For personal use only

ABN 38 123 629 863 30 June 2015 Annual Report

CORPORATE DIRECTORY Directors Peter John Bird (Chairman) David Alan Hamlyn (Managing Director) David Sidney Potter (Technical Director) Chen Chik (Nicholas) Ong (Commercial Director) Company Secretary Chen Chik (Nicholas) Ong Registered Office Unit 2 124 Stirling Highway North Fremantle WA 6159 Telephone: +61 8 9335 7770 Facsimile: +61 8 9335 6231 Email: admin@excelsiorgold.com.au Website: www.excelsiorgold.com.au Auditors BDO Audit (WA) Pty Ltd 38 Station Street, Subiaco WA 6008 Share Registry Security Transfer Registrars 770 Canning Highway Applecross WA 6153 Telephone: (08) 9315 2333 Facsimile: (08) 9315 2233 Stock Exchange Listing The Company is listed on the Australian Securities Exchange Ltd (ASX) Home Exchange: Perth, Western Australia ASX Code: EXG 2

CONTENTS Company Profile Managing Director s Review 4 5 2014/2015 Development Milestones 8 Directors Report Review of Operations Auditor s Independence Declaration Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Declaration by Directors Independent Auditor s Report Additional ASX Information 11 12 46 47 48 49 50 51 92 93 95 3

Company Profile Excelsior Gold Limited ( Excelsior Gold or the Company ) (ASX: EXG) is an emerging Australian mineral exploration and development company with a core focus on developing its 100% owned Kalgoorlie North Gold Project ( Project ) located 30 to 55 kilometres north of Kalgoorlie in Western Australia s highly prospective Eastern Goldfields. The Project covers 134 square kilometres of tenements over 25 kilometres of strike of the Bardoc Tectonic Zone greenstone belt. Mineral resources delineated to date total 24.53 million tonnes at 1.76g/t Au for 1,385,100 ounces of contained gold (at 0.6g/t and 3.0g/t Au cut- off grades). The close proximity of the Company s deposits to Norton Gold Fields Limited s ( Norton ) Paddington treatment plant ( Paddington Mill ) has enabled Excelsior Gold to progress the development of the Project through cooperative milling agreements with Norton. Two processing agreements are in place which will provide access to the Paddington Mill for the treatment of KNGP ores. The Bardoc South Ore Treatment Agreement (ASX announcement 18 February 2015) covering the processing of a series of smaller satellite deposits within the Bardoc South tenements and the longer term Capital Contribution and Ore Treatment Agreement (ASX announcement 20 October 2014) commencing in 2016. Excelsior is proposing to mine three small open pits in the Bardoc South area in late calendar 2015 followed by the development of the larger Zoroastrian Central open pit to provide ore to the Paddington Mill in 2016 and 2017 and the Bulletin South open pit in 2018. The current mining schedule is centred on the proposed development of only five of the most advanced deposits within the Project s 22 resource areas. Probable Ore Reserves for the initial open pit development phase of the Project are 1.94 million tonnes grading 2.04g/t Au for 127,100 ounces of gold. Pre- feasibility level studies have also established underground mine Ore Reserves at the Zoroastrian deposit which total 1.43 million tonnes at 3.65g/t Au for 169,300 ounces of gold. The potential underground mine plan will be updated as new information on the mineralisation at Zoroastrian becomes available from the mining of the open pit and can be utilised to target further drilling to confirm and expand the underground ore reserves. The Project exhibits extensive widespread gold mineralisation outside the currently defined resources and reserves and the Company is targeting further resource expansion at both the existing deposits and in new resource areas. Cash flow generated from future gold production will be directed towards further exploration drilling aimed at realising the large potential of the gold mineralisation within the Project hence further generating value to shareholders. 4

Managing Director s Review The Company s focus for the year has been on mine development at the Kalgoorlie North Gold Project on the back of the Capital Contribution and Ore Treatment Agreement with Norton Gold Fields executed in October 2014. This agreement secured a minimum 500,000 tonnes per annum ( tpa ) of mill capacity at the Paddington Mill for an initial allocation of 2.5 million tonnes of ore with processing scheduled to commence in January 2016. Excelsior Gold was committed to contribute part of the cost of upgrading the Paddington plant, capped at A12.5 million, in return for the mill allocation and attractive open book treatment costs. An additional treatment agreement with Norton, the Bardoc South Ore Treatment Agreement, was executed in February 2015 which brought the promise of earlier mine production prior to January 2016 from the Bardoc South deposits in the southern part of the tenement area. The take- over of Norton by its major shareholder, Zijin Mining Group Co. Ltd ( Zijin ), in June 2015 resulted in delays to the proposed mill upgrade as Zijin assessed the scope of the mill expansion. This delay in the upgrade did not impact on Excelsior Gold s rights to treat ore at the Paddington Mill however did affect the timing and magnitude of funding of the Company s portion of the capital required to upgrade the Paddington Mill. In a difficult year for the resource sector, Excelsior Gold has successfully steered a path to gold production and sustaining cash flow which will underpin the Company s future. With the focus on production, activities during the year have been directed primarily towards extensive mining feasibility studies including open pit and underground mine designs and infill drilling programs in proposed open pit areas. In terms of contained gold, Mineral Resources remained relatively unchanged however resource confidence improved with conversion of Inferred resources to Indicated classification. Current Measured, Indicated and Inferred Mineral Resources for the Project total 24.52 million tonnes @ 1.76g/t Au for 1,385,100 ounces at 0.6 and 3.0g/t Au lower cut- offs. Reverse circulation and diamond drilling campaigns were directed at the initial proposed production areas at Zoroastrian, the Bardoc South satellite pit areas and Bulletin South to drill out proposed open pit areas and to provide geotechnical information and metallurgical samples. The emerging Bulletin South area continued to demonstrate potential for resource growth and larger mine development with a 33% increase in resource ounces and robust drill intercepts outside the current open pit design on extensions to the known mineralisation (ASX announcements 28 October 2014 and 10 April 2015). The Base Case open pit Ore Reserve of 1.94 million tonnes grading 2.04g/t Au for 127,100 ounces provides an initial four year mine life under the minimum treatment provisions (500,000tpa) of the agreement with Norton and provides time and cash flow to finesse the underground mine studies at Zoroastrian and bring additional open pit ore reserves into the mining sequence. The current underground Probable Ore Reserves at Zoroastrian total 1.44 million tonnes grading 3.65g/t Au for 169,300 ounces of gold. The Company has mining approvals in place for the initial open pit mine plan and at the time of this report was in the process of finalising funding. The Company accepted a credit approved 15 million loan and hedging program from Macquarie Bank Limited ( Macquarie ) in July 2015 to provide funding for Excelsior Gold s share of the capital contribution to the Paddington Mill upgrade is further endorsement of the merits of the Project. Discussions with Macquarie are ongoing on the finalisation of the project funding documentation. 5

The Company s Kalgoorlie experienced mining team is in place with grade control drilling at the initial Bardoc South open pits completed and haul road construction initiated. Mining is scheduled to commence in November 2015. The activities of the past financial year and the subsequent developments have paved the way for Excelsior Gold to transition to gold production in a cost effective and streamlined manner. The treatment pathway has largely de- risked the development of the Project and protected the exploration and resources growth upside. The milling arrangements with Norton aligns Excelsior Gold with a financially strong partner who has demonstrated a willingness to invest capital and pursue acquisitions to underpin the security of its operations. These arrangements also expose the Company to the potential for higher milling allocations at the Paddington Mill. At its own election, the Company has the ability to continue to evaluate the feasibility of a new stand alone processing plant for the Project or additional processing opportunities with other processing companies in the district. On behalf of all Shareholders, I thank the Company s staff and contractors for the diligent work carried out over the year. The small geological field crew consisting of Meaghan Walley and led by Technical Director, David Potter and Exploration Manager, Bradley Toms, have continued to successfully grow resources and transform them to ore reserves during the year. The team is well supported by our North Fremantle Office staff, Database Manager, Amanda Lennon and Corporate Assistant, Grace Tan. The Company s Commercial Director, Nicholas Ong has been pivotal in the successful contract negotiations with Norton and the financing arrangements with Macquarie. I thank them all for their commitment to the success of the Company s programs. I also welcome the Company s new Kalgoorlie based mining team led by Mine Manager Randell Ford and Geological Superintendent, Hayden Parry. Both are highly experienced operators in the Kalgoorlie region who bring additional local mining and geological knowledge to the Company and who will be instrumental in the success of the mining operations. I extend my thanks to our contractors who have provided valuable assistance to the Company throughout the year. Duncan Coutts from DC Consulting, Operations Manager for the Company since September 2014 and has provided leadership and guidance in feasibility studies, advice on mine design, mine scheduling and overall planning for operations readiness. Duncan s input has been invaluable in the progressing of the approval process and the development of the mining program. Alexander Holm from Alexander Holm and Associates, the Company s Environmental Coordinator for environmental monitoring and management, preparation of mining proposals and facilitation of the approval processes. Auralia Mining Consulting for open pit optimization studies and mine design work on the majority of the open pits in the initial mining program. The Auralia team, led by Daniel Tuffin, has had a long association with the Project and their early stage optimisation studies have help guide the Company s drilling programs which have delivered low resource and ore reserve discovery costs. Mining Plus Pty Ltd for underground mining studies and design work on the Zoroastrian underground and the Zoroastrian South open pits. Peter O Brien and Associates for geotechnical advice on both open pit and underground studies. 6

Daniel Schwann Consulting and Scott Barry for metallurgical work and contribution to the refinement of procedures under the ore processing agreements with Paddington Gold. Excelsior Gold s Land Manager, Graham Williamson from Central Tenement Services for tenement management. Mineral Administration Services for accounting and payroll services and implementation of mine production accounting procedures. Kings Park Corporate Lawyers for legal advice. KPMG Corporate Finance for corporate advice and financial modeling. Drilling contractors, Redmond Drilling and Westralian Diamond Drillers. Toucan Resources and Mt Vetters Pastoral Company for field support. The 2014/2015 financial year has been a transformational year for Excelsior Gold. No longer a junior explorer, the Company is now poised for production with processing agreements, mining approvals and a well experienced mining team in place to execute the initial mining plan for the Kalgoorlie North Gold Project. David Hamlyn Managing Director 7

2014/2015 Development Milestones July 2014 s Execution of Macquarie convertible loan facility documentation and draw down of the first 2 million tranche (ASX announcement 22 July 2014). s Commencement of a multi- stage development and exploration drilling program focussed on Zoroastrian, Bulletin South and new exploration areas (ASX announcement 30 July 2014). August 2014 s Highly targeted reverse circulation drilling programs test extensions to the Zoroastrian mineralisation and infill Inferred mineral resource areas contained within and adjacent to preliminary open pit designs. s Drilling enhances exploration and development potential at Bulletin South including result 19m @ 5.94g/t Au (ASX announcement 27 August 2014). September 2014 s Further drilling success at Bulletin South indicates potential to extend preliminary open pit designs (ASX announcement 10 September 2014). s Drilling at Parkerville extends mineralisation including 10m @ 3.99g/t Au (ASX announcement 17 September 2014). s Definitive mine submissions from a number of mining contractors operations based on preliminary open pit mine designs identifies substantial cost reductions for the Project (ASX announcement 19 September 2014). s Placement of 33.33 million shares at 0.06 each raising 2 million before costs (ASX announcement 29 September 2014). October 2014 s Further resource drilling success at Parkerville, 11m @ 4.35g/t Au, and exploration drilling at Botswana West intersects wide zones of near surface gold mineralisation, 9m @ 1.32g/t Au from 1m depth (ASX announcement 7 October 2014). s Execution of Capital Contribution and Ore Treatment Agreement with Norton (ASX announcement 20 October 2014). s Bulletin South Mineral Resources increased by 25% to 729,700t @1,98g/t Au for 46,500ozs (ASX announcement 28 October 2014). November 2014 s Infill resource drilling and geotechnical core drilling conducted at Zoroastrian to facilitate open pit and underground mine design (ASX announcement 12 November 2014). s Parkerville Mineral Resources upgraded with 76% increase in contained ounces to 296,000t @ 1.54g/t Au for 14,600ozs (ASX announcement 26 November 2014). December 2014 s Resource development drilling at Zoroastrian continues to confirm resource interpretations and drilling at Navan laterite resource indicates low cost mine potential with gold mineralisation from surface including 15m @ 1.44g/t Au from surface (ASX announcement 11 December 2014). 8

s Resource development drilling at Bulletin South defines extensions to gold mineralisation including 13m @ 5.06g/t Au, demonstrating potential for expansion of conceptual open pit design (ASX announcement 18 December 2014). February 2015 s A second ore treatment agreement, the Bardoc South Ore Treatment Agreement, executed with Norton provides earlier pathway to production by mining and processing of Bardoc South deposits prior to end December 2015 (ASX announcement 18 February 2015). March 2015 s Open pit mine design and feasibility works completed on four Bardoc South deposits (Castlereagh, Jackorite, Big Blow South and Nerrin Nerrin) establish Ore Reserves of 205,000t @ 2.75g/t Au for 18,100ozs (ASX announcement 18 March 2015). s Mining Proposal lodged with Department of Mines and Petroleum on 12 March 2015 for development of Bardoc South and Bulletin South open pits. s Placement of 24.22 million shares at 0.09 each raising 2.33 million before costs (ASX announcement 30 March 2015). April 2015 s Bulletin South Mineral Resource upgraded to 762,900t @ 2.02g/t Au for 49,500ozs and Ore reserves of 458,000t @ 2.14g/t Au for 31,600ozs established from mine design studies (ASX announcement 10 April 2015). s Drilling at Bulletin South intersects strong gold mineralisation beneath Ore Reserve open pit design including 20m @ 4.44g/t Au (ASX announcement 14 April 2015) and 25m @ 3.71g/t Au (ASX announcement 22 April 2015). May 2015 s Close spaced infill drilling initiated on Bardoc South deposits as precursor to grade control drilling. s Mining Proposal for the development of the Zoroastrian Central and Extended open pits was lodged with Department of Mines and Petroleum on 29 May 2015. June 2015 s Infill drilling at Big Blow South confirms high grade gold mineralisation including 3m @ 13.3g/t Au from 51m depth and 2m @145g/t Au from 60m (ASX announcement 4 June 2015). s Castlereagh infill drilling confirms and extends open pit mine potential with intersections outside Ore Reserve pit design including 8m @ 3.81g/t Au (ASX announcement 24 June 2015). Subsequent Events July 2015 s Zoroastrian Mineral Resources updated and Ore Reserves of 2.63mt @ 2.84g/t Au for 239,900ozs established from open pit and underground mine design and feasibility studies (ASX announcement 6 July 2015). s Bardoc South and Bulletin South Mining Proposal approved for development the Castlereagh, Jackorite, Big Blow South, Nerrin Nerrin and Bulletin South open pits with combined Ore Reserves of 690,000t @ 2.32g/t Au for 49,700ozs (ASX announcement 9 July 2015). 9

s s s s Grade control drilling from surface commenced at Castlereagh, Jackorite and Big Blow South open pit areas. A credit approved 15 million loan and hedging facility with Macquarie accepted consisting of 12 million loan facility and 3 million call grant facility, subject to conditions precedent including an equity of subordinate debt raising of 7 million by the Company (ASX announcement 13 July 2015). Zoroastrian Mining Proposal approved covering the development of the Zoroastrian Central and Zoroastrian Extended open pits with combined Ore Reserves of 1.196mt @ 1.92g/t au for 74,200ozs (ASX announcement 28 July 2015). Ore Reserves approved for mining at Bardoc South, Bulletin South and Zoroastrian total 1.886mt @ 2.07g/t Au for 123,900ozs. 10

DIRECTORS REPORT Your Directors present their report on the consolidated entity of Excelsior Gold Ltd ( the Group ) and the entities it controlled at the end of, or during, the year ended 30 June 2015 and the state of affairs at that date. DIRECTORS The following persons were directors of the Group during the whole of the financial period (or as disclosed) and up to the date of this report: Mr David Hamlyn Mr David Potter Mr Chen Chik Ong Mr Peter Bird PRINCIPAL ACTIVITIES The principal activity of the Company is gold exploration and mine development at its Kalgoorlie North Gold Project. FINANCIAL RESULTS The loss of the Group after providing for income tax for the financial year was 3,101,694 (2014: 1,884,980). DIVIDENDS No dividends have been paid or declared and no dividends have been recommended by the Directors. 11

