Ramelius Resources : 28-07-2017 - June 2017 Quarterly Activities Report

For Immediate Release 28 July 2017

28 July 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]

June 2017 Quarterly Activities Report HIGHLIGHTS - OPERATIONS, RESOURCE DEVELOPMENT & EXPLORATION

• Group gold production of 29,859 ounces at an AISC of A$1,168/oz (US$876/oz*) (Guidance A$1,200/oz or US$900/oz*)

• Annual gold production of 125,488 ounces at an AISC of A$1,169/oz (US$877/oz*) (Guidance A$1,050/oz or US$787/oz)

• Milky Way, Stellar/Stellar West, Brown Hill, Vegas & Shannon open pits (Mt Magnet) - Multi-pit mining proposal approved, fleet mobilised 26 June 2017

• Water Tank Hill - up-front capital complete, ore intersected, ready for production

• Shannon - excellent drilling results, outlining underground potential including;

  • 5.7m at 10.6 g/t Au from 149.3m in GXDD0055
  • 6.2m at 39.5 g/t Au from 168.8m in GXDD0056 LIFE OF MINE PLAN

• Updated Life-of-Mine Plan released, including Morning Star open pit resource, covering a 4-year life with underground extensions being drilled

  PRODUCTION GUIDANCE - SEPTEMBER 2017 QUARTER & FY2018 FULL YEAR

• Group gold production for the September 2017 Quarter is expected to be between

  28-32,000 ounces at an AISC of ~A$1,100/oz (US$825/oz*)

• Capital development expenditure of approximately A$23.8M:

  • Milky Way open pit (Mt Magnet) - A$13.5M

  • Stellar/Stellar West/Brown Hill Nth open pits (Mt Magnet) - A$6.3M

  • Exploration (Mt Magnet & Vivien) - A$4.0M

• Annual group gold production for FY2018 full year is expected to be approximately

  125-135,000 ounces at an AISC of A$1,120-A$1,220/oz

• Capital development, including exploration, for FY2018 is expected to be A$39.0M

  *exchange rate assumed 0.75 US$: A$

  HIGHLIGHTS - CORPORATE

• Quarterly gold sales A$45.6M at an average sale price of A$1,630/oz

• Cash & gold on hand of A$89.9M (Mar '17 Qtr: A$90.2M), after A$10.3M capital development expenditure comprising Water Tank Hill decline development (A$4.1M) & exploration at both Mt Magnet and Vivien (A$6.2M)

• At 30 June 2017, forward gold sales consisted of 102,000 ounces of gold at an average price of A$1,711/oz over the period to June 2019, with 15,000 ounces at A$1,722/oz recently added into the period from July 2018 to June 2019

• Nil corporate debt

ABOUT RAMELIUS

Figure 1: Ramelius' Operations & Development Project Locations

Ramelius owns the Mt Magnet gold mining and processing operation and is operating the high-grade Vivien underground gold mine near Leinster, in Western Australia.

PRODUCTION SUMMARY

Table 1: Gold Production and Financial Information

Ore mined (high grade)

Ore processed

Head grade

Gold recovery

Gold recovered

Fine gold poured

Cash operating costs^

Cash operating cost (C1) ^

Gold sales

All‐In Sustaining Costs (AISC) *^

AISC^

Gold sales

Average realised gold price

Units	June 2017 Quarter
	Mt Magnet	Vivien	Group Total
t	486,599	52,608	539,207
t	430,136	60,448	490,584
g/t	1.46	6.26	2.06
%	91	94	92
oz	18,394	11,433	29,889
oz	18,504	11,355	29,859
A$M	32.9
A$/oz	1,102
oz	27,964
A$M	32.67
A$/oz	1,168
A$M	45.6
A$/oz	1,630

FY2017
Group Total
1,601,956
1,913,954
2.17
93
124,747
125,488
119.4
951
121,031
141.5
1,169
197.0
1,628

* as per World Gold Council guidelines

^ net of by‐product credits

OPERATIONS

Mt Magnet Gold Mine (WA)

Open Pit

The Quarter saw strong production continuing from the Titan pit and the completion of the Blackmans satellite pit. A small extension of the Blackmans pit was approved and commenced in early May. This extension involved mining of a shallow laterite ore zone (10-15m wide) which continued for around 100m north of the initial pit. An extra 68,005 tonnes @ 1.63g/t was mined from this zone. Once all ore is hauled and processed from Blackmans, expected early in the September 2017 Quarter, a reconciliation will be carried out.

In conjunction with the updated Life of Mine (LoM) plan, a tender process was conducted for the open pit mining contract. Mining contractor MACA Mining Ltd was the successful tenderer. Operations at the Milky Way and Stellar West open pits commenced operations in July 2017. Incumbent mining contractor WATPAC Mining & Civil will continue operations in the next Quarter at the Titan and Brown Hill North pits and see these open pits through to completion (refer Figure 2).

Claimed high-grade ore mined at Mt Magnet was 486,599 tonnes @ 1.86g/t for 29,147 ounces with mill reconciled production (including the addition of stockpiled and Titan low grade) of 430,136 tonnes @ 1.46 g/t for 18,394 ounces recovered.

Figure 2: Mt Magnet key mining & exploration areas Underground

Ore development commenced at Water Tank Hill (WTH) in early June 2017. High grade BIF hosted mineralisation was mined in the 235 and 290 ore levels as planned (refer Figure 3).

Figure 3: Water Tank Hill development progress (grey) - oblique view to east

High grade mineralisation is hosted by a Banded Iron sedimentary unit at the contact with the adjacent felsic unit (refer Figure 4). Mineralisation is marked by massive pyrrhotite alteration, brecciation and veining.

Figure 4: Water Tank Hill 235 ore face, with contact visible on RHS