POSITIVE PRELIMINARY PIT OPTIMISATION AND METALLURGY RESULTS FOR MAKABINGUI GOLD PROJECT, SENEGAL. Highlights. 31 October 2013

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1 Bassari Resurces Limited is an Australian listed cmpany fcused n discvering multimillin unce gld depsits in the Birimian Gld Belt, Senegal, West Africa. FAST FACTS ASX Cde BSR Issued Capital 771,319,369 Unlisted ptins 2,500,000 N f sharehlders 1,679 Tp 20 50% INVESTMENT HIGHLIGHTS Explratin permits cver apprx. 850 km² ver prspective Birimian Gld Belt, Senegal, West Africa. Makabingui Gld Prject, Mineral Resurce (December 2012) 1.0 millin unces in 11.9 Mt at 2.6 g/t gld at a 0.5 g/t cut-ff, cmprising: - Indicated: 336,000 zs in 2.6Mt at 4.0g/t - Inferred: 669,000 zs in 9.3Mt at 2.2g/t Senegal, stable demcracy since Quality grund hlding in a 50M unce gld regin which hsts a number f wrld class depsits. 13 prspects identified alng 80km strike length within Kedugu-Kenieba Inlier. Strategic and dminant explratin package. Gld intersected ver a wide interval at Knkut Prspect. BOARD AND MANAGEMENT Alex Mackenzie Executive Chairman Jzsef Patarica Managing Directr/CEO Chris Yung Nn Executive Directr Philip Bruce Nn Executive Directr Ian Riley Cmpany Secretary/Chief Financial Officer CONTACT US Bassari Resurces Limited (ACN ) Level 17, 500 Cllins Street, Melburne, Victria, 3000, Australia. T: F: admin@bassari.cm.au 31 Octber 2013 POSITIVE PRELIMINARY PIT OPTIMISATION AND METALLURGY RESULTS FOR MAKABINGUI GOLD PROJECT, SENEGAL Bassari Resurces Limited (The Cmpany) is pleased t annunce psitive pre-develpment results fr the Makabingui Gld Prject, in Senegal, West Africa. The psitive results are based n independent preliminary pen pit ptimisatin studies and metallurgical test wrk fr the develpment f the Makabingui Depsit. The depsit has a Mineral Resurce f 1 millin unces f gld in 11.9 millin tnnes at 2.6 g/t gld. The psitive results are key milestnes t unlcking value fr sharehlders. Highlights Preliminary Whittle pen pit ptimisatin studies were cnducted n the Makabingui Gld Prject Mineral Resurce Results f the preliminary ptimisatin using selective mining at 300ktpa, shw a rbust peratin: Ore grade t the mill > 5.5g/t Gld Mine life f >3 years at ~50,000 unces per year Indicative average perating cst f US$700/z Opprtunity t upgrade the Cmpany s existing gravity plant and assciated infrastructure t reduce capital csts Very high gld recvery indicated by metallurgical test wrk Gld recvered frm gravity and leaching f the gravity tails was: 97.6% at 106 micrn 96.6% at 150 micrn Gld recvery frm gravity and fltatin f the gravity tails was: 98.6% at 106 micrn 98% at 150 micrn Gld recvered by gravity was apprximately 80% fr all grind sizes frm 106 t 425 micrn. A gravity gld circuit wuld be essential in a prcessing plant