REVIEW OF OPERATIONS KALGOORLIE NORTH GOLD PROJECT The Project is located 30 to 55 kilometres north of Kalgoorlie in Western Australia and covers 134 square kilometres of granted mining leases and prospecting licences over 25 kilometres of strike of the Bardoc Tectonic Zone greenstone belt (refer Figure 1). Historic gold production from the Bardoc Mining Centre in the central part of the tenements occurred from the underground Zoroastrian Mine in the late 1890s to early 1900s and from the Zoroastrian and Excelsior open pits mined by Aberfoyle Gold Pty Limited between 1987 and 1991. Open pit production totalled 2,220,000 tonnes at 1.6g/t Au for 113,000 ounces of gold. The Project is located at the convergence of two major gold mineralising structural systems, the Bardoc Tectonic Zone and the Black Flag Fault. The Bardoc Tectonic Zone represents the northern extensions of the Boulder Lefroy Fault system which hosts extensive gold mineralisation and world class gold deposits including the St Ives camp in the south and the Golden Mile at Kalgoorlie- Boulder. The Black Flag Fault is interpreted to be a mineralised link structure between the Zuleika Shear to the west and the Bardoc Tectonic Zone and influences major deposits at Kundana and Mount Pleasant to the west. The convergence of these structural systems within the Project area creates an intensely mineralised area with a multitude of gold occurrences related to the interaction of the north- north- west trending Bardoc Tectonic Zone and the north- east trending Black Flag Fault structures. Exploration to date has delineated priority areas within the extensive mineralisation including: Ø 22 defined resource areas to date totalling 1,385,100 ounces Au (at 0.6 to 3.0g/t Au cut- offs) including o o o 2 large gold resources at the Zoroastrian and Excelsior deposits which host current Measured, Indicated and Inferred resources of 1,037,100 ounces of gold an expanding resource at Bulletin South which currently totals 49,500 ounces of Indicated and Inferred resources 19 satellite resource areas containing Indicated and Inferred resources totalling 298,600 ounces Au; Ø 18 advanced prospects where additional drilling and resource modelling is warranted to quantify mineral resources; Ø 51 zones with significant drill intercepts which present further resource expansion opportunities; and Ø Numerous additional untested structural, geochemical and hyperspectral targets. 12

Total current Measured, Indicated and Inferred Mineral Resources for the Project, at 0.6 and 3.0g/t Au cut- off grades, are: 24.52 million tonnes @ 1.76g/t Au for 1,385,100 ounces * This information 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. Rounding errors may occur. Table 1: Kalgoorlie North Gold Project Resource Inventory (July 2015 refer ASX announcement 9 July 2015) 13

For personal use only EXCELSIOR GOLD LIMITED Figure 1. Kalgoorlie North Gold Project Prospect Location Plan, Geology, Tenements, Resource Targets and Neighbouring Significant Gold Deposits showing gold resource ounces @ 0.6g/t and 3.0g/t Au lower cut- offs 14

ZOROASTRIAN The Zoroastrian gold mineralisation is hosted in quartz veins and stockwork zones within the differentiated Zoroastrian Dolerite. The quartz veining has been defined over a strike length of 1.4 kilometres and to a maximum vertical depth of 380 metres. The system remains open along strike and at depth and the high grade gold content of the stockwork and the narrower vein style mineralisation demonstrate both open pit and underground mine potential. Drilling programs conducted in December 2014, were designed to infill previous drilling which had delineated Indicated and Inferred Mineral Resources totalling 6.69 million tonnes grading 2.70g/t Au for 581,200 ounces of gold (ASX announcement 12 November 2013). The 2014 drilling targeted Inferred Mineral Resource material and unclassified mineralisation within and adjacent to the initial Pre- Feasibility Study ( PFS ) Zoroastrian open pit and conceptual underground mine designs (ASX announcement 4 March 2014) to increase resource classification confidence rather than expand the mineral resources. A total of 5,023 metres of reverse circulation drilling was completed in 71 holes to take the drill spacing in the proposed open pit areas to nominal 20m x 20m spacing. The gold mineralisation in the Zoroastrian area is associated with an array of multiple dimensional and variable orientated quartz veins and stock works. Three dimensional geological interpretation has identified 80 gold bearing lodes of varying dimensions and orientations within the system of which 78 lodes were used in the mineral resource calculation. The mineral resource estimate was completed using a combination of Ordinary Kriging and Inverse weighted methodologies as appropriate to the different lodes. Indicated and Inferred Mineral Resources totalling 7.14 million tonnes grading 2.53g/t Au for 581,000 ounces of gold (ASX announcement 9 July 2015). The quartz vein and stock- work style gold mineralisation is localised by north- east cross cutting fault structures and is interpreted to be concentrated in two north plunging zones of gold mineralisation within the granophyric units within the Dolerite (refer Figure 2). The Zoroastrian Mineral Resource is subdivided into shallower zones of mineralisation, less than 150 metres vertical depth, which are potentially amenable to open pit mining and deeper, greater than 150 metres vertical depth mineralisation which presents underground mining opportunities. The shallow resource is modelled and estimated at a low grade cut of 0.6g/t Au and using a high grade top- cut of 50g/t Au. The deeper mineralisation was modelled at a cut- off grade of greater than 1.0g/t Au and is quoted at a 3.0g/t Au cut- off to reflect underground mining economic cut- off grades (refer Table 2). As a result of this drilling overall Mineral Resources at Zoroastrian remained static but resource confidence was improved with a 10% increase in Indicated Mineral Resources predominately in the deeper portion (>150m vertical depth) of the resource. Using the new Mineral Resource estimate, a new Zoroastrian Ore Reserve was derived following Feasibility mine design works completed as part of the Mining Proposal for the development of the Zoroastrian deposit. This Mining Proposal was lodged with the Department of Mines and Petroleum ( DMP ) on 29 May 2015 and approved for development on 24 July 2015. Mine design for the Zoroastrian Central open pit was completed by Auralia Mining Consulting Pty Ltd ( Auralia ). Mining Plus Pty Ltd ( Mining Plus ) completed design work on the Zoroastrian Extended open pit, Zoroastrian South open pits and the Zoroastrian underground. 15

EXCELSIOR GOLD LIMITED For personal use only An Australian dollar gold price of A1,380 per ounce was used in all the mining design studies and ore treatment costs are derived from the cost structure associated with the long term cooperative Capital Contribution and Ore Treatment Agreement with Paddington Gold (ASX announcements 18 June 2014 and 20 October 2014). Total Zoroastrian Probable Ore Reserves were estimated in July 2015 as 2.63 million tonnes @ 2.84g/t Au for 239,900 ounces of gold (ASX announcement 9 July 2015). Re- design work by Mining Plus on the Central Underground mine design was subsequently carried out to refine portal, crown pillar and rib pillar locations and incorporated updated underground mining costs submitted by mining contractors based on the initial designs. Re- design of the larger Southern Underground was no undertaken at this time although revised decline access from the base of the Zoroastrian Central open pit to the southern stope designs was incorporated in the study. Figure 2: Zoroastrian Long Section showing Mineral Resource block model, Ore Reserves and proposed open pits and underground mine designs The open pit designs and Probable Ore Reserves remain unchanged from those reported on 9 July 2015 (1.32 million tonnes @ 1.92g/t Au for 80,900 ounces) but underground Ore Reserves increased by 10,300 ounces to 1.43 million tonnes @ 3.65g/t Au for 169,300ozs as a result of the refinements to the Central Underground design (ASX announcement 4 September 2015). Total Zoroastrian Probable Ore Reserves increased to: - 2.75 million tonnes @ 2.82g/t Au for 250,200 ounces of gold Details of Mineral Resource modelling parameters for the Zoroastrian deposit are presented in JORC Code, 2012 Edition Table 1 in the 9 July 2015 ASX announcement and Ore Reserve parameters in ASX announcement 4 September 2015. 16

Source <150m (0.6g/t Au cut) >150m (3.0g/t Au cut) Indicated Resource Inferred Resource Total Resource Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces 4,467,000 2.30 330,600 1,171,900 1.86 102,900 6,186,000 2.18 433,500 736,800 4.83 114,500 218,300 4.70 33,000 955,100 4.80 147,500 TOTAL 5,203,800 2.66 445,100 1,937,400 2.18 135,800 7,141,200 2.53 581,000 Source Central 1 Open Pit Extended 2 Open Pit South 2 North Pit South 2 South Pit TOTAL Open Pits Central 2 Undergrou nd Southern 2 Undergrou nd TOTAL Undergrou nd Probable Ore Reserve Unclassified Total Ore Reserve Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces 1,176,000 1.88 70,900 - - - 1,176,000 1.88 70,900 20,000 4.57 3,300 - - - 20,000 4.57 3,300 60,000 1.56 2,800 - - - 60,000 1.56 2,800 60,000 2.09 3,900 60,000 2.09 3,900 1,316,000 1.92 80,900 - - - 1,316,000 1.92 80,900 447,000 4.10 59,000 - - - 447,000 4.10 59,000 988,000 3.44 110,300 - - - 988,000 3.44 110,300 1,435,000 3.65 169,300 - - - 1,435,000 3.65 169,300 TOTAL 2,751,000 2.82 250,200 - - - 2,751,000 2.82 250,200 Mineral Resources at 0.6g/t and 3.0g/t Au cut- off. Rounding errors may occur. 1 Auralia Mining Consulting Pty Ltd Ore Reserves at A1,380/oz Au gold price. Mineral Resources are inclusive of Ore Reserves 2 Mining Plus Pty Ltd Table 2: Zoroastrian Mineral Resources and Ore Reserves September 2015 17

The Zoroastrian Ore Reserves are derived from total Indicated Mineral Resources of 5.20 million tonnes @ 2.66g/t Au, containing 445,100ozs of gold. Due to the use of some historical drilling data in the resource estimates, Excelsior Gold does not quote Measured Mineral Resources or Proved Ore Reserves classifications although data quality, drill density, geological continuity and Mineral Resource confidence are high. Any material classified as an Inferred Mineral Resource was not included in the mining studies. The underground mine design study utilised Minable Shape Optimiser (MSO), a Datamine Studio3 tool, to determine the preliminary mining extents or stope shapes. The MSO data provides a means of assessing a mining envelope by considering the deposit in terms of tonnes, grade, mining width, level spacing and cut- off grade. A cut- off grade of 2.0g/t, a level spacing of 20 metres and a minimum mining width of 1.5 metres were selected to further analyse from the MSO results. The underground mine design is based on Sublevel Open Stoping as the single mining method as it provides higher production rates and generally lower operating costs, however further studies may show that more than one mining method may be used to extract additional ore from selected areas on the deposit. The Zoroastrian underground mine plan incorporates two underground mines with decline design commencement points for the Zoroastrian Central and the South ore bodies from portal positions within the Zoroastrian Central open pit (refer Figure 3). Where appropriate, modifying factors have been applied to the Feasibility Study level works on the open pits as part of the Ore Reserve estimation. These modifying factors have been calculated based on data resulting from independently tendered mining operating costs, vendor- sourced capital cost estimates, independent mining and geotechnical studies, and metallurgical and environmental studies. The modifying factors have been applied at varying points as required during Whittle optimisation, pit design, scheduling and reporting of the Ore Reserves. In the case of the Zoroastrian Central open pit a 15% mine dilution factor and a 95% mining recovery was applied during the Ore Reserve works. At Zoroastrian South and Extended pits the mine dilution was 9% at zero grade and recovery was 84%. In the underground studies stoping dilution was factored onto the stoping blocks at 15% and a minimum mining width of 1.5 metres was set for the stoping blocks. Any material classified as an Inferred Mineral Resource was not included for consideration as an economic driver during any of the optimisation processes and does not influence the final Ore Reserves calculations. The underground Ore Reserves are estimated to a pre- feasibility study level. The preliminary underground design is economically viable and therefore qualifies as an Ore Reserve but it is limited by drilling information at depth and further drilling and design refinement is planned. The mining of the Zoroastrian Central open pit will provide extensive geological information which will enhance deeper drill targeting and the design of the underground mine. 18

For personal use only EXCELSIOR GOLD LIMITED Figure 3: Zoroastrian Central Open pit and Central and South Underground Mine Designs showing geology, Ore Reserves, proposed open pit designs, portal locations and Central and South underground mine designs Ore Reserves are quoted on a delivered to mill basis, which excludes metallurgical recovery factors. The planned treatment of Zoroastrian ore is at the Paddington processing facility which is a conventional 3.5mtpa CIL plant suitable for the treatment of Zoroastrian type ores. Metallurgical test work predicts an average mill recovery of 93% at a grind size of 80% passing 106 microns and 24 hour leach residence time is applicable to the Zoroastrian Central Open Pit and a process recovery of 91.7% was applied to oxide and transitional material in the Zoroastrian South open pits and 91.7% for the fresh Zoroastrian underground mineralisation. 19

BARDOC SOUTH The Bardoc South Tenements which form part of the southern portion of the Project, were previously a divestment from the Paddington Operations (refer Figure 4). Norton retains the first right to treat ore mined from within the Bardoc South Tenement area. Figure 4: Bardoc South Tenements Area (shaded) and Satellite Resources showing proposed open pit designs with Ore Reserves, prospect Mineral Resources and proposed haul road The Bardoc South tenements comprise approximately 40% of the total Kalgoorlie North Gold Project area and contain 11 of the current 22 mineral resources within the Project and numerous exploration and resource targets. Total Indicated and Inferred Mineral Resources at Bardoc South are 3.59 million tonnes @ 1.70g/t Au for 195,800 ounces which account for only 14% of the Project resource ounces to date. The most advanced prospects are concentrated in a highly mineralised area centred approximately 2.5 kilometres south of the Zoroastrian deposit. The intensity of the Black Flag Fault cross cutting structures in this area result in the development of smaller, higher grade gold deposits on different prospective units and shears within the Bardoc Tectonic Zone Nerrin Nerrin in the Zoroastrian Dolerite, Castlereagh and Parkerville on the southern extensions of the Excelsior Shear and Big Blow South and North on the Big Blow Trend. This area has been the main focus for the development of a multiple open pit satellite mining program at Bardoc South (refer Figure 5). 20

Figure 5: Bardoc South Satellite Mining Area showing geology, Ore Reserves, proposed open pit designs, waste dump and haul road layout and prospects with significant drilling intercepts Under the terms of the Bardoc South Ore Treatment Agreement, Norton agreed to process ore from the Bardoc South deposits over a period up to end December 2015. By subsequent agreement with Norton the timing constraints on the processing of Bardoc South ores have been removed to facilitate the potential treatment of Bardoc South ore at the Paddington Mill into 2016. Excelsior Gold will be responsible for all of the mining operations whilst Norton will be responsible for haulage and milling of the ore. The current mining schedule covers the development of three of the Bardoc South resources. The Jackorite, Castlereagh and Big Blow South open pits are scheduled for development in late 2015 and the first quarter of 2016. Ore Reserves for the scheduled Bardoc South open pits are 169,000 tonnes @ 2.70g/t Au for 14,700ozs of gold (ASX announcement 18 March 2015). 21

Pit Indicated Resource Inferred Resource Total Resource Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces Jackorite 88,800 2.73 7,800 29,100 1.79 1,700 117,900 2.50 9,500 Castlereagh 148,900 1.96 9,400 8,700 1.48 400 157,700 1.94 9,800 Big Blow South 133,500 3.56 15,300 191,900 1.99 12,300 325,400 2.64 27,600 TOTAL 371,200 2.72 32,500 229,700 1.95 14,400 600,900 2.43 46,900 Pit Probable Ore Reserve Unclassified Total Ore Reserve Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces Jackorite 76,000 2.76 6,700 - - - 76,000 2.76 6,700 Castlereagh 66,000 2.23 4,800 - - - 66,000 2.23 4,800 Big Blow South 27,000 3.66 3,200 - - - 27,000 3.66 3,200 TOTAL 169,000 2.70 14,700 - - - 169,000 2.70 14,700 Mineral Resources at 0.6g/t Au cut- off. Rounding errors may occur. Ore Reserves at A1,380/oz Au gold price. Mineral Resources are inclusive of Ore Reserves Table 3: Bardoc South Mine Schedule Mineral Resource and Ore Reserve Summary Resource definition drilling was initiated on the three open pit areas during the June Quarter and subsequent to the grant of the Mining Approval in July 2015, addition infill drilling to grade control spacing (7.5m x 5.0m) was conducted. The small size of the proposed open pits and the rapid rate of mining, dictates the need for grade control drilling to be completed from surface prior to the commencement of mining. A total of 12,439 metres of reverse circulation drilling has been completed in 359 holes on the Bardoc South open pit areas. Some of the more significant results included: - Big Blow South (3,968 metres drilled in 111 holes) Ø 12 metres @ 4.05g/t Au from 43 metres including 3 metres @ 13.3g/t Au from 51 metres (BBSGC0001) Ø 2 metres @ 145g/t Au from 60 metres (BBSGC0002) Ø 11 metres @ 6.51g/t Au from 18 metres including 4 metres @ 16.4g/t Au from 24 metres (BBSGC0014) Ø 7 metres @ 6.30g/t Au from 20 metres including 1 metre @ 36.2g/t Au from 20 metres (BBSGC0028) 22

