Company Presentation

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1 ASX Announcement 2 June 2017 Company Presentation Golden Rim Resources Ltd (Golden Rim, Company; ASX: GMR) is pleased to provide its latest investor presentation, Near-Term Development Projects in Chile & Burkina Faso. The Company s Managing Director, Craig Mackay, will shortly be promoting the Company in Europe as part of a strategy to raise the Company s profile. -ENDS- Contact Information Hayley Butcher Richard Glass Golden Rim Resources Ltd Citadel-MAGNUS Company Secretary rglass@citadelmagnus.com E: info@goldenrim.com.au W:goldenrim.com.au Golden Rim Resources Ltd I ABN I Office 7, Level 2, 609 Canterbury Road, Surrey Hills VIC 3127, Australia I info@goldenrim.com.au I T

2 NEAR-TERM DEVELOPMENT PROJECTS IN CHILE & BURKINA FASO INVESTOR PRESENTATION ASX:GMR June

3 DISCLAIMER & COMPETENT PERSON STATEMENT This presentation has been prepared by Golden Rim Resources Limited (ABN ) ( Golden Rim ) based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Golden Rim, its related bodies corporate, its or their directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of or reliance on this presentation or anything contained in, omitted from or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of Golden Rim, its related bodies corporate or its or their directors, employees or agents. The distribution of this document in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. This presentation is not an offer, invitation, solicitation or recommendation to invest in Golden Rim and neither this document nor anything in it shall form the basis of any contract or commitment. The information in this presentation does not take into account the investment objectives, financial situation and particular needs of investors and does not constitute investment, legal, tax or other advice. Before making an investment in Golden Rim an investor should consider whether such an investment is appropriate to their particular investment objectives, financial situation and particular needs and consult a financial adviser if necessary. This presentation does not purport to constitute all of the information that a potential investor may require in making an investment decision. Investments are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Golden Rim does not guarantee the performance of the investment referred to in this presentation, the repayment of any capital invested or any particular rate of return. Any securities described in this presentation may not be offered or sold in the United States absent registration under the US Securities Act 1933 or exemption from registration. Neither this document nor any copy thereof may be taken or transmitted in the United States or distributed, directly or indirectly, in the United States or to any US person including (1) any US resident, (2) any partnership or corporation or other entity organised or incorporated under the laws of the United States or any state thereof, (3) any trust of which any trustee is a US person, or (4) any agency or branch of a foreign entity located in the United States. You acknowledge that circumstances may change and the contents of this presentation may become outdated as a result. Golden Rim accepts no obligation to correct or update the information or opinions in this presentation. Opinions expressed are subject to change without notice. By accepting this document, you agree to be bound by the above limitations. The information in this report that relates to the estimation and reporting of the Patricia Resources is based on information compiled by Mr Stuart Hutchin, a Competent Person who is a member of the Australian Institute of Geoscientists and a full-time employee of Mining One Consultants Pty Ltd. Mr Hutchin has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Hutchin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report relating to the Exploration Targets and exploration results is extracted from the announcements Initial Exploration Target Defined for Korongou dated 16 July 2015 and has been reported in accordance with the 2012 edition of the JORC Code. These announcements are available on the Company s website ( The Company confirms that it is not aware of any new information or data that materially affects the information included in these announcements. The information in this public report that relates to previous exploration results and is based on information compiled by Mr Craig Mackay who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is an employee of Golden Rim Resources Ltd. Mr Mackay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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 Mackay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Certain statements in the presentation are or maybe forward-looking statements and represent Golden Rim s intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Golden Rim, and which may cause Golden Rim s actual performance in future periods to differ materially from any express or implied estimates or projections. Nothing in this presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. Golden Rim does not make any representation or warranty as to the accuracy of such statements or assumptions. Page 2

