Ramelius Resources : December 2017 Quarterly Activities Report

31 January 2017

ISSUED CAPITAL

Ordinary Shares: 525M

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]

For Immediate Release 31 January 2017 December 2016 Quarterly Activities Report HIGHLIGHTS - OPERATIONS, DEVELOPMENT & EXPLORATION

• Group gold production of 31,367 ounces at an AISC of A$1,464/oz (US$1,098/oz*) (Guidance A$1,100/oz or US$825/oz*). It should be noted that the AISC calculation uses gold sold rather than gold produced, with 25,528 ounces sold in the Quarter and 5,839 ounces on hand at Quarter's end.

• First Half FY2017 Group gold production of 67,546 ounces at an AISC of A$1,131/oz (US$848/oz*), on track to meet annual Guidance of 135,000 ounces

  Mt Magnet

• Blackmans open pit - open pit set-up work completed, production commenced

• Water Tank Hill underground - approvals received, decline rehab commenced

• Stellar open pits - upgraded Mineral Resource announced in December 2016

• Mt Magnet Exploration - Mineral Resource modelling underway at Morning Star following further positive RC drilling results (see Exploration section), including;

  • 15m @ 3.49 g/t Au from 111m in GXRC1520, incl. 5m @ 6.25 g/t Au
  • 4m @ 20.21 g/t Au from 113m in GXRC1525, incl. 1m @ 75.5 g/t Au Vivien

• Upgraded Mineral Resource to 854,000 tonnes @ 7.2 g/t for 198,000 ounces, an increase of 45,000 ounces (24%) over previous, after including production-to-date

  PRODUCTION GUIDANCE - MARCH 2017 QUARTER

• Group gold production for the March 2017 Quarter is expected to be 30-34,000 ounces at an AISC of ~A$1,100/oz (US$825/oz*)

• Capital development expenditure of approximately A$10.0M:

  • Water Tank Hill underground development (Mt Magnet) - A$6.0M

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

    HIGHLIGHTS - CORPORATE

• Quarterly gold sales A$41.0M at an average sale price of A$1,604/oz

• Cash & gold on hand increased to A$95.0M (Sep-16 Qtr: A$88.7M), after A$7.4M capital development expenditure comprising Blackmans open pit set-up (A$0.3M), Water Tank Hill decline rehab (A$3.7M) & exploration (A$3.4M)

• At 31 December 2016, forward gold sales consisted of 97,009 ounces of gold at an average price of A$1,673/oz over the period to June 2018

• Nil corporate debt

* exchange rate assumed 0.75 US$ : A$

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

Units	December 2016 Quarter
	Mt Magnet	Vivien	Kathleen Valley	Group Total

t	325,008	51,826	‐	376,834
t	366,341	71,432	15,790	453,563
g/t	1.10	7.03	3.85	2.13
%	91	97	97	94
oz	11,745	15,622	1,884	29,251

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^

oz	12,674	16,524	2,169	31,367
A$M	30.2
A$/oz	962

oz	25,528
A$M	37.4
A$/oz	1,464

A$M	41.0
A$/oz	1,604

Gold sales

Average realised gold price

* as per World Gold Council guidelines

^ net of by‐product credits

H1 FY17

Group Total

600,524

939,488

2.36

94

67,293

67,546

55.2

817

64,768

73.3

1,131

106.1

1,639

OPERATIONS

Mt Magnet Gold Mine (WA)

Mining continued in the Galaxy Mine Area throughout the Quarter with the transition from the Perseverance open pit to the Titan open pit almost completed (refer Figure 2). The bulk of total material movements were carried out in Titan (refer Figure 3), with low strip ratio, smaller volumes of material mined from the lowermost benches of Perseverance. The Perseverance open pit is expected to be completed early in the March 2017 Quarter.

Mining activity ramped up at the Blackmans open pit (refer Figure 4), located 30km north of Mt Magnet. Removal of much of the flat-lying laterite ore was carried during the Quarter, with ore haulage commencing in November 2016.

Figure 2: Mt Magnet key mining & exploration areas

Claimed high-grade ore mined at Mt Magnet was 325,008 tonnes @ 1.51 g/t for 15,798 ounces with mill reconciled production (including the addition of stockpiled and Titan low grade) of 366,341 tonnes @ 1.10 g/t for 11,745 ounces recovered.

Total mill production (refer Figure 5), including Kathleen Valley and Vivien ore, was 453,563 tonnes @ 2.13 g/t for 29,251 ounces recovered at 94.3% recovery. A scheduled 4-day SAG mill re-line was completed in December 2016, with the next such shutdown not scheduled for approximately six months, depending on the actual wear rate of the mill liners and lifters.

Figure 3: Titan open pit cutback, looking east Figure 4: Blackmans open pit, looking north

Gold production (refer Figure 6) met Guidance of 31-35,000 ounces, with 31,367 ounces of fine gold poured for the Quarter. Cash costs for the period increased to A$962/oz and AISC also increased to A$1,464/oz (Guidance A$1,100/oz). This was primarily a result of lower overall gold production, which in part was due to over-performance from Kathleen Valley in the September 2016 Quarter leading a reduction in production in the December 2016 Quarter as the project was completed early. In addition to this, AISC is calculated on gold sold as opposed to gold produced (i.e. 25,528 ounces sold versus 31,367 ounces produced). The difference between gold sold and gold produced does tend to even out over the course of the year, with timing of actually pouring and selling gold dependent on when the end of Quarter actually falls. This is evidenced by the fact that First Half FY2017 gold production is 67,546 ounces @ an AISC of A$1,131/oz, closer to the gold sold figure of 64,768 ounces.

Production for the March 2017 Quarter is expected to be between 30,000 and 34,000 ounces. The midpoint of forecast production (32,000oz) is expected to be delivered at an AISC of A$1,100/oz.