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Vimy Resources Limited Ground Floor 10 Richardson Street West Perth, WA 6005

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ASX Announcement 16 March 2015

Mulga Rock Uranium Project

Project Changing - Beneficiation Breakthrough

Vimy Resources Limited (“Vimy” ASX: VMY) is pleased to announce excellent metallurgical test work results for its Mulga Rock Uranium Project (MRUP).

Recent beneficiation test work has provided the Company with a clear understanding of the physical in-situ nature of the ore at MRUP. In the past, MRUP ore has been wholistically characterised as a “lignite-hosted uranium deposit”, however, the test work has identified that up to 65% of the ore host rock is silica-rich sand. This supports the Company’s interpretation that the majority of the uranium ore is primarily hosted by carbonaceous and clay sediments intermixed with silicate sands.

Why is this important? Because the silicate sands can be removed by simple beneficiation before the ore concentrate is introduced to the processing plant. By removing the silica sand, the mass of ore expected to be processed through the plant can be reduced by up to 65% of the Run of Mine (ROM) ore, with minimal loss of uranium. This will have significant flow-on cost savings on capital and operating costs.

Appendix 1 provides details and results of the metallurgical beneficiation test work.

Key highlights from the test work:

The Uranium resource contains a large portion of coarse silicate sand,

Uranium mineralisation is associated with light carbonaceous and clay minerals,

Mass rejection of 55-65% of ROM ore achieved,

Uranium grades after beneficiation are 2.1 - 2.8 times the original ROM grade, and

Beneficiated ore uranium recoveries of 97-99% to final concentrate are achieved

Mike Young, CEO of Vimy Resources, said, “These beneficiation results are very impressive and a game changer for the Mulga Rock Uranium Project.

“We have always had high expectations for the economics of the Mulga Rock Uranium Project; those expectations have now increased significantly.

“Being able to reduce plant throughput by up to 65% whilst recovering up to 99% of the uranium, is beyond our most optimistic expectations. We have a management team focused on moving towards production, and are well placed to deliver into a growing market for uranium.”

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What do these results mean for the Mulga Rock Uranium Project?

Ore beneficiation will have a significant impact on the Project’s economics. By more than doubling the ROM uranium head grade, the benefits that will flow on from these results are as follows:

1) Process plant size will be approximately half of the original size meaning capital costs will significantly decrease although the final uranium precipitation and packaging plant will remain the same size;

2) The mass of process tailings will be approximately half the original amount;

3) Power costs will reduce as the process plant is smaller;

4) Reagent usage is expected to decrease;

5) Borefield water requirements will decrease significantly;

6) Higher uranium resin loading capacities will be achieved during resin-in-pulp, resulting in lower resin inventory and costs, and a higher quality yellowcake product; and

7) Equipment wear rates will reduce as the abrasive sand component has been removed from the process plant feed.

The process being proposed is for ROM ore to be treated using a breaker feeder and log washer to fully liberate the clay material from the sands. The resulting slurry will be screened into three size fractions >2mm, 2mm to 0.045mm, and <0.045mm. Both the coarse and fine rejects will be sent directly into the grinding circuit in the processing plant, and the mid-size fraction (<2mm>0.045mm) will then be beneficiated using a spiral gravity circuit using pit water. The silicate sand reject will be sent to waste, while the uranium concentrate will be pumped into the grinding circuit.

Next Steps

Continuous full-scale spiral test work is underway on large (400kg) samples of Princess and Ambassador East ROM ores; this work is expected to be completed during the June quarter. Final concentrate from this work will be used to determine reagent savings from the higher uranium feed grade to the process mill.

Investigations will also commence on Vimy’s extensive drill core sample library to incorporate the metallurgy results into a geological model (“Geomet Model”) to predict the extent of beneficiation over the mine life.

On-going Studies

The Pre-Feasibility Study work continues and includes some of the following work programs:

Resource update using the recently announced (4 March 2015) drill assay results from Ambassador West,

Mining studies to assess optimal overburden removal techniques, and

Scoping Study level assessment of the economics of the project.

Furthermore, the Company is compiling the first draft of the Public Environmental Review for submission to the State Government during April 2015.

