Gascoyne Resources : Raises $19 Million in Oversubscribed Placement

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Not for release to US wire services or distribution in the United States

August 20th 2018

Australian Securities Exchange Limited Via Electronic Lodgement

GASCOYNE RAISES $19 MILLION IN OVERSUBSCRIBED PLACEMENT

•  Oversubscribed placement raises $19 million

•  Share Purchase Plan planned, providing eligible shareholders with the opportunity to participate in the equity raising at the same price as the placement

•  Funds will provide additional financial flexibility as Dalgaranga ramps up

Gascoyne Resources Limited (ASX: GCY) ("Gascoyne" or "Company") advises that it has completed a placement to raise approximately $19 million (before costs) at an issue price of $0.30 per share ("Placement").

The Placement was oversubscribed with support shown from existing large institutional and professional investor shareholders and strong demand from new major domestic and international institutional investors, including successful resources investor, LIM Advisors ("LIM"), which cornerstoned the Placement, committing to subscribe for $10 million.

In addition to the Placement, the Company will, subject to receipt of the necessary waivers, offer eligible existing shareholders with a registered address in Australia, New Zealand, Singapore and the United Kingdom the opportunity to participate in a Share Purchase Plan ("SPP"), to raise up to a further $5 million at the same price as the Placement.

Proceeds from the equity raising will strengthen the Company's balance sheet and provide additional financial flexibility to the Company as the Dalgaranga Gold Project ("Dalgaranga") in the Murchison region of Western

Australia ramps up, with commercial production anticipated in late September / early October. Funds raised from the Placement will be applied towards the final payment required to be made to the vendor of Dalgaranga, remaining construction capital and critical spares, in addition to corporate costs and general working capital. Subject to ramp up at Dalgaranga progressing as anticipated, funds raised from the SPP will be applied to fund exploration at both Dalgaranga and the Glenburgh Gold Project ("Glenburgh") in the Gascoyne region of Western

Australia which is expected to include RC and diamond drilling of recent discoveries at Dalgaranga to allow conversion to Ore Reserves for inclusion in the Mine Plan as well as RC drilling on existing geochemical and structural targets at Glenburgh.

Hartleys Limited and Argonaut Securities Pty Ltd are Joint Lead Managers to the Placement.

Commenting on the Placement, Managing Director Mike Dunbar stated:

"We are grateful for the support received from both existing and new investors - as well as the strong support from LIM Advisors which cornerstoned the Placement. We are also pleased to give our shareholders an opportunity to participate on the same terms as the Placement through the upcoming SPP.

The completion of the Placement ensures that we have the financial flexibility we need as Dalgaranga ramps up towards commercial production. While initial mining rates have been slower than anticipated, our processing

P.O. Box 1449, West Perth, Western Australia 6872

Level, 41-47 Colin Street, West Perth, Western Australia 6005

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facility is running extremely well and mining rates are now within 10% of scheduled maximum rates. We are targeting commercial production and a 100,000 ounce per annum run rate late in the current quarter or early next quarter and look forward to keeping our shareholders up to date throughout our ramp up."

Share Purchase Plan

The Company will, subject to receipt of the necessary waivers, also undertake a Share Purchase Plan (SPP) to its existing eligible shareholders, providing them the opportunity to subscribe for up to a maximum of $15,000 worth of shares at the Placement issue price of $0.30 per share to raise up to $5 million.

The SPP is proposed to open at 9.00am on Tuesday 28 August 2018 and close at 5.00pm (AWST) on Wednesday 12 September 2018. Participation in the SPP will be open to all eligible holders of Gascoyne shares as at 15 August 2018 ("Record Date") with a registered address in Australia, New Zealand, Singapore and the United Kingdom.

Any shares not subscribed for under the SPP may be offered to qualified, institutional, sophisticated or professional investors at the discretion of the Board and subject to any necessary approval.

An indicative timetable for the SPP is set out below:*

SPP Key Dates
Record Date	Wednesday 15 August 2018
SPP opening date	Tuesday 28 August 2018
SPP offer document despatch	Tuesday 28 August 2018
SPP closing date	Wednesday 12 September 2018
SPP issue and allotment date	Wednesday 19 September 2018
Quotation of new shares	Thursday 20 September 2018

*The timetable for the SPP is indicative and remains subject to change at the Company's discretion, subject to compliance with applicable laws. Any changes will be advised to ASX.

Further details in respect of the SPP will be released to ASX shortly and distributed to eligible shareholders on or about 28 August 2018.

Additional Placement Details

The Placement will be completed in a single tranche of approximately 63.97 million shares, pursuant to the Company's ASX listing rule 7.1 capacity, and is scheduled to settle on Monday, 27 August 2018.

For further information please refer to the Company's website or contact the Company directly.

On behalf of the board of

Gascoyne Resources Limited

Michael Dunbar

Managing Director

Summary Information

The following disclaimer applies to this announcement and any information contained in it. The information in this announcement is of general background and does not purport to be complete. It should be read in conjunction with Gascoyne's other periodic and continuous disclosure announcements lodged with ASX Limited, which are available atwww.asx.com.au. You are advised to read this disclaimer carefully before reading or making any other use of this announcement or any information contained in this announcement. In accepting this announcement, you agree to be bound by the following terms and conditions including any modifications to them.

Forward Looking Statements

This announcement includes forward-looking statements. These statements relate to Gascoyne's expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like "will", "anticipated", "expected", "may", "towards", "applied", "ensures", "proposed", "scheduled", "subject to", "on track", "look forward" and similar words or expressions containing same.

The forward-looking statements reflect Gascoyne's views and assumptions with respect to future events as of the date of this announcement and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Gascoyne, or any of its affiliates or persons acting on its behalf. Gascoyne does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Neither Gascoyne nor any other person, gives any representation, warranty, assurance, nor will guarantee that the occurrence of the events expressed or implied in any forward-looking statement will actually occur. To the maximum extent permitted by law, Gascoyne and each of its advisors, affiliates, related bodies corporate, directors, officers, partners, employees and agents disclaim any responsibility for the accuracy or completeness of any forward-looking statements whether as a result of new information, future events or results or otherwise.

Not for Release or Distribution in the United States

This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be registered, under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act of 1933 and applicable US state securities laws.