Quarterly Activities Report

FOR THE QUARTER TO 31 DECEMBER 2015 01

Cash and Bullion balance increases to A$75M

Balance Sheet strengthened with accelerated debt repayments FY2016 Guidance maintained at 315,000ozs at cash cost of A$990/oz

Operations

• Solid performance in the December quarter has allowed for accelerated debt reduction to strengthen the Company's balance sheet.

• Major refurbishment of the Syama Roaster and improvements to the Syama Crushing circuit completed during the quarter.

• Total Quarterly gold production of 73,111oz achieved at a cash cost of A$968/oz (US$692/oz).

• Gold production at Syama in Mali generated 45,462oz of gold at a cash cost of A$969/oz (US$691/oz): o Sulphide circuit production of 25,092oz of gold at a cash cost of A$1,006/oz (US$727/oz); and o Oxide circuit production of 20,370oz of gold at a cash cost of A$923/oz (US$664/oz).

• Gold production at Ravenswood in Australia generated 27,649oz at a cash cost of A$966/oz (US$695/oz).

• Continuous improvement and cost reduction program commenced at Syama with results expected to realise significant value in the second half of 2016 calendar year.

• Production Guidance for FY2016 is maintained at 315,000 ounces at an average cash cost of A$990 (US$725) per ounce and an All‐In‐Sustaining Cost of A$1,280 (US$940) per ounce.

  
  

  Financial Performance/Position

• Cash and bullion on hand at the end of the quarter increased to a total of A$75m (Sept 2015: A$70m).

• Debt reduction continued with total net debt/cash at quarter end decreasing to A$22m (Sept 2015: A$39m).

• 52,060oz of gold sold during the quarter at an average price of A$1,552/oz for A$81m (Sept 2015: 106,480oz).

• 28,788oz of gold bullion on hand at quarter end with a market value of A$42m (Sept 2015: 12,574oz).

• Gross operational cashflow for the quarter was A$30m (Sept 2015: A$72m). Scheduled crusher and roaster maintenance works at Syama impacted cashflows as expected.

• US$20m Gold Prepay Loan Facility settled in full with final gold instalment delivery in October 2015.

• Accelerated Debt Restructure agreed with Lending Syndicate with US$50m Cash Advance Facility to be repaid in full by 30 June 2016 by 10 monthly instalments of US$5m.

Development 02

• Resolute's primary development focus is the Syama Underground Project which provides the opportunity to extend Syama's mine life beyond 2028. During the quarter the Syama Underground Feasibility Study program was expanded to include the Syama Grid Connection Project as part of a major focus to enhance the outcomes of the Definitive Feasibility Study ("DFS"). Opportunities identified through the Syama Continuous Improvement and Cost Reduction Program will also be incorporated into the expanded DFS. Work commenced during the quarter included:

  • A new program of deep diamond drilling to test likely extensions to the underground resource model;

  • Infill drilling program within the Syama open pit, targeting the upper levels of the underground resource. Early results strongly support the existing geology interpretation with the potential for additional ore located beneath the completed open pit shell;

  • Installation of power and pumping infrastructure to allow early access for accelerated development; and

  • Revised geotechnical assessment and metallurgical test work programs.

    As a result of the expanded and enhanced Feasibility Study Program the Syama Underground DFS is now expected to be completed during the June 2016 Quarter.

• Strategic options continue to be assessed as part of the Ravenswood Extension Project with a focus on the Nolans East, Buck Reef West and Sarsfield open pit deposits.

• A strategic review of the Bibiani Gold Project was commenced with an immediate focus on reducing Care and Maintenance costs. These costs are expected to reduce by approximately 40% by the end of the current quarter. The Feasibility Study remains on target for completion during the June 2016 quarter.

Production and Cost Summary 03

Table 1: Production and Cost Summary

*Total Cost includes cash costs, depreciation and amortisation, royalties and in‐country operational support costs.

** All‐In Sustaining Cost has been calculated in accordance with World Gold Council guidelines.

Overview

Managing Director & CEO, Mr. John Welborn commented that the December quarter demonstrated Resolute's commitment to debt reduction and strengthening the balance sheet to enable the Company to capitalize on the strong organic growth opportunities at Syama, Ravenswood, and Bibiani.

"Cash generation from our existing operations at Syama and Ravenswood is allowing the Company to accelerate our debt repayments and prepare for investments in future growth. It is very pleasing to see continued debt reduction in a quarter where we have completed major refurbishment and maintenance work at Syama which involved a planned seven week shutdown of the roaster. Gold production and costs remain consistent with forecast and guidance for the full financial year has been maintained. We ended the quarter with A$75m in cash and an improved net debt balance of A$22m.

A strong balance sheet will allow the Company to leverage the transformational opportunity inherent in our current asset portfolio. We have commenced an important improvement program at Syama and expanded the Syama Underground Feasibility Program with the expectation of delivering an exceptional long term outcome for shareholders. The Ravenswood Extension Project and the Bibiani Feasibility Study are advancing with progress expected in the current quarter."

Quarterly Conference Call 04

Resolute Mining Limited will be hosting a Quarterly Activities Report conference call today, Thursday, 28 January 2016, at 10:30am AEDT. Local dial‐in number: 1800 123 296 and conference ID number is 3773 9996. Further international dial‐in details are included in yesterday's ASX announcement dated 27 January 2016.

For further information contact:

John Welborn Managing Director and CEO

+61 8 9261 6100