Saracen Mineral : Dec Qtr Pre-release 170111

SARACEN MINERAL HOLDINGS LIMITED ACN: 009 215 347 December Quarter Trading Update Robust quarter ensures Saracen on track to hit 300,000ozpa target by June Quarter 2017 Cash and bullion of A$44m; no debt

Corporate Details: 11th January 2017 ASX code: SAR Corporate Structure: Ordinary shares on issue: 807.5m Unvested employee performance rights: 14.3m Market Capitalisation: A$904m (share price A$1.12) Cash & Bullion (31 December): A$43.9m Debt: Nil Directors: Mr Geoff Clifford Non-Executive Chairman Mr Raleigh Finlayson Managing Director Mr Mark Connelly Non-Executive Mr Martin Reed Non-Executive Ms Samantha Tough Non-Executive Substantial Shareholders: Van Eck Global 18.0% Wroxby 7.0% Registered Office: Level 4 89 St Georges Terrace Perth WA 6000 Telephone: [phone] Facsimile: [phone] For further details contact: Investors - Troy Irvin Telephone [phone] [e-mail] Media - Read Corporate Paul Armstrong / Nicholas Read Telephone [phone] [e-mail]

Key Points Record quarterly gold production of 66,222oz (Thunderbox 28,530oz, Carosue Dam 37,692oz) continues ramp-up to 300,000ozpa Record first half FY17 production of 127,692oz Cash and bullion of $43.9m at 31 December 2016 ($42.5m at 30 September 2016) after spending: $8.3m on exploration $6.3m on growth capital $4.4m on pre-strip mining at Thunderbox C Zone pit Quarterly highlights included AngloGold entering a A$25m farm- in JV at Carosue Dam North and the securing of a A$150m financing facility with an international banking syndicate Drilling continues as part of the A$42m exploration budget designed to grow the inventory and production at existing mines Saracen Mineral Holdings Limited (ASX: SAR) is pleased to announce robust production and cash generation for the December Quarter. The Company produced a record 66,222oz in the December quarter, resulting in record production of 127,692oz in the first six months of FY2017. The strong result ensures Saracen is on track to achieve its goal of doubling its production rate to 300,000ozpa by the June quarter, 2017. Cash and bullion increased by $1.5 million over the quarter to $43.9 million despite Saracen spending $14.6 million on exploration and growth capital. Managing Director Raleigh Finlayson said free cash flow would be boosted in coming quarters by increasing production and decreasing all-in sustaining costs (as the strip ratio at Thunderbox continues to decline concurrent with increasing average grades). "Saracen's strategy to double production and undertake aggressive exploration using internal cash flow is now paying strong dividends, cementing the Company's status as Australian mid-tier gold producer," Mr Finlayson said.