4 HIGHLIGHTS Two near-term development projects in mining friendly jurisdictions Projects in geological terrains that produce world-class deposits Compelling valuation upside in rising resources market (current Enterprise Value (EV) is <A$5m) Paguanta Zinc-Silver-Lead Project (Chile) Kouri Gold Project (Burkina Faso) Measured, Indicated & Inferred JORC 2012 Mineral Resource of 2.4Mt at 8.0% Zinc Equivalent (ZnEq) 1 190,000t of contained Zn Eq metal 46,000m of drilling/bulk of Feasibility Study US$35m (A$47m) past expenditure Zinc price 40% in 12 months with substantial supply deficit forecast 3 Golden Rim to conduct drilling Objective: JORC Mineral Resource Expansion & Re-commencement of Feasibility Study (late 2017) Initial JORC 2012 Exploration Target of approximately 500, ,000 oz of gold (~70m depth) 2 Extensive exploration upside Burkina Faso one of the fastest growing gold mining destinations in the world Increasing M&A for gold projects EV/oz valuation at Kouri yet to be realised Golden Rim to conduct drilling Objective: Maiden JORC Mineral Resource (late 2017) 1) For full Mineral Resource details see ASX Announcement 30 th May 2017 and table on p.26; 2) For full Exploration Target details see ASX Announcement 16 th July 2015 and table on p.27. Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources 3) ICBC Standard Bank, March 2016 Page 3

5 CORPORATE SNAPSHOT 12 MONTH SHARE PRICE PERFORMANCE CAPITAL STRUCTURE ASX Code Share price (30 May 2017) GMR A$ week low/high A$ A$0.014 Liquidity (past 12 months) ~5M shares/day Issued capital SHAREHOLDERS Board & Management 5.08% Number of Shareholders ~3,200 - Shares on issue 1,787m - Unlisted options 172m Market capitalisation (undiluted) A$7.2m DIRECTORS Glenister Lamont Non Executive Chairman Cash (31 March 2017) A$2.9m Craig Mackay Managing Director Debt Nil Rick Crabb Kathryn Davies Non Executive Director Non Executive Director Enterprise Value A$4.3m Page 4

6 BOARD & SENIOR MANAGEMENT TEAM Glenister Lamont, Non-Executive Chairman (BEng-Min (Hons), MBA, FAICD, FAusIMM, FFIN) Mining Engineer. Previously General Manager of Ashton Mining and Executive Director at UBS. Craig Mackay, Managing Director (BAppSc-AppGeol, BSc (Hons), MSc, MAusIMM, MAICD) Geologist with over 29 years experience in Australia, Asia, Africa, North & South America. Previous positions with major resource companies, including Shell Metals, Acacia Resources, AngloGold. Rick Crabb, Non-Executive Director (Bjuris (Hons), LLB, MBA, FAICD) Over 30 years experience in the resource sector with a background in legal and management. Current Chairman at Paladin Energy. Councillor of WA Division of Australia Institute of Company Directors. Kathryn Davies, Non-Executive Director (BBus, CPA, GAICD) Experienced executive across mining, oil and gas, industrial, healthcare and technology groups, including Hardman Resources, Mineral Deposits, Carnegie Minerals, Japara Healthcare and Planet Innovation. Hayley Butcher, General Manager Corporate, Company Secretary (BFA, MScL, ACIS, ACSA, GAICD) Chartered Secretary, governance and compliance professional. Experience with a number of ASX listed companies. Alex Raab, Exploration Manager (BSc-Geol, MSc) Geologist with over 20 years exploration and project development experience in Latin America and North America. Previous positions with several major and junior mining companies, including Homestake Mining, Kennecott Minerals, MIM Exploration, and Orosur Mining. Richard Zongo, Country Manager Burkina Faso (BSc, MSc-Geol) Geologist with over 30 years of West African experience including 22 years at senior level with publicly listed Canadian and Australian exploration companies in Burkina Faso, Mali, Niger and Ghana. Multiple gold discoveries. Page 5

7 PAGUANTA ZINC-SILVER-LEAD PROJECT Page 6

8 PAGUANTA PROJECT - LOCATION Page 7

9 PAGUANTA ZINC-SILVER-LEAD PROJECT Golden Rim owns 73% and is manager Geological terrain hosting world-class mineral deposits May 2017, Mineral Resource (JORC 2012) Measured, Indicated & Inferred Resource: 2.4Mt at 5.0% Zn, 1.4% Pb, 88 g/t Ag & 0.3 g/t Au (8.0% Zn Eq) 1,2 190,000t of contained Zn Eq metal Almost 50% of the resource Measured + Indicated Over 46,000m diamond & RC drilling Focus on delivering an expanded & higher grade Mineral Resource (due late 2017) Objective to recommence Feasibility Study (December 2017) 1) JORC 2012 Mineral Resource details on p.26 2) Zn Eq = Zinc Equivalent. Calculation details on p.26 Page 8

