ASX Announcement

26 October 2016

High Grade Drilling Results As Open Pit Mining Gets Underway

Pantoro Limited (ASX:PNR) (Pantoro) is pleased to advise that open pit mining at Nicolsons is advancing well and in accordance with the mine schedule. Mining is underway at the Wagtail North and Rowdies pits with Wagtail South due to commence works early in November.

Mining activities have exposed high grade ore in the Wagtail North Pit, and the first ore will be delivered to the ROM pad in line with the mining schedule before the end of October. The current plan which includes mining of a Probable Ore Reserve of 96,500 tonnes @ 5.55 g/t Au (as detailed in the Pantoro 2016 Annual Report released to the ASX on 23/9/2016), will see mining undertaken over a nine month timeframe. Open pit ore is planned to be blended with underground feed sources at Nicolsons for a period of 17 months, maximising ore availability and blending capability for the foreseeable future.

Grade control drilling within the Wagtail North and South Pit designs has confirmed the presence of very high grade ore zones, with assays rivalling the outstanding results often encountered underground at Nicolsons mine. Results returned to date include:

Wagtail South

WSRC16039 - 5 m @ 28.4 g/t, including 3 m @ 45.6 g/t Au. WSRC16045 - 5 m @ 11.80 g/t, including 2 m @ 27.1 g/t Au. WSRC16046 - 5 m @ 23.8 g/t, including 3 m @ 38.7 g/t Au. WSRC16069 - 6 m @ 26.15 g/t, including 3 m @ 49.4 g/t Au. Wagtail North

WNRC16024 - 5 m @ 10.70g/t, including 2 m @ 25 g/t Au. WNRC16025 - 3 m @ 21 g/t Au, including 2 m @ 30.8 g/t Au. WNRC16026 - 6 m @ 25.60 g/t, including 4 m @ 37.90 g/t Au. WNRC16027 - 7 m @ 22.20 g/t, including 4 m @ 37.6 g/t Au. WNRC16032 - 4 m @ 15.90 g/t Au.

Commenting on the progress at Rowdies and Wagtail, Managing Director Paul Cmrlec said

"Since obtaining final mining approvals for the open pits in September, Pantoro has rapidly engaged its open pit mining plan which will see substantial production benefits from November this year. While we expected some high grade ore to be encountered in the grade control programs, these drill results have again exceeded our expectations. We look forward with anticipation to further testing the depth extensions to these orebodies as we aim to define another underground mine similar to Nicolsons, for commencement following completion of the open pits."

Enquiries

Paul Cmrlec | Managing Director I Ph: +61 8 6263 1110 I Email: [email protected]

Pantoro Limited

ABN 30 003 207 467

t: 08 6263 1110 | e: [email protected] | w: www.pantoro.com.au PO Box 1353 West Perth WA 6872 | 1187 Hay Street, West Perth WA 6005

Figure 1: Nicolsons Pit Location plan showing significant intersections from 2016 drilling program.

Photo: Mining at Wagtail North.

Section A

WNRC16008

WNRC16028

WNRC16009

WNRC16027

WNRC16026

Existing Pit

Pit Design

2m @ 16.43 g/t Au

2250mRL

> 5 g/t Au

> 0.5 g/t Au New drilling Previous drilling Mineralisation

7m @ 2.28 g/t Au inc 1m @ 8.16 g/t Au

1m @ 1.62 g/t Au

0 M 25 M

9900E

9850E

9800E

2200mRL

Figure 2: Section A drilling results beneath existing pit at Wagtail North

Section B

WSRC16046

WSRC16045

WSRC16044

WRC07011

Existing Pit

5m @ 23.8 g/t Au inc 3m @ 38.7 g/t Au

2275mRL

5m @ 11.8 g/t Au inc 2m @ 27.1 g/t Au

3m @ 7 g/t Au

2250mRL

2m @ 17.1 g/t Au

Pit Design

> 5 g/t Au

> 0.5 g/t Au

2225mRL

New drilling

Previous drilling Mineralisation

0 M 25 M

9850E

9825E

9800E

9775E

2200mRL

Figure 3: Section B drilling results beneath existing pit at Wagtail South