Gryphon Minerals : High Grade Drill Results & Exploration Update at the Nogbele Deposit, Banfora Gold Project, Burkina Faso

Corporate Directory Non-Executive Chairman Mel Ashton Managing Director Stephen Parsons Non-Executive Directors Didier Murcia Bruce McFadzean Company Secretary Carl Travaglini Teranga Gold Corporation is to acquire Gryphon Minerals via a Scheme of Arrangement (ASX 20/6/16) Banfora Gold Project, Burkina Faso Fully permitted Shovel ready Exploration upside Golden Hill and Gourma Gold Projects Highly Prospective Exploration Pipeline, Burkina Faso Contact Details Principal & Registered Office 288 Churchill Avenue SUBIACO WA 6008 T: [phone] F: [phone] E: [e-mail] ASX CODE GRY www.gryphonminerals.com.au For Media and Broker Enquiries: Andrew Rowell / Luke Forrestal Cannings Purple [phone]/[phone] [e-mail]/ [e-mail]

ASX Announcement 2 August 2016 High Grade Drill Results & Exploration Update at the Nogbele Deposit, Banfora Gold Project, Burkina Faso Highlights Multiple high grade drill results received from phase one drilling completed during the May-June Reverse Circulation (RC) drill program at the Nogbele Deposit, Banfora Gold Project Numerous high grade drill results have confirmed the plunge potential and robustness of high grade gold domains at the Nogbele deposit including the following RC results from infill and extensional drilling: Significant new strike extension highlighted at South-West Tahiti Zone with results extending known mineralisation a further 180 metres to the North- West along strike. Follow up drilling is underway with 2 rigs (1 RC rig & 1 DD rig) operating on double shift. Results will be made available at the earliest opportunity. Nogbele Nangolo Domain 21m @ 3.9 g/t from 50m in BNRC4804 14m @ 4.0 g/t from 16m in BNRC4807 5m @ 6.6 g/t from 42m in BNRC4806 7m @ 4.6 g/t from 5m in BNRC4808 Nogbele North Domain 4 2m @ 69.6.5 g/t from 74m (including 1m @ 130 g/t) in BNRC4591 2m @ 10.2 g/t from 52m in BNRC4594 2m @ 6.5 g/t from 85m in BNRC4572 2m @ 5.7g/t from 68m in BNRC4574 Nogbele West Domain 9m @ 2.7 g/t from 10m and 8m @ 12.9 g/t from 49m in BNRC4587 5m @ 2.0 g/t from 66m and 6m @ 3.2 g/t from 98m in BNRC4585 Shallow oxide RC results include: 10m @ 1.1 g/t from 17m and 31m @ 1.5 g/t from 47m in BNRC4600 23m @ 1.9 g/t from 5m in BNRC4597 13m @ 1.1 g/t from 15m in BNRC4599 Gryphon Minerals Limited (ASX:GRY) is pleased to provide an update on its exploration activities at the Banfora Gold Project in Burkina Faso, West Africa. Drilling completed during May/June focussed on advancing the high grade lodes at the Fourkoura and Nogbele Gold deposits to potentially increase the reserve grade and provide additional reserve growth. Steve Parsons Managing Director of Gryphon Minerals said "We are extremely encouraged by these latest drill results from the Nogbele deposit at the Banfora Gold Project. We have now commenced a resource and reserve conversion drill program which will be used to update the Feasibility Study for a Carbon In Leach processing plant. The recent placement by Teranga Gold Corporation has enabled us to fast track the drilling and engineering studies for completion early in 2017 with anticipated commencement of construction and development later that year."

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Nogbele Deposit RC Drilling Results

Results have now been received from all drilling completed during the May/June Reverse Circulation (RC) drill program at the Nogbele and Fourkoura Deposits. In total 827 metres of drilling was completed at Fourkoura (refer ASX 13/7/2016 for results1) and 3,470 metres of drilling at Nogbele. Current work is focussing on the refinement and extension of the high grade domains hosted within the project with the potential to improve the Carbon-In-Leach (CIL) economics and reserve inventory. The drilling will be incorporated into a new resource estimate due for completion to accompany the scheduled Feasibility Study for a CIL operation in first half of 2017.

