Quarterly Report

SARACEN MINERAL HOLDINGS LIMITED ACN: 009 215 347 QUARTERLY REPORT: SEPTEMBER 2015

Corporate Details: 21 October 2015 ASX code: SAR Corporate Structure: Ordinary shares on issue - 792.8m Unvested employee performance rights - 7.1m Market Capitalisation - A$436m (share price of A$0.55/share) Cash & Bullion (30 September) - A$44.9m Debt (30 September) - Nil Directors: Mr Geoff Clifford Non-Executive Chairman Mr Raleigh Finlayson Managing Director Mr Mark Connelly Non-Executive Mr Barrie Parker Non-Executive Mr Martin Reed Non-Executive Ms Samantha Tough Non-Executive Substantial Shareholders: Wroxby Pty Ltd 8.2% Paradice Investment Management 7.9% Karara Capital Pty Ltd 6.2% Registered Office: Level 4 89 St Georges Terrace Perth WA 6000 Telephone: +61 8 6229 9100 Facsimile: +61 8 6229 9199 For further details contact: Troy Irvin Telephone +61 8 6229 9100 [email protected]

Strong quarterly production and robust cash-flow supports internally funded growth to ~300koz p.a. Production Quarterly gold production of 38,140oz, in line with FY16 target of 150-160,000oz (Carosue Dam only) Quarterly all-in sustaining cash costs (AISC) of A$1,025/oz , at the lower end of FY16 outlook range of A$1,025-1,075/oz Closing ore stockpile of 59,509oz (~A$31m of deferred free cash flow at an AISC of ~A$937/oz) Thunderbox project 10% ahead of schedule and 7% under budget, with first gold production of ~20,000oz anticipated in June 2016 Quarter (previously September Quarter) Deep South underground development starting December Quarter Cash and equivalents at 30 September of A$44.9m, unchanged from 30 June; hedging of 302koz at an average price of A$1,523/oz Project development expenditure of A$22.6m (A$10.2m at Thunderbox, A$9.2m at Karari and A$3.2m on exploration), funded entirely from operational cash flows Multiple high-grade drill results at Carosue Dam, including: KRRC350 - 12m @ 6.3g/t (Karari) KRGC221 - 27m @ 5.2g/t (Karari) ROGC565 - 0.7m @ 162.1g/t (Red October) ROGC567 - 0.7m @ 841.6g/t (Red October) Carosue Dam five-year outlook combined with Thunderbox supports ~300,000ozpa production at AISC of ~A$1,075/oz Total Mineral Resources 7.6Moz and Ore Reserves 1.5Moz Acquisition of the Kailis and King of the Hills Gold Projects completed (Total Mineral Resources of 312koz) Farm-out and JV Agreement for Nexus (ASX: NXM) to earn up to 85% of the Pinnacles Gold Project One LTI during the Quarter, TIFR steady at 335 Development Financial Exploration and growth Health and safety

Summary

Table 1 - Carosue Dam Operations, Key Statistics

Carosue Dam

Units Dec Qtr 2014

Mar Qtr

2015

Jun Qtr

2015

Sept Qtr

2015

Underground Mining

Ore Mined	t	79,000	68,000	119,200	143,000
Mine Grade	g/t	8.43	6.08	4.77	4.30
Contained Gold	oz	21,511	13,252	18,262	19,759

Mill Production

Ore Milled	t	602,000	549,000	576,000	577,000
Mill Grade	g/t	2.45	2.58	2.77	2.25
Contained Gold	oz	47,478	45,429	51,281	41,753
Recovery	%	90.3%	91.5%	90.8%	91.3%
Recovered Gold	oz	42,894	41,550	46,563	38,140

Figures 1-4 - Carosue Dam Operations, Key Charts

Table 2 - Thunderbox Operations, Key Statistics

Thunderbox

Units

Sept Qtr

2015

Open Pit Mining

Total Mining	BCM	2,421,000
Mining Costs	A$m	$8.64
Mining Costs	A$/BCM	$3.57

Carosue Dam Operations

Processing

Table 3 - Carosue Dam Operations, Processing Statistics

Carosue Dam

Units Dec Qtr 2014

Mar Qtr

2015

Jun Qtr

2015

Sept Qtr

2015

Mill Production

Ore Milled	t	602,000	549,000	576,000	577,000
Mill Grade	g/t	2.45	2.58	2.77	2.25
Contained Gold	oz	47,478	45,429	51,281	41,753
Recovery	%	90.3%	91.5%	90.8%	91.3%
Recovered Gold	oz	42,894	41,550	46,563	38,140

Mill throughput and recoveries both increased relative to the June Quarter due to a higher portion of mill feed being delivered from the Karari underground mine. The mill grade has decreased due to the completion of the Whirling Dervish open pit. Ore stockpiles contributed 75% of mill feed for the quarter, with Red October and Karari contributing 16% and 9% respectively.