2 The cmbined utcmes f bth the preliminary pit ptimisatins and additinal metallurgy are very significant and prvide imprtant infrmatin t justify the next steps alng the develpment path fr the Makabingui Prject. There are significant amunts f free gld evident leading t a simple prcessing methd incrprating a gravity circuit which we already have. With a lwer rate, selective mining ptin we can keep capital csts lw while maximising grade. The results clearly justify further feasibility wrk. Bassari Resurces Managing Directr, Jzsef Patarica said. Preliminary Pit Optimisatin The Makabingui Gld Prject Mineral Resurce f 1 millin unces f gld in 11.9 millin tnnes at 2.6 g/t gld, at a cut-ff grade f 0.5 g/t gld, was annunced in December 2012 fllwing estimatin by AMC Cnsultants Pty Ltd (AMC). This includes an Indicated Resurce f 336,000 unces f gld in 2.6 millin tnnes at 4.0 g/t gld. Sydney based Australian Mine Design & Develpment Pty Ltd (AMDAD) was cmmissined t undertake Whittle pit ptimisatins t test pen-cut mining scenaris n the cmbined Resurce blck mdel. Tw cases were examined at US$1,300 gld price: Lw rate mining t deliver 300 ktpa f mill feed High rate mining t deliver 1.5 Mtpa f mill feed The 300 ktpa case delivers ~1.0Mt f mill feed at ver 5.5 g/t Gld fr a mine life f >3 years. Staged mining was assumed with starter pits fllwed by a push back t the final wall (Figures 1 & 2). The 300 ktpa mining rate is cnsidered the base case t advance further feasibility wrk. The 1.5 Mtpa case resulted in a mine life f less than 2 years with apprximately 3Mt f mill feed delivered and wuld require significantly mre shallw resurces t imprve the ecnmics. Based n the assumptins used fr this preliminary study, the indicative average perating cst is US$700 per unce. Nte: This is a preliminary study t assess prject ptential with mst f the key inputs assumed rather than based n real data The pit ptimisatin uses Indicated and Inferred Resurce blcks estimated by AMC Whittle shells have been used rather than practical pit designs based n these shells The reliability f the results is cmmensurate with the preliminary nature f the input assumptins Tnnes, grade and values reprted d nt represent an re reserve 2

3 Figure ktpa First and Final Stage Pit Design - Preliminary Plan Figure ktpa First and Final Stage Pit Design - 3D View 3

4 Pit Optimisatin Inputs Makabingui is at an early stage f ecnmic evaluatin. There is nly limited infrmatin t guide sme f the inputs fr the Whittle pit ptimisatin cnducted fr this study. Where analyses have been cnducted, such as metallurgical test wrk, the mst representative values fr the prject as a whle were used. In ther areas where little r n wrk has been dne, such as pit slpe and mining and prcessing csts, AMDAD discussed ptins with Bassari t select values. The main inputs selected were: Lss / Dilutin. The high rate bulk mining scenari used the average grades f a re-blcked mdel using 2.5m cubes t prvide adequate allwance fr lss and dilutin withut further adjustment. The lw rate selective mining scenari applied fixed dilutin f 10% and fixed lss f 5% t the partial blck grades and tnnes. Pit Wall Overall Slpes. An average slpe f 45 was used in all directins at all depths. Prcess Recveries. Based n metallurgical test wrk n a cmbinatin f gravity and sulphide fltatin which indicates gld recvery f 95% fr bth xide and sulphide mineralisatin. Mining Csts. Bassari assumptin f a fixed cst f $US3.50 per tnne fr re and waste. Prcess Csts. The 1.50 Mtpa case was initially run at a prcessing cst f $US18.00/t based n a review f US csts fr similar size fltatin plants. The 300 ktpa case was run at $US30.00/t t allw fr bth a higher cst generally and the increase caused by inefficiencies f running at a lwer rate. Site Fixed Csts. Nminal values f US$5.00/t (US$7.5M per year) fr the 1.5 Mtpa case and US$10.00/t (US$3.0M per year) fr the 300 ktpa case were selected. Gld Price. US$1,300/z. Applying these inputs gives undiluted resurce COGs f 0.6 g/t Gld fr the 1.5 Mtpa case and 1.15 g/t Gld fr the 300 ktpa case. The next steps: Undertake getechnical studies t establish pit wall slpes t be used in pit designs Further refine mining dilutin, re lss and perating cst assumptins Cnfirm the presence f the high grade blcks which drive the larger pen pits Plan the next phase f infill and/r explratin drilling fcused n the ptimised pits and grwth f the resurce inventry 4

