Tuesday, 20th October 2015 Company Announcement Office Australian Securities Exchange

rimfire pacific mining nl

a.c.n. 006 911 744

ASX Code 'RIM'

Exchange Tower

Suite 411, 530 Little Collins Street Melbourne Victoria

Australia. 3000

T 61 3 9620 5866

F 61 3 9620 5822

E [email protected] W www.rimfire.com.au

Sorpresa Drilling -Gold Lens definition in Shallow Oxide returns high grades

Hole Fi 0662 best intersection of 3m @ 20.42g/t gold AND 4m @ 5.34g/t gold Key Recent Activity Highlights at Fifield NSW

The Sorpresa drilling has provided consistent high grade results in the known mineralised zone at Trench 31 area and has revealed layered gold shoots

Best 1m intervals (>30g/t Au) returned at Sorpresa, Trench 31 area, included:

• Fi 0548 with 1m @ 53.30g/t Au & 74g/t Ag; Fi 0658 with 1m @ 50g/t Au & 55g/t Ag

• Fi 0662 with 1m @ 39.6g/t Au & 58g/t Ag; Fi 0659 with 1m @ 33.7g/t Au & 31g/t Ag Recent metallurgy at Sorpresa shows promising gravity, floatation and leaching recoveries

Numerous presentations and site visits were conducted including discussions for potential partnerships

Regional RC drill program and soil programs gave further gold results at Eclipse Trend & East Sorpresa

Rimfire Pacific Mining NL (ASX:RIM) ('Rimfire' or 'The Company') is pleased to report a series of positive gold and silver results from its RC drilling program (1,142m) at the Trench 31 area within the known Sorpresa gold and silver mineralised system at Fifield NSW.

The RC drilling was part of an ongoing assessment of the structural controls and orientation of lens areas within Sorpresa. This latest drilling forms part of an ongoing assessment of the Sorpresa Resource as the Company continues to look at development options. Further RC drilling is planned at Trench 31 area within the 4th Quarter.

Highlights for Sorpresa Gold and Silver Lens Assessment RC Drilling at Trench 31 Area

• Highest Gold and Silver grade intersections (in ranked order) included the following:

(See Figures 1 & 2, and Table 2 for complete assay details, pages 10~16 this report)

• The RC drilling improves the understanding of the orientation and controls operating on the higher grade gold and silver, with results confirming continuity and a potential uplift.

• The Company will keep assessing the better parts of the Sorpresa mineralisation in the oxide zone aiming to increase grades, ounces and the commercial context.

• This recent drilling (and subsequent work to follow) will contribute to parts of the resource at Sorpresa moving to measured status in due course.

• Additional metallurgy assessment was completed on the oxide and primary zones at Sorpresa, looking at gravity, floatation and heap leach recoveries with encouraging results.

Additional comments on drilling at Trench 31

The Trench 31 area (within the overall Sorpresa resource) is yielding impressive intersections and coherent gold rich zones which are helping better define the resource geometry at this location. This is important in helping to establish potential commercial implications for parts of Sorpresa.

The drilling program successfully achieved a number of outcomes.

1. Provided a better understanding of the 3D gold lens shapes. This required drilling at 5 to 10m centres in the potentially higher grade parts of the resource and more accurate 3D shapes are now emerging.

   
   

2. The drill delineation of high grade gold has the potential to increase the resource size, if that high grade was under represented in the original wider spaced drilling.

   
   

3. The new high grade gold shapes allow more precision in projecting the gold into any surrounding un-drilled ground. This is important for potential discovery growth, particularly to the south of Trench31 area.

   
   

4. The shapes being established should assist in mine planning, if this was deemed to be viable in the future. Knowing the location of high grade gold zones should allow a more even mill feed grade, which should reduce gold loss in the plant.

   
   

   CEO and Managing Director, John Kaminsky commented:

   'The completed RC drilling was conducted on a range of areas, attempting to build knowledge in the diverse mineralised setting that occurs at Fifield. The company strategy continues to be to pursue the Sorpresa resource definition, discovery growth and economic potential in parallel with the regional discovery advancement.

   
   

   'The Trench 31 area results demonstrate good continuity within the higher grade gold lenses in the oxide zone (0~60m). We have gained important insight, and the possibility of stacked gold lenses and shoots will be further tested.

   
   

   Trench 31 recent drilling area

   'The high grade shoots seem to occur in 3 discrete areas, with varying dips, where previous drilling had not provided this interpretation. The nett result is we now have additional understanding which may assist in identifying and defining this higher grade material both within the resource area and projected into un-drilled areas.

