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1 Quarterly Activities Report For the period ended 30 June 2016 Overview Golden Rim Resources Ltd (ASX: GMR) is developing its project portfolio. The Company has advanced exploration projects in Chile and Burkina Faso. The Paguanta ZincSilverLead Project, in Chile, has a significant JORC resource and US$31.5m in past expenditure. GMR plans to conduct drilling with the aim of expanding the higher grade portion of the resource. The Korongou Gold Project, in Burkina Faso, has widespread gold mineralisation. GMR has outlined a considerable Exploration Target. Paguanta, Chile Subsequent to the end of the quarter, Golden Rim acquired a 70% interest in the Paguanta Project in northern Chile. The final acquisition price was US$1.49m cash and a further US$0.8m worth of Shares, at a decision to mine, for a total of US$2.29m. The Patricia Prospect at Paguanta hosts Mineral Resources 1 of 4.4Mt at 3.7% zinc, 1.4% lead, 84 g/t silver and 0.2 g/t gold at 2% zinc cutoff and 0.6Mt at 93 g/t silver and 1.4% lead at 40 g/t silver cutoff. At a 3% zinc cutoff, there is a higher grade Mineral Resource at Patricia of 1.8Mt at 5.6% zinc, 2.0% lead, 125 g/t silver and 0.2 g/t gold or 1.8Mt at 9.8% zinc equivalent (ZnEq) 2. The higher grade mineralisation is mainly associated with the Cathedral Vein and is open at depth and along strike. Head Office Office 7, Level Canterbury Road SURREY HILLS VIC 3127 AUSTRALIA T: Golden Rim s strong cash balance enables the Company to commence a significant work program at Paguanta with initial work focussed on drilling to extend the high grade resource on the Cathedral Vein. An initial Exploration Target of approximately 4.5Mt to 6.8Mt at approximate grades of 4.5% to 6.7% zinc, 1.5% to 2.3% lead and 100 g/t to 150 g/t silver has been estimated for this area of potential extension to the higher grade resource at Patricia. Contact Craig Mackay Managing Director info@goldenrim.com.au Directors Rick Crabb, Non Executive Chairman Craig Mackay, Managing Director Glenister Lamont, Non Executive Director Balogo, Burkina Faso Following renegotiations, Golden Rim received cleared cash funds of US$3 million from the MNG Group of companies (MNG) as final payment for the acquisition of the Balogo Project in Burkina Faso. 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 Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources. 1 This information was prepared and first disclosed under the JORC Code It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. 2 ZnEq = zinc equivalent. Zinc equivalent calculation details are provided in Appendix 1. Golden Rim Resources Ltd I ABN I Office 7, Level 2, 609 Canterbury Road, Surrey Hills VIC 3127, Australia I PO Box 378, West Perth WA 6872, Australia I info@goldenrim.com.au I T

