ASX Announcement

26 November 2015

DEFLECTOR CONSTRUCTION PROGRESSES TOWARDS PRODUCTION - ON SCHEDULE AND ON BUDGET

Doray Minerals Limited (ASX:DRM, Doray) is pleased to provide a further update on construction and development progress at the Company's 100% owned Deflector Gold Project (Deflector) in the southern Murchison region of Western Australia.

Construction at Deflector is continuing on schedule and on budget with the next major activities being:

• Commencement of open pit mining - Feb 2016

• Commencement of underground mining - May 2016

• Commissioning of the new purpose-built processing plant - May/June 2016

The Deflector Gold Project is a high-grade/low-cost gold-copper deposit with an initial mine life of six years and significant exploration potential. Doray will leverage its recent development expertise from the Andy Well Gold Project to optimise the construction, development and operation of Deflector.

Following construction and commissioning of Deflector, Doray is targeting annual production of 150,000- 160,000 ounces (on a gold equivalent basis) and an average all-in sustaining cost (AISC) of less than A$1,000/oz (after by-product credits) across Andy Well and Deflector.

Processing Plant Construction

Construction activities are continuing at the processing plant on schedule with the recent completion of the fine ore bin and installation of the first of several conveyors. The primary jaw crusher has also recently arrived on site.

The site administration areas are also progressing well with the construction and/or installation of a number of key site buildings (reagent store, workshop and laboratory) now well advanced.

Critical pipework to facilitate the transfer of tailings, water supply and tails water return between the new processing plant and the existing TSF (Tailings Storage Facility) at Gullewa is nearing completion.

Figure 1. Completed fine ore bin, conveyor and screening house.

Figure 2. ROM bin wing walls, primary crusher plinth and conveyor.

Figure 3. Conveyor and screening house.

Figure 4. Construction of laboratory building.

Figure 5. Tailings, water and tails return pipework.

Deflector Accommodation Village

Most accommodation units have now been installed and the installation and/or fitout of other buildings, such as wet mess, kitchen/dry mess and recreation room is nearing completion. A number of staff have relocated from the Gullewa construction camp and it is expected the new accommodation village, including messing facilities, will be fully operational in early December.

Figure 6. Accommodation units being fitted out.

Grade Control Drilling and Open Pit Mining

The first phase of RC grade control drilling for the future open pit has been completed and results are being compiled in order to prepare a detailed mining model for commencement of open pit mining in the New Year.

As released to the market, Doray has recently signed a Letter of Intent with MACA Limited (ASX:MLD) for mining of the open pit, commencing in early 2016.

Concentrate Off-take Agreement

The Company advises it is in the final stages of negotiation of an agreement for sale of the Au-Cu-Ag concentrate to be produced from Deflector.

-ENDS-

For further information, please contact:

Cameron Peacock Investor Relations Doray Minerals Ltd

+61 (0)439 908 732

[email protected]

Margie Livingston

Associate

AMN Corporate

+61 (0)438 661 131

[email protected]

About Doray Minerals Limited

Doray Minerals Limited is an Australian gold producer, developer and explorer with two high-grade Western Australian gold assets: the operating Andy Well Gold Project (Andy Well); and the Deflector Gold Project (Deflector), which is due to commence production in mid-2016, following completion of development and construction.

Doray has a strategic portfolio of gold exploration properties within Western Australia and South Australia and each presents multiple discovery opportunities. The Company's Board and management team has a proven track record in discovery, development, and production.