Blackham Resources Ltd.: Another Record Month of Gold Production

Perth - Blackham Resources Ltd. (ASX:BLK) (OTCMKTS:BKHRF) ("Blackham" or "the Company") is pleased to present an operational update for the month of February 2018 at its Matilda-Wiluna Gold Operation ("the Operation"). Access to high grade zones in the M4 and Galaxy pits was achieved late in the Dec'17 quarter, enabling record monthly gold production in both Jan'18 and Feb'18 of 6,498oz and 6,713oz, respectively.

Highlights

- Operations continued to generate strong cash flows in February

- New record monthly gold production in Feb'18 of 6,713oz (Jan'18: 6,498oz)

- 150kt milled for the month at an average rate of 5,347tpd or 1.95Mtpa annualised (2% higher than Jan'18)

- Mill feed grade improved to 1.5g/t, a 13% improvement on prior month

- High grade stockpiles were 144kt @ 1.7g/t Au at 28 Feb 2018 and expected to grow during Mar'18

- All in sustaining costs reduced to A$912/oz in Feb'18, a 21% decrease on Jan'18 (A$1,158/oz)

- Average realised gold price during the month of A$1,670/oz

- Cash and bullion of $31.4 million and secured debt of $43.8 million at 28 Feb 2018

February's open pit mining stripping ratio was a low 1.5:1 (waste:ore) (Jan'18: 3.6:1). The low stripping ratio and increased gold production resulted in Blackham achieving a record low monthly AISC in Feb'18 of A$912/oz (A$1,158/oz - Jan'18), in comparison to an average realised gold price during the month of A$1,670/oz, continuing its high margin production for the quarter to date.

Despite significant rainfall and lightning events during the month, which restricted mining operations, the Operation has increased the high grade stockpiles, which currently total 144kt @ 1.7g/t Au. Milled grade and gold production are expected to continue to improve during Mar'18 with the increasing grade of the mill feed stockpiles.

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

"February's operational results demonstrate a continued improvement of the turnaround that commenced in December 2017. Record production and further reduced costs from the Operation underpinned another month of strong cashflow, whilst maintaining stockpiles with increased grades. We remain confident that 2018 will be a transformational year that will generate significant cash flows and value for Blackham and its shareholders."

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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.



Contact:

Blackham Resources Ltd.
Milan Jerkovic Executive Chairman
T: +61-8-9322-6418

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

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

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