Bullabulling Gold Ltd : Clarification of Production Forecast Assumptions – 07 March 2014

7 March 2014 ASX Code: BAB, AIM Code: BGL CLARIFICATION OF PRODUCTION FORECAST ASSUMPTIONS

In an announcement released this morning regarding a preliminary mining study for the Company's Gibraltar Project, reference was made to forecast gold production for the Bullabulling Gold Project. This production forecast was first released on 15 October 2013. The Gibraltar Project is not included in the Company's production forecast.
Bullabulling Gold Limited wishes to clarify that the production forecast was based on the following material assumptions.

Mineral Resource

The Mineral Resource estimate, presented in Table 1 below, was prepared and first disclosed under the JORC Code 2004 on 19 October 2013.

Table1: Bullabulling Gold Project Mineral Resource Estimate (0.5g/t cut‐off)
Deposit	Classification	Tonnage	Grade	Cont. Gold
Bullabulling Laterite	Inferred	1.7 Mt	0.89 g/t	48,000 oz
Bullabulling Primary	Indicated	72.4 Mt	0.98 g/t	2,279,000 oz
Bullabulling Primary	Inferred	35.0 Mt	1.12 g/t	1,257,000 oz
Bullabulling Total	Ind. & Inf.	109.1 Mt	1.02 g/t	3,584,000 oz

Mining

It was assumed all mining would be carried out by open pit methods using conventional drill and blast techniques with a 400t and a 600t hydraulic excavator loading diesel powered 230t capacity haul trucks. All mining equipment was assumed to be owned and operated by the Company.

Table 2: Bullabulling Preliminary Mine Production Estimate (Diluted Mineral Resource Within Pit Designs)
Indicated Resource	Inferred Resource	Total
Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
79.8 Mt 84%	0.82 g/t	2,096,000 oz 82%	14.8 Mt 16%	0.97 g/t	466,000 oz 18%	94.7 Mt 100%	0.84 g/t	2,562,000 oz 100%

Note that there is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realized.
Mining blocks within the production estimate have been diluted by the inclusion of mineralisation below the resource cut‐off grade. 345 million tonnes of waste rock is mined over an estimated life of mine of approximately 13 years at an average strip ratio of 3.6:1.

Processing

Processing was assumed to take place via an on‐site purpose built carbon in leach plant at an annual rate of 7.5 million tonnes of ore per annum. Average recovery over the life of mine was
87.3%. Metallurgical recovery was derived from test work and an examination of production performance during previous production at the site using a similar CIL plant.
Over the life of mine 2,237,500ounces of gold were forecast to be recovered at an average rate of
175,000 ounces per annum.

Financial Assumptions

The estimates of capital and operating costs are presented in Tables 3 and 4 below.

Table 3: Bullabulling Preliminary Capital Cost Estimate
Fixed Plant & Infrastructure	$326.4M
Establishment & Pre‐production Mining	$32.4M
Mobile Equipment - Pre‐production	$81.6M
Mobile Equipment ‐ Additions	$10.5M
Sustaining Capital	$54.4M

Table 4: Bullabulling Preliminary Operating Cost Estimate
Mining	$9.33/t
Processing	$12.27/t
Administration	$0.15/t
Refining	$0.04/t

A fixed gold price of A$1,500 per ounce was assumed over the life of mine.
For information, contact:

Brett Lambert Bullabulling Gold Limited Level 2, 55 Carrington Street Nedlands, WA, 6009, Australia Tel: [phone]	Westhouse Securities Limited (UK Broker & Nominated Adviser) Martin Davison / Dominic Palmer‐Tomkinson / Hugo Rubinstein Tel: [phone]
Neil Boom Gresham PR Ltd (UK media) Tel: [phone]	John Gardner / Rupert Dearden MAGNUS Investor Relations. Corporate Communication. (Australian Media) Tel: [phone] [e-mail] [e-mail]

About Bullabulling Gold Limited

Bullabulling Gold Limited is listed on the Australian Securities Exchange (ASX:BAB) and London's AIM Market (AIM:BGL) and has approximately 344 million shares on issue. The Company's primary asset is the wholly owned Bullabulling Gold Project, located 60 kilometres west of Kalgoorlie in Western Australia.
The Bullabulling Gold Project hosts JORC compliant Mineral Resources of 3.75 million ounces comprising Indicated Resources of 72.4 million tonnes at 0.98 g/t gold (2.28 million ounces) and Inferred Resources of 41.6 million tonnes at 1.11 g/t gold (1.47 million ounces). Exploration has demonstrated strong potential for further expansion of the resource base.
The Bullabulling deposit is amenable to bulk tonnage open pit mining and conventional CIL processing. All resources are situated on granted Mining Leases in close proximity to infrastructure.
The Company is conducting a definitive feasibility study into the development of a large scale, low cost mining operation at Bullabulling which is scheduled for completion in 2014.

Competent Person Statement

The information in this report that relates to the Exploration Results, Mineral Resources or Ore Reserves is based upon information compiled by Mr Trevor Pilcher, who is a full time employee of the Company and is a member of The Australasian Institute of Mining and Metallurgy. Mr Pilcher has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and the activity in which he is undertaking to qualify as a Competent Person under 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Pilcher consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the Exploration Results, Mineral Resources or Ore Reserves was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. All material assumptions and technical parameters underpinning the estimates of mineral resources continue to apply and have not materially changed.