RIMFIRE PACIFIC MINING LIMITED — Capital/Financing Update 2016

Aug 2, 2016

rimfire pacific mining nl a.c.n. 006 911 744

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3[rd] August 2016 Company Announcements Platform Australian Securities Exchange

Exchange Tower Suite 411, 530 Little Collins Street Melbourne Victoria Australia. 3000

Telephone 61 3 9620 5866 Facsimile 61 3 9620 5822 e-mail: rimfire@rimfire.com.au website: www.rimfire.com.au

SHARE PLACEMENT SUCCESSFULLY UNDERTAKEN RAISES $1.6M

- Share Purchase Plan (SPP) available to shareholders at the same price of 2.1cents

The Board of Rimfire Pacific Mining NL (ASX:RIM) (“Rimfire” or “The Company”) is pleased to advise that the placement announced on 1[st] August 2016 has raised approximately $1.6M.

The Company also announces that commensurate opportunity for investment is being offered to qualifying Rimfire Shareholders, through a limited Share Purchase Plan (SPP), recognising the loyalty and support that has been provided by all shareholders.

Placement Details

Details of the issue are:

ails of the issue are:
**Approx. Number of New Ordinary Shares Issued ***	76.3 Million
Issue price	2.1 cents per share
Approx. Capital raised before costs	$1.6 Million

The placement has been completed under the Company’s 15% capacity pursuant to ASX Listing Rule 7.1. The new shares will rank pari passu with the existing ordinary shares.

The Board is greatly encouraged by the level of support shown by participants in the placement. Net proceeds will provide additional working capital and be applied to the Company’s Fifield NSW projects, including the major focus on the 18km[2] area surrounding the Sorpresa gold and silver resource.

This area includes the recently established 7km x 2km north-south Sorpresa corridor, with the new Fortuna gold prospect (1.2km x 0.4km), amongst other high order targets, which are ready for drill testing.

The potential for significant discovery growth exists in this area. Economic assessment of the known high grade gold and silver lenses within the Sorpresa resource will also be pursued. The Company continues to review partnership opportunities as a means of accelerating the project area discovery potential, district wide.

Current Work Programs

The Company’s own rigs (Auger and Percussion), have recommenced work at Fifield after delays due to weather conditions, permitting and environmental rehabilitation obligations. Additional planning for further drilling is also being undertaken.

CEO and Managing Director John Kaminsky commented :

“This is a strong result for the placement, exceeding our original internal target of $1m~$1.2m. The funding strategy of using the placement and the SPP together will provide sufficient capital for the near term needs of the Company. We now have a targeted outcome for the combined funding (Placement and SPP) of approximately $2.5m, so this is on track.

“The Sorpresa Gold and Silver discovery is good proof of concept for further discoveries in this prospective gold corridor and has helped underpin the success of this financing round.

“The SPP announced recognises that loyal shareholders should be afforded the participation right alongside the recent placement completed. Pricing for the SPP is identical to the placement at 2.1cents per share. The SPP offer gives the opportunity to access a volume of stock not readily available on the market.

“The Board is very appreciative of the participation shown in the placement and looks forward to support in the SPP.”

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Share Purchase Plan “SPP”

The Company, recognising the loyalty and support provided by shareholders, also announces a Share Purchase Plan (SPP) at the placement price of 2.1cents. The SPP will be capped at a total of $950,000, subject to the terms and conditions and the discretion that may be exercised by the Board. A brief outline of the key dates and terms of the SPP is provided as follows:

Record Date for Shareholders to be eligible	2ndAugust 2016
Expected Despatch Date of Offer	5thAugust 2016
Closing date for acceptance	26thAugust 2016
Limits per shareholder	Maximum $15,000 and Minimum $1,470 per holder application
Price	2.1 cents per share

Yours faithfully

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JOHN KAMINSKY CEO and Managing Director Rimfire Pacific Mining NL

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