For the three months ended 30 September 2015‌‌‌‌‌‌‌‌

HIGHLIGHTS

GROUP RESULTS

(1) Co-Product costing converts silver to an equivalent value of gold ounces. For actual production we use sales prices realised.

OPERATIONS

CASPOSO, ARGENTINA (Troy 100% through Troy Resources Argentina Ltd)

(1) Based on the ratio of monthly sales prices realized for the quarter.

(2) Cash costs and All-In Sustaining Costs are calculated using Au_Eq ounces produced as the denominator.

Occupational Health, Safety and Environment

environmental incidents were recorded for the quarter.

Underground Mining and Development

The focus of mining during the quarter shifted away from Inca 1 to Inca 0, Inca 2a and the Aztec lode. This resulted in a significant increase in underground production, with tonnages up by 50% compared to the previous quarter, as a result of more ore development headings being available. Underground gold and silver production was lower due to scheduling and productivity issues. In particular, high grade stope production from Inca 2a was delayed due to equipment availability and lower than forecast development rates. This resulted in a hiatus of high grade production between the completion of Inca 1 stoping and commencement of Inca 2a stoping from the high grade zone. In late September, stoping within the higher grade mineralisation in Inca 2a levels 116 and 117 commenced, and will continue throughout the December quarter resulting in an improvement in grade.

Development to the first level of the Inca 0 and Aztec veins beneath the Kamila pit was completed. Total development advance was 855m due to the suspension of all waste development.

Processing

As foreshadowed in the Company's FY15 Results Announcement, following an operational review, a restructuring process is underway at Casposo with a view to rescaling operations around the smaller strike length of vein systems and complex geology in Inca 2a. This has resulted in throughput being reduced from ~1,450tpd to ~1,300tpd. As a consequence, the

Ball mill has been shut down and pulp residency time in the plant has been increased, whilst the consumption of mill balls and chemicals has reduced. The Company will continue to look at ways of optimizing performance in the plant where processing costs currently account for approximately 35% of total costs.

The revised operating strategy resulted in a reduction of throughput for the quarter to 112,981 tonnes, sourced predominantly from lower grade Inca 2a, Inca 0 and Aztec development ore and low grade stoping ore from the periphery of Inca 1.

Costs

Casposo produced 5,682oz. gold and 715,704oz. silver or 15,174oz. Au_Eq at a Cash Cost of US$1,274/oz. (on a co-product basis) and an AISC of US$1,559/oz.

Notwithstanding the significant increase in tonnes mined for the quarter, the main driver for the increase in unit costs was the lower grade of ore treated. On a positive note, total costs have reduced by US$5.9 million quarter on quarter and by US$2.0 million between July and September. This is principally due to cessation of waste development, a decrease in consumable usage following the Ball mill shut down and a reduction in the total manpower on site by ~120 employees and contractors. The reduction in manpower also resulted in some one-off costs.

Outlook

The commencement of stoping in Inca 2a and the Inca 1 crown pillar late in September is expected to result in higher production during the December 2015 quarter. With the reduced throughput levels and more sustainable grades from underground, it is expected that Casposo should average at least 6,000oz. Au_Eq per month for the foreseeable future. Costs, which tend to lag production movements by 2-3 months, are expected to reduce over time to more closely reflect the anticipated production with unit costs also reducing to reflect the balance between output and costs.

As part of the restructuring process, the operation has recently entered into a labour restructuring program. This is a formalised process under which the Company negotiates with the relevant parties for the purpose of reaching an agreement to implement the necessary measures to rescale the operation with a reduced cost base. The process may take up to three months.

ANDORINHAS, BRAZIL (Troy 100% through Reinarda Mineração Ltda)

Occupational Health, Safety and Environment

No LTI's were recorded during the quarter. Rehabilitation activities continued during the quarter. Production Results and Summary

Gold production was 2,518oz..at a cash cost of US$1,044/oz.

Outlook

The Company reached agreement with TSX-V listed Magellan Minerals Limited for the sale of its Andorinhas plant and all associated equipment and inventories for US$4.5 million. Of the US$4.5 million purchase consideration, Magellan has paid Troy a non- refundable deposit of US$150,000 cash and a further US$3.35 million is to be paid by 15 December 2015.

Processing of the stockpiles is expected to continue until the end of November when the plant will be stopped to enable cleanup ahead of the planned sale to Magellan Minerals.

The Company is also focused on rehabilitating the mine and complying with its Environmental License. Seeding and planting of indigenous saplings will commence with the wet season at the end of the Q2 FY2016.