The drilling program has successfully reinforced the geological model at the Nogbele-Nangolo, North and West Deposits and at the Fourkoura North Deposit area confirmed shallow high grade plunging mineralisation with potential to further extend known mineralisation at depth. Drilling has also highlighted the potential for a significant strike extension (>180m along strike mineralisation intercepted) of the Tahiti Pit at Nogbele South with material expected to be closer to the average grade of the current resource over downhole widths up to 30 metres.

Figure 1: Nogbele Deposit layout map with Location of recent drilling

Nogbele South Deposit- Tahiti Zone Strike extension

Nogbele South covers two parallel north-west trending structures that are host to a series of discretely plunging orebodies. Mineralisation at Nogbele South is generally hosted in an alteration of the host Nogbele Granite associated with pervasive micro-cataclasis of the host granite and strong Fe-carbonate, sericite pyrite alteration, generally devoid of quartz veining. Mineralisation is controlled by the interactions of sheared segments of mafic to lamprophyric dykes which have been resheared and carbonate altered. These zones are generally defined by a consistent grade tenor and a well defined plunge within the fault plane.

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The Tahiti structure is the western of the two main faults and has been tested over approximately 1.6 kilometres. Mineralisation dips steeply towards the north-east and plunges steeply to the south-east within the fault.

Recent auger traverses testing beneath an untested gold in soil anomaly on the northern strike, defined a potential 200 metre long coherent +100ppb gold in saprolite anomaly extending known mineralisation. This anomaly has been followed up with shallow RC drilling intersecting significant alteration and veining consistent with known zones of mineralisation at the deposit. These new results included the following intercepts:

BNRC4600 10m @ 1.1 g/t from 17m and 31m @ 1.5 g/t from 47m BNRC4597 23m @ 1.9 g/t from 5 m

BNRC4599 13m @ 1.1 g/t from 15m BNRC4801 10m @ 1.1 g/t from 17m

Drilling at the prospect was terminated before the end of the planned program due to ground conditions causing frequent hammer blockages in the RC. A follow up program of 1,000 m of diamond drilling is currently being prepared at the prospect to convert the new zone into the resource inventory. Sample recovery weights and moisture content logging indicate the drilling difficulties have not materially compromised the reliability of the reported intervals. A total of 8 holes for 552 m of drilling were completed at Tahiti North.

Figure 2: Example of mineralization type encountered at Nogbele South (Tahiti Structure)

Photo of previously announced diamond drilling at the Tahiti Structure, BNRCD0830 core in photo assays 11.35 g/t for the metre and is part of interval of 25m @ 1.6 g/t (refer ASX 24/7/20091). Fe-carbonate replacement of the original granite.

The new results extend known strike of the deposit 180 metres north of the previous resource boundary. The Tahiti North deposit was covered in the 2014/15 grade control drilling (refer ASX 6/5/20151) with results from this drilling to also be included in the resource update scheduled for H1/ 2017. There is a reasonable potential for these results to expand the current Tahiti Structure reserves with a reduced strip ratio associated with the extension in strike.

Selection of significant results form 2014 grade control drilling not included in the current public resource: OPRC3406 19 m @ 6.3 g/t from 7m

OPRC2862 16m @ 6.8 g/t from 7m OPRC2838 25m @ 3.4 g/t from 1m OPRC3425 18m @ 4.3 g/t from 12m OPRC3428 20m @ 3.3 g/t from 0m OPRC3426 24m @ 2.4 g/t from 6m OPRC2863 12m @ 4.0 g/t from 0m OPRC2846 17m @ 2.8 g/t from 17m

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Refer to figure 3 below for a plan of the location of the new drilling relative to the 2013 CIL Definitive Feasibility Study Pit outline design (refer ASX 7/3/2012, 6/5/20151).

Figure 3: Nogbele South Drill layout and new drill results Figure 4: Cross section of Tahiti North RC with Proposed DD holes - Shallow and Open