Golden Rim Resources : Amended - Paguanta Zinc-Silver-Lead Project Update

ASX/Media Announcement

20 January 2017

Amended: Paguanta Zinc-Silver-Lead Project Update

Golden Rim Resources Ltd (ASX: GMR, Golden Rim, Company) refers to its announcement of 22 December 2016 and provides this amended announcement. In particular, this amended announcement includes Appendix 1 with respect to holes PTDD073 and PTDD096.

• Detailed geological mapping has defined significant strike extensions to the mineralisation in the current Mineral Resource1, including a major extension to the Cathedral Vein for a further 330m to the ESE.

• Earthworks in preparation for the planned drilling have been completed (repairs to ~20km of access roads and construction of 12 new EIA approved drilling platforms).

• Final permit (PAS93) required for the camp operation expected between Christmas and New Year.

• Final site inspection by authorities as a routine requirement for the permitting conducted on 21 December 2016.

• Diamond drilling contractor selected and drilling start-up scheduled for 5 January 2017.

• Planned drilling expanded with the recent success of the Share Purchase Plan and will now include 7 HQ diamond drill holes (2,900m) and 16 RC drill holes (3,500m).

• Validation exercise on the existing drilling database and laboratory assay certificates has located assays that were not included in the database by the previous owner. These include a highly significant intercept of 13m at 7.4% zinc, 2.6% lead and 133 g/t silver from 154m in hole PTDD096 on the Cathedral Vein that was not included in the current Mineral Resource.

• Golden Rim's new office in Iquique opened and fully operational.

  Golden Rim Resources Ltd (ASX: GMR, Golden Rim, Company) today provided an update on the progress of work at the Company's 70% owned Paguanta zinc-silver-lead project in Chile.

  Detailed geological mapping of the Patricia Prospect, which hosts the zinc-silver-lead mineralisation at Paguanta, commenced in early October 2016 and is almost complete (Figure 1). The mapping has demonstrated the strong continuity of the mineralised veins at Patricia and has successfully defined significant surface extensions to the mineralisation included in the current Mineral Resource in the following areas:

  • a further 330m of strike to the Cathedral Vein to the ESE, whereupon the mineralisation extends further under younger volcanic cover rocks;

1 Details of the Mineral Resource were previously announced by Golden Rim on 10 May 2016 "Golden Rim to Acquire Advanced Silver-Lead-Zinc-Copper Project in Chile"

Golden Rim Resources Ltd I ABN 39 006 710 774 I Office 7, Level 2, 609 Canterbury Road, Surrey Hills, VIC 3127, Australia

www.goldenrim.com.au I [e-mail] I T + 61 3 9836 4146

• the New Vein, intercepted in previous hole PTDD073 (11m at 5.2% zinc, 2.3% lead and 125 g/t silver from 250m) has been located on surface and mapped for a strike of ~250m to date and remains open to the west;

• the Carlos Vein has been mapped for a strike of ~700m (a further 200m to the west than the interpretation used in the current Mineral Resource);

• outcrops of stock work vein mineralisation have been located south of the New Vein, suggesting the potential for further parallel veins to the south of the current Mineral Resource that remain untested by drilling; and

• a new NNE trending vein set (New East Veins) was located ~300m east of the current Mineral Resource area.

A channel rock chip sampling program on the newly mapped vein extensions is currently being conducted. Assay results are expected in late January 2017.

The site preparation for Golden Rim's planned drilling program at Paguanta is complete. Earthworks for the drilling are finished and included repairs to ~20km of access roads and the construction of 12 new Environmental Impact Assessment (EIA) approved drilling platforms.

The field camp is now 100% operational and awaiting issuance of the final permit. The EIA required three new permits, all relating to the camp, before drilling can commence. The PAS91 permit relating to the sewage plant and the PAS93 permit relating to waste disposal have been approved. The PAS96 permit is still being processed and relates to the re-classification of the land for camp use (by default all land in Chile is classified for agriculture use). The PAS96 permit is issued by the Minister of Agriculture and the application can only be submitted once the PAS91 permit is approved first.

Prior to the Minister issuing the PAS96, the site must be evaluated by the Ministry of Housing (Ministerio de Vivienda y Urbanismo) (MINVU) and the Agency of Agriculture and Livestock (Servicio Agricola y Ganadero) (SAG). SAG conducted a site visit to Paguanta on 13 December 2016 and MINVU conducted its site visit on 21 December 2016. As soon as the Minister of Agriculture receives the evaluation reports from SAG and MINVU, a decision can be made on issuing the PAS96. Golden Rim expects to be issued the PAS96 permit between Christmas and New Year.

With the recent success of Golden Rim's Share Purchase Plan, the planned drilling at Patricia has now been expanded to include 7 HQ diamond drill holes for 2,900m and 16 reverse circulation (RC) holes drill holes for 3,500m (Figure 1).

The diamond drilling will commence first and is expected to take 2.5 months to complete. The drilling start-up is currently scheduled for 5 January 2017. The diamond drill holes are designed to infill and to test for depth extensions of the current Mineral Resource area at Patricia. The diamond drilling includes three deep holes planned on 100m spaced sections in the centre of the current Mineral Resource area and theses proposed holes are depicted on Figures 2, 3 & 4.

The RC drilling will commence in March 2017 and is expected to take 1.5 months to complete. The RC program is designed to test for strike extensions of the mineralisation to the ESE and to test for new veins to the south.

The Company will update the market with drilling results as they come to hand and anticipates the regular release of results.

A validation exercise being conducted by Golden Rim on the existing drilling database and laboratory assay certificates has located assays that were not included in the database by the previous owner. Some of these missing assays related to highly mineralised samples where the original assay results reached the upper detection limit of the initial assay technique and as such the samples were sent back

to the laboratory for re-assay. These include a highly significant intercept of 13m at 7.4% zinc, 2.6% lead and 133 g/t silver from 154m in hole PTDD096 on the Cathedral Vein that was not included in the current Mineral Resource (Figure 4).

Golden Rim has recently opened a small exploration office in the port city of Iquique, which lies ~175km by road from Paguanta. The port of Iquique is permitted to ship concentrates.

Golden Rim's Managing Director, Craig Mackay, said "The current geological mapping at Patricia is producing excellent results. I have just walked the entire strike extent of the Cathedral, Carlos and New Veins with our Chilean exploration team and I was impressed with the width of the zinc-silver-lead mineralisation and the strong continuity of the mineralisation at surface."

"We are particularly excited about the discovery of new veins to the south and to the east of the current Mineral Resource area and by the discovery of significant strike extensions to the existing veins, such as the Cathedral Vein. The discovery of this additional mineralisation on surface bodes well for our aim to significantly increase the current Mineral Resource at Patricia."

"Our preparation for drilling is complete and we are should now secure our last required permit between Christmas and the New Year, which will allow the drilling program to commence on 5 January 2017," said Mr Mackay.

-ENDS-

For further information, please contact:

Hayley Butcher

Golden Rim Resources Ltd Company Secretary

[phone]

Figure 1. Plan showing the mapped zinc-silver-lead veins at Patricia and the location of Golden Rim's proposed diamond and RC drill holes.