ASX Announcement 31 May 2016

OFF-HOLE EM CONDUCTOR IDENTIFIED AT DOOLGUNNA

- Extended follow-up drilling program to be funded via $1.5m SPP

Highlights

• Off-hole electro-magnetic (EM) conductor identified from ongoing drilling and down-hole EM (DHEM) programs at the Cuba prospect at Doolgunna

• Off-hole EM conductor situated within one of two volcanic hosted massive sulphide (VHMS) horizons identified at Cuba

• Visible sulphides and pathfinder geochemistry from first three drill holes also support proximal VHMS setting

• Priority follow-up drilling planned to target the off-hole EM conductor at Cuba

RNI NL (ASX: RNI) is pleased to announce the identification of an off-hole EM conductor from the ongoing drilling and DHEM survey program at the Cuba prospect at the Company's Doolgunna Project in Western Australia's Bryah Basin.

The off-hole EM conductor was detected within the southernmost of the two VHMS horizons successfully identified from the first three reverse circulation (RC) holes drilled at Cuba. The Cuba prospect is located between the high-grade DeGrussa and Monty VHMS discoveries and is hosted within the same favourable geological setting (Figure 1).

Figure 1 - Cuba Location Map1

1 Ross's Reef assay from hole DRC 082 and Jerry's assay from hole DRC 330, previously reported in ASX announcement

10 February 2012

RNI NL ABN 77 085 806 284

34 Bagot Road Subiaco Western Australia 6008 PO Box 298 West Perth WA 6872 T +61 8 9489 9200 F +61 8 9489 9201 E [email protected] W rninl.com.au

The geology intersected in all three RC holes drilled at Cuba in the current program has validated RNI's geological model for the Cuba area (See ASX announcements 19 April 2016 and 26 April 2016).

All holes intersected visible minor sulphides, favourable host stratigraphy and alteration indicative of VHMS mineralisation. Assays from the first three holes have been sent to the laboratory for analysis.

The DHEM survey detected the off-hole conductor approximately 100m-120m east of RC hole CBRC003 (Figures 2 and 3).

Figure 2 - Cuba Prospect - Plan view - Location of off-hole EM conductor

Figure 3 - Cuba Prospect - Section A-B - Location of off-hole EM conductor

The subtle EM response (50m x 50m in size and 500 siemen intensity) is very similar to the EM response that was instrumental in the discovery of the Conductor 2 massive sulphide ore body at DeGrussa2.

2 Note: As detailed in the paper: Geophysical Signature of the DeGrussa Copper-Gold Volcanogenic Massive Sulphide

Deposit, Western Australia - Margaret Hawke, Kelvin Blundell, Bill Peters. Canadian Exploration Geophysical Society Symposium 2010

As a result, RNI is planning a priority follow-up drilling program to target the off-hole EM conductor.

This drilling is expected to commence in the second week of June 2016 once full analysis of all available geophysical data and first pass XRF and geochemical analysis is completed by RNI's geological team.

RNI Chief Executive David Morgan said he was extremely encouraged with the results from the first phase Cuba RC drilling program and, most particularly, with the identification of the off-hole EM target.

"The first phase of our drilling and DHEM program has validated our geological model for the highly- prospective Cuba area and confirmed the presence of two VHMS horizons" said Mr Morgan.

"We are excited with the off-hole EM conductor and keen to re-commence drilling as soon as we have completed the analysis required for the targeting for the next phase of drilling"

"We believe the results also underline the prospectivity of our broader Doolgunna Project area in the Bryah Basin and provide a solid platform for our ongoing exploration efforts."

Share Purchase Plan

The RNI Board has resolved to undertake a share purchase plan (SPP) to raise a minimum amount (before costs) of $1.5 million to enable the Company to expand the current drilling program.

Under the SPP, eligible shareholders in Australia and New Zealand will each be offered the opportunity to apply for new RNI shares worth up to $15,000 at 1.5c per share, without incurring brokerage or other costs. The record date for the SPP is 30 May 2016 and eligible shareholders will be sent the SPP documentation shortly.

The Board is in advanced discussions to fully underwrite the SPP, subject to final documentation. For and on behalf of the Board.

DAVID MORGAN

CHIEF EXECUTIVE OFFICER

Table 1: Cuba RC Drilling - Drillhole Information Summary

ABOUT RNI NL

RNI NL is exploring for high-grade volcanic hosted massive sulphide (VHMS) copper-gold discoveries in Western Australia's highly-prospective Bryah Basin region.

RNI has consolidated a 1,343km2 copper-gold exploration portfolio in the Bryah Basin divided into five well- defined project areas - Doolgunna, Morck's Well, Forrest, Cashmans and Horseshoe Well.

The Company commenced a priority drilling program in May 2016 targeting VHMS horizons identified at the Cuba, Orient and Forrest-Wodger-Big Billy.

RNI is headed by an experienced board and management team.

Competent Person's Statement

Information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation prepared and compiled by Albert Thamm BSc (Hons) MSc, F.Aus.IMM (CP) who is a Corporate Member of the Australasian Institute of Mining and Metallurgy.

The information in this announcement that relates to previously released exploration was first disclosed under the JORC Code 2004. It has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported and is based on and fairly represents information and supporting documentation prepared and compiled by Albert Thamm BSc (Hons) MSc, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy.

Mr Thamm is a consultant to RNI NL. Mr Thamm 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 Exploration Results, Mineral Resources and Ore Reserves. Mr Thamm consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

No New Information

Except where explicitly stated, this announcement contains references to prior exploration results and Mineral Resource estimates, all of which have been cross referenced to previous market announcements made by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the results and/or estimates in the relevant market announcement continue to apply and have not materially changed.

Forward-Looking Statements

This announcement has been prepared by RNI NL. This document contains background information about RNI NL and its related entities current at the date of this announcement. This is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this announcement. This announcement is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted. This document does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of RNI NL. Actual values, results, outcomes or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements.

Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing Rules, RNI NL does not undertake any obligation to update or revise any information or any of the forward-looking statements in this document or any changes in events, conditions or circumstances on which any such forward-looking statement is based.