5 Metallurgical Test Wrk Results Sydney based ALS Metallurgy was cmmissined t cnduct a series f metallurgical tests t determine the gravity recverable gld ver a range f grind sizes. The test wrk amalgamated a gravity cncentrate at primary grind sizes f 425, 300, 212, 150 and 106 micrns t determine the amunt f free gld recverable. Cyanide leaching and fltatin were als carried ut n the gravity tails fr the 150 and 106 micrns grind sizes. Previus metallurgical test wrk (See ASX release dated 30 January 2012) carried ut at a primary grind f 75 micrns prduced very high leaching recveries >96%. Cmpsite samples were made up frm material used as part f the January 2013 metallurgical test wrk prgram. The samples are a cmpsite f the Metagabbr (primary fcus fr 2012 resurce drilling prgram) and Metasediments. The samples were taken frm multiple sectins and varying depths fcused n primary (unxidised) re. Tables 1, 2 and 3 summarise the results fr the varius stages f the test wrk prgram. Table 1 Summary f Gld Recvery by Gravity Separatin Primary grind p80 micrn Calculated Head g/t Au % free gld recvered Table 2 Summary f Gld Recvery by Fltatin and Leaching n the Gravity Tails Prcess Fltatin Leaching Fltatin Leaching Primary grind p80 micrn Calculated Head g/t Au % gld recvered Table 3 Summary f Ttal Gld Recvery % Gld Recvery Prcess 106 micrn 150 micrn Gravity Gravity + Leaching Gravity + Fltatin Gravity Gld The initial stage f the prgram fcused n the quantity f free gld able t be recvered by gravity methds at varius primary grind sizes f 425, 300, 212, 150 and 106 micrns. This was determined by grinding 2 kg samples t the required size and passing them thrugh a 75 mm Knelsn cncentratr, taking ne bed vlume f cncentrate. This cncentrate was examined by panning dish fr the ccurrence f gld flakes and then amalgamated with mercury t remve the free gld. 5

6 Figure 3 shws the free gld seen frm panning the Knelsn cncentrate fr the 106 micrn primary grind test. Flakes f gld similar t thse seen in this pht (Figure 3) were seen at all the grind sizes tested with sme flakes ver 1 mm in size. Figure 3 - Gld Flakes in Pan Cncentrate fr 106 micrn Primary Grind The gld recveries at each grind size resulted in arund 80% f the gld being liberated and amenable t gravity recvery at all the grind sizes tested. Cyanide Leach n Gravity Tails The Knelsn tailings and the Knelsn cncentrate minus the remved free gld fr the 150 and 106 micrn tests were recmbined and each was divided int tw prtins, ne fr cyanide leaching f gld and the ther fr a fltatin test. The cyanide leach test wrk indicated that there is a drp in leach efficiency at the 150 micrn grind size cmpared t the 106 micrn test but the results were still reasnably gd at bth grind sizes. Figure 4 shws the rate f gld disslutin at each grind size which is rapid and almst cmplete within the first 10 hurs. The ttal gld recvery by gravity cncentratin, amalgamatin and then cyanide leaching f the gravity tailings was calculated t be 98% at 106 micrns and 97% at 150 micrns. 6

7 Figure 4 - Rate f Gld Disslutin Fltatin n Gravity Tails The ther half f the 106 and 150 micrn gravity tails that was nt used in the leach tests was subjected t a fltatin test t see if the remaining gld culd be recvered by fltatin. As with the leach results there was a slight decrease in gld recvery at the 150 micrns grind size cmpared t the 106 micrn grind size. With recveries at 94% and 90% fr the 106 and 150 micrn tests respectively fltatin culd be used as a pssible upgrading step prir t leaching. Further fltatin test wrk culd be cnsidered t see if the cncentrate culd be cleaned sufficiently t prduce a saleable grade. The ttal gld recvery by gravity and then fltatin was calculated t be 99% at 106 micrns and 98% at 150 micrn. The next steps: Undertake additinal test wrk at grind sizes greater than 425 micrns Develp a prcess flw sheet based n 300 ktpa base case and metallurgical results Review ptins t utilise existing gravity plant Review plant lcatin ptins (remain at Duta and truck re ~10 km frm Makabingui r relcate t Makabingui) Establish capital cst estimate 7

