Gruyere Gold Project Update: Environmental Approval & Development Milestones Acheived

ASX Announcement

23 January 2017

GRUYERE GOLD PROJECT UPDATE: ENVIRONMENTAL APPROVAL AND DEVELOPMENT MILESTONES ACHIEVED

Highlights

• WA Minister for Environment provides environmental approval
• Project Construction Manager appointed
• First 100 rooms of Construction Camp installed
• Project Management team successfully transitioned

Gold Road Resources Limited (Gold Road or the Company) is pleased to provide an update on construction progress at the Gruyere Gold Project, a 50:50 Joint Venture with Gold Fields Ltd (Gold Fields), located 200 kilometres east of Laverton in Western Australia.

Permitting and Approvals

Permitting and approvals for the Gruyere Gold Project (the Project) remains on schedule, with environmental approval now received from the Minister for Environment Hon. Albert Jacob MLA.

Approval of the Project under Ministerial Statement 1048, subject to certain conditions, is the precursor to secondary approvals now being assessed by the Department of Mines and Petroleum, and Department of Environment Regulation.

ASX Code GOR

ABN 13 109 289 527

COMPANY DIRECTORS

Tim Netscher

Chairman

Ian Murray

Managing Director & CEO

Justin Osborne Executive Director, Exploration & Growth

Martin Pyle

Non-Executive Director

Sharon Warburton

Non-Executive Director

Kevin Hart

Company Secretary

CONTACT DETAILS

Principal & Registered Office Level 2, 26 Colin St

West Perth WA 6005

www.goldroad.com.au [e-mail]

T [phone]

F [phone]

Gold Road Managing Director and CEO Ian Murray said: "Achieving environmental approval is an important milestone and clears the path for the Project's Mining Proposal, Project Management Plan and Works approvals, all of which have been submitted.

"We anticipate receiving these final approvals in February 2017, immediately following which we will commence construction of the processing plant and development work on the Gruyere open pit mine. I would like to acknowledge the commitment of the entire Gold Road and the Project team in delivering these milestones in a period of high activity and transition for the Project."

Appointment

Geoff Cowie, previously Gruyere Feasibility Study Coordinator, has been appointed to the key position of Construction Manager for the Project.

Mr Cowie brings a wide range of experience in the field of project management, project delivery and construction management for large mining developments and major infrastructure projects internationally, including senior project delivery roles in Australia, China, Bulgaria, South East Asia and South Africa.

Before taking on the Gruyere Feasibility Study Coordinator role for Gold Road, he was engaged as a Senior Project Manager by WSP/Parsons Brinkerhoff working on the Aurizon West Pilbara Infrastructure Project studies, which included 275 kilometres of new heavy haul rail and a new deep water port at Anketell Point.

Previous senior roles in mining project construction include Project Director ‐ EPC Delivery for Roy Hill Holdings Pty Ltd, and Project Director for Calibre on the T155 rail duplication project for FMG.

Commenting on his appointment as Construction Manager, Mr Cowie said: "Taking on this key role for the Project offers a great opportunity to lead a committed team, follow‐through on the work previously completed as part of the Feasibility Study and deliver this outstanding project into production on time, on budget and safely."

Accommodation

Work to dismantle and relocate the first 300 rooms of the accommodation village for the Project has been completed, while erection of the units has started and is expected to be completed in March 2017.

Work to dismantle, relocate and install the second 300 rooms for the Gruyere accommodation village will commence in February and is scheduled for completion in the June 2017 quarter.

Installation of the Construction Camp is on track for completion in March.

Work has also commenced to connect water and sewerage to the camp.

Contracts

The Project is in the final stages of evaluating tender submissions for key works contracts including the Engineering, Procurement and Construction (EPC) contract for the process plant and associated infrastructure; bulk earthworks contract; energy supply agreement comprising of the power station and gas pipeline; long lead time equipment; and catering contract, with final decisions expected in the March 2017 quarter.

Transition

The transition of the Project Team to the Project Manager, Gold Fields, is progressing well, with the transition expected to be completed in the March 2017 quarter.

The transition process has progressed smoothly and without any interruptions or impacts to the Early Works program, which commenced in the December 2016 quarter. The detailed engineering for the Gruyere accommodation village, airstrip, access roads, tailings storage facility and Anne Beadell borefield are well advanced and will be completed by the end of the March 2017 quarter.

For further information, please visit www.goldroad.com.au or contact:

Gold Road Resources

Ian Murray

Managing Director & CEO Telephone: [phone]

Media and Broker Enquiries

Warrick Hazeldine [e-mail] Cannings Purple

Tel: [phone]

About Gold Road

Gold Road is pioneering development of Australia's newest goldfield, the Yamarna Belt, 200 kilometres east of Laverton in Western Australia. The Company holds interests in tenements covering 5,000 square kilometres in the region, which is historically underexplored and highly prospective for gold mineralisation. The Yamarna leases contain a gold resource of 6.6 million ounces, including 6.2 million ounces at the Gruyere deposit, of which the Company owns 50%.

The Feasibility Study for Gruyere, which was completed in October 2016, indicated the Project's 3.5 million ounce Reserve could support average annualised production of 270,000 ounces for 13 years (ASX announcement dated 19 October 2016). In November 2016, Gold Road entered into a 50:50 joint venture with Gold Fields Ltd for the Gruyere Gold Project, with commencement of Project construction in January 2017.

Gold Road continues to explore for similar‐scale deposits on its 100%‐owned North Yamarna tenements, its 50% owned Gruyere Project Joint Venture tenements (with Gold Fields Ltd) and its 50% owned South Yamarna Joint Venture tenements in conjunction with Sumitomo Metal Mining Oceania (a subsidiary of Sumitomo Metal Mining Co. Limited).

Yamarna simplified Tenement Map with Mineral Resources and Ore Reserves on a Gruyere Project Joint Venture 100% basis (Gold Road 50%).