EXCELSIOR GOLD LIMITED Castlereagh (5,503 metres drilled in 154 holes) Ø 9 metres @ 3.69g/t Au from 22 metres (CASGC0040) Ø 11 metres @ 3.88g/t Au from 29 metres including 1 metres @ 23.4g/t Au from 39 metres For personal use only (CASGC0041) Ø 13 metres @ 3.18g/t Au from 25 metres including 5 metres @ 5.97g/t Au from 30 metres (CASGC0053) Ø 14 metres @ 4.06g/t Au from 16 metres (CASGC0107) Jackorite (2,968 metres drilled in 94 holes) refer Figure 5 Ø 13 metres @ 6.86g/t Au from 15 metres including 2 metres @ 35.5g/t Au from 23 metres (JACGC0014) Ø 8 metres @ 6.94g/t Au from 4 metres including 4 metres @ 10.4g/t Au from 7 metres (JACGC0025) Ø 17 metres @ 14.5g/t Au from 23 metres including 2 metres @ 69.9g/t Au from 36 metres (JACGC0029) Ø 14 metres @ 7.00g/t Au from 3 metres (JACGC0084) Ø 13 metres @ 9.46g/t Au from29 metres (JACGC0101) The results from the closed spaced grade control drilling programs are being incorporated into revised ore reserve estimates based on refined open pit designs. Mining is scheduled to commence in October 2015. Figure 6: Grade Control Drilling at Jackorite (July 2015) 23

BULLETIN SOUTH The Bulletin South area is located in the south western portion of the Project tenements and is centred around the historical Bulletin South open pit which was mined in 1994 and reportedly produced 66,592 tonnes @ 2.76g/t Au for 5,900 recovered ounces of gold. The existing pit is approximately 170 metres long, 100 metres wide and was mined to a maximum depth of 55 metres. Gold mineralisation at Bulletin South is associated with stock- work zones within a porphyry unit proximal to the regionally significant Black Flag Fault structure which is interpreted to be close to the southern end of the historical open pit. Primary gold mineralisation in the quartz stockwork system within the felsic porphyry may represent mineralisation along splay structures emanating from the Black Flag Fault. The stockwork mineralisation in the porphyry averages 15 metres true width. Drilling campaigns in the later part of 2014 demonstrated depth and strike extensions to the mineralisation and increased mineral resource ounces by 33% and improved resource confidence with a 153% increase in Indicated resource ounces. The total Indicated and Inferred resources at a 0.6g/t Au lower cut- off are (ASX announcements 28 October 2014 and 10 April 2015) 762,900 tonnes @ 2.02g/t Au for 49,500 ounces of gold The resource extends over 250 metres of strike down to 150 metres below surface and remains open down dip and down plunge to the south. Updated Ore Reserves for the Bulletin South deposit were also reported in the March Quarter (ASX announcement 10 April 2015). Indicated Resource Inferred Resource Total Resource Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces 729,300 2.02 47,200 33,600 2.13 2,300 762,900 2.02 49,500 Probable Ore Reserve Unclassified Total Ore Reserve Tonnes g/t Au Ounces Tonnes g/t Au Ounces Tonnes g/t Au Ounces 458,000 2.14 31,600 - - - 458,000 2.14 31,600 Mineral Resources at 0.6g/t Au cut- off. Ore Reserves at A1,380/oz Au gold price. Rounding errors may occur. Mineral Resources are inclusive of Ore Reserves Table 4: Bulletin South Mineral Resource and Ore Reserve Summary The Ore Reserve was established from Feasibility mine design works completed as part of the Mining Proposal for the development of the Bardoc South and Bulletin South open pits which was approved for development on 7 July 2015 (ASX announcements 18 March and 8 July 2015). The Ore Reserve pit design is an interim design which contains 76% of the Indicated Resource ounces and was designed to a maximum depth of approximately 125 metres. Gold mineralisation extends at depth and along strike from the current pit design which bottoms out on the lower limits of the Indicated Resource. 24

A drill program was completed in April 2015 to test for extensions to the gold mineralisation and to investigate possible new lode positions in the immediate vicinity of the proposed open pit (ASX announcements 14 April and 22 April 2015). The drilling demonstrated strong potential to expand the current proposed open pit. Results included: - Ø 20 metres @ 4.44g/t Au from 126 metres including 5 metres @ 14.2g/t Au from 126 metres (KNC150006) Ø 25 metres @ 3.71g/t Au from 93 metres including 2 metres @ 36.6g/t Au from 111 metres (KNC150007) Ø 25 metres @ 1.74g/t Au from 89 metres including 4 metres @ 7.05g/t Au from 110 metres (KNC150009) The gold mineralisation still remains open along strike and down dip/plunge both to the north and to the south (refer Figure 7). Further drilling is planned to scope out the extent of the gold mineralisation ahead of new Mineral Resource estimates and mine feasibility studies aimed at increasing the extent of the open pit design and the Ore Reserve. Future drilling programs will focus on the definition of shallower mineralisation to the north to reduce high waste stripping and to establish potential links to the high grade Botswana Locker mineralisation 120 metres to the north (refer Figure 7). Figure 7: Bulletin South Drilling Results Long Section showing current pit design, existing pit, interpreted gold mineralisation gram x metre contours, historical drilling results and new drilling results in red. The area around the Bulletin South deposit (refer Figure 8) contains significant gold mineralisation, both within current gold resources and in historical drilling and is a priority exploration area. Due to fragmented tenement ownership in the past, the area has not been systematically explored and historical drilling is generally shallow and sporadic. Consolidation of tenements by Excelsior Gold in 2014 has paved the way for a more comprehensive evaluation of the gold mineralised systems. Mineralising trends related to the Black Flag Fault have been defined with the aid of fluid flow modelling of the structures as part of the Company s collaborative research program with CSIRO and by hyperspectral mapping which highlights alteration patterns associated with the gold mineralisation. The largest deposit developed to date in this immediate area is the Wendy Gully mine site owned by Norton, located approximately two kilometres south of Bulletin South. Wendy Gully produced in excess of 200,000 ounces of gold from open pit and underground sources and demonstrates the potential of the area to host substantial deposits with gold mineralisation continuous at depth and of sufficient grade to support underground mining. 25

For personal use only EXCELSIOR GOLD LIMITED Figure 8. Greater Bulletin Area Air Photo Location Plan showing existing open pits, gold mineralised structural trends, recent and historical drilling results and current gold resources 26

EXCELSIOR The Excelsior deposit located to the north east of Zoroastrian is hosted within a sequence of tightly folded and sheared ultramafic/sedimentary schists within the Excelsior Shear Zone. Gold mineralisation occurs in a broad 20 to 50 metres wide zone of intense altered quartz- sericite- carbonate schists. The Excelsior Shear is a major north- north- west trending structure up to 80 metres wide and extending for over six kilometres to the north and potentially 15 kilometres to the south of the Excelsior deposit within the Kalgoorlie North Project tenements. Satellite resources at Lochinvar, Three Star and Ellen Pearce to the north and at Castlereagh and Parkerville to the south demonstrate the potential for gold resources along the structure. The current Measured, Indicated and Inferred resources at Excelsior, based on gold mineralisation interpreted and wire- framed at a nominal 0.6g/t Au lower cut- off with high grade cut to 40.0g/t Au total 11.10 million tonnes @ 1.28g/t Au for 456,100 ounces Conceptual mining studies have confirmed that the broad zones of gold mineralisation host potential for large, low strip ratio open pit mine development. Open pit mining of the Excelsior resource would necessitate the relocation of the Kalgoorlie to Leonora rail line and the Goldfields Highway which cut across the mineralised Excelsior Shear to the north of the historical open pit mined by Aberfoyle Gold in the late 1980s. An initial design and cost estimate for the 2.9 kilometre relocation of the infrastructure is approximately 16.06 million which would accommodate an open pit designed to a vertical depth of 230 metres. The Excelsior Deposit is a significant base load deposit for ore supply to a potential standalone mill development option for the Project as examined in the Company s Pre- Feasibility Study completed in March 2014 (ASX announcement 4 March 2014) which established Ore Reserves of 3.85 million tonnes at 1.34g/t Au for 165,800 ounces of gold. The low strip ratio open pit design is amenable to low cost bulk mining and could potentially be mined at a rate of two million tonnes per annum. The upfront capital requirements to relocate infrastructure and the modest mined grade of the deposit, coupled with the restrictive throughput allocation under the current Paddington Milling arrangements render Excelsior unattractive to develop at this time. The Company will continue to explore options for the development of the Excelsior resource. BASE CASE MINE PLAN The Company has developed a detailed mining schedule for the development of the Project based on a multiple open pit and underground mining program involving initial mining of the current open pit Ore Reserves followed by the Zoroastrian underground over an 88 month mine life. Project Ore Reserves derived from the recent round of mining studies applying the cost structures associated with the Capital Contribution and Bardoc South ore processing agreements are 3.38 million tonnes @ 2.72g/t Au for 296,400 ounces of gold. The initial Base Case Ore Reserves are derived from total Indicated Mineral Resources of 6.22 million tonnes @ 2.59g/t Au for 519,100 ounces on five of the current 22 resource areas. 27

Source Proved Ore Reserve Probable Ore Reserve Total Ore Reserve Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (,000t) (g/t Au) (,000oz) (,000t) (g/t Au) (,000oz) (,000t) (g/t Au) (,000oz) Bulletin South 1 0 0.00 0 458.0 2.14 31.6 458.0 2.14 31.6 Jackorite 1 0 0.00 0 76.0 2.76 6.7 76.0 2.76 6.7 Castlereagh 1 0 0.00 0 66.0 2.23 4.7 66.0 2.23 4.7 Big Blow South 1 0 0.00 0 27.0 3.66 3.2 27.0 3.66 3.2 Zoroastrian 1 Central 0 0.00 0 1,176.0 1.88 70.9 1,176.0 1.88 70.9 Zoroastrian 2 Extension 0 0.00 0 20.0 4.57 3.3 20.0 4.57 3.3 Zoroastrian South 2 North Pit 0 0.00 0 60.0 1.56 2.8 60.0 1.56 2.8 Zoroastrian South 2 South Pit 0 0.00 0 60.0 2.09 3.9 60.0 2.09 3.9 Total Open Pits 0 0 0 1,943.0 2.04 127.1 1,943.0 2.04 127.1 Zoroastrian 2 0 0.00 0 1,435.0 3.65 169.3 1,435.0 3.65 169.3 Underground TOTAL 0 0 0 3,378.0 2.72 296.4 3,378.0 2.72 296.4 Numbers may not sum due to rounding 1 Auralia Mining Consulting Pty Ltd 2 Mining Plus Pty Ltd Table 5: Base Case Mining Schedule Ore Reserve Summary September 2015 (refer ASX announcements 18 March 2015, 10 April 2015 and 9 July 2015) These Ore Reserves form a basis for the initial development of the Project. The Base Case schedule will be modified as knowledge gained from further drilling and mining is applied to the various deposits, particularly the Zoroastrian underground mining proposal. The future inclusion of additional resources areas, conversion of Indicated and Inferred Mineral Resources to Ore Reserves and extension of existing resources will enable future refinement of the mining schedule and expansion of the life and scope of the Project. Recent drilling has already highlighted opportunities to expand ore reserves at Bulletin South and additional resource areas offer potential for new open pit ore reserves. Key parameters of the initial Base Case mine development plan are summarised in Table 6 below and the expected production profile is graphically presented in Figure 9. 28

Base Case Mine Sequence Bardoc South Pits Jackorite, Big Blow South, Castlereagh Zoroastrian Pits Bulletin South Pit Zoroastrian Underground Ore tonnes mined and milled Average mined ore grade Mill recovery Recovered ounces Average annual production Mine life (based on minimum milling rate 500,000tpa) 3,397,900 tonnes 2.74g/t Au 92.0% 275,200 ounces 30,000 40,000ozs 7.3 years Table 6: Base Case Project Mine Production Parameters Based on Capital Contribution and Ore Treatment Agreement and Bardoc South Ore Treatment Agreement costs 7,000 6,000 Ounces Tonnes 50,000 45,000 40,000 5,000 35,000 4,000 30,000 25,000 3,000 20,000 2,000 15,000 1,000 Ounces 0 Nov 2015 Feb 2016 May 2016 Aug 2016 Nov 2016 Feb 2017 May 2017 Aug 2017 Nov 2017 Feb 2018 May 2018 Aug 2018 Nov 2018 Feb 2019 May 2019 Aug 2019 Nov 2019 Feb 2020 May 2020 Aug 2020 Nov 2020 Feb 2021 May 2021 Aug 2021 Nov 2021 Feb 2022 May 2022 Aug 2022 Nov 2022 Month Figure 9: Base Case Production Profile showing monthly mine production tonnages and gold production ounces. Based on Capital Contribution and Ore Treatment Agreement and Bardoc South Ore Treatment Agreement costs and minimum contracted through put rate (500,000tpa) Tonnes 10,000 5,000-29

Gold Price A1,500/oz A1,500/oz plus Hedge Position A1,600/oz Base Case Free Cash Flow 148 million 152 million 175 million Base Case Discounted Cash Flow (NPV) discount rate 8% 51 million 54 million 65 million Unlevered IRR 100% 123% 145% Project C1 cash cost 916 cash operating costs, including mining, milling, transport and site administration Project C2 cash cost 961 C1 plus royalties and less by- product credits Project C3 cash cost 1,165 C2 plus depreciation, amortization, corporate, cost of the Facility and inclusive of underground mine capital Table 7: Base Case Project Cash Flow and Cost Parameters Based on Capital Contribution and Ore Treatment Agreement and Bardoc South Ore Treatment Agreement costs The Company is confident that cash flow from the mining, when directed towards further resource expansion, will allow for enhancement of and potential addition to ore reserves depleted by the Paddington treatment program. RESOURCE DEVELOPMENT PROGRAM The Project represents a compact tenement holding over a well mineralised, structurally complex setting of intersecting shears and favourable rock units. Gold mineralisation is associated with five major north north- west trending shears and multiple north- east and north- west trending cross structures providing a lattice of gold occurrences and abundant drill targets. Excelsior Gold s exploration efforts over the past five years have been directed at the most advanced of the resource targets with a view to advancing the Project to mine production and cash flow in preference to continued resource expansion drilling. Good exploration potential remains within the Project with a multitude of drill ready targets available which the Company can now start to pursue armed with the cash flow and the improved geological understanding from the mining operations. The intensity of gold mineralisation within the tenements prompted the Company to embark on a geological modelling program in conjunction with CSIRO in 2013 to assist the Company to rank its numerous exploration targets. The program has provided the Company with a better understanding of the regional to camp- scale structural controls on the gold mineralisation in the region and has identified priority structures which are likely to influence mineralisation in the dolerite units and the lithological relationships which are likely to impact on deposit styles. 30

The CSIRO fluid flow modelling program has been augmented by a HyMap hyperspectral mapping survey over the tenements and the Company also a sponsors of the Minerals Research Institute of Western Australia s Pathways to High Grade Gold 3D gradient mapping program. The Kalgoorlie North Gold Project is in a unique structural setting and despite its close proximity to Kalgoorlie remains relatively poorly explored. Excelsior Gold is confident that the application of new and innovative geological modelling techniques, combined with existing geological understanding and the benefits of mining exposures will contribute to continued low cost resource growth and new mine development. FINANCING CAPITAL RAISINGS On 29 September 2014 the Company announced a placement to Australian institutional and sophisticated investors to subscribe for 33.33 million shares at 0.06 per share, raising 2 million before costs of the issue. The funds were directed towards the completion of geotechnical and infill drilling at Zoroastrian, further drilling on the expansion of the Bulletin South resources and ore reserves and on engineering feasibility studies. On 30 March 2015 the Company successfully completed the placement of 25.89 million shares at 0.09 per share to Australian institutional and sophisticated investors, raising 2.33 million before costs (ASX Announcements 30 March and 8 April 2015). The new placement funds were utilised for grade control drilling at the Bardoc South open pits and for haul road construction and establishment of site infrastructure. CONVERTIBLE LOAN FACILITY Excelsior Gold accepted a credit approved offer of up to 4 million via a Convertible Loan ( Convertible Loan ) from Macquarie in May 2014 (ASX announcement 20 May 2014). The Convertible Loan was originally designed to provide working capital to complete definitive feasibility studies on a standalone mill development as foreshadowed by the PFS completed in March 2014 (ASX announcement 4 March 2014). The subsequent agreement on a milling allocation at the Paddington Mill changed the scope of the use of the funds under the Convertible Loan which were directed towards feasibility studies on the Paddington treatment option and further resource and ore reserve expansion drilling. This Convertible Loan was for up to 4 million accessible in two equal tranches with the first 2 million available upon the execution of final documentation for the Convertible Loan and satisfaction of conditions precedent which was completed on 22 July 2014. Drawdown for the second 2 million tranche, which was subject to completion of a total 3 million equity raising, was completed with funds received on 30 April 2015. The Company has issued 43,478,261 options exercisable at 0.092 and expiring 31 December 2015 ( Options ) to Macquarie in July 2014. Funds potentially raised on exercise of the Options would first apply to repaying any outstanding amounts of the Convertible Loan. 31