10 PAGUANTA RESOURCE BLOCK MODEL Open at depth, along strike to SE Steeply plunging high grade shoots High grade silver (1,765 g/t) Voids in resource that require infill drilling Excellent potential to significantly expand the resource at a higher grade Page 9

11 PATRICIA PROSPECT GEOLOGY Page 10

12 PAGUANTA PREVIOUS FEASIBILITY STUDY Previous Feasibility Study conducted and managed by Golder Associates ( ) Study proposed open pit followed by underground operations Work completed included: o o o o o o o o o o o o o Mine Design Plant Design Geology/Resource Metallurgy Power Supply Hydrogeology/Water Supply Tailings Dam Geotechnical Environmental (baseline, EIA) Community Access Road Port (Concentrate Shipping) Economic Evaluation Page 11

13 PAGUANTA EXPLORATION POTENTIAL PATRICIA (ZN, PB, AG, AU) DORIS (CU) >5% copper at surface CUMBRE (ZN, PB, AG) Base metal anomalous sheeted veins (E-W trending) 200m higher elevation Loreto LORETO (CU) Large unexplored alteration anomaly at Loreto (porphyry- Cu potential) Loreto over-pegged by Codelco & BHP Loreto is 35km from BHP s Cerro Colorado Mine (Mineral Resource of 400Mt at 0.62% copper) Page 12

14 PAGUANTA PATHWAY TO FEASIBILITY Planned Activities 2017* Mining easement agreement with landowners Envisaged Timing Signed Drilling (3,100m Diamond, 3,500m RC to test for depth & strike extensions to Patricia mineralisation, test for new veins to the south) Upgrade JORC 2004 Mineral Resource to JORC 2012 Mineral Resource Complete Complete Infill Drilling July Oct Metallurgical test work to optimise recoveries October 2017 Water Studies/Community Engagement On-going Revised JORC 2012 Mineral Resource November 2017 Preliminary Economic Assessment (PEA) December 2017 Re-commence Feasibility Study December 2017 *Level of planned activities subject to available funding and on-going drilling results Page 13

15 ZINC FUNDAMENTALS Rising Zinc Price Zinc prices are up >40% in 12 months Second best performing commodity in 2016 Recently reached 9 year high of US$1.30/lb Wood Mackenzie forecasting zinc price of ~US$1.80/lb by Supply Side >50% reduction LME zinc stockpiles in past 4 years Zinc LME inventories down to 350k tonnes (500k tonnes February 2016) Two of the largest zinc mines globally have closed in recent years (Century and Lisheen) Glencore reduced production from late 2015; yet to indicate any re-start plans World s zinc mine production fell by 1.2% in Forecasts of large supply deficit for the next 2 years and beyond 3 Demand Side Worldwide demand for refined zinc metal increased 3.5% in 2016 (mainly due to increased demand in China) 2 1) Wood Mackenzie Q Forecast; 2) International Lead & Zinc Study Group - January 2017 Report & 3) ICBC Standard Bank, March 2016 Page 14

