ASX Announcement 31 August 2017 Full Year Financial Results & Bonus Option Westgold Resources Limited (Westgold or the Company) is pleased to release its 2017 financial results. Westgold was listed on the Australian Securities Exchange (ASX) on 6 December 2016 following its demerger from Metals X Limited. For full information, refer to the Financial Report for the Year Ended 30 June 2017 released today. Key Results • Revenue up 43.5% over previous year to $437.14 million. • Cash flow from operating activities increased 52% over previous year to $75.59 million. • Gross profit increased 1,508% to $31.46 million. • Net profit before tax increased by 185% to $24.62 million. • Net profit after tax increased 177% to $15.77 million. • Net assets increased 188% to $299.64 million. • Cash and cash equivalents at year end of $67.14 million. Capital reinvested in growth during the year • Investment in ‘Property Plant & Equipment’ of $35.3 million. • ‘Mine Properties & Development’ expenditure of $63.8 million. • ‘Exploration and Evaluation’ expenditure of $23.9 million. Bonus Option The Board declares that no dividend is payable for the full financial year. However, given the success of the Company during the year and with reference to it only reflecting seven months of operating history, the Board has elected to reward its loyal and supportive shareholders with a pro rata one for five bonus option. The principal terms and conditions of the new options are as follows: • Class of security to be issued – options over ordinary shares in the Company. • Number of securities to be issued – approximately 64,162,204 options (subject to rounding). • Issue price of bonus options – nil consideration. • Record Date to determine entitlement – 5pm (WST) on 14 September 2017. • Exercise price of options – $2.00. • Expiry date of options – 5pm (WST) on 30 June 2019. • Options to be issued to eligible shareholders resident in Australia, New Zealand and Hong Kong. Westgold Resources Limited ACN 009 260 306 t: +61 8 9462 3400 | e: reception@westgold.com.au | w: www.westgold.com.au PO Box 1959 West Perth WA 6872 | Level 3, 18-32 Parliament Place, West Perth WA 6005 The Company will apply to have the option class listed on the ASX. Anyone who wishes to acquire the new options simply needs to be an eligible registered shareholder in the Company on the Record Date. No application form will need to be completed. A prospectus for the new options will be lodged with ASIC and announced on the ASX on or about 8 September 2017. It is expected to be mailed to shareholders on or about 20 September 2017, with the new options to be issued on or about 28 September 2017. Further details of the new options will be provided in the prospectus. Managing Director’s Comment “This is a great inaugural result. Westgold has had a successful seven months trading as a separate publicly listed gold company. The growth in our revenue, cash flow and profits represents a maturing company whilst the capital re-investment in the groups new and expanding asset base and future growth. Our existing operations continue to deliver positive outcomes whilst our key Central Murchison Gold Project continues to rampup and expand. Additionally, the completion of refurbishment and the declaration of commercial production of the Fortnum Gold Project at year-end continued our growth in gold output. It is only fitting that we reward our loyal and supportive shareholders with a bonus option in lieu of a dividend following our inaugural financial report representing nearly seven months since the Company began trading again on the ASX.” Enquiries Peter Cook Steve Norregaard Rod Corps Managing Director Operations Director Manager – Investor Relations peter.cook@westgold.com.au steve.norregaard@westgold.com.au rod.corps@westgold.com.au Full Year Financial Results to 30 June 2017 Page 2 Rule 2.7, 3.10.3, 3.10.4, 3.10.5 Appendix 3B New issue announcement, application for quotation of additional securities and agreement Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public. Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12 Name of entity WESTGOLD RESOURCES LIMITED ABN 60 009 260 306 We (the entity) give ASX the following information. Part 1 - All issues You must complete the relevant sections (attach sheets if there is not enough space). 1 +Class of +securities issued or to be issued Options – a new class of quoted options (subject to grant of quotation by ASX). 2 Number of +securities issued or to be issued (if known) or maximum number which may be issued Approximately 64,162,204 (subject to rounding). 3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) Exercisable at $2.00 on or before 30 June 2019. + See chapter 19 for defined terms. 01/08/2012 Appendix 3B Page 1 4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment New class of quoted options (subject to grant of quotation by ASX) with no rights to participate for the next dividend or interest payments. Shares issued on exercise of options will be on the same terms as fully paid ordinary shares on issue. 5 Issue price or consideration Nil. 6 Purpose of the issue Issued pursuant to a pro rata bonus issue of (If issued as consideration for options to shareholders of the Company. the acquisition of assets, clearly identify those assets) 6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A? No. If Yes, complete sections 6b – 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed N/A. 6c Number of +securities issued without security holder approval under rule 7.1 N/A. 6d Number of +securities issued with security holder approval under rule 7.1A N/A. 6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) N/A. 6f Number of securities issued under an exception in rule 7.2 N/A 6g If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation. N/A. 6h If securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements N/A. 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements N/A 7 Dates of entering +securities into uncertificated holdings or despatch of certificates Anticipated to be 28 September 2017. 8 9 Number and +class of all +securities quoted on ASX (including the securities in section 2 if applicable) +class Number and of all +securities not quoted on ASX (including the securities in section 2 if applicable) Number 320,811,020 +Class 64,162,204* *(subject to rounding) Options exercisable at $2.00 on or before 30 June 2019. Number +Class 11,000,000 Unlisted employee options (exercise price $2.02, expiry date 11 January 2020). Fully paid ordinary shares. + See chapter 19 for defined terms. 