Corporate Directory Non-Executive Chairman Mel Ashton

Managing Director Stephen Parsons

Non-Executive Directors Didier Murcia

Bruce McFadzean

Company Secretary Carl Travaglini

Contact Details

Principal & Registered Office 288 Churchill Avenue

SUBIACO WA 6008

T: +61 8 9287 4333

F: +61 8 9287 4334

E: [email protected]

ASX CODE GRY

www.gryphonminerals.com.au

ASX Announcement

29 October 2015

Divestment of Mauritanian Gold and Copper Assets

Highlights

• Gryphon Minerals Limited has granted an option to TSX-V listed entity Algold Resources Ltd (TMX:ALG) to acquire 100% of Gryphon's interest in its Mauritanian assets.

• Total consideration of up to A$4.51 million including a 14.9% interest in Algold's issued shares (approximate value of A$1.3 million) and a further A$3.2 million on achievement of certain milestones.

• Gryphon Minerals to participate in any upside through its significant shareholding and milestone payments. Algold management has a strong track record in developing mineral projects in Mauritania.

• Allows Gryphon Minerals to focus funds on the development of the Banfora Gold Project.

• Allowing Gryphon to focus its funds on developing its Banfora Gold Project in Burkina Faso;

• Obtaining a significant stake in a Canadian listed entity allowing Gryphon to participate in the upside;

• Algold has an experienced management team with recent, relevant experience in developing mineral projects in Mauritania.

Gryphon Minerals Limited (ASX:GRY) is pleased to announce that the Company has granted an option to Algold Resources Ltd (TMX: ALG) to acquire 100% of Gryphon's interest in its Mauritanian Properties, principally comprising the Saboussiri Copper/Gold Project, Tijirit Gold Project and Akjoujt Copper/Gold Project.

Benefits of the Transaction

The benefits of the transaction include:

Option Terms

The consideration for the granting of the option is the issue of C$250,000 worth of Algold Resources Ltd shares (Initial Shares) which are non-refundable.

Algold may exercise the option at any time within 90 days of the signed option agreement (29 October 2015) by issuing further shares that together with the Initial Shares would result in Gryphon holding 14.9% of Algold's issued and outstanding shares.

In addition to the initial consideration, Gryphon is entitled to the following milestone payments:

1. C$1.5 million, payable at the option of Algold either in cash or Algold common shares upon the earlier of:

   • the date that is 90 days after Algold announces that there is an NI 43-101 compliant mineral resource (of any one or more categories of measured,