   
   

   'The closer spaced and infill drilling continues to provide better understanding on the mineralisation orientation, structure and geology within Sorpresa. The knowledge being gained adds to the Company's capacity to seek further upside within the current Sorpresa resource for gold and silver. More locations are planned for drilling at Trench 31 and Roadside accordingly.

   
   

   'Laboratory scale metallurgy was returned, with generally positive results for gravity, floatation and the equivalent of heap leach. These positive recoveries give a number of processing options and are a valuable basis for the key questions for the Company which are how many tonnes, ounces and at what grade can we grow in the potential economic areas at Sorpresa, to achieve a starting point for a potential mining project? There is still work to be done, but the recent metallurgy and high grade insights at Trench 31 certainly provide encouragement.

   New regional Activities

   
   

   'From a discovery perspective, the Company continues to examine the potential to grow the Sorpresa style mineralisation with targets identified outside the known resource. RC drilling on magnetic and gravity features to the east of Trench 31intersected the mineralised Sorpresa stratigraphy, producing gold and silver values. Potential remains for extensions of the mineralisation to east, where it is likely better structural interplay with the host geology is needed.

   
   

   'At Eclipse South an attempt was made to better understand the context of the chalcopyrite intersected there previously. A number of drill holes were placed, but were unable to reach the defined target area, due to the influence of a dominant north-south shear zone structure.

   
   

   'Reasonable Au and further Cu anomalism were encountered, with the geology still under interpretation. The new drilling information provides additional insight into the large 'Cu and Au smoke' seen on the Eclipse Trend-Yoe's areas, and in particular the previous hole Fi 0588 (which gave 4m @ 6.5% Cu and 2.30g/t Au). Further follow up is anticipated in an attempt to better understand the underlying context.

   
   

   An Extract Table of Recent RC Drilling Eclipse Trend

   Hole (location)	Main Intersection(s)	Including Intersection(s)
   Fi 0604 (Eclipse Sth)	1m @ 0.94g/t Au from 47m 1m @ 1.02g/t Au from 96m 1m @ 3.33g/t Au from 143m & 0.1% Cu
   Fi 0606 (Eclipse Sth)	6m @ 0.56g/t Au from 23m 14m @ 0.48g/t Au from 70m	1m @ 2.02g/t Au from 25m 1m @ 1.96g/t Au from 70m
   Fi 0609 (Eclipse Sth)	10m @ 0.26g/t Au from 13m 1m @ 0.54% Cu from 77m

   (See Figure 5, Table 2 for complete assay details, pages 10~16 this report)

   
   

   Overall summary of recent RC drilling at Sorpresa and Regionally

   
   

   'The recent RC drilling was noteworthy on a range of fronts:

   
   

   • High grade gold shoots are seen at Tr31 area, with the potential for additional discovery to the south

   • In total, 36/50 holes drilled, achieved a gold result of > 0.2g/t for 1m across the programs

   • The Eclipse South area has been extended along strike with a 300m zone of gold in auger encountered some 800m further south of previous auger results

   • Gold and silver (up to 37/t ) was encountered east of Tr31 at Sorpresa, indicating the system still continues east

   • The drilling represented the completion of the funding from NSW 'New Frontiers Drilling Grant' which provided a nett benefit of $175,000 to the company in the last 12 months

     
     

     Summary Table of Recent RC Drilling

     Area of Drilling	Holes	Metres	Summary Comments
     Sorpresa (Tr31)	28	1,142	Better defined Au lens with 3 shoots emerging, coherent and at shallow depths
     East Sorpresa	4	642	Mineralised planes continues East, Au & Ag encountered
     Eclipse Trend (4 areas)	19	2,321	Extension of Eclipse Trend with Au in auger 800m to the south, Au, Cu values elsewhere
     Yoe's Radiometric target	1	200	Whilst no result was achieved, the potential porphyry intrusive feature is only partly tested , still valid for pursuit of Au, Cu

     
     

     
     

     'The Company will continue with scoping soil and auger programs and selected RC drilling, looking to build on the results already developed within the 6km radius of the Sorpresa project area.'

     ___________________________________________________________________

     
     

     Sorpresa Discovery RC Drilling Opportunities

     Currently the Sorpresa Deposit comprises 6.4Mt for 7.9Moz of silver and 125kOz of gold (at 0.5g/t Au & 25g/t Ag cutoff) as an Inferred and Indicated Mineral Resource, equating to approx. 250,000oz gold equivalent.

     
     

     The Company believes that potential upside exists at Sorpresa by defining additional resources in under explored areas along strike to the south and at depth, down dip to the east and also in gap areas between mineralised domains.