16 ASX ZINC DEVELOPER PEER COMPARISION Company EV (A$m) Project Project Equity (%) Project Location Resource Cut-off Grade Mineral Resource (Mt) Peer Comparison considers zinc project developers listed on the ASX with resources of contained ZnEq <1Mt Golden Rim s Enterprise Value (EV)/tonne of contained ZnEq metal of $29 for the Paguanta Zinc-Silver-Lead Project is currently well below (~1/2) that of our peer companies on the ASX assuming no value for the Company s significant Kouri Gold Project Zn (%) Pb (%) Ag (g/t) Au (g/t) Cu (%) Zn Eq (%) Contained ZnEq kt Consolidated Zinc Plomosas 51 Mexico 3%Zn $125 Red River Resources Thalanga 100 Qld 5%ZnEq $83 Energia Minerals Gorno 100 Italy 1%Zn $56 Marindi Metals Newman 100 WA 1%Zn $49 Golden Rim Resources Notes: 4.1 Paguanta 73 Chile 6%ZnEq $29 1) Source: ASX announcement 20 th March 2017 Investor Update presentation 2) Source: ASX announcement 26 th April 2017 Set for Production presentation; ASX announcement 11 th February 2015 Thalanga Updated Mineral Report Estimate. 3) Source: ASX announcement 3 May 2017 Energia to evaluate optimised development program for Gorno Zinc Project following completion of an updated Mineral Resource Estimate. 4) Source: Marindi s RIU Sydney Resources Round-up Presentation May 2017 ; Breakaway Research May Report ) Source: ASX Announcement 30 th May 2017 New Resource Estimation for Paguanta. 6) Company EV s are undiluted and calculated on 31 May 2017 (i.e. market capitalisation less cash on hand). For cash on hand the reported cash balance as at 31 March 2017 was utilised unless a subsequent capital raising was reported. 7) Zinc Equivalents (ZnEq s) reported by the companies were utilised if available. If not available the following formula was utilised (ZnEg = Zn%+ (Pb%*0.79*recovery) + (Ag g/t*0.021*recovery) + (Au g/t*1.533*recovery)). The metal prices used for the ZnEq formula were: Zn - $US /lb; Pb - $US /lb; Ag $US 17.07/oz; and Au - $US 1,252/oz. Recoveries of 90% were assumed where no recovery information was available. It is Golden Rim s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold. EV/t ZnEq (Project Equity Basis) Page 15

17 KOURI GOLD PROJECT Page 16

18 KOURI PROJECT LOCATION Page 17

19 KOURI GOLD PROJECT Golden Rim owns 100% (new 9 year exploration permit) Gold mineralised shear zone extends for 16km in the licence At least 20 parallel gold zones identified at the Banouassi Prospect over 3km of strike Past production 20,000 oz at 5.2 g/t gold at the Banouassi using a 10tpd gravity/cil plant 18,000m reverse circulation (RC) drilling completed RC drilling intercepts at Banouassi include: 21m at 5.6 g/t gold from 13m 10m at 4.5 g/t gold from 15m Initial JORC 2012 Exploration Target* of approximately 500,000 ounces to 611,000 ounces of gold at an approximate grade range of 1.8 g/t to 2.2 g/t gold at Banouassi Recent re-start of work following a 2 year hiatus Excellent potential with infill & extensional drilling to define a large open pittable gold resource Objective to produce Maiden JORC Mineral Resource (late 2017) *Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources. Exploration Target details are provided in Appendix 2, p26. Page 18

20 BANOUASSI PROSPECT Page 19

21 EXPLORATION UPSIDE The current Exploration Target of 500,000 ounces to 611,000 ounces at Banouassi is open 900m gap area remains to be drilled (bedrock auger results up to 4.4 g/t gold) Current Exploration Target only extends to ~70m below surface (~6:1 stripping ratio) Infill drilling in the 900m gap and deeper drilling has the potential to provide a significant increase in the extent of the gold mineralisation at Banouassi Potential cross-structures offer gold grade upside 13km of gold mineralised strike, outside Banouassi, remains poorly explored to date Page 20

22 PATHWAY TO MAIDEN RESOURCE Planned Activities 2017* Envisaged Timing New Exploration Permit (9 year licence) Acquisition of remaining 10% interest in Exploration Permit Complete Complete Resource drilling (RC & Diamond) May November 2017 Initial metallurgical test work October 2017 Maiden JORC 2012 Mineral Resource December 2017 *Level of planned activities subject to available funding and on-going drilling results Page 21