Mike Young Chief Executive Officer

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Appendix 1 Details of the metallurgical beneficiation test work

Bulk Metallurgical Samples

Bulk metallurgical samples were obtained from the Princess, Ambassador East and Ambassador West resources during the 2014 drilling program and comprised approximately 600 kg of 200 mm diamond drill core from each resource. This was the first significant opportunity that Vimy had to gain a firm understanding of the physical in-situ nature of the Princess and Ambassador mineralisation, which represent nearly half of the Mulga Rock Uranium Project (MRUP) resource estimate.

Figure 1 shows a typical image of diamond drill core with high-grade uranium ore shown in the top photo and low-grade ore in the bottom photo. From this core, the MRUP mineralised ore has been characterised as carbonaceous and clay material intermixed with silicate sands. Furthermore, there is a very distinct hanging wall contact between the overlying, oxidised sediments and the reduced, carbonaceous ore zone. Sections of core with high uranium grades are typically associated with ore that contains very low amounts of silica sands. As the silica sand content increases in the ore, the uranium grade typically shows a corresponding decrease. This observation has been consistently observed in numerous PQ diamond exploration drill holes when correlating drill logs with core assays.

Primary Beneficiation - Assay by Size

Bulk drill core from each resource was initially blended using a 150 ppm U3O8 cut-off grade from handheld XRF readings and split into 15kg sub-samples. Based on recent resource block model optimisation studies it is anticipated the ROM uranium grade will be in the order of 600-800 ppm U3O8 for the initial half of the project mine life. The final metallurgical bulk blends were in very close approximation with the expected project ROM grades.

Multiple batch samples from each of the three resources were taken and assay-by-size analysis performed. This work was aimed at determining the particle size distribution of the bulk core and the distribution of uranium within each size fraction. Samples were wet screened using a series of screens ranging in size from 10mm to 0.045mm. Each size fraction was collected and assayed.

The uranium mineralisation is hosted in lacustrine (lake) sediments comprising carbonaceous clays, silts, and sands and therefore there is only a limited amount of material larger than 2 mm in size. The largest particles in the diamond drill core were typically no larger than 50mm. Figure 2 shows the percent mass and uranium distribution for the three resources.

The graph demonstrates how the uranium is mainly associated with the <0.045mm fraction or the ‘fines’ fraction and also the >2mm ‘coarse’ material. The fine fraction is mainly carbonaceous material and clays, while the coarse oversized material is typically hard carbonaceous lumps, sandstone and sulphide nodules.

The mid-size fraction (<2mm >0.045mm) represents 70-80% of the mass in the ore feed while only containing 20-26% of the uranium.

By simply screening the ROM feed to recover the fines (<0.045mm) and the coarse (>2mm) size fractions this would result in 74-80% of the uranium being recovered to 20-30% of the original mass while the remaining mid-size fraction reports to the beneficiation plant.

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Figure 1: Ambassador 200mm diamond core - high grade (top) and lower grade (bottom)

~10,600 – 11,800ppm U3O8

~180 ppm U3O8

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Figure 2: Uranium distribution versus mass for three size fractions from Princess, Ambassador East and Ambassador West resources

Secondary Beneficiation – Gravity Separation

After completing the assay-by-size analysis, test work then focused on the mid-size material and separating the sand fraction from the mineralised carbonaceous material.

A series of batch samples were taken and wet screened at 2mm and 0.045mm. The resulting size fractions were then treated by heavy liquid separation (HLS), with a specific gravity (SG) of 2.0, to separate the silica sand, with an SG of 2.6, and the carbonaceous ore, with an approximate SG of 1.1. HLS is a very common diagnostic test performed in the mineral sands industry to determine if gravity separation can be utilised to beneficiate ROM ore. The resulting “sinks” and “floats” from the HLS test were then analysed.

Figure 3 shows a typical HLS separation test on the mid-size fraction (<2mm >0.045mm) at SG 2.0. The image shows a very clean separation can be achieved between the carbonaceous ore and silica sand waste. The ‘floats’ fraction for the <2mm >1mm and <1mm size fractions contained 3,825 and 2,905 ppm U3O8, while the ‘sinks’ fraction only contained 42 and 54 ppm U3O8 respectively.

HLS test work clearly demonstrated the potential to use gravity separation to recover the uranium mineralisation from the silica sand in the mid-size fraction.