The Convertible Loan is to be repaid in full on or before the earlier of 31 December 2015 or refinanced at initial drawdown under a project finance facility for the purpose of funding or partial funding the development of the Project. PROJECT FUNDING On 13 July 2015, the Company announced that it had accepted a credit approved funding package of up to 15 million via a project loan and hedging facility (the Facility ) from Macquarie. The Facility is to refinance the existing 4 million Convertible Loan also provided by Macquarie and to make payments to Norton pursuant to the Capital Contribution and Ore Treatment Agreement. The Facility comprise a Project loan component of 12 million repayable by September 2017 and a gold hedge component covering 50,800 ounces of forward contracts and a minimum 3 million call options grant. The Facility is subject to a number of specific and customary conditions precedent and subsequent including an equity or subordinated debt raising of 7 million. CASH POSITION As at the 30 June 2015, Excelsior Gold and its consolidated entities had A3.8 million in cash. 32

Qualifying Statement This release may include forward- looking statements. These forward- looking statements are based on a number of assumptions made by the Company and its consultants in light of experience, current conditions and expectations concerning future events which the Company believes are appropriate in the present circumstances. Forward- looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Excelsior Gold, which could cause actual results to differ materially from such statements. The Company makes no undertaking to subsequently update or revise the forward- looking statements made in this release to reflect the circumstances or events after the date of this release. Competent Person Statement Exploration Results and Mineral Resources: Information in this announcement that relates to Mineral Resource and exploration results is based on information compiled by Mr. David Potter who is the Technical Director of Excelsior Gold Limited. Mr. Potter is a Member of The Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Potter consents to the inclusion in the document of the information in the form and context in which it appears. Competent Persons Statements Ore Reserves Zoroastrian Central Open Pit The information in this Release which relates to the Ore Reserve estimates accurately reflect information prepared by Competent Persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The information in this public statement that relates to the Zoroastrian Central Open Pit Ore Reserve at the Excelsior Gold Kalgoorlie North Gold Project is based on information resulting from Feasibility works carried out by Auralia Mining Consulting. Mr. Daniel Tuffin completed the Ore Reserve estimate for this Zoroastrian Central Open Pit. Mr Daniel Tuffin is a Member and Chartered Professional (Mining) of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify him as a Competent Person as defined in accordance with the 2012 Edition of the Australasian Joint Ore Reserves Committee (JORC). Mr Tuffin consents to the inclusion in the document of the information in the form and context in which it appears. Competent Persons Statements Ore Reserves Zoroastrian Extended Open Pit The information in this Release which relates to the Ore Reserve estimates accurately reflect information prepared by Competent Persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The information in this public statement that relates to the Zoroastrian Extended and Zoroastrian South Ore Reserves at the Excelsior Gold Kalgoorlie North Gold Project is based on information resulting from Feasibility works carried out by Mining Plus. Mr. David Billington completed the Ore Reserve estimate for these pits. Mr Billington is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify him as a Competent Person as defined in accordance with the 2012 Edition of the Australasian Joint Ore Reserves Committee (JORC). Mr Billington consents to the inclusion in the document of the information in the form and context in which it appears. Competent Persons Statements Ore Reserves Zoroastrian Underground The information in this Release which relates to the Ore Reserve estimates accurately reflect information prepared by Competent Persons (as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). The information in this public statement that relates to the Zoroastrian Underground Ore Reserves at the Excelsior Gold Kalgoorlie North Gold Project is based on information resulting from Feasibility works carried out by Mining Plus. Mr. Peter Lock completed the Ore Reserve estimate for these pits. Mr Lock is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify him as a Competent Person as defined in accordance with the 2012 Edition of the Australasian Joint Ore Reserves Committee (JORC). Mr Lock consents to the inclusion in the document of the information in the form and context in which it appears. Refer ASX Announcement 9 July 2015 for all JORC Table 1 Sampling Techniques, Exploration Result Reporting, Mineral Resource Estimation and Ore Reserve Estimation criteria. 33

CORPORATE ACTIVITY SHARE ISSUES On 27 August 2014, 5,000,000 options were exercised resulting in 5,000,000 shares being issued at an issue price of A0.058 per share to raise A290,000 (before costs). On 3 October 2014, the Company completed a placement of a total of 33,333,330 shares at an issue price of A0.06 per share to raise A2.00 million (before costs). On 24 December 2014, the Company cancelled 13.2 million employee shares and issued 26,500,000 shares at a deemed issue price of A0.0543 per share. These shares were issued pursuant to Employee Share Loan Plan approved by the shareholders on 29 November 2014. On 8 April 2015, the Company completed a placement of a total of 24,222,224 shares at an issue price of A0.09 per share to raise A2.18 million (before costs). On 11 April 2015, the Company completed a placement of a total of 1,666,666 shares at an issue price of A0.09 per share to raise A150,000 (before costs). SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS During the year there was no significant change in the Group s state of affairs other than that referred to in the annual financial statements or notes thereto. EVENTS SINCE THE END OF THE FINANCIAL YEAR Subsequent to the year end, the Company has entered into Australian Dollar gold hedging contracts consisting approximately 50,800 ounces of forwards at A1,570 per ounce through to December 2017. Excelsior Gold has also granted call options for approximately 21,200 ounces of gold throughout 2018 with an exercise price of A1,600 per ounce. The remaining ounces coming out of production from the Kalgoorlie North Gold Project totalling approximately 193,300 ounces remain unhedged and will have full exposure to movements in gold price. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS The Directors are not aware of any developments that might have a significant effect on the operations of the Group in subsequent financial years that are not already disclosed in this report. 34

DIRECTORS QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES MR PETER BIRD Qualifications Chairman (Non- Executive) appointed 29 August 2011. BSc(Hons), MAICD, A Fin Experience Geologist with over 20 years of operational and corporate experience with strong understanding of company analysis and global investment markets. Geological experience in exploration and multiple open pit and underground gold mines in the Eastern Goldfields of Western Australia. A leading broking analyst for the gold sector and held senior executive roles with Newcrest Mining Ltd and Normandy Mining Ltd advising on investor relations and corporate matters. Directorships held in other listed Managing Director of Heemskirk Consolidated Limited. No other entities directorships in the past three years. MR DAVID HAMLYN Qualifications Experience Managing Director (from 28 May 2012) appointed as Executive Director 21 May 2010 BAppSc(Geol), MAusIMM David Hamlyn is a geologist with a broad range of exploration, mine management and corporate experience. Mr Hamlyn has held senior exploration positions with numerous companies throughout Australia and Resident Manager and General Manager roles on gold mining operations in the Kalgoorlie region from 1992 to 2001. Mr Hamlyn was Managing Director of Atom Energy Limited (June 2007 to May 2008), Technical Director of West Australian Metals Ltd (2002 to 2006) and has previously served as Director of Austin Engineering Limited (2002 to 2004) and Exploration Director of Australasian Gold Mines NL (1988 to 1990). Directorships held in other listed Over the past three years Mr Hamlyn has not held any entities directorships of ASX listed companies other than those detailed above. 35

DIRECTORS QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES MR DAVID POTTER Qualifications Director (Executive) appointed 24 May 2011 MSc (Econ), BSc (Geology), GradDipAppFIA, MAIG Experience David Potter is a geologist with twenty years experience across a broad range of commodities including extensive gold exploration and mine development experience in the Eastern Goldfields of Western Australia. Directorships held in other listed Over the past three years Mr Potter has not held any entities directorships of ASX listed companies besides Excelsior Gold Ltd. MR CHEN CHIK ONG Qualifications Experience Director (Executive) appointed 24 May 2011 Company Secretary appointed 6 March 2014 BComm, GradDipAppFin, GradDipACG, MBA Chen Chik (Nicholas) Ong was formerly a Principal Adviser at the Australian Security Exchange in Perth with ten years experience in corporate compliance. Directorships held in other listed Non- Executive Director of Segue Resources Ltd (since June entities 2011), Non- Executive Director of Fraser Range Metals Group Limited (from June 2011 to February 2014 and since July 2014), Non- Executive Director of Minerals Corporation Limited (since 24 June 2014) and Non- Executive Director of Auroch Minerals NL (Since 2 June 2014). Non- Executive Director of CoAssets Limited (Since 18 March 2015) No other directorships in the past three years. 36

DIRECTORS INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY The particulars of Directors interest in shares and options are as at the date of this report. Ordinary Shares Options Direct Indirect Direct Indirect Current Directors D Hamlyn 7,500,000 10,178,666 - - D Potter 6,250,000 5,246,699 - - C Ong 5,000,000 1,250,000 - - P Bird 2,500,000 1,750,000 - - MEETINGS OF DIRECTORS During the financial year 11 meetings of directors were held. The number of meetings attended by each director during the financial year are as follows: Meetings of the Meetings of Committees Director Board of Directors Audit Nomination Remuneration Held Attended Held Attended Held Attended Held Attended D Hamlyn 11 11 2 2 2 2 1 1 D Potter 11 11 2 2 2 2 1 1 P Bird 11 11 2 2 2 2 1 1 C Ong 11 11 2 2 2 2 1 1 REMUNERATION REPORT (AUDITED) The remuneration report is set out under the following main headings: A Principles used to determine the nature and amount of remuneration B Details of remuneration C Service agreements D Share- based compensation. The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001. A. Principles used to determine the nature and amount of remuneration The objective of the Group s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders. The Board ensures that executive reward satisfies the following key criteria for good reward corporate governance practices: Competitiveness and reasonableness; Acceptability to shareholders; Performance linkage/alignment of executive compensation; Transparency; and 37

Capital management. The Group has structured an executive framework that is market competitive and complementary to the reward strategy for the organisation. Executive directors The Board s policy for determining the nature and amount of remuneration for board members and executives of the Group is as follows: The remuneration policy, setting the terms and conditions for the Executive Directors and executives, was developed and approved by the Board. All executives receive a salary, part of which may be taken as superannuation, and from time to time, securities. Securities issued to directors are subject to approval by Shareholders. The Company is in the exploration phase and is yet to generate profits hence the remuneration is based on market rates and therefore there is currently no link between financial performance and remuneration. The Board reviews executive packages annually by reference to the Group s performance, executives performance reviews and comparable information from industry sectors and other listed companies in similar industries. The Board may in its discretion establish a performance based bonus system to provide up to 20% of the base salary level to the executives on such terms as the Board may determine. Salaried executive directors and specified executives are allocated superannuation guarantee contributions as required by law, and do not receive any other retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting fees to increase payments towards superannuation. The Group s policy for setting remuneration during the exploration phase of operations is set out above. This policy may change once the exploration phase is complete and the Group is generating revenue. At present, the existing policy is not impacted by the Group s performance, including earnings and changes in shareholder wealth (dividends, changes in share price or returns of capital to shareholders). Reward in the form of options where possible take the form of options with exercise prices above the share price at the date of issue which provides linkage to the Group s increase in shareholder wealth. All remuneration paid to directors and specified executives is valued at the cost to the Group and expensed. Securities are valued with reference to the prevailing market price with options valued using the Black- Scholes methodology. Assessing performance and claw- back of remuneration The remuneration committee is responsible for assessing performance against KPIs and determining the STI and LTI to be paid. To assist in this assessment, the committee receives detailed reports on performance from management which are based on independently verifiably data such as financial measures, market share and data from independently run surveys. In the event of serious misconduct or a material misstatement in the company s financial statements, the remuneration committee can cancel or defer performance- based remuneration and may also claw back performance- based remuneration paid in previous financial years. 38

The final payment of performance- related cash bonuses is as follows: 50,000 Performance Based Bonus was provided to the Managing Director and Technical Director upon the commencement of mining operations leading to commercial gold production, where commercial gold production is to be set at a minimum of 20,000 cumulative ounces of gold in any 12 month period from any of the project areas that comprise the Kalgoorlie North Gold Project. Non- Executive directors The board policy is to remunerate Non- Executive directors at commercial market rates for comparable companies for their time, commitment and responsibilities. Independent external advice is sought when required. Directors' fees are determined within an aggregate directors' fee pool limit, which is periodically recommended for approval by shareholders. The maximum amount of fees that can be paid to non- executive directors currently stands at 200,000 per annum in aggregate. Fees for Non- Executive directors are not linked to the performance of the Group. Non- Executive directors remuneration may also include a component consisting of share- based payments, subject to approval by Shareholders, as a means to attract and retain suitably qualified Board of Directors. Employee Share Plan The objective of the Employee Share Plan (Plan) is to attract directors and employees with suitable qualifications, skills and experience to plan, carry out and evaluate the Company s strategy and to motivate and retain those persons and it is considered by the Company that the adoption of the Plan and the future issue of performance shares under the Plan will provide selected directors and employees with the opportunity to participate in the future growth of the Company. Being an exploration company, Excelsior Gold is able to conserve its cash resources by utilising performance shares under the Plan to incentivise directors and employees in addition to the cash salaries under their employment contracts. The Company also believes that the interests of directors and employees are aligned with those of the Company's when they are shareholders in the Company, and vesting of those performance shares are subject to performance milestones. B. Details of remuneration Key Management Personnel & Key Management Executives of Excelsior Gold Limited The details of the remuneration of the Directors and key management personnel of the Group (as defined in AASB 124 Related Party Disclosures) are set out in the following tables. There are no other executives which are required to be disclosed as per the requirement of the Corporations Act 2001. 39

Non- Executive Directors of Excelsior Gold Limited Name 2015 Short- term benefits Directors Fees Post- employment Super- annuation Bonus Share- based payment Shares Total Fixed % Remunera- tion Perform- ance Related % % P Bird 55,833 5,304 - *143,939 205,076 29.81% 70.19% 55,833 5,304-143,939 205,076 29.81% 70.19% *Includes expense relating to cancellation of shares and the resulting acceleration of their value. Executive Directors of Excelsior Gold Limited 2015 Long- term benefits Post- employment Share- based payment Total Fixed % Remunera- tion Perform- ance Related Name Salary & consulting Super- annuation Bonus Shares % % D Potter 271,667 28,183 25,000 *340,566 665,416 45.06% 54.94% D Hamlyn 330,833 33,804 25,000 *348,738 738,375 49.38% 50.62% C Ong 198,470 18,855 - *98,036 315,361 68.91% 31.09% 800,970 80,842 50,000 787,340 1,719,152 51.29% 45.71% *Includes expense relating to cancellation of shares and the resulting acceleration of their value. Non- Executive Directors of Excelsior Gold Limited Name 2014 Short- term benefits Salary & consulting Post- employment Super- annuation Bonus Share- based payment Shares Total Fixed % Remunera- tion Perform- ance Related % % P Bird 58,333 5,396-92,327 156,056 40.84% 59.16% 58,333 5,396-92,327 156,056 40.84% 59.16% Executive Directors of Excelsior Gold Limited 2014 Short- term benefits Post- employment Share- based payment Total Fixed % Remunera- tion Perform- ance Related Name Salary & consulting Super- annuation Bonus Shares % % D Potter 261,667 24,204-229,170 515,041 55.50% 44.50% D Hamlyn 348,333 32,221-229,170 609,724 62.41% 37.59% C Ong 125,500 11,609-42,306 179,415 76.42% 23.58% 735,500 68,034-500,646 1,304,180 61.61% 38.39% 40

