Amani Gold : Gears up following Maiden Mineral Resource at Giro

11 October 2017

Amani Gears up following Maiden Mineral Resource at Giro

• Exploration drilling commenced at Douze Match to define high grade resources with potential to boost the grade at Kebigada
• Up to 30,000m of RC and diamond drilling planned at Kebigada; additional drilling programmes planned for newly defined target areas
• Access preparations ongoing at Kebigada and infill resource drilling commencing to facilitate assessment of early production scenario
• Metallurgical, geotechnical and hydrological core drilling planned for incorporation into feasibility studies
• BGRIMM Beijing engaged to commence scoping studies

Amani Gold Limited (ASX: ANL, Amani) reports that it has commenced a 3,600m RC drilling programme at Douze Match. The Company has also planned up to 30,000m of combined RC and diamond drilling at Kebigada over the main high grade block of mineralisation identified in the recently released Maiden Mineral Resource estimate, which will commence as soon as access preparations have been completed. Drilling will cover an area of 650m x 250m where it is anticipated that current Indicated and Inferred Mineral Resources will be converted to the measured category in preparation for feasibility studies and assessment of early mining scenarios. Additional drilling programmes will be conducted at Adoku and the immediate surrounds at Kebigada where high-grade soil anomalies will be followed up with drilling to delineate potential satellite resources which could add materially to the Kebigada Mineral Resource. All target areas defined within the NW trending mineralised corridor to date are shown in Figure 1.

Beijing General Research Institute of Mining and Metallurgy ("BGRIMM") a highly credentialed mining consultancy firm has been engaged to perform an initial scoping study at Kebigada. A tender process is also ongoing to identify a preferred engineering consultancy to manage a feasibility study.

Chairman YU Qiu-Ming stated: "As new investors to Amani, Luck Winner and its representatives are not only pleased with the results and planning so far but, as a supportive shareholder, it is keen to advance and enhance the Giro Project towards early development. We are confident that the measured resource drilling programme will continue to produce successful results, as we have consistently seen in the previous infill drilling programme.

Shareholders can expect continuing news in early 2018 with the completion of the infill drilling programme, upgraded mineral resources and the completion of the scoping study by BGRIMM leading towards feasibility studies.

We also eagerly await first results from Douze Match where exceptional grades were reported previously. Current drilling at Douze Match has the potential to define a high grade resource which could easily be trucked to any future mining operations at Giro and would have a positive impact on the grade at Kebigada."

Figure 1: Tenement map showing soil anomalies and exploration targets within the mineralised corridor

Kebigada

On 23 August 2017, Amani announced a revised Maiden Mineral Resource estimate of 45.62 million tonnes at 1.46g/t Au for 2.14 million ounces at a 0.90g/t Au cut-off grade. More importantly, the grade increased when converted to the indicated category where there was closer drill hole spacing with

16.48 million tonnes at 1.53g/t Au for 0.81 million ounces defined at a 0.9g/t Au cut-off grade.

The defined Mineral Resource covers an area of approximately 1.3km x 350m and tapers off towards the north and south. An infill RC and diamond drilling programme has been planned over the southwestern 650m x 250m high grade zone of mineralisation identified in the Mineral Resource estimate at Kebigada as shown in Figure 2. The anticipated measured drilling programme over the selected area is comprised of up to 167 RC holes for 25,000m where holes will be drilled on a 25m x 25m grid down to a vertical depth of 100 metres. Fourteen diamond tails have also been planned from the RC holes on a 50m x 50m grid where indicated mineral resources can potentially be defined between 100 and 200 vertical metres over the same area.

Three diamond PQ/HQ holes for 300m will also be drilled for metallurgical testwork while geotech logging will be carried out on all diamond tails in preparation for feasibility studies. Additional holes will be drilled for hydrological studies and monitoring of water levels.

Figure 2: Infill resource drilling area (25 x 25m grid)

The Kebigada drilling programme will commence once Amani has complete access to the area of drilling. This is expected to be completed within a period of up to two months. The programme is expected to be completed in the 1st half of 2018. All results will be incorporated into a new Mineral Resource estimate to assist with assessment of early mining potential.

Douze Match

Two main zones of mineralisation have been identified at Douze Match, the NE trending Tango Shear where spectacular grades were reported previously (2m at 196g/t Au from 12m and 15m at 255.6g/t Au from 15m including 3m at 1,260g/t Au from 15m) and the northern contact zone which is potentially a second parallel NE trending shear dipping to the northwest. Best intersections from the northern shear included 13m at 8.4g/t Au from 36m, including 6m at 17.6g/t Au from 42m. Mapping and drilling has shown the Tango shear to be flat dipping (

Figure 3: Proposed RC drilling at Douze Match (Phase 1 holes shown in blue; Phase 2 holes shown in red)

Two phases of drilling have been planned at Douze Match as shown in Figure 3; Phase 1 consists of 77 RC drill holes for 3,645m and will test the Tango Shear over a strike length of 1km as well as define the orientation and continuity of the northern shear zone. Phase 2 comprising 50 RC holes for 2,700m has been planned to ensure full coverage of the 1km soil anomaly associated with the Tango Shear. A final grid spacing of 50m x 25m is expected to deliver a maiden resource estimate at Douze Match in Q1 2018.

All samples will be processed at SGS Laboratories in Mwanza with first results expected in late-October.

Potential mineral resources identified at Douze Match will be processed in conjunction with defined resources from Kebigada, with the high grade tenor of mineralisation at Douze Match expected to influence overall grade positively.

Giro Soil Anomalies

Soil sampling and mapping has identified a number of continuous gold in soil anomalies peripheral to the main deposit at Kebigada. Many of these anomalies are associated with artisanal mining or with chargeable IP anomalies as shown in Figure 4.

A programme of 40 shallow scout RC drill holes for 2,170m has been planned to cover selected anomalies. Drilling will target additional resources which could potentially be mined as satellite pits to the main Kebigada deposit.