ASX ANNOUNCEMENT

CONSOLIDATION OF TUCANO LAND PACKAGE

Beadell Resources Limited (Beadell or Company) is pleased to announce that it has entered into a binding arrangement to consolidate the Tucano land package (MVR transaction).

Under an agreement signed on 6 April 2017, Beadell will acquire the issued capital of Mineração Vale dos Reis Ltda (MVR), a Brazilian company that currently holds 30% of the MVR Joint Venture (JV). Beadell holds the remaining 70% of the JV.

The consideration for the purchase of MVR is an initial payment of US$300,000 upon closing and three further payments of US$500,000 over a period of 12 months from the date of closing. Total cash consideration is US$1.8 million and a 0.75% Net Smelter Royalty (NSR) will also be payable on any gold or other precious metals that are produced from the former JV ground. Licences currently held 100% by Beadell, including the Tucano mining lease, are not subject to this royalty.

The MVR transaction is subject to customary due diligence and approval provisions and is expected to close on 30 June 2017.

The JV tenements cover 576 km2 of highly prospective ground surrounding the Tucano Gold Mine (Figure 1), including direct strike extensions of the Tucano Mine corridor mineralisation at Urucum East where gold mineralisation has already been identified.

The JV tenements include several exceptional early stage gold targets within 20 km of the Tucano plant, which are planned to be advanced through to drilling over the course of 2017 (Figure 2).

Key targets include the 6 km long x 400 m wide Serra da Canga colluvium anomaly located 5 km north of Urucum, where shallow auger results up to 4m @ 2.22 g/t gold have not been followed up.

Other key areas include T1, T3 and T4 representing structural targets with coincident surface geochemical anomalism associated with interpreted occurrences of Banded Iron Formation (BIF).

The regional exploration potential at Tucano is compelling, when considering the amount of undrilled, deposit-scale surface geochemical anomalies throughout the greenstone belt. When compared to other extensively explored mature orogenic greenstone belts (Figure 3), where clusters of gold deposits generally occur, the potential at Tucano is clear. The MVR transaction is a commitment to unlocking that potential.

Following closing of the MVR transaction, Beadell will control 100% of the entire 2,500 km2 tenement package surrounding the five million ounce Tucano gold mine.

Commenting, Simon Jackson, CEO and Managing Director said: “The MVR transaction is a major step forward and consolidation of such a dominant land position in a very under-explored greenstone belt is very exciting. We will expand exploration activity onto the former JV ground with a view to not only adding near mine ounces but also to search for the next Tucano. Coupled with the ongoing exploration in the under-drilled Tucano mine corridor, we believe that the Company has considerable scope to continue to add ounces. Generation of new gold targets and exploration will be ongoing on the Beadell land package for years to come.”

ASX Announcement 6 April 2017

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ASX ANNOUNCEMENT 2

Figure 1. Tucano tenement plan showing location of MVR tenement buyout.

Figure 2. Tucano regional tenement plan showing location of key target areas

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ASX ANNOUNCEMENT 3

Tucano Greenstone Tenure

Kalgoorlie Greenstone Belt

Ashanti Belt

Figure 3. Tucano greenstone tenure showing endowment of other more mature orogenic greenstone belts

ABOUT BEADELL

Beadell owns and operates the Tucano gold mine in Amapá State, in the north of Brazil. Tucano sits within an extensive land package of 2,500km2 of highly prospective, under explored greenstone belt.

FOR FURTHER INFORMATION PLEASE CONTACT:

PERTH TORONTO Simon Jackson | CEO & Managing Director Graham Donahue | Head of Corporate Development Greg Barrett | CFO & Company Secretary T: +61 8 9429 0800 +1 416 945 6640 info@beadellresources.com.au

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