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1 ASX RELEASE Suite 2501 Level 25 St Martins Tower 31 Market Street Sydney NSW 2000 Australia (PO Box Q638 QVB Market Street NSW 1230 Australia) Tel: +61 (02) July, 2018 ADDENDUM TO ASX ANNOUNCEMENT 12 JULY 2018 CROWN RIDGE PROSPECT RESULTS UPDATE Gold Mountain Limited ( GMN ) hereby provides further information on the results from drilling and bulk pit sampling programs at Crown Ridge, as announced to the market on 12 July This Addendum is prepared in compliance with Clause 19 of the JORC Code 2012, regarding the reporting of exploration results, and ASX Listing Rule 3.1 (Continuous Disclosure). Crown Ridge is part of the Company s Wabag project, located in Enga Province, Papua New Guinea, within a highly prospective geological province that hosts many major gold and copper deposits (Figure 1). Drilling program Details of the diamond drilling program at Crown Ridge were presented in the ASX announcement dated 12 July This program had the following aims: Determine the stratigraphy of the Timun Conglomerate unit hosting free gold and platinum mineralisation Determine gold grades within the conglomerate for comparison with the results from the bulk sampling pits due to the nuggety distribution of the gold mineralisation and problems with the diamond saw used for splitting the core (see below), it was decided that whole core samples needed to be sent for analysis Target conceptual high grade gold mineralisation within structurally-controlled quartz-pyrite veins around the rim of the interpreted volcanic crater Obtain samples for petrological studies of any alteration or mineralisation zones within the drill core Determine geotechnical properties of the host rocks for future mining studies. Of the 19 diamond core drillholes (totalling m), drilled between 14 October 2017 and 10 June 2018, assay results have been received for three drillholes only to date (CRD001, CRD004, CRD005). Sampling of selected parts of other drill holes is in progress, but because of the need to send whole core samples, sampling cannot be undertaken until all geological logging and core photography is complete.

2 Sampling has not been undertaken on those intervals of the drill core that are interpreted to be unprospective on the basis of the geological core logging. A full listing of assay results received to date is presented in Appendix 1 of this release. Pitting program Bulk samples from the pitting program are being processed at Crown Ridge using the Company s Knelson concentrator. Rigorous sampling, processing and assaying protocols have been developed to ensure valid results for use in Mineral Resource Estimation (MRE) of the conglomerate-hosted free gold mineralisation. Details of the pitting program to date were presented in the ASX announcement dated 12 July 2018, where the results of the first 10 pits were reported (see Appendix 2 for a list of results to date). Heavy mineral concentrates from the Knelson concentrator for the remaining 26 pits were received by the Perth ALS laboratory in late June and will be analysed for free gold content using the same customised total cyanide leach technique used for the first batch of pit samples. Individual concentrate samples, up to 12kg weight, are split into 2kg sub-samples and each split leached in total. The total gold content is then backcalculated from the sub-sample split leach results. Fire assays will also be conducted on the leach residue to determine gold contents that may not be recoverable in a gravity processing plant. Tails samples have also been collected and submitted, to measure efficiency of the concentrating process. Analysis of the tails samples will be undertaken on selected samples depending upon the concentrate results. Delays in sample submission / analysis A number of factors beyond the control of GMN have delayed the submission and analysis of drill core and pit samples at the ALS laboratory in Perth: Delays in the processing of drill core logging and sampling due to unavailability of experienced staff Breakdown of the diamond core saw and delays in getting replacement parts Breakdown of the Knelson concentrator and delays in getting replacement parts Slower than expected processing times for the Knelson concentrator Significant washout of the access road from Wabag and long delays in getting repairs completed to allow transport of samples from Crown Ridge Tribal fighting around Mt Hagen, making it an unacceptable security risk for transport of samples; similar general unrest has also affected other mining and oil/gas operations in PNG in recent months Time required to transport samples by road to Lae and by ship to Perth (in order to reduce the high cost of transport by air freight) Page 2

