Ramelius Resources : 11-09-2017 - Shannon Resource & Exploration Update

11 September 2017 For Immediate Release Shannon Resource & Exploration Update

Ramelius Resources Limited (ASX:RMS) is pleased to announce a major increase to the Shannon Mineral Resource as a result of recent drill programmes conducted in April and July 2017 (see ASX Releases, "June 2017 Quarterly Activities Report", 28/07/2017 & "Exploration & Resource Development Drilling Update", 4/09/2017). The Shannon deposit forms part of the Cosmos mining area at Mt Magnet in Western Australia and is located 600m south-west of the recently commenced Milky Way open pit (refer Figure 1).

11 September 2017

ISSUED CAPITAL

Ordinary Shares: 526M

DIRECTORS

NON-EXECUTIVE CHAIRMAN:

Robert Kennedy

NON-EXECUTIVE DIRECTORS:

Kevin Lines Michael Bohm

MANAGING DIRECTOR:

Mark Zeptner

www.rameliusresources.com.au [e-mail]

RAMELIUS RESOURCES LIMITED

Registered Office

Suite 4, 148 Greenhill Road Parkside, Adelaide

South Australia 5063

Tel [phone]

Fax [phone]

Operations Office

Level 1, 130 Royal Street East Perth WA 6004

Tel [phone]

The total Mineral Resource is now estimated at 581,000t @ 4.6g/t for 86,000oz, representing an increase over the February 2017 resource of 76% tonnes, 31% grade and 132% ounces.

Additionally, exploration drilling carried out in late August 2017, along strike to the immediate south of Shannon, has returned very encouraging results with intercepts of:

• 13m at 3.02g/t Au from 92m in GXRC1690, and
• 5m at 11.43g/t Au from 109m in GXRC1690, incl. 1m at 50.0g/t Au from 113m.

This drill hole has potentially extended the strike of the resource by 100m, with the deposit remaining open at depth as well as further along strike.

The mineralisation at Shannon is hosted by a moderately dipping, quartz vein/lode with good strike and dip continuity. Following re-evaluation of the Shannon open pit cutback, an underground mine evaluation and design will be undertaken.

For further information contact:

Mark Zeptner Duncan Gordon

Managing Director Executive Director

Ramelius Resources Limited Adelaide Equity Partners

Ph: [phone] Ph: [phone]

ABOUT RAMELIUS

Ramelius owns 100% of the Mt Magnet gold mine and associated processing plant located in the Murchison region of Western Australia. The Company is mining underground at the high-grade Vivien gold mine near Leinster as well as underground at Water Tank Hill and open pit mining at Mt Magnet, with several pit cut-backs and new pits underway that form part of the new Cosmos Mine Area (refer Figure 1).

Figure 1: Mt Magnet key mining and exploration target areas

Shannon Deposit (Mt Magnet)

Shannon was previously mined as a 60m deep open pit in 2001-2003. Recorded production is 151,000t @ 2.4g/t for 11,600oz. The Shannon mineralised lode is typically 2-8m thick and strikes north at around 015°. It dips east at an average of 40 to 50° (refer Figure 2).

The lode is broadly lenticular and narrows to the south. A quartz, +/- tourmaline vein, or veins, occur in the core zone, with the vein zone generally between 1-4m thick. Wallrock alteration comprises of silica-sericite and disseminated pyrite. Lower grade strike extents appear to be more of a shear with 10-20% quartz veining present.

The Shannon lode is hosted within a variably porphyritic dacite unit. At the north end, it appears to terminate at the (possibly faulted) contact with an ultramafic unit. Fresh rock occurs between 40-65m below surface.

Figure 2: Cross section 6895890N +/-10m - Shannon lode model and drilling

Mineral Resource

Table 1: Shannon Mineral Resource

Category	Tonnes	Grade	Ounces
Indicated	448,000	5.0	72,000
Inferred	133,000	3.3	14,000
Total	581,000	4.6	86,000

Note: Figures rounded to nearest 1,000 tonnes, 0.1g/t and 1,000 ounces. Rounding errors may occur.

Mineral Resource Commentary

The resource was generated using historic drilling within, and immediately below the previously mined Shannon open pit, combined with new drilling. Since October 2016, Ramelius has completed 38 RC holes for 7,191m, 2 HQ diamond holes for 366.4m and 1 RC-NQ diamond tail for 311.6m. These holes test the down dip continuation of the lode zone and have an approximate pattern of 20m x 30m (refer Figure 3).

Interpretation was carried out on 10m spaced sections utilising the geological interpretation described above and a nominal 1g/t lower cut-off. A minimum 3m downhole intercept was used and some sub-grade material was included

on to maintain lode width & shape continuity. A high-grade quartz vein sub-domain was generated for the northern half of the deposit. RC sub-samples and half core were assayed by Fire Assay at a Perth commercial laboratory. Appropriate QAQC samples accompanied primary sample batches.

Samples were grouped by domain, composited to 1m intervals, top-cut and gold was estimated using Ordinary Kriging and anisotropic searches. Resource classification was applied based on drillhole density and interpreted mineralisation continuity. All resources within the lode domain were reported. Resources have been generated for evaluation by open-pit mining near surface and underground mining below 100m. Resource dimensions are currently around 150m strike length and 280m down dip. A previous model was used for an open pit evaluation and design and this pit has received Mining Approval.

Detailed information is given in JORC Table 1 attached below.

Figure 3: Oblique view to NW - Resource model by Au grade and drilling