C. Service agreements On appointment to the Board, all Non- Executive directors enter into a service agreement with the company in the form of an executive services agreement. The executive services agreement summarises the Board policies and terms, including compensation, relevant to the office of director. Remuneration and other terms of employment for the Managing Director, Technical Director and other Key Management Personnel are also formalised in service agreements. Each of these agreements provide for the provision of performance- related cash bonuses, other benefits including car parking and participation, when eligible, in the Excelsior Gold Employee Share Plan or Share Loan Plan approved by shareholders on 29 November 2014. All contracts with executives may be terminated early by either party with three months written notice, subject to termination payments as detailed below: Name Term of agreement Base salary including superannuation David Hamlyn Managing Director David Potter Technical Director Peter Bird Non- Executive Chairman Chen Chik Ong Director No fixed term commencing 28 May 2013 No fixed term commencing 1 July 2014 No fixed term commencing 29 August 2011 No fixed term commencing 25 February 2013 Termination benefit 394,200 Six months base salary 295,650 Three months base salary 65,700 One month base salary 244,404 Two months base salary D. Share based compensation Shares The Excelsior Gold Ltd Employee Share Plan ( Plan ) may be used to reward Directors and employees for their performance and to align their remuneration with the creation of shareholder wealth. The Plan is designed to provide long- term incentives to deliver long- term shareholder returns. Participation in the Plan is at the discretion of the Board and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits except as referred to elsewhere in the Remuneration Report. Shares offered under the Plan may be subject to restriction conditions including, without limitation, any service condition or performance or milestone criteria. The Group's Remuneration Policy includes a clause prohibiting Directors and senior executives from entering into transactions or arrangements which limit the economic risk of participating in unvested entitlements. During the year 21,250,000 shares were issued to Directors subject to performance hurdles which are yet to be reached. These shares were issued in replacement of 13,200,000 shares (which were issued but not vested in prior periods) cancelled in the current year. 41

Summary of Directors performance shares 2015: Share- based compensation benefits (performance shares) Name Year Granted Financial years in which shares may vest Number Granted Value of shares at grant date Vested shares 2015 Vested % Forfeited shares 2015 Forfeited % P Bird 2012 2016 2,500,000 284,500-60% 1,000,000 40% - D Potter 2012 2016 4,500,000 512,100-55% 2,000,000 45% - D Hamlyn 2012 2016 4,500,000 512,100-55% 2,000,000 45% - C Ong 2012 2016 2,000,000 227,600-62.5% 750,000 37.5% - P Bird 2013 2016 1,000,000 230,000-25% 750,000 75% - D Potter 2013 2016 2,500,000 575,000-20% 2,000,000 80% - D Hamlyn 2013 2016 2,500,000 575,000-20% 2,000,000 80% - Maximum value yet to vest Name Year Granted Financial years in which shares may vest Share- based compensation benefits (performance shares) Number Granted Value of shares at grant date Vested shares 2015 Vested % Forfeited shares 2015 Forfeited % Maximum value yet to vest P Bird 2015 2017 2,500,000 90,142-0% - - 90,142 D Potter 2015 2017 6,250,000 225,354-0% - - 225,354 D Hamlyn 2015 2017 7,500,000 270,425-0% - - 270,425 C Ong 2015 2017 5,000,000 180,284-0% - - 180,284 The shares were issued pursuant to the Plan. These shares have performance hurdles imposed on them constituting a real risk of forfeiture in the furthering of the Group s objectives. The trading restriction will be lifted subject to the achievement of certain Restriction Conditions. The milestones for the release of these conditions are disclosed in detail below. The following share- based payments were made to directors during 2015: 2015 Grant Date Number of shares issued Value per share at grant date Total Value Expensed 30 June 2015 Peter Bird 28/11/2014 2,500,000 0.04 16,344 David Hamlyn 28/11/2014 7,500,000 0.04 49,031 David Potter 28/11/2014 6,250,000 0.04 40,859 Nicholas Ong 28/11/2014 5,000,000 0.04 32,687 Other employees 28/11/2014 5,250,000 0.04 34,320 Shares issued to Directors and employees resulted in 1,352,837 being expensed to the statement of profit or loss and other comprehensive income in the current period (2014 857,114). 1,179,596 relates to the accelerated value of shares cancelled during the year, while 173,241 relates to shares issued in the current period. The shares were issued pursuant to the Company s Employee Share Plan or on terms and conditions consistent with that Plan. These shares have performance hurdles imposed on them constituting a real risk of forfeiture to incentivise Directors and employees to further the Group s objectives. The trading restriction will be lifted subject to the achievement of certain Restriction Conditions. 42

Milestones for the release of these conditions on shares issued during the current period are: Number of shares Milestone 5,300,000 Upon delivery of first ore under the Paddington production scenario; 5,300,000 Upon the production of 40,000 ounces of gold from ore derived from the Kalgoorlie North Gold Project 5,300,000 Upon the production of 80,000 ounces of gold from ore derived from the Kalgoorlie North Gold Project 5,300,000 Upon the delineation of at least 2 million ounces of gold resources on a cumulative basis and reported consistent with the 2012 JORC Code at Kalgoorlie North Gold Project; and 5,300,000 Upon the third anniversary of the issue of the Incentive Shares and the holder remains an employee or director of the Company. 26,500,000 Share holdings The number of ordinary shares in the Company held during the financial year by each Director of Excelsior Gold Limited and any other key management personnel of the Group, including their personally related parties, are set out below: Directors and Key Management Personnel of Excelsior Gold Limited 2015 Balance at start of the financial period Received during the year on the exercise of options Received during the year as remuneration Other changes during the financial period Balance at the end of the financial period Balance nominally held David Potter 10,996,700-6,250,000 (5,750,001) 11,496,699 - David Hamlyn 14,178,666-7,500,000 (4,000,000) 17,678,666 - Nicholas Ong 2,000,000-5,000,000 (750,000) 6,250,000 - Peter Bird 3,500,000-2,500,000 (1,750,000) 4,250,000 - Options No options were granted to Directors, key management personal or to employees during the year (2014: Nil). No Director or key management personal held any options during the year. Other Transactions with Key Management Personnel There were no other transactions with Key Management Personnel Use of Remuneration Consultants No external remuneration consultants were used during the year. 43

Voting and comments at the Company s 2014 Annual General Meeting The Company received more than 90% of yes votes on its Remuneration Report for the 2014 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. THIS IS THE END OF THE AUDITED REMUNERATION REPORT DIRECTORS AND OFFICERS INSURANCE The Group has entered into Indemnity Deeds with each Director. Under the Deeds, the Group indemnifies each Director to the maximum extent permitted by law against legal proceedings or claims made against or incurred by the Directors in connection with being a Director of the Group, or breach by the Group of its obligations under the Deed. During the financial year, the Company paid an insurance premium to insure the directors and secretaries of the Company and its controlled entities. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the Officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving wilful breach of duty by the officers or the improper use by the officers of their position or information obtained. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities. ENVIRONMENTAL REGULATION The Group s projects are subject to State, Federal and International laws and regulations regarding environmental matters in Western Australia and the Northern Territory of Australia. Many of the activities and operations of the Group cannot be carried out without prior approval from and compliance with all relevant authorities. Excelsior Gold Limited conducts its exploration activities in an environmentally responsible manner and in accordance with all applicable laws. The Group is not aware of any breach of statutory conditions or obligations. Greenhouse gas and energy data reporting requirements The Company has not yet fully reviewed the reporting requirements under the Energy Efficiencies Opportunity Act 2006 or the National Greenhouse and Energy Efficient Reporting Act 2007, but believes it has adequate processes in place to ensure compliance with these Acts. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring about proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. 44

CORPORATE GOVERNANCE The directors of the Company support and adhere to the principles of corporate governance, recognising the need for the highest standard of corporate behaviour and accountability. Please refer to the Company s website for details of corporate governance policies: http://www.excelsiorgold.com.au/company- profile/corporate- governance AUDITOR S INDEPENDENCE DECLARATION A copy of the Auditor s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out following this report. Non- audit services The Board has considered the position and is satisfied that the provision of non- audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non- audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons: all non- audit services have been reviewed by the Board to ensure they do not impact the impartiality and objectivity of the auditor; and none of the services undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board, including acting in a management or a decision- making capacity for the Group or acting as advocate for the Group. Amounts paid or payable at 30 June to the auditors for: 2015 2014 Other services: 700 2,754 This report is signed in accordance with a resolution of the Directors. 30 th day of September 2015, at Perth, Western Australia David Hamlyn Managing Director 45

Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au 38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF EXCELSIOR GOLD LIMITED As lead auditor of Excelsior Gold Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Excelsior Gold Limited and the entity it controlled during the period. Phillip Murdoch Director BDO Audit (WA) Pty Ltd Perth, 30 September 2015 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 Note 2015 2014 Revenue from continuing operations - - Other income 3 315,216 118,921 Employee benefits expense (819,523) (724,209) Share based payment expense 23(c) (1,352,837) (857,114) Depreciation (44,204) (54,443) Site costs (106,933) - Impairment of exploration expenditure 4 - (2,469) Corporate and administrative costs (711,810) (368,695) Rent (98,312) (103,414) Travel (42,702) (34,041) Loss on disposal of assets - (38,405) Impairment of available- for- sale financial assets - (12,500) Advertising and marketing (38,194) (32,107) Other expenses (202,395) (251,610) Loss before income tax (3,101,694) (2,360,086) Income tax benefit/(expense) 5-475,106 Loss for the year attributable to the owners of Excelsior Gold Limited (3,101,694) (1,884,980) Other comprehensive loss for the year Items that may be reclassified to profit or loss Changes in the fair value of available- for- sale 5,000 (2,500) investments Total comprehensive loss for the year attributable to the owners of Excelsior Gold Limited (3,096,694) (1,887,480) Cents Cents Loss per share for the year attributable to the members of Excelsior Gold Ltd 6 (0.68) (0.46) Diluted loss per share N/A N/A The above Consolidated Statement of Profit or Loss and other comprehensive income should be read in conjunction with the accompanying notes. 47

ASSETS Current Assets CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2015 Note 2015 CONSOLIDATED 2014 Cash and cash equivalents 7 3,757,336 839,896 Trade and other receivables 8 123,366 57,303 Other financial assets 9 72,454 245,106 Total current assets 3,953,156 1,142,305 Non- Current Assets Exploration and evaluation expenditure 10 34,792,284 21,808,164 Property, plant and equipment 11 163,617 198,234 Available- for- sale financial assets 12 60,000 67,500 Total non- current assets 35,015,901 22,073,898 TOTAL ASSETS 38,969,057 23,216,203 Current Liabilities Trade and other payables 13 690,776 330,328 Borrowings 13 4,037,745 - Total current liabilities 4,728,521 330,328 Non- Current Liabilities Rehabilitation provision 13 8,750,000 - Total non- current liabilities 8,750,000 - TOTAL LIABILITIES 13,478,521 330,328 NET ASSETS 25,490,536 22,885,875 EQUITY Contributed Equity 14 39,727,295 33,899,933 Reserves 15 183,241 304,248 Accumulated losses 16 (14,420,000) (11,318,306) TOTAL EQUITY 25,490,536 22,885,875 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 48

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 Contributed Equity Accumulated Losses S/based Payments Reserve Options Premium Reserve Avail. for Sale Inv. Reserve Total Equity As at 1 July 2014 33,899,933 (11,318,306) - 299,248 5,000 22,885,875 Loss for the year - (3,101,694) - - - (3,101,694) Comprehensive income for the year - - - - 5,000 5,000 Total comprehensive income/(loss) for the year - (3,101,694) - - 5,000 (3,096,694) Transactions with owners in their capacity as owners Share buy- back, net of transaction costs (1,320) - - - - (1,320) Exercise of options 290,000 290,000 Transfer from reserve on exercise of options 299,248 - - (299,248) - - Placement of shares, net of transaction costs 4,036,266 - - - - 4,036,266 Employee share- based payments 1,179,596-173,241 - - 1,352,837 Equity component of convertible loan 23,572 - - - - 23,572 As at 30 June 2015 39,727,295 (14,420,000) 173,241-10,000 25,490,536 CONSOLIDATED Contributed Equity Accumulated Losses Options Premium Reserve Available for Sale Financial Assets Total Equity As at 1 July 2013 33,042,994 (9,433,326) 299,248 7,500 23,916,416 Loss for the year - (1,884,980) - - (1,884,980) Other comprehensive income/(loss) - - - (2,500) (2,500) Total comprehensive loss - (1,884,980) - (2,500) (1,887,480) Transactions with owners in their capacity as owners Share buy back (175) - - - (175) Employee share- based payments 817,311 - - - 817,311 Other share based - 39,803 - - payments 39,803 As at 30 June 2014 33,899,933 (11,318,306) 299,248 5,000 22,885,875 This above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 49

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 CASH FLOWS FROM OPERATING ACTIVITIES Note 2015 2014 Payments for administration (1,374,592) (1,624,274) Other payments GST (110,713) 77,450 Other income - 476,306 Interest received 72,012 113,320 Finance costs (312,198) - Net cash (outflow) from operating activities 17 (1,725,491) (957,198) CASH FLOWS FROM INVESTING ACTIVITIES Payments for plant and equipment (9,588) (24,495) Payments for exploration and evaluation (4,100,783) (3,463,019) Payments for security deposits - - Proceeds from sale of investments 257,494 - Refund of security deposits 170,862 551,200 Net cash (outflow) from investing activities (3,682,015) (2,936,314) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares - - Payment for share buy- back 4,618,680 (175) Costs associated with share issue (293,734) - Proceeds from borrowings 4,000,000 - Net cash (outflow)/inflow from financing activities 8,324,946 (175) Net increase/(decrease) in cash and cash equivalents 2,917,440 (3,893,687) Cash and cash equivalents at the beginning of the year 839,896 4,733,583 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 7 3,757,336 839,896 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 50

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. These financial statements include the consolidated entity consisting of Excelsior Gold Limited and its subsidiaries (together referred to as the consolidated entity or Group ). Excelsior Gold Limited is a company limited by shares incorporated in Australia, whose shares are publicly traded on the Australian Securities Exchange. These financial statements were authorised for issue in accordance with a resolution of the Directors on 30 September 2015. (a) Basis of Preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. Excelsior is a for- profit entity for the purpose of preparing financial statements. Compliance with IFRS The consolidated financial statements of the group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Parent Entity Financial information for Excelsior Gold Limited as an individual entity is included in note 25. Historical cost convention These financial statements have been prepared on an accruals basis and are based on historical costs and do not take into account changing money values or, except where stated, current valuations of non- current assets. Cost is based on the fair values of the consideration given in exchange for assets. New and amended standards adopted by the group None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 July 2014 affected any of the amounts recognised in the current period or any prior period and are not likely to affect future periods. Refer to Note 1u for details on these new standards and amendments. (b) Going Concern The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business. During the year the Group incurred a net loss of 3,101,694 (2014: 1,884,980) and incurred net cash outflows from operating activities of 1,725,491 (2014: 957,198). 51

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 b) Going Concern (continued) The directors are confident that the Group will have sufficient working capital to pay its debts as and when they fall due. The directors consider the going concern basis of preparation to be appropriate and are confident that the Group is able to successfully raise additional funds through debt and/or equity required to meet its future financial obligation, and to continue to develop and successfully generate positive cash flows from mining operations at the Kalgoorlie North Gold Project. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the ability of the Group to continue as a going concern. Should the Group be unsuccessful in these endeavours, the Group may not be able to continue as a going concern and may not be able to realise assets and liabilities at the amounts stated in the financial statements. No adjustments have been made relating to the recoverability and classification of assets and liabilities that might be necessary should the Group not continue as a going concern. (c) Principles of Consolidation Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Excelsior Gold Limited as at 30 June 2015 and the results of all subsidiaries for the year then ended. Excelsior Gold Limited and its subsidiaries together are referred to in this financial report as the group or the consolidated entity. Subsidiaries are all those entities (including special purpose entities) over which the Group has the control. Control is achieved when the Company: - Has power over the relevant activities of the investee; - Is exposed, or has rights, to variable returns from its involvement with the investee; and - Has the ability to use its power to affect its returns. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. All relevant facts and circumstances are considered included potential voting rights and rights arising from other contractual arrangements. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de- consolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the group (refer to note 1(t)). Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. 52

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (d) Impairment of Assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset s recoverable amount. An asset s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets of the company the asset s values in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash- generating unit exceeds its recoverable amount, the asset or cash- generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre- tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease). As assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had the impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at the revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. (e) Share Based Payment Transactions Under AASB 2 Share Based Payments, the Company must recognise the fair value of options granted to directors, employees and consultants as remuneration as an expense on a pro- rata basis over the vesting period in the statement of profit or loss and other comprehensive income with a corresponding adjustment to equity. The Group provides benefits to employees (including directors) of the Group in the form of share based payment transactions, whereby employees render services in exchange for shares or rights over shares ( equity- settled transactions ). The cost of these equity- settled transactions with employees (including directors) is measured by reference to fair value at the date they are granted. The fair value is determined using the Black Scholes option pricing model. Shares are valued at market rate, as indicated by the listed share price when issued. 53

