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OUTSTANDING NEW RESULTS AT WESTRALIA UNDERGROUND CONFIRM POTENTIAL FOR MINE DEVELOPMENT

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28 JUNE 2016 OUTSTANDING NEW RESULTS AT WESTRALIA UNDERGROUND CONFIRM POTENTIAL FOR MINE DEVELOPMENT High grade mineralisation identified only 60m below Westralia open pit floor KEY POINTS Numerous high-grade
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28 JUNE 2016 OUTSTANDING NEW RESULTS AT WESTRALIA UNDERGROUND CONFIRM POTENTIAL FOR MINE DEVELOPMENT High grade mineralisation identified only 60m below Westralia open pit floor KEY POINTS Numerous high-grade intersections returned from recently completed 24-hole infill diamond drilling program at the Westralia Underground deposit at Dacian Gold's 100%-owned Mt Morgans Gold Project in WA. Latest results include: o 84.3 g/t Au from 212.2m o 14.1 g/t Au from 275.0m o 26.3 g/t Au from 424.0m o 18.0 g/t Au from 323.4m o 12.1 g/t Au from 437.0m o 15.9 g/t Au from 405.0m o 10.2 g/t Au from 307.0m o 9.7 g/t Au from 296.3m o 8.9 g/t Au from 316.0m o 10.5 g/t Au from 435.0m o 4.5 g/t Au from 422.5m The results will further underpin next month s Mineral Resource upgrade for the Westralia Prospect, which comprises both the Westralia Underground and Morgans Underground Mineral Resources High grade mineralisation at Westralia Underground has been confirmed over a strike distance of 500m and a vertical (dip) distance of 600m. Several drill holes returned multiple high grade BIF intersections The drilling confirms that high-grade mineralisation lies 100m south, and 60m below the base, of the historical Westralia open pit Drilling confirms at least three sub-parallel mineralised surfaces are present at Westralia Underground, some of which will be considered for combining into possible large-volume underground stoping opportunities 1 Page Dacian Gold Ltd ( Dacian Gold or the Company ) (ASX: DCN) is pleased to advise that its strategy to develop two high-grade underground mines at its 100%-owned Mount Morgans Gold Project (MMGP) in WA has been further strengthened by a series of high-grade drilling results. The new results come from the Westralia Underground deposit which, along with the Morgans Underground deposit, form part of the Westralia Prospect. The two proposed underground mines at Westralia are in addition to the proposed open pit mining complex at the nearby Jupiter Prospect. The latest results have established the presence of extensive high-grade mineralisation within 60m of the base of the dormant Westralia open pit. These results will be included in the Mineral Resource upgrade for the Westralia Prospect, which is due to be released next month. A Mineral Resource upgrade for the Jupiter Prospect at Mt Morgans is also due to be released next month, followed by a maiden Ore Reserve estimate for Jupiter. These estimates will form part of the MMGP Feasibility Study, which is scheduled for completion in the December quarter of this year. The latest drilling program of 24 diamond drill holes for 11,000m completes the in-fill diamond drilling program at the Westralia Prospect which comprised 95 diamond drill holes for a total of 46,000m. Results from the previously released 71 in-fill diamond drill holes from Morgans Underground were reported in ASX announcements dated 11 February 2016, 21 March 2016 and 1 June Dacian Gold Executive Chairman Rohan Williams said that whilst detailed engineering studies are still required to be completed, the latest results further strengthened the support for the two underground mines at Westralia. These new results are significant because they establish the presence of high-grade mineralisation close to the bottom of the open pit at Westralia Mr Williams said. BACKGROUND Dacian Gold has now completed its major resource in-fill and extensional drill program totalling 90,000m of RC and diamond drilling at its wholly owned MMGP located near Laverton in Western Australia. Drilling has focussed on the Westralia and Jupiter Prospects Mineral Resources that were used in the MMGP Scoping Study, completed last year (see ASX announcement 30 September 2015). 2 Page OBJECTIVES FOR THE WESTRALIA UNDERGROUND DRILL-OUT The principal objectives of the 11,000m drill-out on the Westralia Underground were to: 1. Complete a 50m x 50m in-fill diamond drill pattern over the upper portions of the Westralia Mineral Resource between 100m and 350m below the surface. It is expected the 50m x 50m drill pattern at Westralia Underground will be sufficient to upgrade the resource classification of that part of the Westralia Underground drilled (to a depth of 350m below surface) to an Indicated Resource. Mine design studies on the Indicated Resource are able to be used for estimating the maiden Ore Reserves for the Westralia Underground. 