Manger

Ghana Government Approves Ibaera Earn-In Deal

ASX & Media Release ASX Code - AZM

27 October 2017

www.azumahresources.com.au

Investment Highlights:

Wa Gold Project:

  • Feasibility Study Completed

  • 2.1Moz Mineral Resource including 1.4Moz (67%) Measured & Indicated

  • 624,000oz Ore Reserve at 2.14 g/t Au

  • Initial 7yr mine-life at ~90,000oz pa

  • Excellent Infrastructure (grid power, water, established roads, airport)

  • Mining Leases granted

  • Exploration licenses of 2,400km2 with >150km strike of prospective Birimian terrain.

  • 13.4% strategic investment in Ghana neighbour, Castle Minerals Limited (~10,000km2)

  • Board and management team of successful explorers, mining and corporate professionals

Issued Capital:

699M ordinary shares

Directors & Management:

Chairman: Michael Atkins

Managing Director: Stephen Stone

Non-Executive Director: Geoff M Jones

Company Secretary: Dennis Wilkins

Contact:

Stephen Stone

Mb: +61 (0) 418 804 564

stone@azumahresources.com.au

Project Management Team Appointed

Azumah Resources Limited (ASX:AZM) advises that the Ghana Minister of Lands and Natural Resources has consented to the ~A$17M staged funding agreement with Ibaera Capital Fund GP Limited (Ibaera) in regards to Azumah's Wa Gold Project, Upper West Region, Ghana (Project)(refer ASX release dated 1 September 2017).

"The rapid approval by the new Ghana Government of the transformational Azumah-Ibaera funding agreement is entirely consistent with its push to re- establish Ghana as West Africa's preferred destination for exploration and mining" said Azumah Managing Director, Stephen Stone.

"Ibaera's highly experienced and accomplished technical team is now on board and finalising programmes and budgets including for drilling aimed at boosting Mineral Resources and Ore Reserves and ultimately the delivery of a revised blueprint for funding and development of the Wa Gold Project."

Ibaera Team Appointed

Ibaera, headed by former Manager of Business Development at Fortescue Metals Group (FMG), James Wallbank, has now made all of its key appointments who will immediately integrate with the existing Azumah Perth and Ghana based team.

The Ibaera team will include; Peter Hairsine, former Project Study Manager Manager and Manager of Business Development at FMG; Dr. Jon Hronsky, former Manager of Strategy and Generative Services for BHP Billiton Mineral Exploration, Global Geoscience Leader for WMC Resources Ltd and Chairman of the Board of the Centre for Exploration Targeting; Paul L'Herpiniere, former Exploration Manager at FMG and Ibaera's CFO, Chris Alexander.

Peter Hairsine has been appointed Project Manager and will report to the Board of Azumah Resources (Gh) limited, the operating entity for the incorporated joint venture in which Ibaera may earn in two stages over approximately two years, up to 47.5%.

The expanded team has already begun a comprehensive review of the current Feasibility Study for the Project, a review of existing targets and is also generating new targets.

James Wallbank and Jon Hronsky will join Azumah's Stephen Stone (Chairman) and Paul Amoako-Atta on the board of Azumah Resources (Gh) Limited.

Ibaera Funding Transaction

On 1 September 2017 Azumah executed an Earn-In and Shareholders Agreement (EISA) with Perth managed private equity group, Ibaera Capital

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GP Limited, whereby Ibaera can earn up to a 47.5% interest for an expenditure of US$13.5 million (~A$17M) in the Company's Wa Gold Project (refer ASX release dated 1 September 2017). The terms of the EISA set out the basis for the parties to boost Mineral Resources, Ore Reserves and to deliver a study supporting a decision to proceed to production within the next two years. The EISA, was contingent on the consent (now received) of the Government of Ghana.

Documentation and meetings approving and giving effect to the above appointments and the restructuring of Azumah Resources (Gh) Limited consistent with the terms of the EISA will be executed shortly.

For further information please contact:

Stephen Stone Managing Director Tel. 61 (0) 418 804 564

stone@azumahresources.com.au

About Azumah

Azumah Resources Limited is an ASX-listed (ASX: AZM) company focused on exploring and developing its regional scale Wa Gold Project in the Upper West Region of Ghana, West Africa.

Three main deposits have been discovered and extensively drilled at Kunche and Bepkong, adjacent to the Black Volta River and Ghana's border with Burkina Faso, and at Julie ~80km to the east. Several satellite deposits, including Aduane and Collette, have also been delineated.

To date, the Company has defined a JORC 2012 Mineral Resource of 2.1Moz of gold grading 1.5g/t Au, including 1.4Moz Measured and Indicated grading 1.7g/t Au, with these evenly distributed between Kunche-Bepkong and Wa East (Julie deposit).

Mineral Resources have been progressively grown through a focused, systematic approach to exploration of the Company's 2,400km2 licence holdings, which encompass large tracts of prospective Birimian terrain, the rocks that host the majority of West Africa's gold mines. Much of this is covered in soil, alluvium or laterite so most discoveries have been 'blind'. Azumah anticipates Mineral Resources will grow substantially as it continues to test its large pipeline of target areas and specific prospects.

