Blackham Resources Ltd. provided the following operations and production update from its 6.5Moz Matilda-Wiluna Gold Operation for the quarter ended 31 December 2017 together with commentary on the strong operational outlook for 2018. Open Pit Mining: The extensive waste stripping that occurred during calendar year 2017 has now provided access to high grade zones in both the M4 and Galaxy pits, from November and December respectively, with consistent high grade ore expected to be mined from those two pits over the next six months. At M4, there is now 1km of strike being mined at widths of up to 40m. Mining at M4 and Galaxy is expected to underpin strong operational cashflows in 2018. During December 2017, 137kt of high grade ore @ 1.6g/t was mined from the M4 and Galaxy pits, with the 8,038oz of gold mined from the open pits in December being just below the amount for the entire September quarter. Commencement of mining of these high grade zones has enabled Blackham to build high grade stockpiles which amounted to 51kt @ 1.6g/t as at 31 December 2017. High grade stockpiles are expected to continue to grow, together with an expected increase in processed grades, as the M4 and Galaxy pits are mined. This is the first significant high grade stockpile build-up since March 2017. Total material mined reduced significantly during the quarter to 1.80 million BCM (2.54 million BCM in September 2017 quarter) due to reduced waste stripping, which enabled a meaningful reduction in open pit mining costs. With almost all of M4 and Galaxy waste stripping now completed, lower open pit mining costs are expected to continue for the second half of fiscal year 2018 and beyond. Grade Control: Grade control drilling has now been completed for all of the M4 pit on 10m x 5m spacing, meaning that both the Galaxy and M4 pits have been grade control drilled to the base of the design pits and hence are significantly de-risked. Grade control drilling ore models have been reconciled within 2% of milled grade. Recent M4 grade control drilling results confirm historical drilling and highlight the continuous high grade nature of the M4 Main lode. Most of the mining at M4 during the December quarter has concentrated on stripping the eastern side of the pit in order to reach the high grade M4 Main lode. As a result, most of the ore from M4 to date has been sourced from the low grade and discontinuous Eastern lodes which form only a minor component of the M4 resource. Further grade control drilling is in the process of being planned and will be undertaken over the next six months in relation to mining activities planned for July 2018 to December 2018 and beyond. Underground Mining Golden Age underground mining was above budget in terms of tonnage and grade for the quarter and has now been cash flow positive for the past two quarters. Blackham has now switched to an owner operator air leg mining method to mine the Golden Age orebody, which has resulted in a lower amount of ore being mined. Air leg mining is considered a lower risk mining method for Golden Age due to the pinching, swelling and nuggetty nature of the orebody. Golden Age reserves of 60kt @ 6.4g/t for 12,000oz (as at 30 June 2017), are planned to be mined by June 2018. Significant high grade resources remain at Golden Age and the Company is currently evaluating the deposit from a geology and mining perspective to assess opportunities for extending the reserves into fiscal year 2019. Gold Production and Plant Performance: Record milled tonnes were achieved through the plant during the quarter with throughput increasing 17% from the September 2017 quarter and both the crushing and milling circuits achieving record throughput. Mill feed head grade during the quarter was hampered by 49% of feed being sourced from low grade stockpiles. Access to high grade zones in the M4 and Galaxy pits was achieved late in the quarter, which resulted in record weekly gold production of 1,685oz being achieved in the last week of December, (average mill feed grade of 1.5g/t Au) together with the building of high grade stockpiles. Gold production is expected to increase during the second half of fiscal year 2018 and beyond due to high grade ore from the M4 and Galaxy open pits being available to feed the process plant on a continuous basis, followed by M1 and M2 coming into production. The leach circuit is working very well and total plant recoveries have been strong at 92.3% during the quarter (91.5% in September 2017 quarter). Exploration and Infill Drilling Reserve Definition Drilling will continue this quarter as the Company seeks to increase its gold reserves (currently 15Mt @ 2.5g/t for 1.2Moz) by converting more of its ~6.5Moz of gold resources (65Mt @ 3.1g/t) to reserves. Funds raised from the planned Entitlements Issue will facilitate Blackham undertaking significant ongoing exploration drilling including the acceleration of this reserve conversion.