Beadell Resources : High Grade Results from AB1, AB2 and D Sul

d60b83b1-e607-4f52-a1ea-df2822f3a18a.pdf ASX ANNOUNCEMENT 6 July 2016 ASX Code: BDR HIGH GRADE RESULTS FROM AB1, AB2 AND D SUL

• Tap AB2 Trough Lode high grade oxide results: F02014 24 m @ 7.99 g/t from 102 m including 3 m @ 52.34 g/t from 115 m F02019 13 m @ 164 g/t from 126 m including 6 m @ 351.3 g/t from 126 m including 1 m @ 1,084.43 g/t from 126 m F02020 4 m @ 35.58 g/t from 126 m to BOH F02021 22 m @ 34.91 g/t from 99 m to BOH including 12 m @ 62.58 g/t from 108 m to BOH
• Tap AB1 Trough Lode results confirm up dip potential and growing resource: F01964 36 m @ 4.25 g/t from 74 m and 25 m @ 3.37 g/t from 138 m F01988 33 m @ 1.90 g/t from 60 m and 8 m @ 1.69 g/t from 100 m
• Tap D Sul high grade results indicate near surface oxide open pit potential: GCRC19264 27 m @ 12.94 g/t from 33 m to BOH including

3 m @ 82.80 g/t from 43 m GCRC19169 19 m @ 2.35 g/t from 35 m to BOH GCPF8110 9 m @ 5.87 g/t from 3 m to BOH

Beadell Resources Limited ("Beadell" or "the Company") is pleased to announce the receipt of new high grade oxide drilling results from the Tap AB Mine area at its 100% owned Tucano mine in Brazil (Figures 1-3, Table 1). All results in this release are within 2 km of the Tucano mill.

Beadell Resources Limited

Second Floor, 16 Ord Street, West Perth 6005, Western Australia

ABN 50 125 222 291 PO Box 542, West Perth 6872, Western Australia

www.beadellresources.com.au Telephone: +61 8 9429 0800 | Facsimile: +61 8 9481 3176

The ongoing results from both the Tap AB1 and Tap AB2 Trough Lodes are significant in that both of these lodes occur where extremely deep weathering along the main contact between the banded iron formation (BIF) and schist has resulted in oxide mineralisation reaching depths in excess of 200 m. The potential to add high grade oxide ounces into the mine plan within 2 km of the plant is very encouraging.

With the onset of the dry season, exploration and resource definition drilling is escalating with an additional RC rig mobilising to site bringing the total number of rigs at Tucano to five. Regular news flow is anticipated over the coming months as exploration programs continue at the Tap AB Trough Lodes, Neo Lode and Urucum Underground, while new programs are initiated at Duckhead and first pass RC drilling of the regional Mutum target.

In addition, a 9,000 m drill program is planned for August 2016 at the Company's Tropicana East project in Western Australia.

Figure 1. Tap AB - Tap D plan showing location of drill results

Tap AB2 Trough Lode

Resource definition and extension drilling of the Tap AB2 Trough Lode continues to produce positive results including 13 m @ 164 g/t from 126 m including 6 m @ 351.3 g/t from 126 m located 40 m below the current reserve open pit (Figure 2).

The Tap AB2 Trough Lode forms a strongly continuous high grade shoot with approximate dimensions of 150 m strike by 10 m true width plunging at about 45 degrees to the north. The recent resource definition drilling completed on the Tap AB2 lode within and below the open pit will form the basis of a new updated resource model leading into a re-estimation of the open pit reserve. The current phased cut back at Tap AB2 will result in mining of a portion of the Tap AB2 Trough Lode around the end of 2016.

The Tap AB2 Trough Lode remains open at depth with potential for open pit extensions and underground assessment in the future.

Figure 2. Tap AB1 & 2 composite longsection showing location of new results

TAP AB1 Trough Lode

A drilling program targeting the up plunge projection of both the Tap AB1 Trough Lode and the Neo Lode has commenced with initial results indicating that wide zones of gold mineralisation do continue up plunge. A new up plunge result to 33 m @ 1.90 g/t from 60 m and 8 m @ 1.69 g/t from 100 m indicates the potential for further resource ounces to be added towards the top of Monkey Hill as we trace the Tap AB1 Trough Lode to the south.

The Tap AB1 Trough Lode is characterised by multiple wide zones of subvertically dipping oxide gold mineralisation along the same contact and deep weathering profile as the Tap AB2 Trough Lode offset to the north. Resource definition drilling within the main high grade core of the Tap AB1 Trough Lode has further enhanced the lode with a significant result of 36 m @ 4.25 g/t from 74 m and 25 m @ 3.37 g/t from 138 m.

The Tap AB1 Trough lode is interpreted to be plunging at approximately 45 degrees to the north and remains open at depth.

Tap D Sul

New significant results have been received from RC drilling at the Tap D Sul target just to the south west of the Tap AB1 open pit and adjacent to an active haul road. The mineralisation has been delineated over a strike length in excess of 100 m and remains open down dip. Approximate true width results of up to 27 m @ 12.94 g/t from 33 m to Bottom of Hole (BOH) including 3 m @ 82.80 g/t from 43 m have been intersected in the drilling (Figures 1 & 3).

Tap D Sul appears to be a continuation of the Tap D trend where a series of carbonate hosted open pits have been mined previously. Several new target horizons have now been identified including the gap northwest of Tap D Sul where shallow alluvium and drainage has precluded systematic drill testing in the past within the carbonate unit west of the Tucano BIF. The Company is now working on plans to test this gap and the continuation of the carbonate unit adjacent to the main Tucano BIF.

The location of this new oxide mineralisation right next to existing infrastructure suggests that Tap D Sul has the potential to form part of the mine plan around the end of 2016.

Figure 3. Tap D Sul cross section showing location of new results.

Commenting, Simon Jackson, CEO and Managing Director said: "Our exploration team continues to have significant success within the Tucano mine corridor. Our theory has always been that higher grade mineralisation exists at Tucano and that the property is under-explored. As a result of the continuing success at the Tap AB1 and Tap AB2 Trough Lodes, we are now utilising multi-element analysis to target other areas on the BIF/schist contact where this style of mineralisation may exist. The outlining of high grade carbonate-hosted mineralisation on the projected extension of the Tap D trend is an exciting development as we continue to improve our understanding of the various mineralised rock types at Tucano."

For further information please contact: Simon Jackson | Chief Executive Officer Greg Barrett | Chief Financial Officer

T: +61 8 9429 0800

info@beadellresources.com.au