Gold Road Resources : Quarterly Activities and Cashflow Report – March 2019

ASX Announcement

24 April 2019

Quarterly Report

Well‐funded mid‐tier gold development and exploration company, Gold Road Resources Limited (Gold Road or the Company), presents its activity report for the quarter ending 31 March 2019.

HIGHLIGHTS

Gruyere Gold Project

Guidance for 2019 gold production of 100,000 to 120,000 ounces (100% basis) at all‐in sustaining costs of between $1,050 and $1,150 per ounce.

First gold production remains on target for second half of June 2019 quarter. Gold Road is fully funded to first gold production and forecast operational requirements

Ore stockpiled continues to increase with approximately 800,000 tonnes mined ahead of plant commissioning.

Exploration

Drilling of the 2019 $20 million prioritised exploration programme commenced in February with follow‐up diamond and RC drilling at Gilmour and reconnaissance geochemical drilling at Stock Route

Infill and extensional drilling at Gilmour completed in late 2018 delivered high‐grade intercepts including 1.78 metres at 29.68 g/t Au from 290 metres including 0.96 metres at 54.59 g/t Au from 290.82 metres (18WDDD0026); 8 metres at 6.18 g/t Au from 143 metres including 2 metres at 22.27 g/t Au from 147 metres (18WDRC0210) and 3 metres at 13.99 g/t Au from 124 metres including 1 metre at 40.01 g/t Au from 124 metres (18WDRC0199)

Corporate

As at 31 March 2019, cash at bank was $49 million with $117 million of undrawn debt facilities.

ASX Code GOR

ABN 13 109 289 527

COMPANY DIRECTORS

Tim Netscher

Chairman

Duncan Gibbs

Managing Director & CEO

Justin Osborne

Executive Director, Exploration & Growth

Brian Levet

Non-Executive Director

Sharon Warburton

Non-Executive Director

Carol Marinkovich

Company Secretary

CONTACT DETAILS

Principal & Registered Office Level 2, 26 Colin St

West Perth WA 6005

www.goldroad.com.au

[e-mail]

T [phone]

F [phone]

Gruyere Gold Project (50%)

The development of the Gruyere Gold Project (Project) is nearing completion (at 97%) with works in progress across the site and progressive handover to commissioning. The Project schedule remains on budget with first gold on target for the second half of the June 2019 quarter.

Commissioning of the high voltage electrical sub‐stations, central control room, SAG mill sub‐systems and water systems is complete. Pumping of process water from the Yeo Borefield in the southern section to the main transfer station was successfully delivered ahead of process plant wet commissioning activities. Dry commissioning is in progress including the coarse ore reclaim and mill feed circuits, the grinding area SAG and Ball Mills, CIL, thickeners and reagents areas.

As planned, mining commenced during the quarter with approximately 800,000 tonnes of ore mined and stockpiled. The substantial ore stockpile largely de‐risks mining related aspects of the operation through the commissioning and ramp‐up phase. During the initial stages of plant commissioning and ramp‐up, lower grade stockpiled ore will be processed to reduce gold losses associated with lower recoveries anticipated as plant operations are stabilised. Gold Road confirms previously provided maiden guidance for 2019 forecast gold production at Gruyere of 100,000 to 120,000 ounces (100% basis) at all‐in sustaining costs of $1,050 to $1,150 per ounce. Gold Road's share of 2019 forecast production will be between 50,000 and 60,000 ounces1.

Gruyere's Final Forecast Capital Cost estimate, excluding JV support costs, remains unchanged at $621 million (100% basis), of which $284 million is attributable to Gold Road2.

Aerial view of Process Plant

1ASX announcement dated 15 February 2019

2Level of accuracy range +2%/‐2%. Refer ASX announcement dated 30 July 2018

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Exploration

During the quarter, Gold Road announced a 2019 exploration budget of $20 million (100% basis) across the Yamarna Greenstone Belt. Exploration will focus on advancing high priority targets through the Project Pipeline with 40,000 to 50,000 metres of diamond and reverse circulation (RC) drilling as well as generating new targets to supplement the Project Pipeline stream with up to 75,000 metres of aircore drilling.

Final results from infill and extensional drilling carried out late in 2018 at the Gilmour deposit, in the Southern Project area, were received. The results demonstrate the remarkable internal consistency and deliver extensions to known high‐grade mineralisation. The new intersections include:

8 metres at 6.18 g/t Au from 143 metres including 2 metres at 22.27 g/t Au from 147 metres (18WDRC0210)

3 metres at 13.99 g/t Au from 124 metres including 1 metre at 40.01 g/t Au from 124 metres (18WDRC0199)

3 metres at 13.84 g/t Au from 180 metres including 1 metre at 38.23 g/t Au from 180 metres (18WDRC0192).

