ROX RESOURCES LIMITED — Capital/Financing Update 2017

May 28, 2017

29 MAY 2017 RRL15 2 3 D

Collurabbie Project Acquisition

Key Points

• Acquisition to be completed following dismissal of plaint
• Exploration activity including aircore drilling to commence in the third quarter
• Acquisition represents an excellent strategic opportunity to add to Rox's current portfolio

Rox Resources Limited (ASX: RXL) ("Rox" or "the Company") is pleased to advise that a plaint brought by Baracus Pty Ltd over one of the tenements comprising the Collurabbie Project ("Project") has been dismissed, allowing the Company's acquisition of 100% of the Project (ASX:RXL 20 October 2016) tenements to proceed.

The purchase price of $25,000 cash and 7,500,000 shares in Rox will be paid and issued to Robo 3D Limited (ASX:RBO) (previously Falcon Minerals Limited) over the next few days.

The Collurabbie Project is located 500km north of Kalgoorlie, Western Australia and 70km due east of Rox's Fisher East nickel sulphide and Mt Fisher gold projects (Figure 1).

The tenements comprise E38/2009 and E38/2912, covering ~63 km2 with most of the known nickel sulphide mineralisation located on E38/2009. In addition, Rox has applied for adjoining tenement areas covering ~105 km2 , giving a total project area of ~168 km2 .

Strong drill intercepts from previous drilling1 at the Project's Olympia prospect included:

• 5.8m @ 3.00% Ni, 1.96% Cu, 5.3g/t PGE
• 3.7m @ 2.20% Ni, 1.82% Cu, 3.5g/t PGE
• 8.0m @ 1.23% Ni, 1.62% Cu, 3.8g/t PGE
• 1.9m @ 3.64% Ni, 2.77% Cu, 7.0g/t PGE

1 Results extracted from announcements by Falcon Minerals Limited (ASX:FCN 17 August 2004, 10 November 2004, 3 December 2004, 8 March 2005, 5 July 2010 and 8 July 2011).

In addition to the Olympia Prospect, the Project hosts other prospects including Agora, Leros,

Paros and Rhodes (East and West), where previous exploration has identified mineralisation. Much of this exploration activity has not been followed up. The Project area has only had sporadic exploration, with a concentrated effort from 2004-2005 and moderate activity from 2010-2011, but no exploration of substance since 2011.

Managing Director, Mr Ian Mulholland said, "We plan to apply the same successful exploration techniques at Collurabbie that we have used at Fisher East. With the last phase of exploration being some 5-6 years ago, there is considerable scope for new discoveries."

The majority of previous work has been deep RC and diamond drilling at the Olympia prospect, with only broadly spaced drilling outside of that prospect area. Regional coverage with effective geochemistry is poor, and presents a further opportunity.

At Olympia there is a well-defined mineralised zone with ore lenses that show pinch and swell structures from 0.5m to 9.65m wide (Figure 2). There are consistently high Cu (>1%) and PGE (>2g/t) values accompanying Ni.

The nature of the mineralisation is different to Fisher East, with a significant copper (Cu) component, along with significant PGE's (Pt+Pd+Rh+Ru+Os+Ir), and minor levels of cobalt (0.1 – 0.2% Co) and zinc. The mineralisation is thought to be similar in style to the Raglan deposits in Canada where over 1 million tonnes of contained nickel-copper-PGEs have been defined in over 10 deposits.

There are several untested drill intercepts1 and anomalies which are drill ready targets for follow-up and several strike kilometres of untested ultramafic rocks (Figure 3).

• Agora 12m @ 0.61% Ni, 0.25% Cu, 0.73g/t PGE
• Leros 10m @ 0.69% Ni
• Olympia South 18m @ 0.67% Ni, 0.63% Cu
• Paros 8m @ 0.43% Ni
• Rhodes East 4m @ 1.34% Ni, 0.24% Cu, 0.58g/t PGE

There are also gold exploration targets such as the Naxos prospect, where previous drilling has intersected gold mineralisation which has not been followed up:

• Naxos 2m @ 2.47g/t Au from 70m 10m @ 0.27g/t Au from 34m, incl. 2m @ 2.4g/t Au from 60m

The Company believes the acquisition of the Collurabbie project is an excellent strategic opportunity and fits with its current portfolio.

ENDS

For more information:

Shareholders/Investors Media

Ian Mulholland Michael Weir Managing Director Citadel-MAGNUS Tel: +61 8 9226 0044 Tel: +61 8 6160 4903 admin@roxresources.com.au mweir@citadelmagnus.com

Figure 1: Project Location

Figure 2: Olympia Prospect Cross Section

Figure 3: Regional Prospects

About Rox Resources

Rox Resources Limited is an emerging Australian minerals exploration company. The company has a number of key assets at various levels of development with exposure to gold, nickel, copper and platinum group elements (PGE's), including the Mt Fisher Gold Project (WA), the Fisher East Nickel Project (WA), the Collurabbie Nickel-Copper-PGE Project (WA), and the Bonya Copper Project (NT).

