Quarterly Activities Report‌

For the period ended 31 March 2016

Golden Rim Resources Ltd I ABN 39 006 710 774 I Office 7, Level 2, 609 Canterbury Road, Surrey Hills VIC 3127, Australia I PO Box 378, West Perth WA 6872, Australia

www.goldenrim.com.au I [email protected] I T + 61 3 9836 3146

Korongou Project, Burkina Faso

The Korongou Project covers part of a highly prospective Lower Proterozoic Birimian Samira Hill greenstone belt in Burkina Faso and is traversed by a significant NE-trending fault splay which is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, including Kiaka (5.9 Moz gold), Bomboré (5.2 Moz gold) and Essakane (6.2 Moz gold). The mineralised fault system extends into western Niger where the 2Moz Samira Hill is located (Figure 1).

The initial Exploration Target for Korongou, detailed in Table 1, is estimated in a range of 7,954,000 to 9,722,000 tonnes grading from approximately 1.8 to 2.2 g/t gold and containing approximately 500,000 to 611,000 ounces of gold.

Table 1. Korongou Exploration Target Estimation

Notes:

1. The Exploration Target was estimated using the following parameters: 0.5 g/t gold cut-off grade; maximum of 100m strike extent from drill holes (where the continuity of the mineralisation is supported by mapping, the location of artisanal workings or anomalous auger results); maximum of 70m vertical extent below surface for the Guitorga North, Guitorga South and Diabouga areas; maximum of 120m vertical extent below surface for the MCA/MCB Pits area; minimum downhole intercept width of 2m; and SG of 2.5.

2. A total of 94 RC drill holes were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 40m - 100m apart, with a spacing along the lines ranging from 40m - 50m.

   Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources.

   No field work was carried out on the Korongou Project during this quarter due to the Company's concerns regarding security of our personnel and the recent political instability in Burkina Faso.

   The Company has agreed to enter into an unincorporated joint venture for the Korongou Project (see below).

   Babonga Project, Burkina Faso

   No field work was completed on the Babonga Project during the quarter. The Company has agreed to dispose the Babonga Project (see below).

   Yako Project, Burkina Faso

   No field work was completed on the Yako Project during the quarter. The Company has agreed to dispose the Yako Project (see below).

   Mali Project (Sepola)

   No work was completed on the projects in Mali during the quarter. Golden Rim continues to be in active discussions regarding the divestment of the Sepola Project.

   Corporate

   During the quarter, the Company announced that it had agreed to a number of new transactions on its interests in Burkina Faso with MNG Gold Burkina Sarl, part of the MNG Group of companies (MNG). These various arrangements included:

   • renegotiated sale of the Balogo Project, with MNG to pay US$3 million cash;

   • sale of the Yako Project; with MNG to pay US$100,000 cash on transfer of the permit;

   • sale of the Babonga Project, with MNG to pay US$50,000 cash on transfer of the permit; and

   • an unincorporated joint venture for the Korongou Project; with MNG to earn up to 70% by spending US$2.7 million.

     Further details are set out below.

     Balogo Project Renegotiation

     Subsequent to the end of the quarter, the Company announced that it had received cleared cash funds of US$3 million (approximately A$4 million1) from MNG as final payment for the acquisition of the Balogo Project.

     With a focus on their new Liberian gold mine development and the considerable uncertainty in Burkina Faso surrounding the September 2015 coup, the November 2015 general elections and the January 2016 terrorist attacks, MNG's progress on Balogo to date has been slower than envisaged by Golden Rim at the time the original Balogo Sale Agreement was executed. As matters currently stand, the Board is not expecting MNG to secure an exploitation permit within 12 months or to commence commercial production within 2 years.

     The Company was approached by MNG to consider a renegotiation of the remaining consideration for the sale of the Balogo Project. The renegotiation resulted in an agreement to bring forward all sale proceeds. Given the delay in the progress of the project; the development risks that are associated with any gold project; and the recent political and security issues in Burkina Faso, Golden Rim accepted a payment of US$3 million in cash now, over the uncertainty of receiving more money in the future.

     The US$3 million cash received by the Company is full and final payment of all Balogo Project sale proceeds.

     Joint Venture Agreement for the Korongou Project

     The Korongou Project is comprised of one permit (Korongou) which is 90% owned by Golden Rim. Golden Rim has agreed to enter into an unincorporated joint venture with MNG on the following, in principle, terms:

     1 All references to A$ have been calculated at the conversion rate of US$1 = A$0.7466

   • MNG to earn a 51% in the Korongou Project by spending US$1.5 million on exploration within 3 years;

   • MNG may increase its interest in the Korongou Project to 70% by spending a further US$1.2 million within 2 years; and

   • the parties will then fund the joint venture on a pro-rata basis.

The Korongou Project currently requires substantial additional drilling to define the full extent of the potential gold resources. In the current market, Golden Rim believes MNG are better placed to fund the next stage of extensive exploration, a feasibility study and a potential mine development at Korongou.

The joint venture with MNG allows Golden Rim to retain an interest in the project and to participate in any future mine development.

Yako Project and Babonga Project

The Yako and Babonga projects are non-core projects for Golden Rim.

The Yako Project is comprised on one permit (Zanna) which is 100% owned by Golden Rim. Golden Rim has agreed, in principle, to sell the Yako Project to MNG for US$100,000 cash.

Further, the Babonga Project is comprised on one permit (Babonga) which is 100% owned by Golden Rim. Golden Rim has agreed, in principle, to sell the Babonga Project to MNG for US$50,000 cash.

The payments for Yako and Babonga will be made once the permits have been transferred to MNG. This process is expected to take 2 to 3 months.

General

The Company has provided a short term loan of A$150,000 to a third party to secure a period of exclusivity in which to review a potential investment. The loan is subject to interest at the rate of 10% per annum and is repayable 9 June 2016, unless otherwise agreed by the parties.

Golden Rim has downsized its office in Burkina Faso and has retained several key personnel on a part- time consultative basis.

During the quarter, the Company transferred responsibility for the maintenance of its share register to Link Market Services Limited.

-ENDS-