ASX Announcement / Media Release

14 July 2016

ASX Code: ORN Issued Capital:

Ordinary Shares: 475M Options: 91M

Directors: Denis Waddell

Chairman

Errol Smart

Managing Director, CEO

Bill Oliver

Technical Director

Alexander Haller

Non-Executive Director

Management: Martin Bouwmeester

Company Secretary &

Business Development Manager

Suite 2

64 Thomas Street West Perth WA 6005 ABN 76 098 939 274

T: +61 8 9485 2685

E: [email protected]

Orion Expands South African Portfolio after Securing Advanced and Highly Prospective Nickel-Copper Project

New project includes large magmatic nickel-copper deposit with completed concept study plus outstanding exploration potential

Highlights:

• Orion has secured the exclusive right to earn up to an 80% interest in the Jacomynspan Nickel-Copper-PGE Project in South Africa's Northern Cape Province, via a 74% Orion owned South African subsidiary company.

• Orion can earn its equity interest in stages by ultimately completing a Feasibility Study.

• The project area comprises 626km2 of combined mining and prospecting rights, including overlapping rights held by two companies.

• The project hosts a large sulphide nickel-copper-PGE resource analogous to the Fraser Range style of deposits, and is highly prospective for Nova-Bollinger-style discoveries.

• The project area is also highly prospective for copper-zinc VHMS deposits along the same horizon as that which hosts the world class historical Prieska Copper Mine (PC) Zinc-Copper Project (also under option by Orion).

• This represents a strategic and valuable potential addition to Orion's growing mineral portfolio in the Northern Cape Province, where it has drilling programs currently underway.

Orion Gold NL (ASX: ORN) is pleased to announce that it has secured a strategic and potentially valuable addition to its mineral portfolio in the Northern Cape Province of South Africa. Orion has entered into a binding term sheet to acquire the earn-in rights to the prospecting and mining right applications covering an area of 626km2 in the Areachap Belt, near its existing PC zinc-copper and Kantienpan Projects.

The earn-in rights (refer below) have been acquired over the Jacomynspan Nickel-Copper-PGE Project (Jacomynspan Project) from two companies, Namaqua Nickel Mining (Pty) Ltd (Namaqua) and Disawell (Pty) Ltd (Disawell) (together the Companies), which hold partly overlapping prospecting rights and mining right applications.

The Namaqua mining right application covers an advanced nickel-copper- platinum group elements (PGE) deposit with a completed mining concept study, while the Disawell prospecting rights are focused on zinc-copper volcanogenic hosted massive sulphide (VHMS) deposits such as those at the PC zinc-copper and Kantienpan Projects previously announced by Orion (refer ASX Releases - 18 November 2015 and 31 May 2016).

W: www.oriongold.com.au

Jacomynspan Project Overview and Resource

The Jacomynspan Project area is contiguous with the prospecting rights held under the Company's Masiqhame transaction (refer ASX Release - 29 April 2016) and adjacent to the Marydale Prospecting Right (Figure 1), currently being drilled by the Company, under the terms of an exclusive option held by Orion (refer ASX Release - 18 November 2015).

The Jacomynspan Project area contains numerous known occurrences of VHMS style zinc- copper deposits and is highly prospective for magmatic hosted nickel-copper mineralisation similar to that seen in Proterozoic mobile belts worldwide including the Thompsons Belt in Canada and the Albany-Fraser Belt in Western Australia. A number of mafic-ultramafic intrusions have been recognised within the project area, with most historical work focusing on the Jacomynspan Deposit (Figure 1).

Figure 1: Map showing the Jacomynspan Project area and Namaqua-Disawell tenure, Northern Cape Province.

The Jacomynspan Deposit was first identified by Anglo American Prospecting Services (AAPS) from an airborne electro-magnetic (EM) survey in 1971. AAPS drilled a steeply dipping mafic- ultramafic intrusive sill over 4km of strike, defining an ultramafic host with disseminated nickel sulphide mineralisation over a width of 30 - 70m. AAPS also drilled to a depth of about 900m in one area covering approximately 1000m of strike.

Metallurgical test work and mining studies were also undertaken on the deposit, culminating in an economic assessment in 1983 which was generally positive and recommended that more detailed studies be undertaken. However, prevailing macro-economic and geopolitical conditions were not favourable and the option was relinquished by AAPS in 1984.

The surrounding area received exploration attention from a number of large companies in the 1970's with groups such as Phelps Dodge, Anglovaal, Newmont and Goldfields of South Africa all completing investigations, with several nickel-copper bearing intrusive occurrences discovered over a combined trend extending for almost 40km. Yskor also explored a portion of the current tenements for VHMS deposits in the 1990s.

In 2006, the project area was pegged by Namaqua. Exploration activities completed since then have included airborne EM and high-resolution magnetic surveys as well as more than 26,000m of Diamond core drilling in 53 holes (Figure 3, Appendix 1).

Figure 2: Photos of historical drill core from the Jacomynspan Project, including massive sulphide zones grading up to 4.2% Nickel.

Based on this work and historical AAPS data, a resource was delineated for the Jacomynspan Deposit. The resource for the Jacomyspan Deposit as shown in Table 1 is estimated in accordance with the SAMREC Code (2007) and is therefore a "qualifying foreign resource estimate" as defined in the ASX Listing Rules (further detail below and in Appendix 2). Extensive metallurgical test work, geotechnical appraisal, environmental studies and mine design work was also carried out by Namaqua to complete a concept study and economic assessment for the mining of the deposit. These appraisals support an application for a Mining Right over the area, which is currently in process.

Figure 3 below shows historical drilling on the Jacomynspan resource area, while the existing resource is summarised in Table 1. More detail, including significant intersections and additional figures can be found in Appendices 1 - 3.

Figure 3: Plan showing drilling on the Jacomynspan resource area.

Table 1: Resources at the Jacomynspan Deposit.

Table 1 Notes: While this foreign resource is not reported in compliance with the JORC Code, it is the Company's opinion (and the opinion of the Competent Person for this document), that the data quality and validation criteria, as well as the resource methodology and check procedures, are reliable and consistent with criteria as defined by JORC 2012. All tabulated data has been rounded to one decimal place for tonnage and two decimal places for grades. Quantities are reported after the application of 5% geological loss factor and all resources are greater than 75m and less than 900m below surface.