ASX: DRM

ASX Announcement

29 April 2016

ANDY WELL PRODUCTION & COSTS BEAT FORECASTS AS DEFLECTOR PROGRESSES TOWARDS PRODUCTION

Doray Minerals Limited ("Doray", "the Company") today released its Quarterly Activities Report for the period ended 31 March 2016.

The Andy Well Gold Project ("Andy Well") achieved another exceptional Quarter of operations with production of 20,126 ounces at an average head grade of 7.8g/t leaving the Company in a strong position to meet the upper end of its guidance of 78,000‐85,000 ounces.

Cash and totals costs were both under budget with Quarterly C1 costs of A$663/oz (YTD A$624/oz) and All‐ in Sustaining Costs (AISC) of A$1,285/oz (YTD A$1,136/oz).

Commenting on the Quarter's result Doray's Managing Director Allan Kelly said Andy Well had continued to deliver a strong operational performance as it transitioned to a purely underground mining operation.

"Despite the cessation of open pit mining from the Suzie lode in the previous Quarter, Andy Well was able to achieve a mill throughput of 83,668 tonnes and achieve its sixth consecutive quarter of production greater than 20,000 ounces," said Mr Kelly.

"With mining now coming solely from underground operations, as planned, the March Quarter saw us increase our underground capital spend to add further declines and associated infrastructure to access and mine new zones of the Wilber and Judy Lode orebodies. Access to these new zones at Wilber and Judy will allow us to continue to deliver high‐grade ounces and extend Andy Well's mine life beyond its current Reserves/Resources base."

The Company also reported on the continued rapid development of its Deflector Gold Project ("Deflector") which occurred over the March Quarter. The Company is currently in the process of commissioning the crushing and grinding circuits of the processing plant and is on track to see first production from Deflector in June.

"Progress in the development of Deflector since completing the Mutiny transaction in March last year has been rapid. With only a matter of weeks now until production begins we are excited about the transformational impact the Project will have on our Company," said Mr Kelly.

"Not only does Deflector reduce our single‐mine risk, it nearly doubles our production, comes with a starting 6‐year mine life and materially reduces our company‐wide AISC's partly as a result of the by‐product credits from the contained copper and silver.

"We see this project providing significant value for our shareholders in the years ahead".

Quarterly Conference Call Details

Doray Minerals' Managing Director Allan Kelly and Chief Financial Officer Jon Latto will host a conference call for investors, analysts, and brokers at 10:30 AEST (08:30 WST) on Friday, 29 April 2016 to discuss Doray's progress.

Doray's General Manager - Operations, Peter Bamford will also be available to answer any questions. Access details are provided below.

Doray Minerals Ltd, 29 April 2016

Teleconference details:

Dial‐in number from an Australian landline: 1800 804 595

International dial‐in numbers: +61 (03) 8687 0650

Please note: There is no Pin Number required

A recording of the conference call will be made available on the Doray Minerals website under the Investors

− Presentation section and can be accessed at any time.

For more information or to confirm your participation, please email [email protected].

If you no longer wish to receive email invitations to Doray's conference calls, please reply with REMOVE in the subject line.

‐ENDS‐

For further information, please contact:

Cameron Peacock Investor Relations Doray Minerals Ltd

+61 (0)439 908 732

[email protected]

Margie Livingston Media Relations 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.

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.