Pantoro Ltd advises that it has completed extensive sorting test work on ore from the Nicolsons mine. As a result of the testing and financial analysis, Pantoro has placed and order for and committed to installation of a Steinert Multi-Sensor Ore Sorter.

• Ore sorting trials conducted with multiple suppliers, all demonstrating outstanding results.

• A Steinert multi-sensor ore sorter has been ordered and detailed engineering is nearing completion.

• Site works due to commence during the current month, and the ore sorter is planned to be fully operational in

April 2018.

• Overall gold recovery of 95 to 98% in test samples depending on ore type.

• Once installed, ore sorting is expected to result in a 30 to 60% reduction in material reporting to the mill, resulting

in mill feed grades of 1.5 to 2.5 times the mined grade based on test samples completed to date.

• Ore sorting is expected to facilitate planned gold production increases with only minor additional works required

in the processing plant. Pantoro intends to complete the upgrade out of cash flow and existing cash reserves.

Delivery of the ore sorter from Germany to Fremantle Port is expected during December 2017. Commenting on the ore sorting developments, Managing Director Paul Cmrlec said “Ore sorting has been a major consideration for increasing capacity of the Nicolsons processing plant for some time and we are thankful to Steinert for their assistance and flexibility in expediting the purchase and delivery of the machine. We are confident that the highly advanced ore sorting technology will return excellent recovery of ore, while substantially increasing feed grade to the mill.”

“The installation of the ore sorter will enable us to immediately process the large low grade stockpiles which have

been building since mining commenced at Nicolsons as part of the ROM feed. These stockpiles would otherwise

remain dormant until the end of mine life. In addition, Pantoro remains focussed on continuing to increase ore

production from Nicolsons underground mine in the immediate term, and to commencement of underground

mining beneath the Wagtail and Rowdies open pits during the first half of next year.”

“We are continuing our strategy of aggressive underground and surface drilling campaigns aimed at substantially

increasing Ore Reserves by the middle of 2018, ahead of ramping up to our targeted production rates of 80,000 –

100,000 ounces per annum. The installation of the ore sorter simplifies and substantially reduces the time and cost

of the required processing plant upgrade to achieve our goal. We intend to complete the installation of the ore

sorter and other upgrades out of cashflow from the operation.”