The closing ore stockpile available for processing at the end of the September quarter was 1.9Mt @ 1.0g/t for 59,509oz. These ounces will only incur processing and administration costs, which is equivalent to ~A$937/oz AISC or A$31 million in deferred free cashflow using latest costs and a A$1,524/oz gold price (average hedge price).

Underground

Table 4 - Carosue Dam Operations, Underground Mining Statistics

Carosue Dam

Units Dec Qtr 2014

Mar Qtr

2015

Jun Qtr

2015

Sept Qtr

2015

Underground Mining

Ore Mined	t	79,000	68,000	119,200	143,000
Mine Grade	g/t	8.43	6.08	4.77	4.30
Contained Gold	oz	21,511	13,252	18,262	19,759

September production in Table 4 includes:

• Karari - 4.2koz @ 2.6g/t (vs. September Quarter 2.7koz @ 2.6g/t)

• Red October - 15.5koz @ 5.2g/t (vs. September Quarter 15.6koz @ 5.5g/t)

For more information on the Karari and Red October underground mines, refer to the ASX announcement released on 15 October 2015 - 'Robust Five-Year Outlook'. Salient information regarding the five-year production and cost outlook for Carosue Dam is also provided.

Underground development at Deep South is set to commence in the December Quarter. Deep South has an Ore Reserve of 125koz @ 4.0g/t and will enhance production from the Northern Region of Carosue Dam when combined with ongoing high grade production from Red October.

Thunderbox Operations

Open Pit Mining

Figure 7 - KPS power station at Thunderbox

Figure 8 - Plant refurbishment activities at Thunderbox

Exploration and growth

Kailis and King of the Hills Acquisition

Subsequent to the Quarter, Saracen completed the acquisition of the Kailis and King of the Hills gold projects from St Barbara Limited (ASX: SBM).

Consideration for the acquisition of 100% of the two projects is A$3m cash in two tranches: A$0.3m on Completion (paid), plus A$2.7m upon the earlier of commencement of commercial production from Kailis or 4 years following Completion.

Kailis is located 5km from Leonora and 80km south of Saracen's Thunderbox project, and within 1km of the sealed Goldfields Highway. In the 1990's Sons of Gwalia mined a small open pit at Kailis with reconciled production of 250kt @ 6.2 g/t for ~50koz.

King of the Hills is located 65km to the south of Thunderbox, immediately adjacent to the Goldfields Highway. King of the Hills is a significantly mineralised system, which has produced ~30Mt @ 1.9g/t for 1.9Moz since 1985. King of the Hills has been on care and maintenance since April 2015.

King of the Hills and Kailis adds 312koz of high grade Mineral Resources, and the Kailis open pit adds 95koz of high grade Reserves. For more information refer to the ASX announcement released on 15 October 2015 - '2015 Mineral Resources and Ore Reserves'.

The acquisition is consistent with Saracen's strategy of adding value-accretive satellite ounces within economic trucking distance of its existing processing plants.

Pinnacles Farm-out and Joint Venture Agreement

Saracen completed a Farm-out and JV Agreement with Nexus (ASX: NXM) for the Pinnacles Gold Project. The agreement includes an Ore Sale and Purchase clause for processing of potential ore from the Project through Saracen's Carosue Dam processing facility, 13km north of Pinnacles.

For more information refer to the NXM ASX announcement released on 17 September 2015 - 'Pinnacles Gold Project Farm in and JV with Saracen Gold Mines'.

Carosue Dam Drilling

Recent infill drilling highlights from Red October include:

 RORD079 - 1.1m @ 47.1g/t from 125.1m

 ROGC508 - 0.4m @ 132.0g/t from 74.6m

 ROGC514 - 2.8m @ 21.3g/t from 129.8m

 ROGC515 - 2.1m @ 15.7g/t from 108.7m

 ROGC535 - 0.3m @ 99.3/t from 215.8m

 ROGC537 - 0.5m @ 105.0g/t from 182.2m

 ROGC539 - 0.3m @ 103.0g/t from 137.6m

 ROGC542 - 0.3m @ 90.3g/t from 140.7m

 ROGC554 - 0.5m @ 61.1g/t from 138.8m

 ROGC559 - 0.6m @ 42.7g/t from 5.8m

 ROGC565 - 0.7m @ 162.1g/t from 79.6m

 ROGC566 - 1.9m @ 58.0g/t from 16.3m

 ROGC567 - 0.7m @ 841.6g/t from 16.6m

Recent infill drilling highlights from Karari include:

 KRRC350 - 12m @ 6.3g/t from 272.0m

 KRRD068 - 16m @ 4.3g/t from 285.0m

 KRGC217 - 26m @ 3.5g/t from 73.0m

 KRGC218 - 13m @ 4.1g/t from 56.0m

 KRGC221 - 27m @ 5.2g/t from 49.4m

 KRGC223 - 19m @ 3.7g/t from 64.3m

 KRGC224 - 34m @ 3.7g/t from 64.0m

 KRSD026 - 12m @ 6.7g/t from 58.0m

 KRSD028 - 7m @ 5.3g/t from 50.0m

 KRSD029 - 9m @ 9.1g/t from 21.0m

The above drill results have already been released, refer to the ASX announcement dated 15 October 2015 - 'Robust Five-Year Outlook'.

Corporate

Health & Safety

One Lost Time Injury ('LTI') was recorded during the September Quarter. The LTIFR is 3.0, the Total Incident Frequency Rate ('TIFR') has remained steady at 335 (336 at 30 June 2015).

Board & Management

Mr Barrie Parker has informed the Board that he intends to retire as a Director of the Company at the conclusion of the Company's forthcoming Annual General Meeting to be held on 25 November 2015 and hence will not be seeking re-election at that Meeting.

The Directors consider the size and composition of the Saracen Board to be appropriate and will not be seeking a replacement director at this time.

Cash Position

As at 30 September 2015, Saracen's total cash and equivalents position was A$44.9 million, comprising A$39.4 million held in cash and 3,429 ounces of gold in transit (approximately A$5.5 million at A$1,600/oz). There was no debt drawn at the end of the Quarter.

Hedging

As at 30 September 2015, Saracen had gold hedging in place totalling 302,038oz at an average price of A$1,523/oz. These ounces are to be delivered over the period from October 2015 to March 2019 (inclusive). Refer to Appendix 1 for the complete details of the hedge book.

Gold Sales

Gold sales for the Quarter were 39,391oz at an average sale price of A$1,593/oz for total revenue of A$62.8 million (note that gold sales exclude movements in gold in transit). Of these sales, 18,679oz were delivered into hedging at an average price of A$1,643/oz. During the Quarter, the Company took out additional Spot Deferred hedging priced at A$1,600/oz.

The Company intends to deliver into a blend of the higher priced fixed date hedges, the spot market and both the A$1600/oz and ~A$1410/oz Spot Deferred hedges over the next two quarters.

Cash Flows

Figure 9 below shows the cash flow movement over the September Quarter.

Figure 9 - September 2015 Quarter cash movements

• Revenue: Revenue from gold sales (includes gold in transit)

• Cash Costs: Cash outflows for mining, ore cartage, processing, site administration and ore purchase

• Reduction in Trade Creditors: Cash payments reducing the amounts owing to trade creditors over the quarter

• Sustaining Capital & other: Cash outflows for royalties, capital works, open pit development, underground development, active mine exploration & corporate expenses (including loan interest)

• Thunderbox Development: Includes expenditure on feasibility study, care & maintenance, development and exploration

• Karari Development: Cash outflows for the development of the Karari underground mine

• Exploration: Cash outflows for regional exploration and Red October exploration but excludes Thunderbox

Operational cash flow generated for the Quarter was A$25.4 million after taking into account all open pit and underground mining costs, ore haulage, processing and site administration expenses as well as royalties, sustaining capital and underground development.

Cash Costs

All-in Sustaining Cash Costs for the September Quarter were A$1,025/oz, below the FY16 guidance range of A$1,025/oz to $1,075/oz provided for Carosue Dam.

'All in' cash expenditure fell A$1.5m to A$39.1m, due to open pit mining costs falling A$7.0m following the completion of the Whirling Dervish open pit at the end of June. The residual A$2.7m incurred in the September quarter was predominately redundancy and demobilisation costs associated with the cessation of open pit mining at Carosue Dam.