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (f) Segment Reporting Operating segments are reported in a manner that is consistent with the internal reporting to the chief operating decision maker ( CODM ), which has been identified by the company as the Managing Director and other members of the Board of Directors. (g) Fair Value Estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The carrying value less impairment provision of trade receivables and payables are assumed to approximately their fair value due to their short- term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. (h) Property, Plant and Equipment Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated using the diminishing value and prime cost methods and is brought to account over the estimated economic lives of all plant and equipment. The rates used are based on the useful life of the assets and range from 10% to 40%. Assets residual value and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. An assets carrying amount is written down immediately to its recoverable amount if the assets carrying value is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These are included in the profit or loss. (i) Income Tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the statement of financial position date. Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. 54

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (i) Income Tax (continued) Unrecognised deferred income tax assets are reassessed at each statement of financial position date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. Goods & Service Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except: where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flow arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. (j) Exploration and Evaluation Expenditure The Group s policy with respect to exploration and evaluation expenditure is to use the area of interest method. Under this method exploration and evaluation expenditure is carried forward on the following basis: i) Each area of interest is considered separately when deciding whether, and to what extent, to carry forward or write off exploration and evaluation costs. ii) Exploration and evaluation expenditure related to an area of interest is carried forward provided that rights to tenure of the area of interest are current and that one of the following conditions is met: - - such evaluation costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively, by its sale; or exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing. 55

(j) NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Exploration and Evaluation Expenditure (continued) Exploration and evaluation costs accumulated in respect of each particular area of interest include only net direct expenditure. Mines under construction Expenditure is transferred from Exploration and evaluation assets to Mines under construction in Mine Properties once the work completed to date supports the future development of the property and such development receives appropriate approvals. Upon transfer of Exploration and evaluation assets into Mines under construction in Mine properties, all subsequent expenditure on the construction, installation or completion of infrastructure facilities is capitalised in Mines under construction. Development expenditure is net of proceeds from the sale of ore extracted during the development phase. After production starts, all assets included in Mines under construction are transferred to Producing mines in Mine properties. Initial recognition Upon completion of the mine construction phase, the assets are transferred into Mine properties. Items of property, plant and equipment and producing mine are stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation obligation, and for qualifying assets (where relevant), borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. The capitalised value of a finance lease is also included in property, plant and equipment. When a mine construction project moves into the production phase, the capitalisation of certain mine construction costs ceases and costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for capitalisation relating to mining asset additions or improvements, underground mine development or mineable reserve development. (k) Cash and Cash Equivalents For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand, cash in bank accounts, money market investments readily convertible to cash within two working days, term deposits and bank bills but net of outstanding bank overdrafts. 56

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (l) Investments and other financial assets Available- for- sale financial assets Available- for- sale financial assets, comprising principally marketable equity securities, are non- derivatives that are either designated in this category or not classified in any of the other categories. They are included in non- current assets unless the investment matures or management intends to dispose of the investment within 12 months of the end of the reporting period. Investments are designated as available- for- sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term. (l) Investments and other financial assets (continued) Loans and receivables Loans and receivables are non- derivate financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the statement of financial position date which are classified as non- current assets. Loans and receivable are included in trade and other receivables in the statement of financial position. Recognition and derecognition Investments are initially recognised at fair value plus transactions costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Subsequent measurement Loans and receivables are carried at amortised cost using the effective interest method. Impairment The Group assesses at each reporting date whether there is objective evidence that a financial asset or company of financial assets is impaired. For available- for- sale assets, if there is objective evidence of impairment, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss) is removed from equity and recognised in profit or loss. Impairment losses on these equity instruments that were recognised in the profit or loss are not reversed through profit or loss in a subsequent period. (m) Employee Entitlements The Group s liability for employee entitlements arising from services rendered by employees to reporting date are recognised in other payables. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, and annual leave which will be settled within one year, have been measured at their nominal amount and include related on- costs. 57

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (n) Earnings Per Share (i) Basic Earnings Per Share Basic earnings per share is determined by dividing the operating loss attributable to the equity holder of the Group after income tax by the weighted average number of ordinary shares outstanding during the financial year. (ii) Diluted Earnings Per Share Diluted earnings per share adjusts the figures used in determination of basic earnings per share by taking into account amounts unpaid on ordinary shares and any reduction in earnings per share that will arise from the exercise of options outstanding during the year. (o) Revenue Recognition Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. (p) Trade and Other Receivables Receivables are initially recognised at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Current receivables for GST are due for settlement within 30 days and other current receivables within 12 months. Cash on deposit is not due for settlement until rights of tenure are forfeited or performance obligations are met. (q) Trade and Other Payables Trade payables and other payables are carried at cost and represent liabilities for goods and services provided to the Group prior to the end of the financial period that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and usually paid within 30 days of recognition. (r) Restoration, Rehabilitation and Environmental Provision Obligations associated with exploration and development assets are recognised when the Group has a present obligation, the future sacrifice of the economic benefits is probable, and the provision can be measured reliably. The provision is measured at the present value of the future expenditure and a corresponding rehabilitation asset is also recognised. The determination of the provision requires significant judgement in terms of the best estimate of the costs of performing the work required, the timing of the cash flows and the appropriate discount rate. In support of these judgements, the Group periodically seeks independent external advice on the adequacy of the provision. A change in any, or a combination of, the key assumptions used to determine the provision could have a material impact on the carrying value of the provision (Note 13). On an ongoing basis, the rehabilitation will be remeasured in line with the changes in the time value of money (recognised as an expense and an increase in the provision), and additional disturbances (recognised as additions to a corresponding asset and rehabilitation liability. 58

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (s) Contributed Equity Issued and paid up capital is recognised at the fair value of the consideration received by the group. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received. (t) Business Combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value which is calculated as the sum of the acquisition- date fair values of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquire and the equity instruments issued by the Group in exchange for control of the acquiree. Acquisition- related costs are recognised in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value, except that: - deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with AASB 112 Income Taxes and AASB 119 Employee Benefits respectively; - liabilities or equity instruments related to share- based payment arrangements of the acquire or share- based payment arrangements of the Group entered into to replace share- based payment arrangements of the acquire are measured in accordance with AASB 2 Share- based Payment at the acquisition date; and - assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 Non- current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non- controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition- date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition- date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non- controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain. Non- controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non- controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets. The choice of measurement basis is made on a transaction- by- transaction basis. Other types of non- controlling interests are measured at fair value or, when applicable, on the basis specified in another Standard. Where the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition- date fair value. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. 59

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (t) Business Combinations (continued) The subsequent accounting for changes in the fair value of contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is remeasured at subsequent reporting dates in accordance with AASB 139, or AASB 137 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in profit or loss. Where a business combination is achieved in stages, the Group s previously held equity interest in the acquire is remeasured to its acquisition date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date. 60

(u) NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 New accounting standards and interpretations The Group has applied the following standards and amendments for the first time in the current reporting period: Affected Standard Nature of Change to Accounting Policy Application * AASB 1031 AASB 1031 is an interim standard that cross references 1 Jan 2014 Materiality (2013) to other Standards. AASB 2012-3 Amendments to Australian Accounting Standards Offsetting Financial Assets Address inconsistencies when applying the offsetting criteria in AASB 132 Financial Instruments: Presentation. Clarifies the meaning of currently has a legally enforceable right of set off and simultaneous realisation and settlement 1 Jan 2014 AASB 2013-3 Amendments to AASB 136 Recoverable Amount Disclosures for Non- Financial Assets AASB 2013-4 Amendments to Australian Accounting Standards Novation of Derivatives and Continuation of Hedge Accounting AASB 2013-5 Amendments to Australian Accounting Standards Investment Entities AASB 2014-1 Amendments to Australian Accounting Standards Annual improvements cycle 2011-2013 Amendments to AASB 136 addressing the disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal Amends AASB 139 to permit the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counter party to a central counterparty as a result of laws or regulations. Provides an exemption from consolidation of subsidiaries under AASB 10 for entities which meet the definition of investment entity. Various amendments. 1 Jan 2014 1 Jan 2014 1 Jan 2014 1 Jan 2014 * Applicable to reporting periods commencing on or after the given date 61

(u) NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 New accounting standards and interpretations (continued) The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which the Group has decided not to early adopt. A discussion of those future requirements and their impact on the Company is as follows: AASB 9: Financial Instruments (effective from 1 Jan 2018) The Standard will be applicable retrospectively (subject to the comment on hedge accounting below) and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and simplified requirements for hedge accounting. Key changes made to this standard that may affect the Group on initial application include certain simplifications to the classification of financial assets, simplifications to the accounting of embedded derivatives, and the irrevocable election to recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Although the directors anticipate that the adoption of AASB 9 may have an impact on the Group s financial instruments it is impractical at this stage to provide a reasonable estimate of such impact. AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods commencing on or after 1 January 2017). When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles- based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non- monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers. The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides the following five- step process: - identify the contract(s) with a customer; - identify the performance obligations in the contract(s); - determine the transaction price; - allocate the transaction price to the performance obligations in the contract(s); and - recognise revenue when (or as) the performance obligations are satisfied. This Standard will require retrospective restatement, as well as enhanced disclosures regarding revenue. Although the directors anticipate that the adoption of AASB 15 may have an impact on the Group's financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact. 62

(u) NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 New accounting standards and interpretations (continued) Other new accounting standards for application in future periods: Standard/Interpretation Effective for annual reporting periods beginning on or after Expected to be initially applied in the financial year ending AASB 14 Regulatory Deferral Accounts 1 January 2016 30 June 2017 AASB 15 Revenue from Contracts with Customers 1 January 2017 30 June 2018 AASB 2014-3 Amendments to Australian Accounting 1 January 2016 30 June 2017 Standards Accounting for Acquisitions in interests in Joint Ventures AASB 2014-4 Amendments to Australian Accounting 1 January 2016 30 June 2017 Standards Clarification of Acceptable Methods of Depreciation and Amortisation AASB 2014-9 Amendments to Australian Accounting 1 January 2016 30 June 2017 Standards Equity method in Separate Financial Statements AASB 2014-10 Amendments to Australian Accounting 1 January 2016 30 June 2017 Standards Sale or Contribution of assets between an investor and its associate or joint venture AASB 2015-1 Amendments to Australian Accounting 1 January 2016 30 June 2017 Standards Annual improvements to Australian Accounting Standards 2012-2014 cycle AASB 2015-2 Amendments to Australian Accounting Standards Disclosure Initiative: Amendments to AASB 101 1 January 2016 30 June 2017 The Company does not anticipate early adoption of any of the above Australian Accounting Standards or Interpretations. 63

(v) NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Leases Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease s inception at the fair value of the leased property, or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short- term and long- term payables. Each lease payment is allocated between the liability and finance cost. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the asset s useful life or over the shorter of the assets useful life and the lease term if there is no reasonable way certainty that the Group will obtain ownership at the end of the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight- line basis over the period of the lease. (w) Government Grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group has complied with all attached conditions. Government grants relating to costs are deferred and recognised in the Statement of Profit or Loss and other Comprehensive Income over the period necessary to match them with the costs that they are intended to compensate. 64

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (x) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non- convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders equity, net of income tax effects. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs. Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. 65

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In preparing these Financial Statements the Group has been required to make certain estimates and assumptions concerning future occurrences. There is an inherent risk that the resulting accounting estimates will not equate exactly with actual events and results. Significant accounting judgements In the process of applying the Group s accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements: Deferred tax assets The Group expects to have carried forward tax losses which have not been recognised as deferred tax assets as it is not considered sufficiently probable that these losses will be recouped by means of future profits taxable in the relevant jurisdictions. Significant accounting estimates and assumptions The carrying amount of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Impairment of capitalised exploration and evaluation expenditure The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. Factors that could impact the future recoverability include the level of reserves and resources, future technological changes, costs of drilling and production, production rates, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices. Share- based payment transactions The Group measures the cost of equity- settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using the Black Scholes model. Should the assumptions used in these calculations differ, the amounts recognised could significantly change. The valuation of performance shares include judgements on the probability and timeframe of reaching performance targets. Details of estimates used can be found in Note 23. Provision for Rehabilitation The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material). 66

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 3. REVENUES 2015 2014 Other revenue Interest from financial assets 70,222 117,721 Sub Lease - Office - 1,200 Profit on sale of investments 244,994-315,216 118,921 4. EXPENSES Loss for the year includes the following specific expenses: Employee wages Share based payment expense Travel and accommodation Operating lease payments Impairment loss - Exploration and evaluation expenditure 2015 819,523 1,352,837 42,702 98,312-2014 724,209 857,114 34,041 103,414 2,469 Impairment of exploration and evaluation expenditure An impairment loss has been recognised in relation to capitalised exploration and evaluation expenditure. The board of directors have determined that the exploration costs incurred in relation to several tenements have been fully impaired in 2015. 5. TAXATION 2015 2014 The reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Group s applicable income tax rate is as follows: Loss before income tax multiplied by the Group s applicable income tax rate: (930,508) (565,494) Tax effect of amounts which are not deductible in calculating taxable income: 405,851 257,134 Movements in unrecognised temporary differences (1,294,782) (1,073,822) Deferred tax assets relating to tax losses not recognised 1,819,439 1,382,182 Refund received for Research and Development - (475,106) Total income tax expense/(benefit) - (475,106) The franking account balance at financial period end was nil (2014:nil). 67

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 5. TAXATION (continued) Deferred tax assets and liabilities not recognised relate to the following: Deferred tax assets Tax losses Other temporary differences Capital Raising Costs 2015 10,124,097 2,683,860 154,598 2014 9,961,695 44,757 193,247 12,962,555 10,199,699 Deferred tax liabilities Other temporary differences (10,437,685) (6,542,449) Net deferred tax assets 2,524,870 3,657,250 Tax Consolidation For the purposes of income taxation, the Company and its 100% controlled Australian entity have not elected to form a tax consolidated group. There will be no consequences to the deferred tax assets, deferred tax liability unutilised tax losses by not joining the consolidated tax regime. 6. LOSS PER SHARE (a) Basic and diluted loss per share 2015 2014 Loss attributable to the ordinary equity holders of the Group (3,101,694) (1,884,980) (b) Reconciliations of loss used in calculated loss per share Basic and diluted loss per share (0.0068) (0.0046) Loss attributable to the ordinary equity holders of the company (3,101,694) (1,884,980) used in calculating basic and diluted loss (c) Weighted average number of shares used as a denominator (3,101,694) (1,884,980) Weighted average number of ordinary shares used as the denominator in calculating basic loss per share 454,529,460 413,015,924 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted loss per share 454,529,460 413,015,924 Options have not been included in the calculation of diluted loss per share as they are not considered dilutive because they decrease the loss per share. 68

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 7. CASH AND CASH EQUIVALENTS 2015 2014 Deposits at call Term Deposits Cash at bank 3,652,662-104,674 327,376 500,000 12,493 3,757,336 839,896 There are no restrictions on the deposits at call, and interest is earned on that account at 1.5%p.a. (a) Reconciliation to cash at end of year The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances above 3,757,336 839,896 Balance per Statement of Cash Flows 3,757,336 839,896 (b) Cash at bank These are not interest bearing. (c) Interest rate risk exposure The Group s exposure to interest rate risk is discussed in Note 21. 8. TRADE AND OTHER RECEIVABLES Current assets Other receivables GST 2015 19 123,347 2014 21,037 36,266 123,366 57,303 (a) Other receivables These amounts generally arise from transactions outside the usual operating activities of the Group. (b) Ageing of receivables past due not impaired As at 30 June 2015 and 30 June 2014 there were no receivables past due not impaired. 69

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 8. TRADE AND OTHER RECEIVABLES (continued) (c) Impairment and risk exposure Information about the impairment of trade and other receivables, their credit quality and the group s exposure to credit risk, foreign currency risk and interest rate risk can be found in note 21. 9. OTHER FINANCIAL ASSETS 2015 2014 Security deposits 72,454 245,106 72,454 245,106 The above deposits are held by financial institutions as security for rehabilitation obligations as required under the respective exploration and mining leases. 10. NON- CURRENT ASSETS EXPLORATION AND EVALUATION EXPENDITURE 2015 2014 Balance at beginning of the year 21,808,164 18,384,217 Exploration expenditure incurred during the year 4,234,120 3,426,416 Less: Impairment - (2,469) Recognition of Rehabilitation Provision 8,750,000 - Balance at the end of the year 34,792,284 21,808,164 The balance carried forward represents projects in the exploration and evaluation phase. The directors have determined that the carry forward balance at 30 June 2015 is 34,792,284 (2014: 21,808,164). Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and commercial exploitation, or alternatively, sale of respective areas. 70

