Vector Resources : 2017 Gold Exploration Program Underway

ASX ANNOUNCEMENT

28 February 2017

ASX Market Announcements ASX Limited

20 Bridge Street

Sydney NSW 2000

2017 GOLD EXPLORATION PROGRAM UNDERWAY VISIBLE GOLD IDENTIFIED ACROSS FIRST THREE LICENSES

Visible gold seen at stream sediment sampling at PE4803 "Namoya West" License

• 2017 exploration program commences with reconnaissance work underway at main Kabotshome Gold Prospect (PR4804), Mbutu and Mitunda Gold Prospects (PR4804, PR4801) and Namoya West (PR4803)
• Visible gold observed in artisanal workings at Kabotshome and Mitunda Gold Prospects
• Review of diamond drill core from historic drilling Kabotshome Gold Prospect confirms visible gold in hole KBD07 with last drill metre returning 20.3g/t
• Visible gold observed in follow up to high grade 2010 historical stream sampling and associated pitting results at Namoya West, with Vector's geologists confident of the location of primary gold mineralisation within the exploration license area
• Four, 1kg soil and stream samples taken at Mitunda Gold Prospect (1) and Namoya West (3) and sent for analyses in South Africa with results due in mid-March 2017
• Discussions advanced with several in-country drilling contractors in respect to the commencement of the Company's proposed 4,000m in-fill and extensional diamond program
• Site logistics advanced with significant work underway in respect to exploration camp, main access road re-establishment and site communications set-up

ABN 99 107 541 453 Suite 4, Henry James Building, 8 Alvan Street, Subiaco, WA 6008; PO box 1325, West Perth, WA 6872

Tel.: [phone] Fax: [phone]

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Vector Resources Limited ("Vector" or the "Company") is pleased to announce that it has successfully commenced it's 2017 gold exploration program at the Maniema Gold Project ("Project"), located in the Maniema Province, in the Democratic Republic of Congo.

The commencement of gold exploration activities on site with its in-country geological team, logistics manager and the Company's CEO, Mr Simon Youds, follows completion of the acquisition of the Maniema Gold Project in January 2017.

Gold exploration licenses and main gold prospects at the Maniema Gold Project

The Company's exploration team has commenced activities on site, with initial work focused on project mapping, surveying and sampling at the Kabotshome Gold Prospect (PRE4804), at the Mbutu and Mitunda Gold Prospects (PR4804, PR4801) and on the Namoya West (PR4803) license that is located immediately adjacent to Banro Corporation's (TSE:BAN) operating Namoya Gold Mine.

Kabotshome Gold Project

The Kabotshome Gold Prospect is the Company's most advanced prospect located on PR 4804.

The Kabotshome Gold prospect has a JORC Inferred Resource of 6.97Mt at 1.9g/t Au for 421,000oz with a 20g/t Au top-cut (refer ASX Announcement dated 17 January 2017).

A total of 17 diamond holes have been drilled along the main target at Kabotshome which extends for over 1km.

All drill holes intersected gold mineralisation along the Kabotshome structure.

This mineralisation was generally 15m to 25m wide with a grade range of 1.5 to 2.5g/t Au.

Quartz vein material mined by artisanals at Kabotshome (near KBD01 borehole location) showing free gold and pyrite.

Mineralisation remains open along strike and at depth.

Artisanal activity near to KBD07 drill collar and on echelon to main Kabotshome structure

Kabotshome was subject to previous alluvial mining by Belgian miners during the 1960s.

Current artisanal alluvial activity is located en echelon to the main Kabotshome structure and centred near to KBD07 drill collar.

Additional artisanal hard rock underground workings were identified adjacent to the main Kabotshome structure suggesting additional mineralised structures to the east and possibly linked to previously drilled subsidiary structures further north but outside the envelop of the current resource.

The 2017 exploration program prioritises mapping and surveying of the artisanal activities at Kabotshome Gold Prospect, with particular focus on the shallow underground and open pit artisanal activities.

A review and audit of the diamond drill core and assay results has now been completed by the Company's geological team.

This audit identified the increased grades at depth as suggested by the assay results from KBD07.

Hole KBD07 included 20.25m @ 2.5g/t (from 319m) including 8m @ 4.03g/t and 21.7m @ 3.58g/t (from 354m and incl 5.7m @ 8.74g/t)

Drill core from historical drilling at Kabotshome was reviewed and audited

Drill core from KBD007 finished in mineralisation

Hole KBD07 finished in mineralisation with the last drill metre (from 375m) returning an assay of 20.3g/t

The audit and review of the KBD07 core observed visible gold in the last drill metre.

Hole KBD07 was intended to go beyond 400m depth, but finished at 375m in 20g/t of gold mineralisation.

The hole finished short of its planned depth as a result of the driller not having additional rods to finish the hole to the required depth.

The use of road access and four-wheel drive vehicle support by the Company is planned to avoid a repeat of this in the future.

The Company's planned up to 4,000m diamond drilling program at the Kabotshome Gold Prospect will be an in fill and extensional program aimed at increasing the existing resources.

Meetings with several in-country drilling contractors were held in January and February 2017, with a formal tender process to commence in March 2017 once the plans for the drilling program are finalised.

Mitunda Gold Project

The Mitunda Gold Prospect is located on PR 4801, contiguous and immediately south of PR 4804 which is where the Kabotshome Gold prospect is located.

At the Mitunda Gold Prospect, the Company's exploration team encountered extensive artisanal workings whilst completing reconnaissance and mapping work.

Over 1,000 artisanals were seen to be mining a high grade paleo-channel in which the primary source of gold appears proximal to the current workings.

Limited historical drilling appears to have not effectively targeted the mineralisation at Mitunda

3 gram gold nugget from artisanal workings at Mitunda

A 1kg sample was taken at the Mitunda Gold Prospect from the paleo-channel being worked by artisanals. The paleo-channel is under approx. 11m of laterite sediment and both the laterite and paleo-channel have angular material indicating that the gold & rocks haven't traveled far meaning the primary source is close by.

Sample ID	UTM Easting	UTM Northing	Elevation
MIT 01	491155	9571792	719

Mitunda Gold Prospect 1kg sample from Artisanal Workings

The sample has been transported to South Africa for analyses with the result due in mid-March 2017.

The Company's current reconnaissance and mapping work at the Mitunda Gold Prospect will also include sampling of each layer from the artisanal workings from the top of the existing pit to approx. 12m depth and testing for free gold and determination of the orientation of the alluvial channel.

The mapping of the surface expression of all the artisanal workings, in relation to the historical drilling and geochemistry, will allow the Company to target both the primary source and to outline the potential in the paleo-channel extensions. Give the Mitunda Gold Prospect's proximity to Kabotshome, there is the potential to drill test this area once the Company has a better understanding of this high potential mineralisation.

Namoya West Prospect

The Namoya West Gold Prospect is located on PR 4803 at the southern end of the Twangiza-Namoya gold belt.

It is located immediately west of TSE-listed Banro Corporation's Namoya Gold Mine, which commenced production in 2016. The Namoya Gold Mine, is a heap leach - CIL plant operation which has a Proven and Probable Mineral Reserve of 20.94Mt grading 2.02 g/t and containing 1.36Mozs of gold and Measured and Indicated resources of 25.68Mt grading 1.96 g/t and containing 1.62Mozs.

The Company's exploration team has completed a detailed audit and review of historical exploration activities conducted on site. This review work identified exceptionally high grade historical stream sediment sampling and associated pitting results that were recorded in programs completed in 2010.