Table 5 - Cash Costs

Cash Costs

Unit

Dec-14 Qtr

Mar-15 Qtr

Jun-15 Qtr

Sep-15 Qtr

Mining - Open Pit	A$m	18.2	13.8	9.7	2.7
Mining - Underground	A$m	5.1	5.7	8.0	9.4
Ore Cartage	A$m	1.6	1.2	1.5	0.6
Processing	A$m	12.0	11.6	10.1	13.2
Site Administration	A$m	2.3	2.0	1.6	2.2
Ore Purchase	A$m	-	-	-	-

Cash Costs A$m $39.2 $34.4 $30.9 $28.2

Royalties	A$m	2.9	2.9	3.1	2.8
Capital Works	A$m	0.5	1.0	0.7	0.7
Open Pit Development	A$m	-	- 0.0	-	-
Underground Development	A$m	6.0	5.5	4.1	5.1
Active Mine Exploration	A$m	-	-	-	-
Corporate	A$m	2.6	2.3	1.8	2.3

'All in' Cash Costs A$m $51.1 $46.2 $40.6 $39.1

Growth Capital	A$m	10.9	7.9	13.2	19.4
Exploration	A$m	2.0	2.9	3.4	3.2

Production (oz) 42,894 oz 41,549 oz 46,564 oz 38,140 oz

Mining - Open Pit	A$/oz	424	333	208	71
Mining - Underground	A$/oz	119	138	171	247
Ore Cartage	A$/oz	38	29	32	17
Processing	A$/oz	279	280	218	346
Site Administration	A$/oz	53	49	34	58
Ore Purchase	A$/oz	-	-	-	-

Cash Costs A$/oz $913 $829 $663 $739

Royalties	A$/oz	67	69	67	74
Capital Works	A$/oz	11	25	15	18
Open Pit Development	A$/oz	-	- 0	-	-
Underground Development	A$/oz	140	133	88	134
Active Mine Exploration	A$/oz	-	-	-	-
Corporate	A$/oz	59	56	38	60

'All in' Cash Costs A$/oz $1,191 $1,112 $871 $1,025

For further information please contact:

Investors: Troy Irvin

Chief Corporate Development Officer

[email protected]

Media:

Read Corporate

Paul Armstrong / Nicholas Read

[email protected]

Competent Persons Statements

The information in the report to which this statement is attached that relates to Exploration Results is based upon information compiled by Mr Daniel Howe, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Daniel Howe is a full-time employee of the company. Daniel Howe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Daniel Howe consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

The information on Mineral Resources and Ore Reserves has been extracted from the ASX announcement titled '2015 Mineral Resources and Ore Reserves' dated 15 October 2015. The report is available to view on the ASX Website at www.asx.com.au and on the Company's website at www.saracen.com.au.The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources and Ore Reserves, that all market assumptions and technical assumptions underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially

modified from the original market announcement.

Appendix 1 - Details of Hedging Contracts

Month	Ounces	Price A$
Spot Deferred	44,038	$ 1,413.61
Spot Deferred	37,900	$ 1,600.15
30/10/2015	3,900	$ 1,710.00
30/11/2015	3,900	$ 1,720.00
31/12/2015	3,900	$ 1,720.00
29/01/2016	3,900	$ 1,720.00
29/02/2016	3,900	$ 1,730.00
31/03/2016	3,900	$ 1,730.00
31/03/2016	45,000	$ 1,410.90
29/04/2016	3,900	$ 1,740.00
31/05/2016	3,900	$ 1,740.00
30/06/2016	3,900	$ 1,750.00
30/09/2016	4,000	$ 1,520.00
30/10/2016	4,000	$ 1,520.00
30/11/2016	4,000	$ 1,520.00
31/12/2016	4,000	$ 1,520.00
30/01/2017	4,000	$ 1,520.00
27/02/2017	4,000	$ 1,520.00
31/03/2017	4,000	$ 1,520.00
30/04/2017	4,000	$ 1,520.00
29/05/2017	5,000	$ 1,520.00
30/06/2017	5,000	$ 1,520.00
31/07/2017	5,000	$ 1,520.00
28/08/2017	5,600	$ 1,520.00
30/09/2017	5,600	$ 1,520.00
30/10/2017	5,600	$ 1,520.00
30/11/2017	5,600	$ 1,520.00
31/12/2017	5,600	$ 1,520.00
30/01/2018	5,600	$ 1,520.00
27/02/2018	3,500	$ 1,520.00
31/03/2018	3,500	$ 1,520.00
30/04/2018	3,600	$ 1,520.00
29/05/2018	3,600	$ 1,520.00
30/06/2018	3,600	$ 1,520.00
31/07/2018	3,600	$ 1,520.00
28/08/2018	4,300	$ 1,520.00
30/09/2018	4,300	$ 1,520.00
30/10/2018	4,300	$ 1,520.00
30/11/2018	4,300	$ 1,520.00
31/12/2018	5,200	$ 1,520.00
30/01/2019	5,200	$ 1,520.00
27/02/2019	5,200	$ 1,520.00
31/03/2019	5,200	$ 1,520.00
Total	302,038	Avg $ 1,522.57