Gascoyne Resources Enters Into Long Term Forward Gold Sales Contracts

Gascoyne Resources Limited announced that it has entered into flat forward gold sales contracts for 164,000 ounces of gold production from its 100% owned Dalgaranga Gold Project, at a delivery price of $1,712 per ounce (net of fees). These contracts have been executed with Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) who are also providing a $60M project loan facility for the development of the Dalgaranga Gold Project. This hedge replaces the short term hedge facility that was put in place in November.

The Company’s strategy of securing short term hedges in November and early December set the base pricing for the longer term gold hedge outlined above. This strategy has enabled the Company to achieve a long term flat forward sale price of $1,712/oz, which is a premium of approximately $78/oz on the recent spot gold price of $1633/oz and has protected the Company from the recent gold price volatility.

The first gold delivery under the long term hedge is due in September 2018 and the last delivery date is June 2022.

At the time that the initial short term hedging was executed in November the Company was required to lodge a $5 million cash security with CBA. With the debt facility and the project security now in place, the $5 million has been returned to the Company.


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