2. Select representative drill core sections of intersected mineralisation for use in detailed metallurgical test work programs being undertaken as part of the MMGP Feasibility Study. 3. Complete detailed geotechnical core logging to assist with mine planning and design studies being completed for the MMGP Feasibility Study. Figure 1 below shows the location of the 24 diamond drill holes that make up the 11,000m infill resource drill out at Westralia Underground. Also shown is the location of the Morgans Underground drilling area 1km north of the Westralia Underground - within the 3km long, 1.5 million ounce Westralia Prospect Mineral Resource. As can be seen from Figure 1, numerous +10 g/t Au intersections are present within both the Westralia Underground and the Morgans Underground drill areas (pink ellipses along the drill hole trace), confirming the significant extent of mineralisation present within the Westralia Prospect. Dacian Gold believes that with ongoing drilling, the Westralia Prospect will (i) continue to increase in size beyond the current resource limits which, in many cases, are arbitrarily defined boundaries limited by drilling density, and (ii) undergo an upgrading of the resource classification in areas currently defined as Inferred Mineral Resource to Indicated Mineral Resource. As noted above, mine design studies on the Indicated Mineral Resource can be used for the estimation of Ore Reserves. 3 P age Figure 1: Longitudinal section of the 3km long, 1.5 million ounce Westralia Prospect Mineral Resource showing the location of the recently completed 24 hole, 11,000m in-fill diamond drilling program at Westralia Underground. Also shown is the recently completed Morgans Underground drilling (see text for description). Note the high proportion of +10g/t Au intersections from both drilling programs. Also note the Mineral Resource is not closed off at depth, being defined in most directions by arbitrary boundaries 4 P age RESULTS FROM THE WESTRALIA UNDERGROUND DRILL-OUT Numerous high grade results were returned from the 24 diamond drill holes of the Westralia Underground resource in-fill drill out with several of the more significant intersections reported below in Table 1. A feature of several of the drill holes were the multiple high grade intersections returned from separate BIF units intersected in those holes (eg 16MMDD0149, 16MMRD0165 and 16MMRD0169). Detailed geological interpretation has led to the identification of individual BIF units that can be traced over many hundreds of metres, and have been referred to in this announcement as Hangingwall BIF, Central BIF and Lower BIF (see Table 1). Drill hole Intersection From Comments 16MMRD g/t Au 307.0m Lower BIF 16MMDD g/t Au including 14.1 g/t Au and 4.6 g/t Au 275.0m 275.0m 310.0m Combining Hangingwall, Central and Lower BIFs Lower BIF 16MMRD g/t Au 250.5m Lower BIF 16MMRD0159W g/t Au 437.0m Central BIF 16MMRD0161W1 7.8 g/t Au and 15.9 g/t Au 389.6m 405.0m Central BIF Lower BIF 16MMRD g/t Au and 3.7 g/t Au 212.2m 244.6m Hangingwall BIF Lower BIF 16MMRD g/t Au 435.0m Central BIF 16MMRD0167W g/t Au 424.0m Central BIF 16MMRD0167W2 4.5 g/t Au 422.6m Combined Central and Lower BIFs 16MMRD g/t Au and 18.0 g/t Au 296.3m 323.4m Hangingwall BIF intersection Lower BIF 16MMRD g/t Au 316.0m Central BIF Table 1: Significant results from the final 24 diamond drill holes of the Westralia Underground in-fill resource drill out showing individually mineralised BIF units. 5 P age Figure 2 below is a cross section through 10375N (south end of the Westralia pit) and shows the parallel relationship of the separate BIF units, all of which are mineralised. Several very high grade intersections from the recently completed 24 hole drill program, and the subject of this announcement, are shown with red/white labels. Note previously released Dacian Gold drill holes (13MMRD series) and historic underground drill holes confirm excellent BIF continuity and that the high grade mineralisation is present for over 400m in vertical extent. Figure 2: Cross section through 10375N showing high grade development along each of the Hangingwall, Central and Lower BIF units for a vertical distance of over 400m. 6 P age Whilst all three BIF units (Hangingwall, Central and Lower) exhibit high grade gold mineralisation, it appears the Hangingwall and Central BIF units contain the majority of the gold mineralisation at Westralia Underground. Figures 3 and 4 are long sections of the Hangingwall and Central BIF units respectively, showing all intersections: colour-coded for accumulation (intersection thickness multiplied by intersection gold grade). It should be noted that additional gold is present in the Lower BIF as seen in cross section in Figure 2. Figures 3 and 4 highlight several of the significant drill intersections