Azumah Resources Limited

ABN 72 112 320 251

Suite 2, 11 Ventnor Avenue

West Perth WA 6005

PO Box 1073

West Perth WA 6872

P +618 9486 7911

F +618 9481 4417

W www.azumahresources.com.au

E [email protected]

24 October 2014

Dear Shareholders,

2014 ANNUAL REPORT

The Azumah Resources Limited 2014 Annual Report is now available on our website at:

www.azumahresources.com.au.

Should you have any difficulty downloading the document, or require a hard copy, please contact Robyn Brown at

Azumah Resources Limited on tel +61 (0) 8 9486 7911 or by email on [email protected].

Attached is an Addendum to the Annual Report confirming Azumah's Governance Practices as they apply to Mineral

Resources and Ore Reserves reporting. Yours sincerely,

Dennis Wilkins

Company Secretary

Azumah Resources Limited - Addendum to Annual Report - 24 October 2014

ASX ADDITIONAL INFORMATION - ANNUAL REPORT 2014

Mineral Resources

Table 1 and 2 below compares the Company's Mineral Resources as at August 2014 against that from 30 June 2014 and the previous year. The Mineral Resources reported are inclusive of those Mineral Resources modified to produce Ore Reserves.

Table 1: Mineral Resource Estimate - August 2014 (Julie: Brian Wolfe. Others: CSA Global Pty Ltd)

Values have been rounded

Table 2: Mineral Resource Estimate (CSA Global Pty Ltd - June 2013 and current at 30 June 2014)

Values have been rounded

Review of material changes

Following an internal and independent review of all Mineral Resources it was determined that, for the expanded and higher- grade Julie deposit, multiple indicator kriging (MIK) is a more appropriate estimation method. MIK has been chosen taking into account factors such as the style of mineralisation and the interpreted controls on mineralisation which are different at Julie compared to the other deposits. The type and spacing of the available data in relation to the intended mining selectivity has also been taken into account. Importantly, the MIK process has incorporated a change of support technique which models the mining selectivity at an appropriate level and this allows better prediction of actual mined grades and thereby mitigating risk. MIK modelling with change of support on a recoverable resource basis, amongst other things, introduces mining dilution at the resource estimate stage. This makes a direct comparison between the current MIK resource estimates and the previous ordinary kriging estimate inappropriate.

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Azumah Resources Limited - Addendum to Annual Report - 24 October 2014

Ore Reserves

Tables 3 & 4 show the Ore Reserves at 24 October 2014 and 30 June 2014 (unchanged from 30 June 2013).

Table 3: Ore Reserves Summary (Current at 24 October 2014)

Values have been rounded

Table 4: Ore Reserve Summary (Coffey Mining - August 2012) (Current at 30 June 2013 and 2014)

Review of material changes

The increase in Ore Reserves over those reported in June 2013 and June 2014 derives largely from the Julie deposit where there has been a 173% increase in Ore Reserves to 202,000oz grading 2.84g/t Au based on a 47% increase in Mineral Resources reported as at January 2013 and upon which the previous Ore Reserves were estimated.

Governance controls

Governance of Azumah's Mineral Resources and Ore Reserves development and the estimation process is a key responsibility of the Executive Management of the Company. The Managing Director of the Company oversees the reviews and technical evaluations of the Mineral Resource and Ore Reserve estimates.

All Mineral Resource estimates are prepared by qualified professionals following JORC Code compliant procedures that ensure representative and unbiased samples are obtained with appropriate QA/QC practices in place. Mineral Resource estimates for the Bepkong and Collette deposits are based on information compiled by Mr David Williams, who is a geological consultant employed by CSA Global Pty Ltd. Mineral Resource estimates for the Kunche and Aduane deposits is based on information compiled by Mr Dmitry Pertel, who a full-time employee (Manager - Resources) of CSA Global Pty Ltd. Mineral Resources estimates for the Julie deposit is based on information compiled by Mr Brian Wolfe, a Competent Person who is a Member of the Australian Institute of Geoscientists.

Ore Reserves estimates for the Kunche, Bepkong and Julie deposits is based on information compiled by Mr Linton Kirk, an independent consultant.

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Azumah Resources Limited - Addendum to Annual Report - 24 October 2014

About Azumah

Azumah Resources Limited is a Perth-based, ASX-listed (ASX: AZM) company focused on exploring and developing its Wa

Gold Project in the Upper West Region of Ghana, West Africa.

Three main deposits have been discovered and extensively drilled at Kunche and Bepkong, adjacent to the Black Volta River and Ghana's border with Burkina Faso, and at Julie ~80km to the east. Several satellite deposits, including Aduane and Collette, have also been delineated.