8 Makabingui Gld Prject Lcatin & Gelgy Makabingui is lcated within the Kedugu-Kenieba Inlier, Eastern Senegal, where multimillin unce gld depsits are being mined and develped (Figure 5). Reginal Gelgy Figure 5 Prject Lcatin Map The resurce is lcated in the Palaeprterzic Birimian vlcan-sedimentary sequence and the intrusives f the Diale Frmatin. The Diale Frmatin lithlgies cmmnly cmprise chlrite-sericite schists and phyllites derived frm the metamrphism f greywackes and argillaceus sediments. The Makabingui depsit is lcated near the suthern margin f a syntectnic granite (Sambarabugu Granite). The depsit cmprises a large number f generally shallw east dipping ldes and quartz veins ranging in thickness frm 8 metres dwn t less than 1 metre width and hsted by a gabbric intrusive and cntact metasediments. Mineralised structures have been identified ver an area f sme 1.7 kilmetres by 1.2 kilmetres t date. The Sambarabugu Granite and hst gabbr lie within the east-west trending crustal fracture zne identified by the presence f a majr dirite dyke which extends frm the Makana area t the west thrugh t the Lul-Gunkt prject area in nearby Mali, eastwards t Sitakil; a newly discvered prphyry gld depsit. Lcal Gelgy The prject is fcused n the cntact zne between metasediments and an val shaped metagabbric intrusive. Gld mineralisatin, cmmnly as free gld, is assciated with quartz veins and stckwrks with silica, sericite, bitite and carbnate alteratin tgether with variable amunts f pyrite, arsenpyrite and pyrrhtite. 8

9 Strategic Explratin Package The Cmpany s explratin permits cver an area f apprximately 850 km 2 ver the highly prspective Birimian Gld Belt. The Makabingui Gld Prject area is centrally lcated within the three cntiguus permits and is apprximately 25 kilmetres frm the Sabdala Gld Operatin (Figure 6). Artisanal activity established within the Makabingui Prject area suth f the existing resurce (see ASX annuncement 11 Octber 2012) has identified ptential fr new ldes within a significant NE trending shear zne, and further highlights the prspectivity f Makabingui. Additinal artisanal sites have since been established further suth alng strike within the well-defined gld mineralised structural crridr. Figure 6 Explratin Permits Mura, Sambarabugu & Bunsankba Jzsef Patarica Managing Directr/CEO Tel: jzsef@bassari.cm.au 9

10 Abut Bassari Melburne - based West African gld explrer Bassari Resurces Limited (ASX:BSR) has a strategic prtfli f explratin permits fcused n the Birimian Gld Belt in Senegal. The permits cver an area f 850 km 2 with 80 km f strike alng the cmbined three cntiguus permits. The permits are lcated within the Kenieba Inlier which is a 50M unce gld regin. Bassari s visin is t discver and delineate gld resurces which can be develped int prfitable peratins. Frward Lking Statement This release may include frward-lking statements which are based n assumptins and judgements f management regarding future events and results. Statements regarding Bassari Resurces Limited plans with respect t future explratin and drilling are frward-lking statements. Frward-lking statements are necessarily subject t risks, uncertainties and ther factrs, many f which are utside the cntrl f Bassari Resurces Limited that culd cause actual results t differ materially frm such statements. Bassari Resurces Limited makes n undertaking t subsequently update r revise the frward-lking statements made in this release t reflect events r circumstances after the date f this release. Cmpetent Persns Statement The technical infrmatin in this reprt related t preliminary pit ptimisatin has been surced frm Australian Mine Design and Develpment Pty Ltd (AMDAD) Reprt REP1723_ and reviewed by Mr Jhn Wyche (authr f the reprt). The technical infrmatin in this reprt related t metallurgical test wrk and cmminutin test wrk has been surced frm ALS Metallurgy (New Suth Wales Sydney) Reprt M2867 and reviewed by Mr T Baily (authr f the reprt). The technical infrmatin in this reprt has been reviewed and apprved by Mr Chris Yung wh is a Member f the Australasian Institute f Mining and Metallurgy and the Australian Institute f Gescientists. Mr Yung has ver 40 years experience in the industry and has mre than five years experience which is relevant t the style f mineralisatin being reprted upn t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Yung cnsents t the inclusin in the reprt f the matters based n the infrmatin in the frm and cntext in which it appears. Technical Terms g/t grams per tnne Mt Mtpa ktpa RAB Drilling RC Drilling DD Drilling ppb ppm km 2 km mm Au 3D COG kg NE ASX Millin tnnes Millin tnnes per annum Thusand tnnes per annum Rtary Air Blast drilling. Reverse Circulatin drilling Diamnd drilling parts per billin, e.g ppb gld is 1 g/t gld parts per millin square kilmetres kilmetres millimetres Chemical symbl fr gld Three dimensinal Cut-ff grade kilgram Nrth East Australian Securities Exchange 10