2 Paguanta Project, Chile Paguanta is located in the Tarapacá Region of northern Chile, approximately 195km northeast of Iquique and 30km west of the ChileBolivia border. Paguanta is situated approximately 40km northeast of BHP Billiton s Cerro Colorado Mine, which has a Mineral Resource of 0.62% copper for 5.5Blb of copper and annual copper cathode production of approximately 175Mlb. During the quarter, Golden Rim executed an agreement with Herencia Resources plc (Herencia) to acquire all the issued shares in Herencia s wholly owned subsidiary Paguanta Resources (Chile) SA (PRC). PRC holds 70% of the shares in Compania Minera Paguanta S.A. (CMP) which holds mineral concessions at the Paguanta zincsilverlead project in northern Chile. Subsequent to the end of the quarter, the acquisition was finalised for a price of US$1.49m cash. In addition to the cash consideration, Golden Rim will issue US$0.8m in fully paid ordinary shares (Shares) to Herencia at a deemed issue price equal to the 20 day volume weighted average price (VWAP), in the event a decision to mine at Paguanta. The Patricia Prospect at Paguanta hosts Mineral Resources 3 of 4.4Mt at 3.7% zinc, 1.4% lead, 84 g/t silver and 0.2 g/t gold at 2% zinc cutoff and 0.6Mt at 93 g/t silver and 1.4% lead at 40 g/t silver cutoff (Figure 1). Both resources extend from surface and are amenable to open pit mining. High grade silverlead zinc has been intercepted at depth at Patricia and there is considerable scope for underground mining. Past expenditure on the project is approximately US$31.5m (approximately A$42m). Work completed on the project includes: more than 40,000m of drilling (predominantly diamond drilling); the majority of a feasibility study. Golden Rim s due diligence on Paguanta revealed that coherent higher grade mineralisation predominantly associated with a hydrothermal breccia in the Cathedral Vein at Patricia is likely to be the Company s focus for a future mine development. At a 3% zinc cutoff, there is a higher grade Mineral Resource at Patricia of 1.8Mt at 5.6% zinc, 2.0% lead, 125 g/t silver and 0.2 g/t gold or 1.8Mt at 9.8% zinc equivalent (ZnEq) 4. The higher grade mineralisation is mainly associated with the Cathedral Vein and is open at depth and along strike. Exploration Target Mining Plus Pty Ltd (Mining Plus) was contracted by Golden Rim to estimate an initial Exploration Target in accordance with JORC (2012), for the potential strike and depth extensions to the higher grade mineralisation at Patricia. The results of this study are presented in Table 1 and the area included in the Exploration Target is depicted in Figure 2. 3 This information was prepared and first disclosed under the JORC Code It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. 4 ZnEq = zinc equivalent. Zinc equivalent calculation details are provided in Appendix 1. Page 2

3 The Exploration Target represents potential polymetallic endowment in addition to the defined Mineral Resource for the Patricia deposit. Table 1. Patricia Exploration Target Estimation Tonnage Range (Mt) Zinc Grade Range (%) Lead Grade Range (%) Silver Grade Range (g/t) Gold Grade Range (g/t) 80% 120% 80% 120% 80% 120% 80% 120% 80% 120% Notes: 1) 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 Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources. 2) Mining Plus created an indicative mineralisation model to identify the potential location and size of the immediate strike and dip extensions to the current mineralised system utilising Leapfrog Geo implicit modelling software to create solids at a 3% cutoff grade and a maximum vein width of 5m. 3) The Exploration Target was based on drilling data, surface geochemical data and a 3D model of Induced Polarisation (IP) chargeability data. The surface geochemical data (1,930 samples) and IP geophysical data (survey by Zonge, Chile, 2012) were utilised to support the continuity of mineralisation in areas where drilling was more sparse. 4) A total of 28 RC drill holes (3,626m) and 11 diamond drill holes (1,338m) were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 20m 250m apart, with spacing along the lines ranging from 30m 200m. 5) A base for the Exploration Target was set at 3250mRL 200m below the base of the current drilling. The Exploration Target extends along strike for 250m from the easternmost drill hole. 6) The Exploration Target was calculated using a SG of 3.2 g/cm 3 Next Steps Exploration work envisaged for Paguanta for the second half of 2016 includes: Geological mapping onsite and relogging of the existing diamond drill core to better define the extent of and the structural controls on the zincsilverlead mineralisation. Drilling to test the Exploration Target area and to extend the high grade mineralisation (both at depth and along strike) associated with the Cathedral Vein. Initially a reverse circulation (RC) drilling program (100m spaced lines, 20 holes for 4,000m) is planned to test the shallow strike extent of the mineralisation suggested in the previous limited drilling, surface geochemistry and the IP geophysical data for 800m along strike to the east of the current Mineral Resource. Preparation of a JORC (2012) Mineral Resource estimate for Paguanta. Additional metallurgical test work on the Cathedral Vein mineralisation to further optimise recoveries. Further study to determine a suitable source(s) for mine raw water supply. Korongou Project, Burkina Faso The Korongou Project covers part of a highly prospective Lower Proterozoic Birimian Samira Hill greenstone belt in Burkina Faso and is traversed by a significant NEtrending fault splay which is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, including Kiaka (5.9 Moz gold), Bomboré (5.2 Moz gold) and Essakane (6.2 Moz gold). The mineralised fault system extends into western Niger where the 2Moz Samira Hill is located (Figure 3). Page 3