Azumah completed in 2015 a Feasibility Study for a mining operation based on an initial seven-year life and producing ~90,000oz Au per year from the open pit mining and treatment of ore through a nominal 1.2 million tonnes per year carbon-in-leach (CIL) processing plant (1.8Mtpa treating softer oxide material). The plant will be located adjacent to the Kunche deposit and incorporate a flotation and regrind circuit to treat Julie primary and some transitional ore which will be hauled by road to the processing plant.

A JORC 2012 Ore Reserve of 624,000oz Au (9.1Mt at 2.14g/t Au) has been defined with the designed optimised pits also containing Inferred Resources of 28,000oz Au. Extensive metallurgical test work has been undertaken to confirm a high average overall gold recovery of ~92% for the combined Kunche, Bepkong and Julie deposits.

No technical, social or environmental impediments to development have been identified, no communities need to be rehoused and there is strong support from all stakeholders for the Project.

The Project benefits from excellent regional infrastructure including grid power to site, good quality bituminised and non-bituminised roads, easy access to water, a 2km sealed airstrip at the regional centre of Wa and good general communications.

Azumah has two 15-year Mining Leases over its key deposits (Ghana government holds a 10% free carried interest in their 'rights and obligations' and is also entitled to a 5% gross gold royalty).

Azumah's exploration strategy has been driven by its need to boost Mineral Resources to increase the existing Ore Reserve base from 624,000oz towards 1.0Moz. This would more solidly underpin a development decision and improve funding capability, in particular through an effective reduction in the development capital intensity per reserve ounce.

Work has focused around laterally extending existing resources, identifying new target areas and at specific prospects within these areas.

References

All references to Mineral Resources and Ore Reserves pertain to ASX releases dated 2 September 2014, 23 March 2015 and 12 October 2016 respectively. Also refer to Tables 1 and 2 herein. The Company confirms that all material assumptions underpinning the production targets and forecast information continue to apply and have not materially changed other than a positive material reduction in capital costs (refer ASX release dated 9 May 2016). For further information on Azumah Resources Limited and its Wa Gold Project please visit its website at www.azumahresources.com.au which contains copies of all continuous disclosure documents to ASX, Competent Persons' Statements and Corporate Governance Statement and Policies.

Competent Persons' Statements

The scientific and technical information in this report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Stephen Stone, who is a full-time employee (Managing Director) of Azumah Resources Limited. Mr Stone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'. Mr Stone is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the geology of the deposits and exploration results.

Table 1: Ore Reserves Summary - JORC Code 2012

Proved Probable Total Gold To Mill

(As at August 2014)

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au

Gold oz

Kunche

4.91

1.92

0.05

3.11

4.97

1.94

309,000

Bepkong

1.79

1.84

0.11

1.97

1.90

1.85

113,000

Julie

0.29

2.45

1.93

2.89

2.21

2.84

202,000

Total

7.00

1.92

2.09

2.85

9.08

2.14

624,000

Values have been rounded. NB: The Ore Reserve excludes 28,000oz inferred gold deemed 'Mining Inventory'

Table 2: Mineral Resource Estimate - JORC Code 2012 - Updated October 2016

Measured Indicated Inferred Total

Deposit

Tonnes (M)

Grade g/t Au

Gold oz

Tonnes (M)

Grade g/t Au

Gold oz

Tonnes (M)

Grade g/t Au

Gold oz

Tonnes (M)

Grade g/t Au

Gold oz

Kunche

8.42

1.7

468,000

2.24

1.4

99,000

4.86

1.2

183,000

15.52

1.5

751,000

Bepkong

2.22

1.8

128,000

1.70

1.3

73,000

1.17

1.2

44,000

5.09

1.5

245,000

Aduane

1.77

1.5

85,000

1.77

1.5

85,000

Julie

0.89

1.4

41,000

10.06

1.6

507,000

5.98

1.5

286,000

16.93

1.5

834,000

Julie West

0.38

4.2

52,000

0.03

4.0

4,000

0.41

4.2

56,000

Danyawu

0.07

5.5

13,000

0.07

5.5

13,000

Collette

1.69

1.5

79,000

1.69

1.5

79,000

Total

11.52

1.7

637,000

14.45

1.6

744,000

15.50

1.4

681,000

41.49

1.5

2,063,00

Note: Values have been rounded. A lower cut-off of 0.5g/t Au was used for Kunche, Bepkong, Aduane, Julie and Collette, and a lower cut-off of 1.0g/t Au was used for Julie West and Danyawu.

Statements of Competent Persons for the various Mineral Resource Estimates, Ore Reserve Estimates and Process Metallurgy can all be found on the Company's website at: http://www.azumahresource.com.au/projects-competent_persons.php

Forward-Looking Statement

All statements other than statements of historical fact included on this website including, without limitation, statements regarding future plans and objectives of Azumah, are forward-looking statements. Forward-looking statements can be identified by words such as 'anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Azumah that could cause Azumah's actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained on this website will actually occur and investors are cautioned not to place any reliance on these forward-looking statements. Azumah does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained on this website, except where required by applicable law and stock exchange listing requirements.

Azumah Resources Limited published this content on 27 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 October 2017 02:47:00 UTC.

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