ASX ANNOUNCEMENT

3 June 2016

UPDATE ON TESTWORK PROGRESS

Beacon Minerals Limited (Beacon or the Company) wishes to advise that the metallurgical programme associated with the Ore Purchase Letter of Intent ("LoI") with Northern Star Resources Limited (Northern Star) is continuing. For further information in relation to this agreement please see Beacon's ASX release dated 4 February 2016 Beacon Executes Letter of Intent.

Additional check and duplication work has been completed by the Company and as a result other work has become necessary. Results from this metallurgical recovery work will form the basis for the payment terms.

The current additional testwork is being completed independently by a well respected Perth laboratory.

Beacon and Northern Star are working closely with the laboratory and it is expected the last of the expanded programme will be completed by the end of June 2016.

Should shareholders have any questions please feel free to contact Executive Chairman Geoff Greenhill or Managing Director Graham McGarry.

Geoff Greenhill Executive Chairman Beacon Minerals Ltd M: 0419 991 713

Graham McGarry Managing Director Beacon Minerals Ltd M: 0409 589 584

BEACON MINERALS LIMITED ACN 119 611 559

Kalgoorlie Office 144 Vivian Street, Boulder, WA 6432

Registered OfficeLevel 1, 115 Cambridge Street, PO Box 1305, West Leederville, WA 6007 Website www.beaconminerals.comPhone 08 9322 6600 Facsimile 08 9322 6610