DGO Gold Limited Principal office:

27 General Macarthur Place

ABN 96 124 562 849 Redbank Qld 4301

Australia

Postal address:

P.O. Box 294

Carole Park Qld 4300 Australia

Telephone: + 61 7 3381 5368

Facsimile: + 61 7 3381 5365 Email: [email protected] Website: www.dgogold.com.au

9 May 2016

Company Announcements Office ASX Limited

20 Bridge Street

SYDNEY NSW 2000

Dear Sirs,

RE: Sale of 50 million shares in GBM Resources Limited

DGO Gold Limited ("DGO") is pleased to announce that it has sold its 50 million fully paid ordinary shares in the GBM Resources Limited (ASX: GBZ) for a total cash consideration of

$600,000.

It is advised that the funds will be used for working capital purposes and for DGO's ongoing greenfield exploration strategy that focuses on exploring for gold and base metal deposits in sedimentary basins of the "right" age for the occurrence of sediment hosted gold mineralisation as indicated by the research by CODES at the University of Tasmania.

Please feel free to contact the Company Secretary if you require any further information regarding this transaction.

Yours faithfully

DGO GOLD LIMITED

MICHAEL ILETT COMPANY SECRETARY