To date the Company has defined a JORC Mineral Resource of 2.0Moz of gold grading 1.5g/t Au including 1.3Moz Measured and Indicated grading 1.6g/t gold with these evenly distributed between Kunche-Bepkong and Wa East (Julie & Collette).

Mineral Resources have grown progressively through systematic exploration of the Company's 2,800km2 licence holdings which encompass large tracts of prospective Birimian terrain, the rocks that host the majority of West Africa's gold mines. Azumah anticipates Mineral Resources will continue to grow through the systematic testing of its pipeline of specific targets, prospects and many areas of interest.

Azumah is currently completing a Feasibility Study for a mining operation based on an initial seven-year life and producing

~100,000oz Au per year from the open pit mining and treatment of ore through a nominal 1.2 million tonnes per year carbon-in- leach (CIL) processing plant (1.8Mtpa treating softer oxide material). The plant will be located adjacent to the Kunche deposit

and incorporate a flotation and regrind circuit to treat Julie primary and some transitional ore which will be hauled by road to

the processing plant.

A JORC Ore Reserve of 624,000oz Au (9.1Mt at 2.14g/t Au) has been defined based on recent studies. With the addition of Inferred mineralisation contained in designed and optimised pits the total Mining Inventory is 652,500oz gold. Extensive metallurgical test work has been undertaken to confirm a high average overall gold recovery of ~92% for the Kunche, Bepkong and Julie deposits.

Azumah has had two 15-year Mining Leases granted over its key deposits (Ghana government holds a 10% free carried interest in their 'rights and obligations' and is also entitled to a 5% gross gold royalty) and is now moving to obtain environmental operating permits necessary to allow development to proceed.

No technical, social or environmental impediments to development have been identified and there is strong support from stakeholders for the Project. Whilst the region has no other major industry, the Project benefits from excellent regional infrastructure including grid power to site, good quality bituminised and non-bituminised roads, good access to water, a sealed airstrip at the regional centre of Wa and good general communications.

Key investors in Azumah include Macquarie Bank (Metals & Energy Capital Division), mining services group Ausdrill Limited and Caitlyn Limited which is associated with Emirates based gold refiner Fujairah Gold FZE, a wholly owned subsidiary of global mining group, Vedanta Resources plc. Azumah itself holds a 15% interest in its neighbour and junior Ghana explorer, Castle Minerals NL which has 10,000km2 of licences adjacent to Azumah.

Competent Persons' Statements

The scientific and technical information in this report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Stephen Stone, who is a full-time employee (Managing Director) of Azumah Resources Ltd. Mr Stone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Stone is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the geology of the deposits and exploration results.
The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Bepkong and Collette deposits is based on information compiled by Mr David Williams, who is a geological consultant employed by CSA Global Pty Ltd. Mr Williams is a Member of the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Williams has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the Bepkong and Collette Mineral Resource estimate.
The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Kunche and Aduane deposits is based on information compiled by Mr Dmitry Pertel, who a full-time employee (Manager - Resources) of CSA Global Pty Ltd. Mr Pertel is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
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Azumah Resources Limited - Addendum to Annual Report - 24 October 2014

consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Pertel has reviewed and approved the disclosure of the relevant scientific or technical information contained in this announcement that relates to the Kunche and Aduane Mineral Resource estimates.
The scientific and technical information in this report that relates to Mineral Resources estimates for the Julie deposit is based on information compiled by Mr Brian Wolfe, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Wolfe is a consultant to Azumah Resources Limited and is not an employee of the Company. Mr Wolfe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Wolfe consents to the inclusion in the report of the Julie Mineral Resources in the form and context in which it appears.
The scientific and technical information in this report that relates to Ore Reserves estimates for the Kunche, Bepkong and Julie deposits is based on information compiled by Mr Linton Kirk, an independent consultant to Azumah Resources Limited. Mr Kirk is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kirk has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Kirk consents to the inclusion in the report of the matters related to the Ore Reserve estimate in the form and context in which it appears.
The scientific and technical information in this report that relates to Process Metallurgy is based on information compiled by Mr Ian Thomas, an independent process consultant to Azumah Resources Limited. Mr Thomas is a member of the Australasian Institute of Mining and Metallurgy. Mr Thomas has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Thomas consents to the inclusion in the report of the matters related to the metallurgy, specifically the data represented in Table 3 in ASX release dated 2nd September 2014, in the form and context in which it appears.

Forward-Looking Statement

This release contains forward-looking information. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend", and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved, and other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated.
Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Forward-looking information is based on estimates and opinions of management at the date the statements are made.
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