Blackham Resources Ltd: Record Month of Gold Production, Record Low AISC

Perth - Blackham Resources Ltd. (ASX:BLK) (OTCMKTS:BKHRF) ("Blackham" or "the Company") is pleased to present an operational update for the month of January 2018 (Jan'18) at its Matilda-Wiluna Gold Operation ("the Operation").

Highlights

- Record monthly gold production in January 2018 (Jan'18) of 6,498oz, a 19% increase from the prior month (Dec'17: 5,461oz)

- Record milled tonnes of 163kt during Jan'18, a 13% increase in throughput (Dec'17: 144kt)

- High grade stockpiles are currently 108kt @ 1.5g/t Au and expected to continue to grow

- All in sustaining costs reduced to A$1,158/oz in Jan'18, a 15% decrease on Dec'17 (A$1,359/oz)

- Average realised gold price during the month of A$1,663/oz

- 16,000oz of forward sales contracts put in place during Jan'18, averaging A$1,689/oz over the next 6 months

- Operations were cash flow positive during Jan'18, with cash and bullion at the end of the month of $12.4 million

- Closing date for acceptances under the Entitlement Offer is 5:00pm (WST) on Monday 12th February 2018

Access to high grade zones in the M4 and Galaxy Pits was achieved late in the Dec'17 quarter, enabling record monthly gold production of 6,498oz and a low stripping ratio of 3.6:1 (waste:ore) during Jan'18. This resulted in Blackham achieving a record low monthly AISC in Jan'18 of A$1,158/oz, in comparison to an average realised gold price during the month of A$1,663/oz, demonstrating a clear step change in economics. Milled grade and gold production are expected to continue to improve throughout the Mar'18 quarter.

The Operation is now building high grade stockpiles for the first time since Mar'17; these high grade stockpiles currently total 108kt @ 1.5g/t Au. During Feb'18, the Operation is expected to mine approximately twice as much high grade ore as it will process, providing strong operational flexibility.

Blackham's Executive Chairman, Mr Milan Jerkovic, said:

"With the Operation's production at record levels and a significant reduction in AISC having already been achieved, the Company is clearly demonstrating that its operational turnaround is well underway. This operational performance, in conjunction with the current strong AUD gold price, is expected to make 2018 a transformational year that is expected to generate significant cash flows and value for Blackham and its shareholders."

Entitlement Offer

Eligible shareholders have until 5pm (WST) on Monday 12th February 2018 to take up all or some of their entitlements under the Entitlement Offer. Further details of the Entitlement Offer are included in the prospectus that is available on the Company's website at www.blackhamresources.com.au and copies of which have been mailed to all eligible shareholders.

The fully underwritten renounceable pro-rata Entitlement Offer is for up to 897,670,820 new shares on the basis of five new shares for every two existing shares held by eligible shareholders at the record date (5:00pm WST on Monday, 29 January 2018), at an issue price of $0.04 per new share, together with one free attaching listed $0.08 option (expiring 31 January 2019) for every two new shares issued, to raise approximately $36 million (before costs).

For shareholder enquiries regarding how to apply for the Entitlement Offer please contact Link Market Services on 1300 730 659.

Forward Plan Summary

Following the completion of the Entitlement Offer, Blackham will be well funded as it enters a significantly lower risk period of production, which will initially focus on free milling gold production with an expected stripping ratio of less than half of recent levels (7:1 vs 16.5:1) for the current free milling mine plan, providing a significant step change in project economics. This, in conjunction with continued access to high grade ore zones that are supported by extensive grade control drilling, will provide ongoing mill supply and continued growth in high grade stockpiles and is expected to deliver a period of strong operational cash flows.

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About Blackham Resources Ltd:

Blackham Resources Ltd. (ASX:BLK) (OTCMKTS:BKHRF), is an emerging gold producer focused on its Matilda Gold Project in Western Australia where mining and production is imminent. The Matilda/Wiluna Gold Operation incorporates over 1,000 square kilometres of tenements containing total JORC 2012 resources of 63Mt @ 3.2 g/t for 6.4Moz of gold. These tenements cover around 55 kilometres of strike along the Wiluna Mine Sequence and 10 kilometres of strike along the Coles Find Sequence. The Wiluna Mine and Coles Find Sequence has historically produced 4 million ounces of gold.

All the deposits are within 26 kilometres by existing haul roads of Blackhams recently acquired Gold Plant. With exploration prospects at Mt Poole, Monarch, Carroll Prior, Red Lady, Zenith, Island and Albion in the Lakeway area provides the company with excellent exploration areas for potential future projects.

Source: Blackham Resources Ltd.



Contact:

Milan Jerkovic Executive Chairman
T: +61-8-9322-6418

Bryan Dixon Managing Director
T: +61-8-9322-6418

Jim Malone Investor Relations Manager
T: +61-419-537-714

John Gardner Media Relations Citadel-MAGNUS
T: +61-8-6160-4900