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 11. NON- CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT Plant and equipment - at cost Accumulated depreciation 2015 353,099 (189,482) 2014 343,511 (145,277) Net book value 163,617 198,234 Reconciliation of the carrying amount of property, plant and equipment: Carrying amount at 1 July 198,234 266,587 Additions 9,587 24,495 Disposals - (38,405) Depreciation expense for the year (44,204) (54,443) Balance at the end of the year 163,617 198,234 12. NON- CURRENT ASSETS AVAILABLE- FOR- SALE FINANCIAL ASSETS 2015 2014 Listed securities 60,000 67,500 The fair value of listed securities is based on quoted market prices at the end of the reporting period. 13. LIABILITIES CURRENT LIABILITIES TRADE AND OTHER PAYABLES 2015 2014 Trade payables 436,651 63,390 Other payables 254,125 266,938 690,776 330,328 (a) Amounts expected to be settled within 12 months All current liabilities are expected to be settled within 12 months. (b) Interest rate risk exposure The Group s exposure to interest rate risk is discussed in Note 21. BORROWINGS 2015 2014 Convertible loan facility 4,037,745-71

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 13. LIABILITIES (continued) On 22 nd July 2014 the Company completed the drawdown of the first 2 million (before fees) as per the Facility agreement. Consequently, the Company has issued 43,478,261 7% options to Macquarie Bank Limited for nil consideration. The options are convertible into ordinary shares of the parent entity at any time prior to the expiry date (31 December 2015) for 0.092 per option. On 30 th April 2015 the Company completed the second drawdown of 2 million (before fees) as per the Facility agreement. 2015 2014 Convertible loan liability face value 4,000,000 - Other equity securities value of conversion rights (23,572) Liability component at date of issue Borrowing costs Interest expense paid 3,976,428 373,515 (312,198) Balance at the end of the period 4,037,745 - The initial fair value of the liability portion was determined as the proceeds less the value of the conversion rights. The value of conversion rights is recognised in shareholder s equity and not subsequently remeasured. NON- CURRENT LIABILITIES PROVISION FOR REHABILITATION 2015 2014 Opening balance - - Additional provision for site rehabilitation 8,750,000-8,750,000-72

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 14. CONTRIBUTED EQUITY (a) Share Capital 2015 2014 Shares Shares Ordinary shares Fully paid 39,727,295 490,350,644 33,899,933 412,828,424 (b) Movements in ordinary share capital Date Details Number of shares 30/06/13 Opening balance 414,578,424 33,042,994 Vesting conditions met for shares issued in ii prior periods - 857,114 09/08/13 Share buy back (1,750,000) (175) 30/06/14 Closing balance 412,828,424 33,899,933 27/08/14 Options exercised 5,000,000 290,000 31/12/14 Transfer from options reserve - 299,248 03/10/14 Placement of shares 33,333,330 2,000,000 24/12/14 Cancellation of ESS shares (13,200,000) (1,320) 24/12/14 Vesting conditions met for shares issued in ii prior periods - 1,179,596 24/12/14 Fully paid ordinary shares issued pursuant i to ESS Plan 26,500,00-22/07/14 Equity component convertible loan - 23,572 08/04/15 Placement 24,222,224 2,180,000 11/04/15 Placement 1,666,666 150,000 Less: Issue costs - (293,734) 30/06/15 Closing balance 490,350,644 39,727,295 i The shares issued as part of the ESS Plan. Refer to note 23 for further information on amounts held in escrow at reporting date. iii The value of share issued with vesting conditions on shares issued in previous periods was adjusted as milestones were reached and shares released from escrow. Refer to Note 23 for more details. No shares (2014: 2,400,000) were vested in the current year and these shares were cancelled during the year. (c) Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion to the number of shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. 73

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 14. CONTRIBUTED EQUITY (continued) Performance shares Performance shares have no voting rights until all performance hurdles have been met. (d) Options 2015 2014 Options Options 5.8c options expiring 23 August 2014 - - 299,248 5,000,000 9.2c options expiring 31 December 2015-43,478,261 - - (e) Capital risk management The Group s objective when managing capital is to safeguard the ability to continue as a going concern, so that they can continue to provide returns for the shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the return of capital to shareholders or issue new shares. The Group defines capital as cash and cash equivalents plus equity. The Board of Directors monitors capital on an ad- hoc basis. No formal targets are in place for return on capital, or gearing ratios as the Group has not derived any income from their mineral exploration and currently has no debt facilities in place. 74

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 15. RESERVES 2015 2014 Share- based payments reserve 173,241 - Options Premium Reserve - 299,248 Available for sale Financial Assets 10,000 5,000 183,241 304,248 Movements: Options premium reserve Balance 1 July 299,248 299,248 Options issued - - Expiry of options (299,248) - Balance 30 June - 299,248 Movements: Available for sale financial assets Balance 1 July 5,000 7,500 Change in fair value of financial assets 5,000 (2,500) Balance 30 June 10,000 5,000 Movements: Share- based payments reserve Balance 1 July - - Share based payments recognised during the year 173,241 - Balance 30 June 173,241 - Nature and purpose of reserves (i) Share- based payments reserve The share based payments reserve is used to recognise the fair value of shares and options issued to employees but not exercised; (ii) Option reserve The options reserve is used to recognise funds received for options issued to shareholders. The reserve is recognised in contributed equity when the options are exercised and converted to ordinary share capital. (iii) Available for sale financial assets The reserve is used to recognise the change in the fair value of Available for Sale Financial Assets. 16. ACCUMULATED LOSSES 2015 2014 Accumulated losses at the beginning of the financial year (11,318,306) (9,433,326) Net loss attributable to the Company (3,101,694) (1,884,980) Transfer from reserves on expiration of options - - Accumulated losses at the end of the financial period (14,420,000) (11,318,306) 75

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 17. RECONCILATION OF LOSS AFTER INCOME TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES 2015 2014 Loss for the financial year (3,101,694) (1,884,980) Depreciation & amortisation 44,204 54,443 Gain/(loss) on sale/disposal of asset - 38,405 Gain/(loss) on sale/disposal of investment (244,994) - Non- cash payments received Share- based payments 1,352,837 857,114 Interest received capitalised 1,790 (4,401) Finance costs non cash 61,317 - Tenement costs expensed 106,933 - Non- cash impairment of investments - 12,500 Non- cash impairment of exploration and evaluation expenses - 2,469 Change in operating assets and liabilities (Increase)/decrease in trade debtors and other receivables (66,062) 76,165 Increase/(decrease) in trade creditors and other payables 120,178 (108,913) Net cash (outflow) from operating activities (1,725,491) (957,198) Non- cash investing and financing activities Acquisition of exploration assets by means of share issue - - There were no non- cash investing and financing activities during the year (2014: None). 18. COMMITMENTS Capital Commitments There are no capital expenditure commitments as at 30 June 2015 (2014 nil). Rental Commitments Rental commitments contracted for at the reporting date but not recognised as liabilities are as follows: 2015 2014 Within one year 58,500 76,000 Later than one year but no later than five - 19,500 58,500 95,500 76

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 19. RELATED PARTY TRANSACTIONS (a) Parent entities The parent entity within the Group is Excelsior Gold Limited. The ultimate parent entity and ultimate controlling party is Excelsior Gold Limited (incorporated in Australia) which at 30 June 2015 owns 100% of the issued ordinary shares of GPM Resources Pty Ltd. (b) Subsidiaries Interests in subsidiaries are set out in note 28. (c) Key management personnel 2015 2014 Short- term employee benefits 856,803 899,433 Post- employment benefits 86,146 73,430 Bonus 50,000 - Share- based payments 931,279 632,776 1,924,228 1,605,639 Detailed remuneration disclosures are provided in the audited Remuneration Report in the Directors Report. Share holdings Refer to Remuneration Report for further details regarding related party shares. Other Transactions with Key Management Personnel There are no other transactions with Key Management Personnel. (d) Outstanding balances arising from sales/purchases of goods and services There are no outstanding balances arising from sales/purchases of goods and services. 20. REMUNERATION OF AUDITORS Amounts paid or payable at 30 June to the auditors for: 2015 2014 Audit services: BDO Audit (WA) Pty Ltd Audit and review of financial statements under the Corporations Act 2001 37,869 36,053 Other services: 700 2,754 38,569 38,807 77

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 21. FINANCIAL RISK MANAGEMENT Overview The Group has exposure to the following risks from their use of financial instruments: credit risk liquidity risk market risk This note presents information about the Group s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Management monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks. (a) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from cash and cash equivalents. All cash balances are held with recognised institutions limiting the exposure to credit risk. There are no formal credit approval processes in place. However, the Group reviews management information for subsidiaries to ensure early detection of risks. Exposure to credit risk The carrying amount of the Group s financial assets represents the maximum credit exposure. The Group s maximum exposure to credit risk at the reporting date was: 2015 2014 Other receivables 19 1,461 Cash and cash equivalents 3,757,336 839,896 Other financial assets 72,454 245,106 3,829,809 1,086,463 The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about default rates. Financial assets that are neither past due and not impaired are as follows:- 2015 2014 Other receivables - counterparties without external credit rating: Financial assets with no defaults in past 19 1,461 Cash and cash equivalents AA S&P rating 3,757,336 839,896 Other financial assets AA S&P rating 72,454 245,106 78

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 21. FINANCIAL RISK MANAGEMENT (continued) (b) Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group s reputation. The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash flows. Typically the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The Group has credit standby facilities or arrangements for further funding or borrowings in place as discussed in Note 18. The Group also has access to equity funding. The financial liabilities the Group had at reporting date were trade payables incurred in the normal course of the business. These were non interest bearing and were due within the normal 30-60 days terms of creditor payments. Maturities of financial liabilities The table below analyses the Group s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Group Less than 6 months 6-12 months 1-2 years 2-5 years Over 5 years Total contract- ual cash flows Carrying amount liabilities Non- derivatives As at 30 June 2015 Trade and other payables 690,776 - - - - 690,776 690,776 Borrowings 4,037,745 - - - - 4,037,745 4,037,745 As at 30 June 2014 Trade and other payables 330,328 - - - - 330,328 330,328 (c) Market Risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. 79

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 21. FINANCIAL RISK MANAGEMENT (continued) (c) Market Risk (continued) (i) Cashflow and interest rate risk The Group s only interest rate risk arises from cash and cash equivalents held. Term deposits and current accounts held with variable interest rates expose the Group to cash flow interest rate risk. The following sets out the Group s exposure to interest rate risk, including the effective weighted average interest rate. 30 June 2015 Weighted average interest rate Balance Financial assets Cash and cash equivalents 1.5% 3,757,336 30 June 2014 Weighted average interest rate Balance Financial assets Cash and cash equivalents 2.90% 839,896 21. FINANCIAL RISK MANAGEMENT (cont) (c) Market risk (cont) Sensitivity Analysis 2015 Interest rate risk movement of 1% +1%- 2014 Interest rate risk movement of 1% +1%- Financial Assets Cash and cash equivalents 37,573 8,399 A 100 basis point change is used when reporting to internally to key management personnel and represents management s assessment of the change reasonably expected in interest rates. (ii) Price risk The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the Statement of Financial Position as available- for- sale. The Group is not exposed to commodity price risk. The Group holds two publicly traded ASX listed equity investments, the table below summarises the impact of increases/decreases in the share price of the equity investment using the average volatility rate of 75% (2014: 75%). A 75% volatility rate is used when reporting to internally to key management personnel and represents management s assessment of the change reasonably expected in volatility rates. 80

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 21. FINANCIAL RISK MANAGEMENT (continued) (c) Market Risk (continued) Impact on post- tax profit 2015 Impact on other component of equity 2015 Index Increase Decrease Increase Decrease Volatility rate 75% (75%) 75% (75%) Listed equities at carrying value: 60,000 - (45,000) 45,000 - Impact on post- tax profit 2014 Impact on other component of equity 2014 Index Increase Decrease Increase Decrease Volatility rate 75% (75%) 75% (75%) Listed equities 67,500 - (50,625) 50,625 - Post- tax profit for the year would increase/decrease as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would increase/decrease as a result of gains/losses on equity securities classified as available- for- sale. (d) Fair values The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: (a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) (b) Inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly (as prices) or indirectly (derived from prices) (level 2), and (c) Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3). The following table presents the group s assets measured and recognised at fair value at 30 June 2015: Level 1 Level 2 Level 3 Total Assets Available- for- sale financial assets Equity Securities 60,000 - - 60,000 60,000 - - 60,000 81

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 21. FINANCIAL RISK MANAGEMENT (continued) (d) Fair values (continued) The following table presents the group s assets measured and recognised at fair value at 30 June 2014: Level 1 Level 2 Level 3 Total Assets Available- for- sale financial assets Equity Securities 67,500 - - 67,500 67,500 - - 67,500 The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available- for- sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1 and there were no transfers between levels during the year. 22. SEGMENT INFORMATION Management has determined that the Group has one reportable segments, being Gold exploration in Western Australia. GPM Resources Pty Ltd was incorporated during the period ended 30 June 2011 and acquired interests in Western Australian Gold projects. As the Group is focused on mineral exploration, the Board monitors the Group based on actual versus budgeted exploration expenditure incurred by area of interest. This internal reporting framework is the most relevant to assist the Board with making decisions regarding the Group and its ongoing exploration activities, while also taking into consideration the results of exploration work that has been performed to date. 82

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 22. SEGMENT INFORMATION (continued) 2015 Western Australia Corporate Total Revenue from external sources - - - Reportable segment revenue - 315,216 315,216 Reportable segment assets 26,042,284 4,176,773 30,219,057 Reportable segment liabilities (342,558) (4,385,963) (4,728,521) Reconciliation of reportable segment loss Reportable segment profit / (loss) Other income - 315,216 315,216 Depreciation expense - (44,204) (44,204) Share based payments - (1,352,837) (1,352,837) Employee benefits - (819,523) (819,523) Other expenses - (1,200,346) (1,200,346) Loss before tax - (3,101,694) (3,101,694) 2014 Western Australia Corporate Total Revenue from external sources - - - Reportable segment revenue - 118,921 118,921 Reportable segment assets 21,808,164-21,808,164 Reportable segment liabilities (110,377) (219,951) (330,328) Reconciliation of reportable segment loss Reportable segment profit / (loss) Other income - 118,921 118,921 Depreciation expense - (54,443) (54,443) Impairment of exploration expenditure (2,469) - (2,469) Share based payments - (857,114) (857,114) Share revaluations - (12,500) (12,500) Employee benefits - (724,209) (724,209) Other expenses - (828,272) (828,272) Loss before tax (2,469) (2,357,617) (2,360,086) 83

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 22. SEGMENT INFORMATION (cont) Other Segment Information 2015 2014 Total segment revenue Interest revenue 70,222 118,921 Profit on sale of investments 244,994 - Total revenue from continuing operations (note 3) 315,216 118,921 Segment assets 26,042,284 21,808,164 Unallocated: Cash and cash equivalents 3,757,336 839,896 Trade and other receivables 123,366 57,303 Property plant & equipment 163,617 198,234 Other financial assets 72,454 245,106 Available for sale financial assets 60,000 67,500 Total assets as per the statement of financial position 30,219,057 23,216,203 Segment Liabilities 342,558 330,328 Unallocated: Trade and other payables 348,218 - Borrowings 4,037,745 - Total liabilities as per the statement of financial position 4,728,521 330,328 84

