6 MAY 2016

Settlement with Newmont paves the way for ASX relisting

Leyshon Resources Limited (ASX: LRL) ("Leyshon Resources" or the "Company") is pleased to announce a major restructure including the divestment of the Mt Leyshon mine assets, positioning the Company to pursue an investment opportunity, and ultimately seek re-listing of its securities on the Australian Securities Exchange ("ASX").

Over the last two years, the Company has been engaged with the stakeholders of the Mt Leyshon mine as part of a strategic review to reduce the long-term costs of holding this legacy asset. The Directors resolved that a restructure of the Mt Leyshon asset was a priority focus such that Leyshon would be a viable entity that could go through a recapitalisation and stock exchange listing process. The restructure process has taken some time given the scale of the project and number of stakeholders involved.

At Mt Leyshon, the Company holds five Mining Licenses ("ML's"), an Environmental Authority ("EA") and land covering the historical mining operations which are now subject to long-term rehabilitation. Newmont Australia Pty Ltd ("Newmont") performed management services related to the site closure (including rehabilitation) in 2002-2003. Leyshon and Newmont have been in dispute since 2006 as to the validity and status of the ongoing obligations with respect to management of the site.

The Company has been incurring significant and growing costs associated with holding Mt Leyshon including, ML and EA fees, council rates, land taxes and other administration costs, totaling more than

$300,000 per year. The ML's and EA cannot be relinquished until the rehabilitation is completed and the ML's are cancelled by the Queensland Department of Mines and Natural Resources, and the EA by the Queensland Department of Environment and Heritage Protection.

The Company is now pleased to announce that it has entered a Deed of Settlement with Newmont whereby the parties have agreed to:

• Resolve the dispute with respect of the management agreement;

• Transfer the Mt Leyshon ML's and EA, and Leyshon's land holdings at Mt Leyshon to Newmont;

• Newmont will pay Leyshon $220,000 for expenses incurred on the tenements in 2015; and

• Leyshon will provide Newmont with cash and/or shares in Leyshon as additional compensation. The payments to Newmont include $220,000 when Leyshon re-lists on the ASX, $170,000 in December 2016 (Leyshon's election payable as cash or shares), $200,000 in December 2017 (Newmont's election payable as cash or shares), and $275,000 each year between December 2018 and 2025 (Newmont's election payable as cash or shares).

The Deed of Settlements is subject to certain approvals including Queensland Government Ministerial consent for transfer the ML's, and Newmont securing Foreign Investment Review Board approval for the acquisition of the land and ML's, a process that is expected to take several months.

Leyshon Resources Limited ABN 75 010 482 274

Level 3 / Suite 3, 1292 Hay Street, West Perth 6005, Western Australia

Tel: + 61 8 9321 0077 Fax: + 61 8 9322 4073

The Company will now prioritise the identification of an investment opportunity and seeking re-listing of the Company's securities on the Australian Securities Exchange. The re-listing process will require the Company to comply with Chapters 1 and 2 of the ASX Listing Rules. This will require lodgment of a Prospectus and meeting certain conditions including a minimum net tangible assets position of $3 million on listing.

Chairman Paul Atherley commented,

"We are delighted to have secured this settlement with Newmont as it removes the main obstacle to completing an acquisition and relisting on the ASX. We are actively reviewing a number of very interesting opportunities at a time when the appetite for resource stocks has improved considerably. We look forward to keeping shareholders informed of developments on a regular basis."

For further information please contact: Leyshon Resources Limited

Corey Nolan - Non-Executive Director Tel: +61 7 3221 7770

[email protected]

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