Mt Fisher Gold-Nickel Project (100% + Option to Purchase)

The Mt Fisher project is located in the highly prospective North Eastern Goldfields region of Western Australia and in addition to being well endowed with gold, the project hosts several nickel sulphide deposits. The total project area is 675km2, consisting of a 600km2 area 100% owned by Rox and an Option to purchase 100% of a further 75km2 of nickel and gold prospective ground.

Discovery of, and drilling at the Camelwood, Cannonball and Musket nickel prospects has defined a JORC 2012 Mineral Resource (ASX:RXL 5 February 2016) of 4.2Mt grading 1.9% Ni reported at 1.0% Ni cut-off (Indicated Mineral Resource: 3.7Mt grading 1.9% Ni, Inferred Mineral Resource: 0.5Mt grading 1.5% Ni) comprising massive and disseminated nickel sulphide mineralisation, and containing 78,000 tonnes of nickel. Higher grade mineralisation is present in all deposits (refer to ASX announcement above), and is still open at depth beneath each deposit. Additional nickel sulphide deposits continue to be discovered (e.g. Sabre) and these will add to the resource base. Exploration is continuing to define further zones of potential nickel sulphide mineralisation.

Drilling by Rox has also defined numerous high-grade gold targets and a JORC 2004 Measured, Indicated and Inferred Mineral Resource (ASX:RXL 10 February 2012) of 973,000 tonnes grading 2.75 g/t Au reported at a 0.8 g/tAu cut-off exists for 86,000 ounces of gold (Measured: 171,900 tonnes grading 4.11 g/t Au, Indicated: 204,900 tonnes grading 2.82 g/t Au, Inferred: 596,200 tonnes grading 2.34 g/t Au) aggregated over the Damsel, Moray Reef and Mt Fisher deposits.

A joint venture has been signed with Doray Minerals Limited ("Doray") to explore the Mt Fisher gold tenements (ASX:RXL 16 May 2016), with Doray required to spend $1 million within the first year. Following that Doray can spend $4 million over a further two years to earn a 51% interest, and increase its interest to 75% by expenditure of a further $5 million over an additional two years.

Collurabbie Gold-Nickel Project (100%)

The Collurabbie project is located in the highly prospective North Eastern Goldfields region of Western Australia and is prospective for gold and nickel. The project area of 123km2 hosts the Olympia nickel sulphide deposit and a number of other prospects for nickel sulphide mineralisation. Drilling results of 5.8m @ 3.00% Ni, 1.96% Cu, 5.3g/t PGE, have been returned from Olympia. The style of nickel sulphide mineralisation is different to that at Fisher East, with a significant copper and PGE component at Collurabbie, and has been compared to the Raglan nickel deposits in Canada (>1Mt contained nickel).

In addition there is potential for gold mineralisation, with several strong drilling intersections including 2m @ 5.2g/t Au from the Naxos prospect.

Bonya Copper Project (51% + Farm-in Agreement to earn up to 70%)

Rox (51%) is exploring the Bonya Copper Project located 350km east of Alice Springs, Northern Territory, in joint venture with Arafura Resources Limited (49%) (ASX:ARU). Outcrops of visible copper grading up to 34% Cu and 27 g/t Ag are present, with the style of mineralisation similar to the adjacent Jervois copper deposits (see ASX:KGL). Drill testing has intersected visible copper mineralisation at three prospects, with massive copper sulphides intersected at the Bonya Mine prospect, including 38m @ 4.4% Cu and 11m @ 4.4% Cu (ASX:RXL 20 October 2014, 5 November 2014, 1 December 2014).

Under the Farm-in Agreement Rox has earned a 51% interest in the copper, lead, zinc, silver, gold, bismuth and PGE mineral rights at Bonya after spending $500,000 (ASX:RXL 16 December 2014). Rox is earning a further 19% (for 70% in total) by spending a further $1 million by 10 December 2017.

Competent Person Statements:

Resource Statements

The information in this report that relates to nickel Mineral Resources for the Fisher East project was reported to the ASX on 5 February 2016 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 5 February 2016, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 5 February 2016 continue to apply and have not materially changed.

The information in this report that relates to gold Mineral Resources for the Mt Fisher project was reported to the ASX on 10 February 2012 (JORC 2004). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 10 February 2012, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 10 February 2012 continue to apply and have not materially changed.

General

The information in this report that relates to previous Exploration Results for the Bonya and Collurabbie projects, was either prepared and first disclosed under the JORC Code 2004 or under the JORC Code 2012, and has been properly and extensively cross-referenced in the text to the date of original announcement to ASX. In the case of the 2004 JORC Code Exploration Results and Mineral Resources, they have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.