returned from the recently completed 24 hole diamond drill in-fill program that focussed on the area between 100m and 350m below the surface. Also shown in Figures 3 and 4 is the location of the cross section used in Figure 2 above. Combining the cross section of Figure 2 with the long sections of Figures 3 and 4 provides an insight into the geometry of the multiple mineralised surfaces that make up the gold mineralisation seen at Westralia Underground. Mineralisation associated with the Hangingwall BIF measures in excess of 500m north-south and at least 600m in dip-extent (see Figure 3). It remains open in several directions. Correspondingly, mineralisation associated with the proximal Central BIF unit is currently identified over 400m in both a north-south direction and vertical extent. The close parallelism of mineralised BIF units at Westralia Underground will allow the Company to consider the potential for large volume underground mining as part of its Feasibility Study, currently in process. A similar observation has been made for the Morgans Underground mineralisation and subsequent mining Feasibility Study where combined intersections of 15-35m at grades of 5 g/t Au were reported (see ASX announcement 1 June 2016). This compares favourably with the 5.4 g/t Au intersection reported in 16MMDD0149 (see Table 1 and Figure 2, this announcement). A key feature from the recently completed 24 diamond drill holes is the confirmation of a continuous high grade zone of mineralisation developed along the Hangingwall BIF unit and located only 60m below the floor of the dormant Westralia pit. The following drill intersections define a 300m strike of very high grade mineralisation developed over 80 vertical metres: 84.3 g/t Au in 16MMRD g/t Au in 14MMRD g/t Au in 81MMDI g/t Au in 13MMRD g/t Au in 96MMRC g/t Au in 13MMRD g/t Au in 13MMRD g/t Au in 14MMRD009 7 P age Figure 3: Long section of the Westralia Underground showing the location of significant new intersections, labelled as red/yellow boxes. Note the locations of previously released Dacian Gold intersections (drilled in 2013, 2014 and 2015) are shown as well as historic drill holes, completed prior to Dacian Gold. 8 Page Figure 4: Long section of the Westralia Underground showing the location of significant new intersections, labelled as red/yellow boxes. Note the locations of previously released Dacian Gold intersections (drilled in 2013, 2014 and 2015) are shown as well as historic drill holes, completed prior to Dacian Gold. 9 Page NEXT STEPS Having completed the 90,000m in-fill and resource extension drilling program at the Westralia and Jupiter Prospects, the following work programs and corresponding ASX announcements are planned for the coming weeks: Work programs associated with the Westralia Underground, Morgans Underground and Morgans North open pit Mineral Resource updates have commenced and are planned to be released to the market in July Jupiter Prospect Mineral Resource update is also planned to be released in July Maiden Ore Reserve for the Jupiter Prospect to be released in August Exploration is ongoing with a 600-hole reconnaissance drill testing program at Jupiter Regional and Cameron Well. Initial results are likely to be received and released to the market in July, with ongoing results being available for release in August A specialist salt-lake drilling rig has been booked to drill the promising Callisto target located 7km west of the 8 Moz Wallaby gold deposit. Drilling will commence in early July Feasibility Study activities are advanced with the following work streams in progress: Detailed metallurgical testwork programs for Jupiter, Morgans and Westralia Underground are in progress Detailed geotechnical studies for the Jupiter Prospect open pits, Westralia Underground, Morgans Underground and Transvaal Underground are ongoing Civil geotechnical work programs have been undertaken on the proposed treatment plant and tailings storage facility sites Hydrological studies are well advanced with mine and infrastructure surface water management plans in process and groundwater exploration drilling has commenced Environmental studies are in process including flora and fauna surveys; waste rock and tailings materials characterisation studies Upon delivery of new Mineral Resource updates, Dacian will commence detailed open pit and underground mine design studies. As noted above, the Company believes a maiden Ore Reserve for Jupiter will be available in August 10 P age Table 2: Mt Morgans Exploration Drilling Results Westralia Collar Location and Orientation Intersection 1 ppm * m Au Hole Type X Y Z Total From To Length Au Dip Azimuth Depth (m) (m) (m) (ppm) 16MMRD0146 RCD 409,800 6,816, MMRD0147 RCD 409,724 6,816, MMRD0148 RCD 409,674 6,816, MMDD0149 DD 409,579 6,816, incl and MMRD0152 RCD 409,834 