23 VALUE OF BURKINA FASO GOLD PROJECTS Burkina Faso is the fastest growing gold mining region in Africa (9 mines built in 10 years) Quality gold resources are in demand Gold resources are reflected in current Burkina Faso company valuations Golden Rim s neighbours (Enterprise Value (EV)/oz gold) WAF: ASX ~US$50/oz for Indicated/Inferred Resources of 1.6Moz at 1.4 g/t gold (+ high grade upside) 1 TSXV: ORE ~US$15/oz for Measured/Indicated/Inferred Resources of 4Moz at 0.9 g/t gold) 2 Recent M&A Activity SEMAFO A$178m takeover of Orbis Gold (1.5Moz Natougou Project) Endeavour Mining C$191m takeover of True Gold (5Moz Karma Project) Teranga Gold A$84m takeover of Gryphon Minerals (3Moz Banfora Project) Endeavour Mining US$25.3m sale of Youga Mine to MNG Gold Golden Rim US$8m cash sale of Balogo (0.2Moz) to MNG Gold (~US$43/oz) US$4b merger discussions between Acacia & Endeavour 1) Derived from West African Resources ASX announcement 20 February 2017 (Current company EV of ~A$100m/1.55Moz Indicated & Inferred Resources at 1 g/t gold cut-off) 2) Derived from Orezone Gold 25 May 2017 Presentation (Current company EV of ~C$70m/4Moz Measured, Indicated & Inferred) Page 22

24 INVESTMENT HIGHLIGHTS Multi-commodity exposure (zinc, silver, gold, possibly copper) Two near-term development projects in world-class mining jurisdictions Golden Rim s current Enterprise Value of <A$5m is very low Undervalued compared to our peers Significant on-going work* & major milestones scheduled over the next 6 months expected to create value: Regular release of drilling results for Paguanta & Kouri Updated Mineral Resource at Paguanta Re-commencement of Feasibility at Paguanta Maiden Mineral Resource at Kouri (attract EV/oz gold valuation) Regular news flow through 2017 Active marketing program planned Golden Rim is well positioned for the next up-cycle for junior resource companies *Level of planned activities subject to available funding and on-going drilling results Page 23

25 CONTACT Craig Mackay Managing Director Phone: Web: Page 24

26 APPENDIX 1: PAGUANTA MINERAL RESOURCE Resource Category Tonnes Zn (%) Pb (%) Ag (g/t) Au (g/t) Zn Eq (%) Measured (M) 493, Indicated (I) 612, M + I 1,106, Inferred 1,279, TOTAL 2,379, Notes Resource compiled by Mining One Consultants in May 2017 in accordance with the 2012 Edition of the JORC Code Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. The resources were reported above a 6% Zn Eq cut-off grade. The Zinc Equivalent (Zn Eq) grades were calculated using the following formula: Zn Eq%= (Zn %) + (Pb %*0.63) + (Ag g/t*0.019) + (Au g/t*1.38). The metal prices used for the zinc equivalent formula were: Zinc - $US /lb; Lead - $US /lb; Silver $US 17.07/oz; and Gold - $US 1,252/oz. The metallurgical recoveries included in the zinc equivalent formula were the non-optimised metallurgical recoveries were derived from previous test work at Patricia and include 82%, 80% and 90% for zinc, lead and silver respectively. For gold a 90% recovery has been assumed, which Golden Rim believes is a reasonable average for an epithermal style of deposit. It is Golden Rim s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold. Details on the Paguanta Mineral Resource are provided in ASX Announcement dated 30 May 2017 New Resource Estimation for Paguanta. Page 25

27 APPENDIX 2: KOURI EXPLORATION TARGET Exploration Target Area Tonnage Range Gold Grade Range (g/t) Gold Ounces Range 90% 110% 90% 110% 90% 110% Guitorga North 2,924,000 3,573, , ,000 Guitorga South 3,643,000 4,452, , ,000 MCA/MCB Pits 719, , ,000 57,000 Diabouga 669, , ,000 89,000 TOTAL 7,954,000 9,722, , ,000 Notes: The Exploration Target was estimated in accordance with the 2012 Edition of the JORC Code using the following parameters: 0.5 g/t gold cut-off grade; maximum of 100m strike extent from drill holes (where the continuity of the mineralisation is supported by mapping, the location of artisanal workings or anomalous auger results); maximum of 70m vertical extent below surface for the Guitorga North, Guitorga South and Diabouga areas; maximum of 120m vertical extent below surface for the MCA/MCB Pits area; minimum downhole width of 2m; and SG of 2.5. A total of 94 RC drill holes were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 40m 100m apart, with a spacing along the lines ranging from 40m 50m. Details on the Kouri Exploration Target (previously called Korongou) are provided in ASX Announcement dated 16 July 2015 Initial Exploration Target Defined for Korongou. Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources. Page 26