4 The initial Exploration Target for Korongou, detailed in Table 2, is estimated in a range of 7,954,000 to 9,722,000 tonnes grading from approximately 1.8 to 2.2 g/t gold and containing approximately 500,000 to 611,000 ounces of gold. Table 2. Korongou Exploration Target Estimation 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: 1) 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 Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources. 2) The Exploration Target was estimated using the following parameters: 0.5 g/t gold cutoff 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 intercept width of 2m; and SG of ) 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. No field work was carried out on the Korongou Project during this quarter due to the Company s concerns regarding security of our personnel and the recent political instability in Burkina Faso. The Company has agreed to enter into an unincorporated joint venture for the Korongou Project with MNG. Balogo Project, Burkina Faso During the quarter, Golden Rim received cleared cash funds of US$3 million (approximately A$4 million) from the MNG Group of companies (MNG) as final payment for the acquisition of the Balogo Project. The Company was approached by MNG to consider a renegotiation of the remaining consideration for the sale of the Balogo Project. The renegotiation resulted in an agreement to bring forward all sale proceeds. Golden Rim has now received full and final payment of those sale proceeds. Babonga Project, Burkina Faso No field work was completed on the Babonga Project during the quarter. The Company has agreed to sell the Babonga Project to MNG. Yako Project, Burkina Faso No field work was completed on the Yako Project during the quarter. The Company has agreed to sell the Yako Project to MNG. Page 4

5 Mali Project (Sepola) No work was completed on the projects in Mali during the quarter. Golden Rim continues to be in active discussions regarding the divestment of the Sepola Project. Corporate In the previous quarter, the Company provided a short term loan of A$150,000 to a third party to secure a period of exclusivity in which to review a potential investment. The loan is subject to interest at the rate of 10% per annum and was repayable 9 June The Company has agreed to extend the period of repayment by a further 12 months. ENDS Figure 1. Plan view of the Patricia Veins at Paguanta, Chile, and selected significant drilling intercepts Page 5

6 Figure 2. Current Mineral Resource Model block (greenyellow). The orange shape represents the extent of the Exploration Target (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 Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources). Page 6

7 Figure 3. Location of Golden Rim s Burkina Faso permits and projects. Table 1: Tenements (additional information in relation to the Company s tenements held at the end of the quarter (on a consolidated basis)) Golden Rim Golden Rim s Changes in the Tenement name Project name Holding potential equity Quarter (%) (%) Mali Kolumba North Gourbassi East Sepola Sepola Kenibandi East Sepola Burkina Faso Babonga Babonga Zanna Yako Korongou Korongou 0 90 Page 7

8 Appendix 1. Zinc Equivalent (ZnEq) Calculation Details Metal prices quoted on Kitco.com on 14 July 2016 were utilised in the ZnEq calculation and included the following: Zn = US$0.98/lb; Pb = US$0.85/lb; Ag = US$20.36/oz and Au = US$1344/oz). Nonoptimised metallurgical recoveries were derived from testwork as part of the feasibility study at Paguanta and include 82%, 80% and 90% for Zn, Pb and Ag respectively. For Au 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. The ZnEq calculation formula is as follows: ZnEq = (Zn% x 0.82) + (Pb% x 0.80 x 0.87) + (Au% x 0.90 x 19,996) + (Ag% x 0.90 x 302). Page 8