6,816, MMRD0155 RCD 409,686 6,816, incl and MMRD0159 RCD 409,707 6,816, incl and MMRD0159W1 RCD 409,707 6,816, No significant assays 16MMRD0159W2 RCD 409,707 6,816, P age Table 2 cont'd: Mt Morgans Exploration Drilling Results Westralia 16MMRD0161 RCD 409,631 6,816, MMRD0161W1 RCD 409,631 6,816, incl and MMRD0164 RCD 409,618 6,816, MMRD0165 RCD 409,579 6,816, MMRD0167 RCD 409,749 6,816, MMRD0167W1 RCD 409,749 6,816, MMRD0167W2 RCD 409,749 6,816, MMRD0169 RCD 409,669 6,816, incl MMRD0169W2 RCD 409,669 6,816, MMRD0170 RCD 409,736 6,816, MMRD0174 RCD 409,818 6,816, MMRD0175 RCD 409,767 6,816, P age Table 2 cont'd: Mt Morgans Exploration Drilling Results Westralia 16MMRD0175W1 RCD 409,767 6,816, MMRD0177 RCD 409,660 6,816, MMDD0286 DD 410,068 6,816, For and on behalf of the Board Rohan Williams Executive Chairman 13 P age About Dacian Gold Limited The Mt Morgans Gold Project (MMGP) hosts high grade Mineral Resources of 3.0 million ounces at an average grade of 2.2 g/t gold. The Company is presently concluding a detailed Feasibility Study ahead of a decision to proceed with mine construction and development at the end of CY2016. The Company believes it has an excellent opportunity to build the MMGP into a high margin mid-tier gold production centre. Dacian Gold has a strong Board and proven management team which includes Rohan Williams as Executive Chairman; and Robert Reynolds, Barry Patterson and Ian Cochrane as non-executive directors. The Company has also identified multiple exploration targets and resource extension opportunities at Mt Morgans. If proven, they will enable growth of the Mt Morgans existing Mineral Resource and Ore Reserve base. Dacian Gold remains fully funded to complete the MMGP Feasibility Study up to the project investment decision. For further information visit: or please contact: Rohan Williams Executive Chairman Dacian Gold Limited Paul Armstrong Investor Relations Read Corporate Pty Ltd P age Deposit APPENDIX I Mount Morgans Gold Project Mineral Resources as at 15 September 2015 Cutoff Measured Indicated Inferred Total Mineral Resource Au g/t Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz King Street* , , , ,000 Jupiter ,066, ,000 13,484, ,000 26,550, ,085,000 Jupiter LG Stockpile 0.5 3,494, , ,494, ,000 Westralia , ,000 1,961, ,000 7,074, ,192,000 9,269, ,520,000 Craic* , , , , , ,000 Transvaal , , , , , ,000 1,253, ,000 Ramornie , , , , , ,000 Total 4,096, ,000 15,656, ,006,000 21,978, ,842,000 41,730, ,008,000 Mt Morgans Gold Project Ore Reserves as at 15 September 2015 Deposit Cut-off Grade Proved Probable Total Au g/t Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Craic , ,000 28, ,000 Total , ,000 28, ,000 In relation to Mineral Resources and Ore Reserves, the Company confirms that all material assumptions and technical parameters that underpin the relevant market announcement continue to apply and have not materially changed. Competent Person Statement Exploration The information in this report that relates to Exploration Results is based on information compiled by Mr Rohan Williams who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Williams holds shares and options in, and is a director and full time employee of, Dacian Gold Ltd. Mr Williams has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Williams consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appears. Mineral Resources and Ore Reserves The information in this report that relates the Westralia, Jupiter and Transvaal Mineral Resource (see ASX announcement - 16 th September, 2015) and the Ramornie Mineral Resource (see ASX announcement 24 th February, 2015) is based on information compiled by Mr Shaun Searle who is a Member of Australian Institute of Geoscientists and a full time employee of RPM. Mr Searle has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 15 Page he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Searle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates the Jupiter Low Grade Stockpile (see ASX announcement - 16 th September, 2015) and is based on information compiled by Mr Rohan Williams who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Williams holds shares and options in, and is a director and full time employee of, Dacian Gold Ltd. Mr Williams has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Williams consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources (other than Westralia, Jupiter, Jupiter Low Grade Stockpile, Transvaal, and Ramornie which are reported under JORC 2012) is based on information compiled by Mr Rohan Williams, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Williams holds shares and options in, and is a director and full time employee of, Dacian Gold Ltd. Where the Company refers to the Mineral Resources in this report (
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