3 Slower than expected processing times at ALS, as the wet tailings samples require very long filterpressing time due to the clay content and concentrate samples are large, requiring several subsample splits Ongoing work programs at Crown Ridge As well as completion of data compilation and sampling of drill core, GMN has acquired a BSP10 mobile bulk processing plant (see announcement dated 3 May 2018) to facilitate the processing of large volume (125m 3 ) bulk samples. Data from this program will complement the pit sampling already completed and expedite determination of a Mineral Resource Estimate of the surface conglomerate-hosted gold mineralisation. The plant has arrived in Lae and will be trucked up to site in coming weeks. The Company will release the laboratory analysis and test results of the drill cores and the bulk pit samples as and when they become available. Assay results for the samples from the remaining 26 pits have been received and logged into the LIMS system by ALS in Perth and are being weighed at the moment. The results are expected in mid to late August However, the assays will require compilation and assessment against geological data before final results can be released. This is not expected until at least December The JORC Code 2012 Table 1 for the exploration programs at Crown Ridge was presented in the ASX announcement dated 12 July Managing Director s comments In commenting on the progress of the programs at Crown Ridge, GMN s Managing Director Tony Teng stated: Gold Mountain regrets the delays in obtaining results for the drilling and pitting programs at Crown Ridge that can be released to the market. However, most of the issues have now been resolved and we expect a steady stream of results over the coming months. In spite of the limited results to date, especially with regards to the conceptual targets of high-grade gold mineralisation around the rim of the Crown Ridge basin, we continue to hold a positive attitude towards the potential of the conglomerate-hosted gold and platinum mineralisation that has been identified over a 7 square kilometre area and from surface to depths in excess of 60 metres. On the positive side, the equipment delays have allowed us to transfer some attention to the long-awaited regional exploration programs and we have had instant success with the identification of porphyry-style gold-copper mineralisation within intrusive rocks at Mongae Creek, within EL2306. The outcrop samples, and abundant gold nuggets being panned by artisanal miners (see photos in the ASX announcements dated 13 June and 2 July 2018), indicate that this could be a major grassroots discovery. We have high expectations from the inaugural drilling program at Mongae Creek over the next few weeks. Page 3

4 Figure 1: Location of the Wabag project within the Papuan Mobile Belt that includes World Class mines Competent Person Statement The information in this report that relates to Exploration Results is based on information compiled by Doug Smith, who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Smith is a consultant geologist who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Smith consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Forward Looking Statements All statements other than statements of historical fact used in this announcement, including, without limitation, statements regarding future plans and objectives of Gold Mountain Limited are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as may, could, believes, estimates, targets, expects or intends and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and Page 4

5 unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the company, its directors and management of Gold Mountain Ltd that could cause Gold Mountain Limited s actual results to differ materially from the results expressed or anticipated in these statements. Gold Mountain Limited cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Gold Mountain Limited does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements. Exploration Licence 1968 is fully permitted by the PNG Government, subject to meeting the conditions of the licence. For further information please see our website or contact: Doug Smith Tony Teng Director Exploration Managing Director Follow Gold Mountain on Twitter: About Gold Mountain Limited Gold Mountain Limited is an Australian-based minerals exploration and development company that is listed on the Australian Securities Exchange (ASX Code: GMN). Gold Mountain's principal exploration project is in Papua New Guinea, where the Company is exploring and developing a number of highly promising mineralised zones. Large unexplored areas in PNG s World Class Mineral Province, early exploration success includes: o o Flagship Crown Ridge. Final Phase 5 assessment of cash flow generating potential of free gold and platinum in conglomerate. Newly discovered large porphyry gold-copper system at Mongae Creek Page 5

6 Appendix 1 Crown Ridge drill core assay results Note: Downhole depths in metres All assays in parts per million Au-CN = Leachwell cyanide leach Au_resid = Fire assay on Leachwell residues Au_FA = 50g Fire Assay Cu, Pb, Zn, Ag analysed by ICP Results for other ICP elements were not significant Below detection results have been assigned a value of half the detection limit CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG CRD ITS PG Page 6

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16 Appendix 2 Crown Ridge pit bulk sample assay results Note: Depths and interval in metres Gold content in mg / m 3 Au_conc = concentrate values calculated from sub-sample analyses Au_total = gold content calculated from conc values plus residual plus tails assays Pit_id From To Int Sample Au conc Au total CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP Page 16

17 Pit_id From To Int Sample Au conc Au total CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP Page 17

18 Pit_id From To Int Sample Au conc Au total CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP Page 18

19 Pit_id From To Int Sample Au conc Au total CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP CRP Page 19