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Figure 3: Princess HLS on <2mm >0.045mm size fraction

Secondary Beneficiation – Scale-up

Tests were then scaled-up to continuous laboratory trials using bulk samples. The three ore samples were initially wet screened at 2mm and 0.045mm. The coarse (>2mm) material was weighed, crushed and assayed. The fines (<0.045um) were filtered, weighed and assayed.

Table 1 shows the results of the initial beneficiation step by separating the fines and coarse material from each ore sample.

Table 1: Initial beneficiation by screening

Size

Fraction

Princess Ambassador East Ambassador West

% Mass % U3O8

Distribution % Mass % U3O8

Distribution % Mass % U3O8

Distribution

>2mm 5.3 15.4 10.1 39.7 6.7 18.6

<2mm >0.045mm 77.4 21.1 78.0 23.1 79.4 28.7

<0.045mm 17.3 63.5 11.9 37.2 13.9 52.7

Total 100 100 100 100 100 100

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The remaining mid-size (<2mm >0.045mm) fraction from each ore sample was then passed over a Wilfrey table, or wet gravity table, to remove the silica sand from the uranium carbonaceous ore (Figure 4). Commercial scale-up of gravity table results to a full-scale spiral circuit is widely applied in the mineral sands industry as there is a strong correlation between Wilfrey table results and what would be achieved in a large scale, 2 to 2.5 stage spiral circuit.

Figure 4 demonstrates the excellent segregation of the heavier silica sand as it flows to the end of the table, while the lighter carbonaceous and clay minerals flow across the table. A clear separation is achieved between the silica sand gangue and the uranium mineralised ore. The silica sand and uranium concentrate were collected, weighed and assayed.

Figure 4: Wilfrey gravity table of Princess ore

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Table 2 shows the final results after combining the coarse (>2mm), fines (<0.045mm) and gravity table ROM concentrate. Results showed the initial ore feed is upgraded by 2.13 – 2.78 times, while rejecting 55-65% of the initial mass. Uranium losses were very low with only 2-3% loss incurred in the quartz sand rejects.

Table 2: Final beneficiation results on a run-of-mine ore basis

Deposit

Initial Head Grade

ppm U3O8

Beneficiated Ore Grade ppm U3O8

Uranium Upgrade*

% Mass Rejected

% Uranium Loss

Princess 722 2011 2.78 65 2.3

Ambassador East 826 2149 2.60 63 2.6

Ambassador West 846 1802 2.13 55 3.1

*Calculated by dividing beneficiated uranium grade by initial head grade.

Following the success of this program, the Company has moved to continuous full-scale spiral test work on large (400kg) samples of Princess and Ambassador East ROM ores; this work is expected to be completed during the June quarter. Final concentrate from this work will be used to determine reagent savings from the higher uranium feed grade to the process mill.

Investigations will also commence on Vimy’s extensive drill core sample library to develop a Geomet model to predict the extent of beneficiation and insert this into the resource block model.

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About Vimy

Vimy Resources Limited (ASX: VMY) is a Perth-based resource development company. Vimy’s primary focus is the development of the Mulga Rock Uranium Project. Mulga Rock is one of Australia’s largest undeveloped uranium resources and is located 240km ENE of Kalgoorlie in the Great Victoria Desert of Western Australia.

The Company has an aspirational target to produce 1,300 tonnes per annum of uranium oxide for up to twelve years.

For a comprehensive view of information that has been lodged on the ASX online lodgement system and the Company website please visit asx.com.au and vimyresources.com.au respectively.

Directors and Management

The Hon. Cheryl Edwardes – Chairman Mike Young – CEO and Managing Director Julian Tapp – Executive Director David Cornell – Non-Executive Director Felicity Gooding – Non-Executive Director Shane McBride – Chief Financial Officer and Company Secretary Tony Chamberlain – Project Manager, Mulga Rock Project Xavier Moreau – General Manager, Geology and Exploration

Principal Place of Business

Ground Floor, 10 Richardson Street West Perth WA 6005

T: +61 8 9389 2700

F: +61 8 9389 2722

E: info@vimyresources.com.au

Postal Address

PO Box 23, West Perth WA 6872

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153

T: +61 8 9315 2333

F: +61 8 9315 2233

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