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 23. SHARE BASED PAYMENT TRANSACTIONS (a) Employee share plan and incentive shares The Excelsior Gold Ltd Employee Share Plan ( Plan ) is used to reward Directors and employees for their performance and to align their remuneration with the creation of shareholder wealth. The Plan is designed to provide long- term incentives to deliver long- term shareholder returns. Participation in the Plan is at the discretion of the Board and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. The share based payments listed below have been issued to the company directors and employees under the terms of the Plan. The details of the Plan are disclosed in Note 23(c). In addition incentive shares have been issued to Directors of the Company on terms consistent with the Plan but outside of that Plan. Shares issued under the Plan and the incentive shares were issued at fair value as at the share price prevailing on the grant date. The shares issued were: 2015 Grant date Share price Balance at start of the year Granted during the year Cancelled during the year Vested during the year Balance at the end of the year Number Number Number Number Number 07/12/11 0.10 5,750,000 - (5,750,000) - - 21/12/12 0.23 5,150,000 - (5,150,000) - - 08/02/13 0.23 2,300,000 - (2,300,000) - - 07/06/13 0.12 350,000 - (350,000) - - 24/12/14 0.05-26,500,000 - - 26,500,000 2014 Grant date Share price Balance at start of the year Granted during the year Forfeited during the year Vested during the year Balance at the end of the year Number Number Number Number Number 07/12/11 0.10 7,250,000 - (1,250,000) (250,000) 5,750,000 21/12/12 0.23 6,500,000 - - (1,350,000) 5,150,000 08/02/13 0.23 3,500,000 - (500,000) (700,000) 2,300,000 07/06/13 0.12 500,000 - - (150,000) 350,000 These include share movements for all employees, not just Key Management Personnel (which are disclosed in the Remuneration Report and Note 19). 85

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 23. SHARE BASED PAYMENT TRANSACTIONS (continued) (b) Options Grant date Expiry date Exercise price Balance at start of the year Number Granted during the year Number Exercised during the year Number Forfeited during the year Number Balance at the end of the year Number Vested and exercisable at the end of the year Number 2015 25/08/11 23/08/14 0.058 5,000,000 - - (5,000,000) - - 17/07/14 31/12/15 0.092-43,478,261 - - 43,478,261 43,478,261 5,000,000 43,478,261 - (5,000,000) 43,478,261 43,478,261- Weighted average exercise price Weighted average contractual maturity of options 0.000 0.5 years 2014 25/08/11 23/08/14 0.058 5,000,000 - - - 5,000,000 5,000,000 5,000,000 - - - 5,000,000 5,000,000 Weighted average exercise price Weighted average contractual maturity of options 0.058 0.23 years Fair Value of share options and assumptions 2015 43,478,261 9.2c options expiring on 31 December 2015 were granted during 2015. 5,000,000 5.8c options expired on 23 August 2014. 2014 No options were granted or expired during 2014. (c) Expenses arising from share- based payment transactions Shares issued to Directors and employees resulted in 1,352,837 being expensed to the statement of profit or loss and other comprehensive income in the current period (2014 857,114). 1,179,596 relates to the accelerated value of shares cancelled during the year, while 173,241 relates to shares issued in the current period. The shares were issued pursuant to the Company s Employee Share Plan or on terms and conditions consistent with that Plan. These shares have performance hurdles imposed on them constituting a real risk of forfeiture to incentivise Directors and employees to further the Group s objectives. The trading restriction will be lifted subject to the achievement of certain Restriction Conditions. 86

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 23. SHARE BASED PAYMENT TRANSACTIONS (continued) (c) Expenses arising from share- based payment transactions (continued) Milestones for the release of these conditions on shares issued during the current period are: Number of shares Milestone 5,300,000 Upon delivery of first ore under the Paddington production scenario; 5,300,000 5,300,000 5,300,000 5,300,000 Upon the production of 40,000 ounces of gold from ore derived from the Kalgoorlie North Gold Project Upon the production of 80,000 ounces of gold from ore derived from the Kalgoorlie North Gold Project Upon the delineation of at least 2 million ounces of gold resources on a cumulative basis and reported consistent with the 2012 JORC Code at Kalgoorlie North Gold Project; and Upon the third anniversary of the issue of the Incentive Shares and the holder remains an employee or director of the Company. 26,500,000 The assumptions used for the options valuation granted during the period are as follows: Exercise Price Expiry Date Share Price at time of issue Expected volatility Dividend yield Risk free interest rate Share based payment value 0.054 24 Dec 2019 0.057 75% Nil 2.5% 0.036 Refer to Note 19 and the Remuneration Report for further details. 87

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 23. SHARE BASED PAYMENT TRANSACTIONS (cont) (c) Expenses arising from share- based payment transactions (cont) 2015: 26,500,000 shares were issued during the period, whilst 13,200,000 shares were cancelled. These movements and changes in probabilities resulted in 1,352,837 being expensed to the Statement of Profit or Loss and other Comprehensive Income. 2014: 2,150,000 shares were released when their milestones were reached, 1,750,000 shares were bought- back, and 13,850,000 shares have yet to be released on completion of milestones. These movements and changes in probabilities resulted in 857,114 being expensed to the Statement of Profit or Loss and other Comprehensive Income. Refer to Note 19 and Remuneration Report for further details. 24. DIVIDENDS There were no dividends paid or declared by the Group during the financial year. 88

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 25. PARENT ENTITY INFORMATION The following details information related to the parent entity, Excelsior Gold Ltd, at 30 June 2015. The information presented here has been prepared using consistent accounting policies as presented in Note 1. 2015 2014 Current assets 3,759,155 895,052 Non- current assets 25,271,809 21,272,554 TOTAL ASSETS 29,030,964 22,167,606 Current liabilities 4,350,886 207,316 Non- current liabilities - - TOTAL LIABILITIES 4,350,886 207,316 Contributed equity 39,727,295 33,899,933 Reserves 183,241 304,248 Accumulated losses (15,230,458) (12,243,891) TOTAL EQUITY 24,680,078 21,960,290 Loss for the year (2,986,567) (2,236,258) Other comprehensive income for the year - - TOTAL COMPREHENSIVE LOSS FOR THE YEAR (2,986,567) (2,236,258) Parent entity capital commitments Commitments contracted for by the parent entity at the reporting date but not recognised as liabilities are as follows: Within one year - - Later than one year but no later than five - - - - 89

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 26. EVENTS OCCURRING AFTER REPORTING DATE Subsequent to the year end, the Company has entered into a funding package of up to 15 million via project loan and hedging facility (the Facility ). The Facility will comprise of 12 million repayable by 29 September 2017 and a gold hedge facility covering 50,800 ounces of forwards and the 3 million call grant facility. No other matters or circumstances, not otherwise dealt with in the financial statements, have arisen since the end of the reporting date and to the date of this report which significantly affected or may significantly affect the operations of the economic entity, the results of the economic entity, or the state of affairs of the economic entity in the financial years subsequent to the financial year ended 30 June 2015. 27. CONTINGENCIES At the date of these statements the Company has a contingent liability in relation to the staged purchase of the Kalgoorlie North Gold Project. Shares and cash payments are payable over a three stage agreement conditional upon the achievement of certain resource milestones. Stages one and three are completed and the remaining consideration (subject to milestone) is as per the table below. STAGE TWO CONSIDERATION On completion of a Bankable Feasibility Study or a minimum of 40,000oz of cumulative gold production or achievement of resources of at least 2M oz, of which no less than 1M oz are classified as measured and indicated categories Cash EXG Shares EXG Performance Shares Total Deemed Value Fair Value at 30 June 2015 Nil 20,000,000 Nil 4,000,000 1,460,000 The total contingent liability recognised in relation to this agreement is 4,000,000. There are no other contingent assets or liabilities that require disclosure at the time of these statements. 90

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 28. SUBSIDIARES The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries: Name of entity Country of Incorporation Class of shares Equity Equity holding holding 2015 2014 GPM Resources Pty Ltd Australia Ordinary 100% 100% GPM Resources Pty Ltd was incorporated on 13 July 2009 and on the same day Excelsior Gold Ltd purchased 100% of the issued capital of GPM Resources Pty Ltd being 10,000,000 shares at a price of 0.001 each. 91

DIRECTORS DECLARATION In accordance with a resolution of the Board of Directors, I state that: In the opinion of the Directors: (1) (a) the financial statements, comprising the Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity, and accompanying notes are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity s financial position at 30 June 2015 and of its performance for the year ended on that date: and (ii) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and (2) This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015. (3) The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance with International Financial Reporting Standards. David Hamlyn Managing Director Perth, Western Australia 30 September 2015 92

Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au 38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia INDEPENDENT AUDITOR S REPORT To the members of Excelsior Gold Limited Report on the Financial Report We have audited the accompanying financial report of Excelsior Gold Limited, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors declaration of the consolidated entity comprising the company and the entity it controlled at the year s end or from time to time during the financial year. Directors Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Excelsior Gold Limited, would be in the same terms if given to the directors as at the time of this auditor s report. BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

Opinion In our opinion: (a) the financial report of Excelsior Gold Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity s financial position as at 30 June 2015 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. Emphasis of matter Without modifying our opinion, we draw attention to Note 1(b) in the financial report, which indicates that the ability of the Group to continue as a going concern is dependent upon the Group being able to successfully raise additional funds through debt and/or equity required to meet its future financial obligation, and to continue to develop and successfully generate positive cash flows from mining operations at the Kalgoorlie North Gold Project. These conditions, along with other matters as set out in Note 1(b), indicate the existence of a material uncertainty that may cast significant doubt about the Group s ability to continue as a going concern and therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Report on the Remuneration Report We have audited the Remuneration Report included in the directors report for the year ended 30 June 2015. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Excelsior Gold Limited for the year ended 30 June 2015 complies with section 300A of the Corporations Act 2001. BDO Audit (WA) Pty Ltd Phillip Murdoch Director Perth, 30 September 2015

ASX ADDITIONAL INFORMATION The ASX additional information set out below was applicable as at the dates specified. 1 Distribution of Equity Securities (Current as at 21 September 2015) Analysis of numbers of ordinary shareholders by size of holding: Total holders Units 1-1,000 99 20,590 1,001-5,000 131 434,009 5,001-10,000 271 2,166,846 10,001-100,000 584 22,393,718 100,001-9,999,999,999 331 465,335,481 Total 1,416 490,350,644 Minimum unmarketable parcel holders at 0.065 per share is 389. 2 Unquoted Equity Securities Options (Current as at 21 September 2015) Number on Number of issue holders Options exercisable at 0.092 expiring 31 December 2015 43,478,261 1 Holder of 20% or more of unquoted options: Name Number held Percentage Macquarie Bank Limited 43,478,261 100% 3 Substantial Holders of Ordinary Shares (Current as 21 September 2015) Name Number held Percentage National Nominee Limited 96,407,222 19.66% 4 Voting Rights The voting rights attaching to each class of equity securities are set out below: a) Ordinary Shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. b) Options These securities have no voting rights. 5 Equity Security Holders (Current as at 21 September 2015) The names of the twenty largest holders of quoted equity securities are listed below: 95

Ordinary Shares 1 National Nominee Ltd 96,407,222 19.66% 2 BBY Nominee Ltd 21,343,320 4.35% 3 UBS Wealth Management Australia Nominee 15,462,654 3.15% 4 Carmant Pty Ltd 15,362,996 3.13% 5 Gary B Branch Pty Ltd 12,500,000 2.55% 6 J P Morgan Nominee Australia Ltd 11,262,544 2.30% 7 Citicorp Nominee Pty Ltd 10,666,666 2.18% 8 W & M Farrah Pty Ltd 10,542,707 2.15% 9 Resourserve Pty Ltd 10,178,666 2.08% 10 Ironside Pty Ltd 8,300,000 1.69% 11 Aurum NSW Pty Ltd 8,100,135 1.65% 12 Hamlyn David 7,500,000 1.53% 13 GKK Group Holdings Pty Ltd 7,440,000 1.52% 14 Nour David Samuel 6,756,666 1.38% 15 Potter David 6,250,000 1.27% 16 Thomas Clive Wedgwood 6,000,000 1.22% 17 Hawthorne Park Investments Pty Ltd 5,342,204 1.09% 18 451 Prop Ventures Pty Ltd 5,172,056 1.05% 19 Ong Chen Chik 5,000,000 1.02% 20 Uhlmann Super Pty Ltd 4,400,000 0.90% Total Top 20 Holders 273,987,836 55.88% Total Remaining Holders 216,362,808 44.12% Grand Total 490,350,644 100% 6 On- Market Buy- Back There is no current on- market buy- back. 7 The name of the Company Secretary is Mr Chen Chik (Nicholas) Ong. 8 The address of the principal registered office is Unit 2, 124 Stirling Highway, North Fremantle, Western Australia 6159. Telephone (08) 9335 7770. 9 Registers of securities are held at Security Transfer Registrar Pty Ltd, 770 Canning Highway, Applecross WA 6153. 10 Stock Exchange Listing Quotation has been granted for all the ordinary shares of the Company on the Australian Securities Exchange Ltd. 11 Securities Subject to Escrow There are no securities currently subject to escrow. 96

12 Tenement Schedule TENEMENT REGISTERED HOLDER BENEFICIAL OWNER Non- Nickel Rights BENEFICIAL OWNER Nickel Rights WESTERN AUSTRALIA KALGOORLIE NORTH GOLD PROJECT L24/148 GPM Resources Pty Ltd N/A - borefield N/A L24/202 GPM Resources Pty Ltd N/A N/A L24/203 GPM Resources Pty Ltd N/A N/A L24/209 GPM Resources Pty Ltd N/A - groundwater N/A L24/223 GPM Resources Pty Ltd N/A haul road N/A M24/11 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/43 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/83 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/96 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/99 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/121 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/122 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/135 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/244 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/326 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/405 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/420 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/469 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/498 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/510 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/512 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/854 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/869 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/870 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/871 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/886 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/887 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/888 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4060 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4061 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4062 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4063 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4064 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4065 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4066 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4067 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4068 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4069 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4070 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4071 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4072 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4832 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4833 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4840 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4587 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4816 GPM Resources Pty Ltd GPM (100%) GPM (100%) M24/364 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4150 Anvil Mining Management NL GPM (100%) Minara (100%) 97

TENEMENT REGISTERED HOLDER BENEFICIAL OWNER Non- Nickel Rights BENEFICIAL OWNER Nickel Rights P24/4151 Anvil Mining Management NL GPM (100%) Minara (100%) P24/4152 Anvil Mining Management NL GPM (100%) Minara (100%) P24/4153 Anvil Mining Management NL GPM (100%) Minara (100%) M24/951 (formerly P24/4089 & GPM Resources Pty Ltd GPM (100%) Minara (100%) 4090) M24/487 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/133 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/134 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/348 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/471 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/491 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/532 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/889 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/890 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/891 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/892 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/952 (formerly GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4073) P24/4074 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4075 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4076 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4077 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4078 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4079 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4080 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4081 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4082 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4083 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4084 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4085 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4086 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/146 GPM Resources Pty Ltd GPM (100%) Minara (100%) M24/395 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4094 GPM Resources Pty Ltd GPM (100%) Minara (100%) P24/4154 Frederick Saunders and Kym McClaren GPM (100%) Minara (100%) P24/4155 Frederick Saunders and Kym McClaren GPM (100%) Minara (100%) P24/4156 Frederick Saunders and Kym McClaren GPM (100%) Minara (100%) P24/4157 Frederick Saunders and Kym McClaren GPM (100%) Minara (100%) P24/4158 Frederick Saunders and Kym McClaren GPM (100%) Minara (100%) M24/942 (formerly P24/4091) M24/943 (formerly P24/4092) P24/4757 (formerly P24/3693) Denzle Schorer 100% Denzle Schorer 100% Silvertree Nominees GPM (95%) Schorer (5%) GPM (95%) Schorer (5%) GPM (80%) Silvertree (20%) Minara (95%) Schorer (5%) Minara (95%) Schorer (5%) GPM (80%) Silvertree (20%) 98

TENEMENT P24/4758 (formerly P24/3694) Silvertree Nominees REGISTERED HOLDER BENEFICIAL OWNER Non- Nickel Rights GPM (80%) Silvertree (20%) BENEFICIAL OWNER Nickel Rights GPM (80%) Silvertree (20%) P24/4373 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4374 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4375 GPM Resources Pty Ltd GPM (100%) GPM (100%) M24/950 (formerly GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4443) P24/4445 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4446 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4449 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4447 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4162 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4163 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4887 GPM Resources Pty Ltd GPM (100%) GPM (100%) M24/400 GPM Resources Pty Ltd GPM (100%) GPM (100%) M24/429 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4821 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4822 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4823 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4824 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4825 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4826 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4626 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4627 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4628 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4857 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4858 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4859 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4860 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4861 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4886 GPM Resources Pty Ltd GPM (100%) GPM (100%) P24/4901 GPM Resources Pty Ltd Pending N/A P24/4902 GPM Resources Pty Ltd Pending N/A P24/4903 GPM Resources Pty Ltd Pending N/A P24/4904 GPM Resources Pty Ltd Pending N/A P24/4905 GPM Resources Pty Ltd Pending N/A P24/4906 GPM Resources Pty Ltd Pending N/A 99