ASX: DRM

ASX Announcement

23 June 2016

DORAY MINERALS LTD - CHAIRMAN'S LETTER TO SHAREHOLDERS

Doray Minerals Ltd (ASX: DRM, Doray), Australia's newest multi-mine gold company, today released a letter to shareholders from its non-executive Chairman, Mr Peter Lester.

The letter follows the recent announcement that gold and concentrate production had commenced from the Deflector Gold Project (Deflector).

Mr Lester said he believed it was important to keep shareholders up-to-date not only with significant milestones, developments and a continuously evolving growth strategy, but also with the vision for the Company in the longer term.

www.dorayminerals.com.au. A copy of the Shareholder Letter follows this announcement and can be found on the Company's website.

For further information, please contact:

-ENDS-

About Doray Minerals Limited

Doray Minerals Limited is an Australian gold producer, developer and explorer with two high-grade Western Australian gold assets: the operating Andy Well Gold Project (Andy Well); and the Deflector Gold Project (Deflector), which is due to commence production in mid-2016.

Doray has a strategic portfolio of gold exploration properties within Western Australia and South Australia and each presents multiple discovery opportunities. The Company's Board and management team has a proven track record in discovery, development, and production.

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Doray Minerals Ltd Level 3, 41‐43 Ord St, WEST PERTH WA 6005 PO Box 284, WEST PERTH WA 6872

T +61 8 9226 0600 | F +61 8 9226 0633

[email protected] | www.dorayminerals.com.au

ABN: 48 138 978 631

23 June 2016 Dear Shareholder,

While it is customary to write to you in the Annual Report, I believe significant corporate milestones deserve special recognition.

Therefore, I take great pleasure in writing to you on Doray Minerals Limited's (Doray) successful completion of the first gold and concentrate production from the Deflector Gold Project (Deflector) on Tuesday 31 May, ahead of schedule and on budget. The commencement of production just 14 months after completing the takeover of Mutiny Gold Limited is testament to the commitment and dedication of our entire workforce.

Deflector is a truly transformational project for Doray. Not only does it significantly increase our annual production profile, it lowers our cost profile, increases our operating margins and extends our mine life. Furthermore, it is the second high‐grade, Western Australian‐based gold project which the Company has funded, permitted, built and commissioned in four years. This is an incredible achievement and I am very proud to be involved in a company which has the foresight, knowledge and expertise to bring projects of this scale to fruition expeditiously and safely.

With the Deflector and Andy Well Gold Projects in operation, Doray can lay claim to having two of the highest‐grade gold projects in Australia. These operations should underpin a continued strong financial performance from the Company with significant cash flow generation allowing for rapid debt repayment and further exploration.

As I approach the end of my first year as your Chairman, the Board and I find ourselves contemplating not only Doray's achievements but also what lies ahead for your Company.

We will continue to pursue exploration efforts in our quest for a third operation, to grow the Company's annual production to around 250kozpa, while maintaining attractive profit margins. The Company's exploration portfolio is extensive and while there is a solid commitment to each project we will also consider potential corporate opportunities as they arise.

Doray's proven track record of turning exploration projects into viable and profitable gold producing assets sets the Company apart and positions it well for future growth. Our Company has never been in a stronger position and with the ongoing dedication from its Board, management and employees will continue to grow and provide benefits for shareholders.

I would like to take this opportunity to thank all employees, contractors and consultants who have contributed to the Deflector construction and production milestones. In particular, I thank Allan Kelly for his insight and strong and dedicated leadership during these formative years for Doray.

Finally, I thank you, our shareholders, for your continued support while we embark on the next phase of the Company's growth.

Yours sincerely,

Peter Lester Chairman