Figure 1: South to north longitudinal projection of the Gilmour Deposit showing geologically selected intersections on the Main Shear

Drilling re‐commenced at Gilmour and Morello during the quarter. The priority focus of the programme is step‐ out drilling to test down dip and strike extensions to known mineralisation, as it remains open in all directions. The campaign includes framework drilling on the Morello Shear, to test stratigraphic equivalents to the mineral system identified at Gilmour. Assay results are expected in the June 2019 quarter.

Planned work for the June 2019 quarter will focus on RC and diamond drilling at Gilmour and Morello, Smokebush and Toppin Hill Camps (Southern Project Area) as well as Stock Route and Bloodwood (Northern Project Area). Planned aircore drilling will continue in the June 2019 quarter focussing on Milestone 1 and 2 targets.

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Corporate

Market Recognition

Gold Road's $150 million corporate and project syndicated finance facility that supports the Company's ongoing participation in the development of the Gruyere Gold Project and continued exploration at Yamarna won IJGlobal's 2018 Asia‐Pacific Metals and Mining Deal of the Year.

PCF Capital Group (as financial advisers) and King and Wood Mallesons (as legal advisers) assisted Gold Road in relation to the transaction. The financing syndicate comprised ING Bank Australia, National Australia Bank and Société Générale Hong Kong.

Financial Update

As at 31 March 2019, the Company had cash of $49 million and $117 million of undrawn debt facilities.

Gruyere expenditure incurred3 during the quarter was $47 million on development and $10 million in JV Support Costs (100% basis). The Company's share of payments for the development of Gruyere including JV Support Costs for the quarter was $16 million.

Gold Road's share of the Final Forecast Capital Cost estimate is $284 million 4 and JV Support Costs of $17.5 million5. Gold Road anticipates further capital payments of approximately $27 million6.

Debt Facilities

In the June 2019 quarter, Gold Road forecasts increasing total drawings on the Finance Facilities to approximately $65 million to fund Gruyere development and commissioning activities, operating costs during the initial ramp‐ up period and maintain a cash reserve of $30 to $50 million.

Current Hedging Position

Gold Road's existing gold forward sales contracts as at 31 March 2019 are summarised in the table below. No additional production was hedged during the quarter.

Calendar	Quarter		Quarterly Volume		Weighted Average Price
Year			Ounces		A$/oz
2019	30 September	3,700		1,758
	31 December	13,600		1,780
Sub‐Total		17,300
2020	31 March	14,400		1,791
	30 June	12,100		1,787
	30 September	9,900		1,789
	31 December		10,800	1,800
Sub‐Total			47,200
2021	31 March	10,800		1,810
	30 June	10,300		1,823
	30 September	9,800		1,836
	31 December	8,800		1,851
Sub‐Total		39,700
2022	31 March	5,800		1,894
Sub‐Total		5,800
Total		110,000		1,808

3For accounting purposes, expenditure is 'incurred' when goods or services have been provided.

4 Level of accuracy range +2%/‐2%. Refer ASX announcement dated 30 July 2018

5 These costs include Joint Venture management fees, amortisation of gas and power station capital costs before Project commissioning, and native title and community relations costs. Refer ASX announcement dated 7 November 2016.

6 Gold Fields will fund the costs associated with Cyanide Code compliance and up to $50.7 million of cost overruns, excluding scope changes and force majeure costs.

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Share Capital

As at 31 March 2019, the Company had 877,977,231 ordinary fully paid shares on issue and 7,487,334 performance rights granted with various vesting and expiration dates.

On 2 April 2019, BlackRock Group announced that it had acquired a 7.54% shareholding in Gold Road. This followed a sustained period of buying on‐market by the BlackRock during the quarter. Gold Road is pleased to welcome BlackRock, one of the world's largest asset managers, as one of the Company's top three shareholders.

For further information, please visit www.goldroad.com.au or contact:

Gold Road Resources	Media Enquiries
Duncan Hughes	Warrick Hazeldine or Peter Klinger
Manager -Investor Relations	[e-mail]/ [e-mail]
[e-mail]	Cannings Purple
Tel: [phone]
	Tel: [phone] or [phone]

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