9 Competent Persons Statement The information in this report relating to previous results and Exploration Targets at Korongou is extracted from the announcements Guitorga Gold Anomaly at Korongou Extended dated 29 January 2015; Large New Gold Anomalies Outlined at Korongou dated 15 January 2015; Guitorga Gold Anomaly at Korongou Exceeds 3.5km dated 12 February 2015; Quarterly Activities & Cash Flow Report dated 28 April 2015; and Guitorga Delivers Significant Drilling Results dated 11 May 2015; Initial Exploration Target Defined for Korongou dated 16 July 2015 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 report that relates to previous Mineral Resource estimates, historical Metallurgical test work and historical drilling at Paguanta is extracted from the announcement Golden Rim to Acquire Advanced Base Metals Project in Chile dated 10 May Golden Rim continues to report exploration results as defined under the 2004 edition of the JORC Code where those results were initially reported prior to the 2012 edition of the JORC Code. Those exploration results have not been reported to comply with the 2012 edition of the JORC Code on the basis that the information has not materially changed since it was initially compiled. The information in this release that relates to the estimation of the Exploration Target at Paguanta has been compiled by Mr. Richard Buerger BSc (Hons). Mr. Buerger is a fulltime employee of Mining Plus Pty Ltd and has acted as an independent consultant during the estimation of the Exploration Target for the Paguanta Deposit. Mr. Buerger is a Member of the Australian Institute of Geoscientists and has sufficient experience with the style of mineralisation, deposit type under consideration and to the activities 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 (The JORC Code). Mr. Buerger consents to the inclusion in this report of the contained technical information relating to the estimation of the Exploration Target in the form and context in which it appears. Forward Looking Statements Certain statements in this document are or maybe forwardlooking 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 document is a promise or representation as to the future. Statements or assumptions in this document 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. Further Company Information E: info@goldenrim.com.au W:goldenrim.com.au Capital Structure: Issued Shares: 1,438,520,000 Unlisted Options: 143,358,400 Share Registry: Link Market Services Limited Central Park Level St Georges Terrace Perth WA 6000 Telephone: (+61) Fax: Page 9

10 Appendix 5B Mining exploration entity quarterly report Appendix 5B Rule 5.3 Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity GOLDEN RIM RESOURCES LTD ABN Quarter ended ( current quarter ) June 2016 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration Current quarter Year to date (12 months) $A 000 $A 000 (182) (298) (895) (969) 1.3 Dividends received 1.4 Interest and other items of a similar nature received Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net Operating Cash Flows (480) (1,862) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (308) (10) 3, (308) (57) 3, (c) other fixed assets 1.10 Loans to other entities (150) 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows 3,707 3, Total operating and investing cash flows (carried forward) 3,227 1,760 + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1

11 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) 3,227 1,760 Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (share issue costs) Net financing cash flows Net increase (decrease) in cash held 3,227 1, Cash at beginning of quarter/year to date 3,385 4, Exchange rate adjustments to item Cash at end of quarter 6,675 6,675 Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item 1.10 NIL 1.25 Explanation necessary for an understanding of the transactions Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest + See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010

12 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A 000 $A Loan facilities NIL NIL 3.2 Credit standby arrangements NIL NIL Estimated cash outflows for next quarter 4.1 Exploration and evaluation 4.2 Development $A Production 4.4 Administration 300 Total 800 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A 000 Previous quarter $A Cash on hand and at bank 6,655 3, Deposits at call Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 6,675 3,385 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3

13 Appendix 5B Mining exploration entity quarterly report 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 1,438,520,000 1,438,520, Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) + See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010

14 Appendix 5B Mining exploration entity quarterly report 7.7 Options (description and conversion factor) (unquoted) 7.8 Issued during quarter 2,150,000 (ESOP) 3,000,000 (Class K) 4,500,000 (Class L) 119,382,500 (Class M) 14,325,900 (Class N) Exercise price (cents) Expiry date 12 January November November October November Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 5

15 Appendix 5B Mining exploration entity quarterly report Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Date: 29 July 2016 (Company Secretary) Print name: Hayley Butcher Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 17/12/2010