Beadell Resources : Tucano Exploration Update

ASX ANNOUNCEMENT 10 October 2016 ASX Code: BDR TUCANO EXPLORATION UPDATE - TAP AB1 & TAP AB2 OXIDE TARGETS CONTINUE TO DELIVER HIGH-GRADE GOLD RESULTS AND TWO NEW GOLD ZONES IDENTIFIED

• Tap AB1 Trough Lode high-grade oxide results: F02085 32 m @ 2.61 g/t gold from 80 m including 17 m @ 4.18 g/t gold from 87 m F02095 15 m @ 5.66 g/t gold from 64 m and 32 m @ 9.84 g/t gold from 82 m including 13 m @ 20.71 g/t gold from 97 m
• Tap AB2 Trough Lode high-grade oxide results: GCRC19535 28 m @ 47.35 g/t gold from 31 m including 10 m @ 126.08 g/t from gold 34 m GCRC19536 14 m @ 41.21 g/t gold from 6 m including 3 m @ 186.10 g/t gold from 12 m GCRC19528 7 m @ 34.67 g/t gold from 61 m including 2 m @ 107.29 g/t gold from 62 m
• New gold mineralisation discovered at Torres, south of Tap AB deposit: GCPF28343 5 m @ 3.39 g/t gold from 4 m to BOH GCPF28419 5 m @ 5.73 g/t gold from 12 m
• New gold mineralisation discovered along Duckhead Mine Corridor: Gold Nose FVM569 10 m @ 8.20 g/t gold from 53 m including

4 m @ 16.15 g/t gold from 55 m Woodpecker FDVM145 2 m @ 11.44 g/t gold from 89 m 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: [phone] | Facsimile: [phone]

Beadell Resources Limited ("Beadell" or "the Company") is pleased to provide an exploration update at its 100% owned Tucano mine in Brazil (Figures 1-4, Table 1).

Significant results continue to be received from the Tap AB1 and Tap AB2 Trough Lodes, which remain our highest priority drill target for high-grade oxide gold resource definition and extension. Step-out drilling is underway.

Encouraging early stage drill results have also been reported from 700-900m south of Tap AB open pit, at the new Torres target, where near surface gold mineralisation was identified on the same contact as the Tap AB Trough Lode.

New zones of gold mineralisation were also discovered at Gold Nose, 1 km SE of Duckhead and at Woodpecker, 500 m west of Duckhead.

Commenting, Simon Jackson, CEO and Managing Director said: "Our exploration program continues to have success as we drive towards our goal of increasing the quality and quantity of gold reserves at Tucano. The AB1 and AB2 Trough Lodes remain 100% oxide as we follow the high-grade gold mineralisation down plunge. The discovery of new gold mineralisation along strike from the Tap AB complex at Torres and near Duckhead at Woodpecker, illustrates the underexplored nature of the Tucano land position. Importantly, these new holes are all within the current mine corridor, demonstrating considerable upside proximal to the mill."

Figure 1. Tucano Near Mine plan location plan

TAP AB1 Trough Lode

TAP AB1 Trough Lode remains a key focus for the Company as it is within 2 km of the plant. Drill hole F02095 intersected 15 m @ 5.66 g/t gold from 64 m and 32 m @ 9.84 g/t gold from 82 m including 13 m

@ 20.71 g/t gold from 97 m (Figures 1 & 2). This hole increases our confidence in the Tap AB1 Trough Lode becoming a major future high-grade oxide ore source at Tucano.

Other significant results from Tap AB1 Trough Lode include an up plunge intersection in F02085 of 32 m

@ 2.61 g/t gold from 80 m including 17 m @ 4.18 g/t gold from 87 m and near surface high-grade mineralisation of 20 m @ 9.05 g/t gold from 31 m in GCRC19568 and 12 m @ 13.24 g/t gold from surface in GCRC19556.

Additional results were received from an emerging interpreted sub-parallel lode immediately west of the Tap AB1 Trough Lode. This new lode, Tap AB1 Central, was intersected in several holes and had 11 m

@ 12.06 g/t gold from 20 m including 1 m @ 99.08 g/t from 23 m in hole F02090 and 3 m @ 14.86 g/t

gold from 69 m in F02089.

The Tap AB1 Trough Lode remains open at depth and will become a focus of resource extension drilling this quarter. Drill pad access to test the extensions of the Tap AB1 Trough Lode was limited in the September quarter due to dewatering requirements at the Tap AB2 open pit. Dewatering recently commenced as per the Tap AB1 and Tap AB2 open pit cutback mine schedules and the drill platforms will become available over the coming weeks.

Figure 2. Tap AB - Torres plan showing location of new drill results

Tap AB2 Trough Lode

Resource definition drilling of the Tap AB2 Trough Lode has intersected exceptional results of similar magnitude to the high-grade Duckhead Main Lode. Both deposits represent similar style of mineralisation located on the same Banded Iron Formation (BIF) and schist contact in a deep weathering trough.

Drill results, up to 28 m @ 47.35 g/t gold from 31 m including 10 m @ 126.08 g/t gold from 34 m in GCRC 19535, 14 m @ 41.21 g/t gold from 6 m including 3 m @ 186.10 g/t gold from 12 m in GCRC

19536 and 6 m @ 68.02 g/t gold from 25 m including 4 m @ 100.71 g/t gold from 25 m in GCRC19538, highlight the high-grade nature of this oxide lode.

These holes are mostly within the reserve open pit, including part of the high-grade lode to be mined in the next 6 months in the Tap AB2 phased open pit cutback.

A significant result was also received immediately below the open pit reserve with an intersection of 7 m

@ 34.67 g/t gold from 61 m including 2 m @ 107.29 g/t gold from 62 m in GCRC19528. Depth extensions to this intersection will be targeted in step-out drilling in the near term as drill pad access becomes available.

Torres

Figure 3. Tap AB1 & 2, AB Sul composite longsection showing location of new results

Roadside open hole percussion drilling along the southern extension of the Tucano Mine Corridor has intersected significant shallow colluvium and BIF hosted gold mineralisation at Torres.

Results up to 5 m @ 3.39 g/t gold from 4 m to BOH in GCPF28343 were recorded from the shallow drilling along the same eastern BIF contact that hosts the high-grade Tap AB1 and Tap AB2 Trough lodes to the north. Deep weathering in excess of 200 m along this contact provides an excellent target for discovery of additional high-grade oxide gold mineralisation.

Additional results, of up to 5 m @ 5.73 g/t gold from 12 m in GCPF28419 and 2 m @ 7.72 g/t gold from 13 m to BOH including 1 m @ 11.68 g/t gold from 14m to BOH in GCPF28425, are highly encouraging as they demonstrate additional high-grade, near surface oxide gold mineralisation.