ASX RELEASE‌

29 July 2016

ASX CODE: KAS

OUR PRIME COMMODITY IS TIN

LME TIN PRICE (27/07/16)

US$17,790 / t

(CASH BUYER)

ABOUT KASBAH

KASBAH IS AN AUSTRALIAN LISTED MINERAL EXPLORATION AND DEVELOPMENT COMPANY.

THE COMPANY (75%) AND IT'S JOINT VENTURE PARTNERS TOYOTA TSUSHO CORP (20%) AND NITTETSU MINING CO. (5%) ARE ADVANCING THE ACHMMACH TIN PROJECT IN THE KINGDOM OF MOROCCO TOWARDS PRODUCTION.

PROJECTS

ACHMMACH TIN PROJECT BOU EL JAJ TIN PROJECT

CAPITAL STRUCTURE

MAJOR SHAREHOLDERS

CONTACT US

: +61 8 9463 6651

: [email protected]

: www.kasbahresources.com

@kasbahresources

JUNE 2016 QUARTERLY REPORT

Kasbah Resources Limited (ASX: KAS) is pleased to report its activities for the June 2016 Quarter. The highlights include:

• The Small Start Option (SSO) definitive feasibility study is finished and should be released later today (see separate announcement).

• LME tin price rises from $13,085 / t in January 2016 to trade above $18,000 / t on Chinese restocking and further reductions in Indonesian tin exports.

• Cash position at 30 June is $1.2M.

• Company remains in a Voluntary Suspension pending an announcement in regards to a potential material corporate transaction, on or before Monday 8 August 2016.

ASX RELEASE

JUNE QUARTERLY REPORT

Kasbah Resources Limited (Kasbah or the Company) is pleased to provide this update to the market.

PROJECT DEVELOPMENT UPDATE

• Achmmach Tin Project (75% Kasbah, 20% Toyota Tsusho Corp, 5% Nittetsu Mining Co. Ltd)

  The definitive feasibility study (DFS) for the Small Start Option (SSO) at the Achmmach Tin Project was advanced during the quarter. Key items advanced during the quarter and finalised in late July included:

  • Process design and capital cost estimate;

  • Road works capital estimate;

  • Site civils and earthworks capital estimate; and

  • Structural steel supply and erection estimates.

    The DFS, incorporating a new Ore Reserve has been completed and will be released today (refer separate announcement).

    TIN MARKET OVERVIEW

    The persistent fall in LME tin price since 2014 appears to have found a bottom in January 2016. From this point onwards the LME tin price has rebounded strongly, peaking at $18,195 / t on 15 July 2016.

    Figure 1: LME Tin Price vs. LME Tin stocks - Jan 2014 to July 2016

    Analysts' attribute this rebound in price to:

    • renewed restocking of tin by Chinese end users;

    • further reports of lower Indonesian tin exports;

    • macro-economic news; and

    • re-adjustment of investor portfolios.

    2

    EXPLORATION

    Minimal exploration activities were undertaken during the quarter.

    CORPORATE

    On 19 May 2016 the Company advised that the final USD 1 million instalment payment due under the Assignment Agreement dated 7 July 2011 for the Achmmach Tin Project permits has been made to the Office National Des Hydrocarbures et Des Mines (ONHYM). The final payment secures all of the mining permits associated with the Achmmach Tin Project.

    On 21 July 2016 the Company made a request to the ASX for Voluntarily Suspension pending an announcement in relation to a potential material corporate transaction pertaining to the development of the Achmmach Tin Project. Negotiations are ongoing and the Company will be requesting to stay in voluntary suspension until it makes an announcement to the market, which is expected to occur on or before Monday 8 August 2016.

• Cash Reserves

  Cash reserves at 30 June 2016 were $1.2M.

  LOOKING FORWARD

  Kasbah will release the 2016 Achmmach SSO DFS today.

  For and on behalf of the Board

  Wayne Bramwell Managing Director

  For further information please go to: www.kasbahresources.com

  Or email: [email protected]

  Follow us on twitter @kasbahresources

  ABOUT KASBAH RESOURCES

  Kasbah Resources Limited (Kasbah) is an Australian listed mineral exploration and development Company.

  Our commodity is tin.

  Kasbah has two tin projects (the Achmmach Tin Project and the Bou El Jaj Tin Project) located in the Kingdom of Morocco:

• Achmmach Tin Project JV in Morocco (75% Kasbah, 20% Toyota Tsusho and 5% Nittetsu Mining)

  Kasbah is the manager and operator of the Achmmach Tin Project JV. Toyota Tsusho Corporation (TTC) and Nittetsu Mining Co. Ltd (NMC) of Japan are Kasbah's strategic development partners in this JV. In response to a 25% fall in LME tin during 2015, the JV redesigned the project to reduce the scale, operating complexity and capital requirements. A positive pre-feasibility study (PFS) for the development of a 2 staged, lower throughput, lower capital cost 500,000 tpa underground mine, concentrator and associated infrastructure at Achmmach was completed in February 2016 with the JV partners endorsing the commencement of a definitive feasibility study (DFS).

• Bou El Jaj Tin Project in Morocco (100% Kasbah)

Kasbah retains a 100% interest in the prospective Bou El Jaj Tin Project. This project is 10km from the Achmmach Tin Project and is an early stage exploration opportunity that could become a satellite ore source for Achmmach. It is currently pre-resource and additional drilling is required on multiple targets within the Bou El Jaj permits.

FORWARD LOOKING STATEMENTS

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

MINING TENEMENT CHANGES DURING THE QUARTER

FARM-IN / FARM OUT AGREEMENT CHANGES