteration and shearing. In addition to the mineralised fault structure there are broad zones of quartz-sulphide veining adjacent to the fault. Drilling is continuing and results will be reported next quarter.

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for the period ended 30 September 2016

Ravenswood - Welcome Breccia

A resource drilling program at Welcome Breccia was planned to improve the confidence of the resource and to upgrade inferred ounces to an indicated category. Diamond drilling commenced in late August 2016 with a single multi-purpose rig on double shifts. The first hole WED042 was successfully drilled to a depth of 556m.

The Welcome Breccia was intersected from 438-455m, and contained variably chlorite-silica-carbonate altered rock flour matrix fill with carbonate replaced amygdales, and areas of overprinting quartz-carbonate-pyrite-sphaleritechalcopyrite-galena veining and matrix fill. Veins of the same assemblage and chlorite-sericite-carbonate alteration selvages were intersected either side of the breccia, from 386-438m and 455-473m. Drilling of WED043 has commenced, and is currently at 322.1m, contributing to a total of 898.9m drilled for the quarter. Detailed geotechnical logging is being undertaken to provide data for the upcoming preliminary mining study.

Corporate

Cash, Bullion and Listed Investments

As at 30 September 2016, Resolute had cash, bullion on hand and listed investments of A$273M (June 2016: A$104M). This balance comprises:

Description	Sep ’16 Quarter (A$M)	Jun ’16 Quarter (A$M)
Cash	240.6	79.9
Bullion(Sep: 15,222oz@A$1,732/oz)	26.4	22.5
Cash and Bullion Sub-Total	267.0	102.4
Listed investments	5.8	1.1
Total Treasury	272.8	103.5

The increase in listed investments during the quarter is due to the additional investments made in Manas Resources Limited (an ASX listed company) and Kilo Goldmines (a TSX-V listed company). The principal movements in the market value of cash and bullion balances during the quarter were as follows:

	Sep '16 Quarter (A$M)	Jun '16 Quarter (A$M)
Operating Cash Flows
Gross operatingcash flows from Syama and Ravenswood	67.3	67.8
Royalty payments	(8.5)	(8.6)
Overheads and operational support costs	(4.1)	(0.9)
Exploration expenditure	(2.2)	(2.3)
Interest expense/income net cash flows	(0.5)	(1.3)
Workingcapital movements	(20.1)	(0.9)
Investing Cash Flows
Development expenditure, incl. Syama UG development, feasibility studies, resource development and otherprojects	(10.6)	(6.6)
Operational sustainingcapital expenditure	(7.7)	(2.0)
Bibianiproject care and maintenance	(1.4)	(2.1)
Other investingactivities	(0.2)	(0.8)
Financing Cash Flows
Capital raising (net of costs)	147.4	-
Existingdebt facilityinflows/(outflows)	6.0	(31.1)
Foreign exchange fluctuations and market value changes of bullion on hand	(0.9)	1.0
Net cash inflows	164.6	12.2
Opening cash and bullion	102.4	90.2
Closing cash and bullion	267.0	102.4

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for the period ended 30 September 2016

Gold in Circuit

As at 30 September 2016, Resolute had an estimated recoverable GIC inventory of approximately 50,000oz of gold. The current market value of this recoverable GIC is approximately A$90M. Technical improvements to the roaster are allowing the Company to drawdown and sell the GIC represented mainly by previous accumulated sulphide circuit stocks. Resolute was able to drawdown approximately 25,000oz of GIC and gold bullion in metal accounts in FY16 which allowed the Company to generate gold sales of 340,540oz compared to production of 315,619oz. The Company expects to drawdown 25,000oz of GIC in FY17 and therefore ship 325,000oz based on production of 300,000oz. The A$90M of recoverable GIC is in addition to the A$273M of cash, bullion and listed investments shown above.

Borrowings

Total borrowings at quarter end were A$32M compared with A$27M at 30 June 2016. These balances relate to the bank overdraft of Resolute’s Malian subsidiary. The weighted average interest rate payable on the borrowings at quarter end was 8.0% (8.0% at 30 June 2016). At 30 September 2016, Resolute’s net cash balance, after bullion and debt, had improved significantly to positive A$235M compared with positive A$75M at the start of the quarter.

Gold Sales and Forward Sales Contracts

Total gold sold during the quarter was 78,000oz (June 2016: 100,000oz) at an average cash price received of A$1,790/oz (A$1,712/oz). Resolute has 36,000oz of forward sales contracts at an average price of A$1,800/oz for delivery between November 2016 and October 2017 to protect approximately 50% of the Nolans East ounces of gold to be mined over that period.