01/08/2012 Appendix 3B Page 3 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests) There has been no change to Westgold Resources Limited’s dividend policy. Part 2 - Pro rata issue 11 Is security required? holder approval 12 Is the issue renounceable or nonrenounceable? 13 Ratio in which the will be offered +securities One option for every five ordinary shares held at the Record date. 14 +Class of +securities to which the New class of quoted options, exercisable at $2.00 each on or before 30 June 2019. offer relates No. Non-renounceable. 15 +Record 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? Yes. 17 Policy for deciding entitlements in relation to fractions Rounded up to the nearest whole number. 18 Names of countries in which the entity has security holders who will not be sent new offer documents All except Australia, New Zealand and Hong Kong. date entitlements to determine 14 September 2017. Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt acceptances or renunciations of N/A. 20 Names of any underwriters N/A. 21 Amount of any underwriting fee or commission N/A. 22 Names of any brokers to the issue N/A. 23 Fee or commission payable to the broker to the issue N/A. 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders N/A. 25 If the issue is contingent on security holders’ approval, the date of the meeting N/A. 26 Date entitlement and acceptance form and offer documents will be sent to persons entitled N/A. 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders N/A. 28 Date rights trading will begin (if applicable) N/A. 29 Date rights trading will end (if applicable) N/A. 30 How do security holders sell their entitlements in full through a broker? N/A. 31 How do security holders sell part of their entitlements through a broker and accept for the balance? N/A. 32 How do security holders dispose of their entitlements (except by sale through a broker)? N/A. 33 +Issue date Anticipated to be 28 September 2017. + See chapter 19 for defined terms. 01/08/2012 Appendix 3B Page 5 Part 3 - Quotation of securities You need only complete this section if you are applying for quotation of securities 34 Type of securities (tick one) (a) Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities Entities that have ticked box 34(a) Additional securities forming a new class of securities Tick to indicate you are providing the information or documents 35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders 36 If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over 37 A copy of any trust deed for the additional +securities Entities that have ticked box 34(b) 38 Number of securities for which +quotation is sought N/A. 39 Class of +securities for which quotation is sought N/A. 40 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? N/A. If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now N/A. Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number 42 Number and +class of all +securities quoted on ASX (including the securities in clause 38) +Class N/A. + See chapter 19 for defined terms. 01/08/2012 Appendix 3B Page 7 Quotation agreement 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the +securities on any conditions it decides. 2 We warrant the following to ASX. • The issue of the +securities to be quoted complies with the law and is not for an illegal purpose. • There is no reason why those +securities should not be granted +quotation. • An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act. Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty • Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted. • If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted. 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement. 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete. Sign here: Print name: ......................................................... Date: 31 August 2017 Company Secretary David Okeby Appendix 3B – Annexure 1 Calculation of placement capacity under rule 7.1 and rule 7.1A for +eligible entities Introduced 01/08/12 Part 1 Rule 7.1 – Issues exceeding 15% of capital Step 1: Calculate “A”, the base figure from which the placement capacity is calculated Insert number of fully paid ordinary securities on issue 12 months before date of issue or agreement to issue Add the following: • Number of fully paid ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid ordinary securities that became fully paid in that 12 month period 304,671,487 - Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items Subtract the number of fully paid ordinary securities cancelled during that 12 month period - “A” 304,671,487 + See chapter 19 for defined terms. 01/08/2012 Appendix 3B Page 9 Step 2: Calculate 15% of “A” “B” 0.15 [Note: this value cannot be changed] Multiply “A” by 0.15 45,700,723 Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used Insert number of equity securities issued or agreed to be issued in that 12 month period not counting those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 16,139,533 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable ) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items “C” 16,139,533 Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1 “A” x 0.15 45,700,723 Note: number must be same as shown in Step 2 Subtract “C” 16,139,533 Note: number must be same as shown in Step 3 Total [“A” x 0.15] – “C” 29,561,190 Part 2 Rule 7.1A – Additional placement capacity for eligible entities Step 1: Calculate “A”, the base figure from which the placement capacity is calculated “A” Note: number must be same as shown in Step 1 of Part 1 Step 2: Calculate 10% of “A” “D” 0.10 Note: this value cannot be changed Multiply “A” by 0.10 Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used Insert number of equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items “E” Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A “A” x 0.10 Note: number must be same as shown in Step 2 Subtract “E” Note: number must be same as shown in Step 3 Total [“A” x 0.10] – “E” Note: this is the remaining placement capacity under rule 7.1A