WEST WITS MINING LIMITED — Capital/Financing Update 2018

Feb 18, 2018

ASX Announcement and Media Release

Monday, 19 February 2018

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Production at Witwatersrand Basin Project expected to increase before year-end

Highlights

• ➢ WWI plans to apply for two mining permits in March, which is expected to enable a substantial increase in gold production by 4Q 2018 from its Witwatersrand Basin Project (WBP)

• ➢ WWI’s consultants are preparing the applications, as South African law allows for up to two small scale mining permits (less than 5 ha) to be undertaken on the WBP area

• ➢ Implicitly, this means production could increase substantially by 4Q 2018

• ➢ The Rand’s recent strengthening against the US-dollar clearly reflects positive global perceptions that South Africa’s economic and political fortunes are turning around, particular with a successful mining entrepreneur in Cyril Ramaphosa assuming the Presidency

• ➢ Improving conditions in South Africa’s economy and political environment are timely, with the team fasttracking preparation of the application for mining rights for WBP which will be submitted in April

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West Wits Mining Limited (“WWIs” or “the Company) is delighted to announce that it is in the process of applying for two mining permits, which upon approval would see gold production increase substantially by the fourth-quarter of the calendar year. This positive news flow comes at a time when the Rand is strengthening due to improving conditions in South Africa’s political and economic environment. Further, the team are preparing the application for full mining rights which they plan to submit to the regulator in April.

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Michael Quinert, Chairman commented: “The Board’s main task for the South African business in 2018 remains clearly focused on fast-tracking the application and approval for full mining rights for the Witwatersrand Basin Project, with submission scheduled for April. Upon regulatory approval, this will likely create significant incremental value for shareholders, as it would enable production to be ramped up materially. Against this backdrop, it is pleasing to note the stronger Rand is reflective of the potential turnaround in South Africa’s economic and political environment. Further, with the continued success of the existing operations, a decision was taken to proceed with two mining permit applications which upon grant would enable WWI to boost monthly production from the Witwatersrand Basin Project significantly by the fourth quarter of the calendar year.”

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West Wits Mining Limited ABN 89 124 894 060 Level 3, 62 Lygon Street Carlton VIC 3053 Australia P +61 3 8692 9049 F +61 3 8692 9040 www.westwitsmining.com

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BOOSTING CURRENT PRODUCTION

Pending application for two new mining permits

The group’s consultants have advised that South African mining laws allow WWI to apply for two mining permits – these enable small scale open pit operations to be contained within five hectares. The geology team has identified two candidate open pit areas within WBP, focussing on the high-grade Main and South reefs. Utilising a new naming convention, the two areas will be known as WBP – Main & South Central Open Pit and Main & South East Open Pit (refer Figure 1).

This is positive for WWI as with the depletion of WBP Kimberley Central Open Pit (renamed from Witwatersrand One - to align with the new naming convention) due within 10-12 months, it is important to ensure continuity and preferably, grow ore production and cashflow. The mining permit applications are scheduled to be lodged in March and granted by September, allowing ore production to materially increase during 4Q 2018. Management intends to minimise overheads by undertaking these new projects under the existing business model (i.e. 50:50 profit sharing terms) with its existing project partner.

FIGURE 1: TARGET AREA FOR NEW MINING PERMITS

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Main & South
Central – Open Pit
Main & South
East – Open Pit
Kimberley Central
– Open Pit
EAST
CENTRAL
WEST
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Source: WWI geology team

Mining right application

The Board continues to fast-track preparing the application for the mining right (equivalent to a mining lease in Australia) across the WBP and is targeting to submit the paperwork to the government in April. Upon approval, expected within 12-months, the prospective gold production from WBP can be scaled up significantly, which would clearly be a harbinger to create incremental value for shareholders.

This is timely as South Africa’s political and economic fortunes appear to be slowly turning around, judging by the significant strengthening in the Rand against the US-dollar and the swearing in of a successful mining entrepreneur in Cyril Ramaphosa to the Presidency.

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Gold production: moving to bi-monthly reporting

With six months production from Kimberley Central Open Pit (previously Witwatersrand One) recorded, the Board has decided to move to a 60-day reporting cycle to mitigate against exogenous processing bottlenecks and currency movements. This new reporting regime will be standardised to include more drilled-down detail and commence from mid-March 2018.

Provisional figures for January, however, confirm that high-grade ore production was between 12,000-to-15,000t and net cash flow as at the upper end of the A$200-250k target range. Pleasingly, the WBP operation remains on a selfsustaining trajectory.

For and on behalf of the Board

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Michael Quinert Chairman

West Wits Mining Limited

Investor Relations:

Contact Simon Whyte on: +61 459 797 101

Otherwise, for further information visit: www.westwitsmining.com