S&P ASX 200 Index Inclusion

Resolute was included in the S&P ASX 200 index with effect from 16 September 2016. The S&P ASX 200 index is a market-capitalization weighted and float-adjusted stock market index of the top 200 Australian stocks listed on the ASX as judged by Standard & Poor's. The index is rebalanced quarterly based on the market capitalisation and liquidity of a company averaged over the previous six months trading on the ASX.

Capital Raising

In September 2016, Resolute successfully completed an institutional placement of 76.5M new fully paid ordinary shares to raise A$150M (Placement). The Placement was strongly supported and introduced a range of quality domestic institutional investors to Resolute's register, reflecting the confidence in the Company's quality assets and growth opportunities.

Under the terms of the Placement, investors subscribed for 76.5M new shares in the Company at a price of A$1.96 per share. The new shares rank equally with existing Resolute shares and represented approximately 10.4% of the Company's undiluted share capital immediately following completion of the Placement. The new shares were issued under the Company's 15% placement capacity.

The funds raised via the Placement will be used to advance the development of the REP in Queensland and for drilling and evaluation activity at Bibiani in Ghana. Following the Placement, the REP, the Syama UG and a new exploration and development programme for Bibiani can be fully funded from the Company's cash balances and ongoing operational cash flows.

Gold Sales-Linked Dividend Policy

During the quarter, Resolute declared a final dividend for FY16 of 1.7c per share (see ASX Announcement dated 30 August 2016). The dividend payment followed adoption of an innovative gold sales-linked dividend policy which includes the opportunity for shareholders to receive dividends from Resolute in either cash or gold. Shareholders registered on the record date of 20 September 2016 were paid their dividend on 20 October 2016.

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for the period ended 30 September 2016

Outlook – FY17 Production and Expenditure Guidance

In accordance with normal Resolute practice, production and cost guidance has not been adjusted after only one quarter and will be assessed at the half-year. As a result, guidance remains as follows:

• Gold production for FY17 forecast to be a minimum of 300,000oz;

• Gold shipped forecast to be 325,000oz as increased processing efficiency continues to allow a reduction of gold in circuit inventory;

• AISC forecast to be A$1,280/oz (US$934/oz);

• Capital expenditure for major growth projects expected to be A$170M (US$124M), fully funded from existing cash reserves and operating cash flows; and

• Exploration budget increased to A$19M (US$14M) focused on resource and reserve expansion at Syama, Ravenswood and Bibiani.

For further information, contact:

John Welborn | Managing Director and CEO

Telephone : +61 8 9261 6100 | Email : contact@rml.com.au | Web : www.rml.com.au

About Resolute

Resolute is a successful gold miner with more than 25 years of continuous production. The Company is an experienced explorer, developer, and operator having operated nine gold mines across Australia and Africa which have produced in excess of 7 million ounces of gold. The Company currently operates two mines, the Syama Gold Mine in Africa and the Ravenswood Gold Mine in Australia, and is one of the largest gold producers listed on the Australian Securities Exchange with FY17 guidance of 300,000 ounces of gold production at All-in-Sustaining-Costs of A$1,280/oz (US$934/oz).

Resolute’s flagship Syama Gold Mine in Mali is a robust long life asset benefitting from fully operational parallel sulphide and oxide processing plants. The move to underground mining will continue the asset’s history of strong cash generation and extend the mine life to out beyond 2028. The Ravenswood Gold Mine in Queensland, Australia demonstrates Resolute’s significant underground expertise in the ongoing success in mining the Mt Wright ore body. In Ghana, the Company has completed a feasibility study on the Bibiani Gold Project focused on the development of an underground operation requiring modest capital and using existing plant infrastructure. Resolute also controls an extensive exploration footprint along the highly prospective Syama Shear and greenstone belts in Mali and Cote d’Ivoire and is active in reviewing new opportunities to build shareholder value.

Competent Persons Statement

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 Australasian 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 2012 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 each hold equity securities in the Company. They have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears. This information was prepared and disclosed under the JORC code 2012 except where otherwise noted. Particular Reserves and Resources remain 2004 JORC compliant and not updated to JORC code 2012 on the basis that information has not materially changed since it was last reported.

735,421,396 A$1.78 as at 26 Oct, 2016 A$1.31 Billion 300,000oz @ AISC A$1,280/oz

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