     
     

     • High grades that exist in yet to be defined areas, where previous drilling has been on too broad a scale, and has missed these high grade areas

     • In addition to the well intersected fine disseminated mineralisation, there is an observed coarse gold fraction in places, and this is likely to provide further grade uplift in parts of Sorpresa

     • Discovery growth extension possibilities remain in areas to the East, South and in the gaps within Sorpresa.

_____________________________________________________________

In addition to the results provided in this report, the Company has continued a broad spectrum of work and a brief update on these Company activities is provided below.

A summary of other activities either completed or currently underway at Fifield include:

• Sampling (Soil and Auger drill) on extensions to the south of Eclipse Trend - completed, identification of gold anomalism in soil and first RC drilling conducted (Figure 4)

• Sampling (Soil) between Eclipse and Yoes - reported and analysed, identification of new gold anomalism (Figure 3)

• Soil sampling, mapping and rock chipping at Transit and Yoe's North prospects

• Examination of radiometric data and 10 new anomalies have been identified including potential porphyry targets

• Ongoing definition of high grade lens areas for Au/Ag at Sorpresa - RC drilling Underway Trench 31

• Next stage of metallurgical testing within the Sorpresa resource, to assist economic studies -Completed

The Company intends to maintain manageable work programs that continue to advance the opportunities at Fifield, within the financial constraints currently facing the industry.

JOHN KAMINSKY

CEO and Managing Director

Auger Drilling Lines for Au Geochemistry - Started April 2015

Figure 1: Fifield Prospect and Concept Map with location of the Sorpresa Resource and New RC Drilling reported in October 2015

Sorpresa Deposit 7.9Moz Ag and 125kOz Au

(0.5g/t Au @ 25g/t Ag cutoff)

RC Drilling one hole, 200m

RC Drilling Lines Tr31 Area for Au and Ag structure and orientation ongoing RC drilling within Sorpresa.

28 holes for 1,142m

RC Drilling East of Tr31 4holes, 642m

2,321m RC Drilling 19 holes, 4 locations

5

Figure 2: Sorpresa Plan View, the location of the RC drill results at Trench 31 area. (Looking at Structural Controls and lens shapes on Gold and Silver)

Recent RC Drilling

Holes Fi 0544 ~ Fi 0663

SORPRESA

(Trench 31 Area)

6

2

3

5

4

1

7

1 = Order of highest gold grade intersections in recent RC holes

6

Figure 3: Wider Sorpresa area Map, shows the underlying gold signature, with best Copper Rock Chips overlaid. RC drilling (May~July 2015) has confirmed Copper (Chalcopyrite)

Up to 0.1% Cu

Golden Green

Golden Green South

Twin Shafts

Jacks Lookout

Up to 0.04% Cu

Up to 0.62% Cu

Platina Gillenbine

Up to 0.28% Cu

RC Hole Fi0569

Glen Iris

Eclipse Group

Up to 0.29% Cu

Up to 0.35% Cu & 1.1% Cobalt

RC Hole Fi0563

Reported or Completed Soil Lines Sept 2015

Platina Lead

Up to 0.11% Cu

Up to 0.13% Cu

Up to 0.16 % Cu

RC Hole Fi0588

Up to 0.37% Cu Au(ppb)

in Auger

Carlisle

Up to 0.33% Cu

Completed New Soil & Auger Lines Sept 2015

Up to 0.03% Cu

Yarrabandi Road

1km

7

The Eclipse Trend is in a structurally complex area which is associated with a strong geochemical corridor which extends from Eclipse South for 2.6km through the Eclipse North drilling area and is open along strike to the north and south. Significant high grade Cu and Au drill intersections in both areas has indicated the potential for ore grade mineralisation relatively close to surface, open down dip and along strike.

Figure 4: Location of recent RC drilling on new surface gold anomaly results at ' sou th ext ensio n o f Ecli pse T rend' . (New Auger Drill program also shown)

Figure 5: Location of recent RC drilling at ' Ecl i pse S o uth w i th i n Ecli pse T rend '

9 RC h o les: Fi 6 02-6 10 com p lete d

Table 2: Assay Results from recent RC drilling at Sorpresa - Trench 31 Area Oxide

Note: Intersections calculated on >0.1 g/t Au with

Table 2: Assay Results from recent RC drilling at Sorpresa - Trench 31 Area Oxide

Note: Intersections calculated on >0.1 g/t Au with

Table 2: Assay Results from recent RC drilling at Sorpresa - Trench 31 Area Oxide

Note: Intersections calculated on >0.1 g/t Au with