RESOURCES & ENERGY GROUP LIMITED — Capital/Financing Update 2017

Sep 20, 2017

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21 September 2017

Market Announcements Office ASX Limited

Removal of First Ore, First Mining since 1974 – Radio Mine

Following the announcement of significant high-grade gold samples in July, Resources & Energy Group Ltd (ASX: REZ) is pleased to announce the successful removal of first ore from the Radio mine and the first mining at Radio since 1974.

This is a significant and major step forward, proving the mines operational capability, the outstanding quality of the old existing workings and showcasing the Radio team’s capabilities and quality.

Operations at Radio have continued to develop at pace and REZ has received regulatory approval for the Stage 2 Project Management Plan expansion of mining activities.

This has allowed REZ to commence mining of bulk sample locations. Development is now well underway on a 29-metre scraper drive linking the southern edge of historic stoping on the 9 Level to an ore chute adjacent to the 10 Level shaft.

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9 Level Underlay shaft crossover Miner boring in the 10 Level East Lode

This drive will form the bottom access for a panel of East Lode ore estimated to be approximately 2,100 tonnes. This mining panel bounds the southern-most extent of the historical East Lode on the 9 Level horizon. This is the first mining at Radio since 1974.

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The East lode itself, remains relatively untouched to the south between the 9 Level up to the 5 Level and represents an excellent opportunity for extensions to this initial panel.

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Stoping panel location 9B Level East Lode South

Mine rehabilitation is also proceeding well in conjunction with the East Lode panel setup, including removal of historic mine spoil & mud to facilitate access to mine further bulk sample panels in coming months.

The initial first ore removed from the mine is a mix of high and low-grade material including some mine spoil. This first ore is estimated at 4-500 tonnes and will be processed offsite in early October.

The completion and commissioning of the onsite Radio Mine gravity processing plant is also ongoing. The crushing system has been completed and is undergoing commissioning. The plant is anticipated to be fully operational in 1- 2 months.

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Radio crushing circuit

Mr Richard Poole, Chief Executive of REZ, stated

“The commencement of mining at Radio for the first time since 1974, is an impressive achievement in such a short time, and a testament to the drive and calibre of the Radio onsite team. We are looking forward to pouring our first gold dore, then completing the commissioning of our own mill and seeing this mine into full production.

It is an exciting development for the region and we hope to continue to expand our activities here. We are actively seeking additional projects.”

For further information please contact:

Either

Mr James Croser or Mr Richard Poole Ph: +61 2 9227 8900

About Resources and Energy

Resources and Energy Group Limited (ASX: REZ) is an independent, ASXlisted gold explorer, holding mining leases in Western Australia and Queensland. REZ is positively developing a portfolio of mining tenements through to production.

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Competent Persons Statement and Consent

The information in this release that relates to exploration results is based on and fairly represents information compiled by Mr Michael Johnstone who is a member of the Australasian Institute of Mining and Metallurgy, and Principal Consultants for Minerva Geological Services (MGS). MGS has been contracted by REZ to provide exploration management and technical advice to the company. Mr Johnstone has sufficient experience that is relevant to the reporting of exploration results 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 Johnstone consents to the inclusion in this release of the matters based on their information in the form and context in which it appears.

This release contains information initially provided in releases made by the REZ to the ASX on 24 May 2017 and 31 July 2017. REZ is not aware of any new information or data that materially affects the information included in previous ASX announcements and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.

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