RAMELIUS RESOURCES LIMITED

2016 Annual Report

CONTENTS

Chairman's Report 1

Managing Director's Report 5

Review of Operations 6

Glossary of Terms 46

Native Title Statement 50

Sustainability Statement 52

Diversity Statement 53

Corporate Governance Statement 54

Annual Financial Report 55

• Directors' Report 56

• Auditor's Independence Declaration 76

• Income Statement 77

• Statement of Comprehensive Income 78

• Statement of Financial Position 79

• Statement of Changes in Equity 80

• Statement of Cash Flows 81

• Notes to the Financial Statements 82

• Directors' Declaration 124

• Independent Auditor's Report 125

Shareholder Information 128

Corporate Directory (Back Cover)

RAMELIUS RESOURCES LIMITED

ACN 001 717 540

ABN 51 001 717 540

ANNUAL GENERAL MEETING

The Annual General Meeting of

Ramelius Resources Limited will be held at Crowne Plaza Adelaide,

16 Hindmarsh Square, Adelaide South Australia 5000

on Wednesday 23 November 2016 at 11am Adelaide time.

STOCK EXCHANGE

The Company is listed

on the Australian Securities Exchange Limited.

ASX CODE

Shares: RMS

FRONT COVER IMAGES (Top to bottom) - 1: Vivien Underground Gold Mine

2: Kathleen Valley Project - Mossbecker Open Pit Gold Mine 3: Perseverance Open Pit Gold Mine at Mt Magnet.

BELOW - Extracting Gold Ore at Perseverance.

CHAIRMAN'S Report

Dear fellow shareholders,

It is with much pleasure that I present to you the 2016 Annual Report of Ramelius Resources Limited.

On behalf of the Board of Directors, I am pleased to report that Ramelius achieved improved financial and operational results in 2016 and an increased market share price. In August 2016, the Company announced an increased after tax profit of $27.5 million for the financial year, up $11.5 million from the amount reported in the prior year.The profit result was on increased sales revenue of $173.7 million compared to $130.4 million in 2015. During the financial year, Ramelius also increased cash flow from operating activities from $45.8 million to $65.5 million, total net assets from $99.3 million to $127.6 million and cash at bank from $32.4 million to $44.3 million. At 30 June 2016, the Company also had

$5.4 million of gold on hand which was realised in the new financial year adding to the cash balance.

It was also pleasing to see the Company's share price increase 278% during the financial year from 11.5 cents at 30 June 2015 to 43.5 cents at 30 June 2016.

Industry conditions during 2015/16 were less volatile for gold than in previous years with an increased sentiment towards gold in calendar year 2016. In Australian dollar terms, the gold price rose from A$1,521 per ounce at 30 June 2015 to A$1,773 per ounce at 30 June 2016 and has remained above A$1,700 per ounce for all of the first quarter of 2016/17.

Operationally, the Company progressed mining at Mt Magnet completing pit cut-backs at Saturn and Mars and also commencing open pit cut-back developments at Perseverance as well as Titan towards the end of the financial year.These projects all form part of the Galaxy project at Mt Magnet.

In conjunction with mining operations at Mt Magnet, Ramelius also pressed ahead with the development of the Kathleen Valley open pit and theVivien underground projects, both located near Leinster in Western Australia.The focus at Kathleen Valley was on the Mossbecker and Yellow Aster Deeps open pits which continued throughout the year. In the middle of the financial year, two additional small pits Yellow Aster North and Nil Desperandum were added to the Kathleen Valley mine plan where mining operations commenced in the first quarter of the 2016 calendar year.

Ramelius also continued developing its underground gold mine at Vivien which saw the decline advance 1,236 metres during the year. In February 2016 the Company accessed first development gold ore from the mine and by year end, produced 7,230 ounces of gold from the operation.The project is progressing within budget and is expected to significantly contribute to gold production in the 2016/17 financial year.

Gold ore from the Kathleen Valley and Vivien mines was trucked to Mt Magnet and processed at the Company's 100% owned Checkers processing plant which processed nearly 1.7 million tonnes of ore at a recovered average gold grade of 2.2g/t to produce 110,839 ounces of fine gold.This compared with approximately 1.63 million tonnes of ore at a recovered average grade of 1.55g/t for 81,683 ounces of fine gold in the previous year.

The Company's other gold processing plant near Coolgardie in Western Australia was on care and maintenance for the whole year and subsequent to the end of the financial year, a decision was taken to sell the asset for a total consideration of $2.5 million to be paid in several instalments over 24 months commencing in August 2016.

During the year, Ramelius had exploration success at Mt Magnet with a high grade gold discovery at Milky Way followed up by reporting significant infill drill intersections and a maiden resource estimate towards the end of the financial year. The project was also progressed with scoping studies for a potential open pit mining operation. The Company also conducted step out drilling in the Boogardie Basin at Stellar West, Brown Cow, O'Meara and Franks Tower. Exploration activities were also undertaken at the following projects.

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Ramelius Resources Limited 2016 Annual Report 1

Chairman Bob Kennedy with Vivien Project Manager, Danny Doherty

Your Board saw first-hand the high standard of mining activities at all our project sites during the year and noted the significant emphasis placed on safety at

those sites.

2 Ramelius Resources Limited 2016 Annual Report