For ASX Market Release: 1 July 2016

Wetar Expansion Project Commissioning Update

Finders Resources Limited (ASX:FND) is pleased to announce that over 300 tonnes of LME Grade A copper cathode has now been stripped from the recently commissioned 25,000 tonne per annum (t.p.a.) copper cathode solvent extraction electrowinning (SX-EW) plant. The rate of copper cathode stripping is continuing to increase as production levels from the SX-EW plant ramps up.

Figure 1: Wetar processing staff with the LME Grade A copper cathode stripped from the 25,000 t.p.a. SX-EW plant.

Concurrently, the existing 3,000 t.p.a. copper cathode SX-EW plant continued to perform at capacity during June bringing the combined site total to approximately 550 tonnes of copper cathode.

Managing Director Barry Cahill commented: "Copper cathode production continues to increase at Wetar following commissioning of our new 25,000 t.p.a. SX-EW plant and further increases are expected in July as our project staff focus on ramping up production. We look forward to providing further progress updates in the coming weeks."

Contacts: Mr Gary Comb

Non-Executive Chairman

Mr Barry Cahill Managing Director Mr James Wentworth Chief Financial Officer

Phil Retter Investor Relations NWR Communications

[email protected]

T: +61 407 440 882

Perth Office: Level 1, 5 Ord Street West Perth WA 6005 T: +61 8 6555 3996

F: +61 8 6555 3998

E: [email protected]

ASX Code: FND

www.findersresources.com

During the month, the Board of Finders along with representatives of the project partner Posco Daewoo completed a visit to site where they were able to inspect the new SX-EW plant and view the stripping of copper cathode for shipment to market.

Figure 2: Wetar staff, Finders Board members and Posco Daewoo representatives at the SX-EW plant

Figure 3: New Fuel Tanks on site - right tank reads "Safety is the gateway to success"

Background Information on Finders

Finders is the operator of the Wetar Copper Project (72% interest) and the Ojolali Gold-Silver Project (72% interest) both located in Indonesia.

The Wetar Copper Project comprises the development, open pit mining and processing of the high-grade sulphide deposits at Kali Kuning and Lerokis located within 3 kilometres of the coast on Wetar Island. The project benefits from having existing infrastructure in place, particularly a wharf, camp and roads and partially pre-stripped copper ore bodies from a prior gold mining era.

Finders currently operates a 3,000 tonne per annum ("t.p.a") copper cathode solvent extraction-electrowinning ("SX- EW") plant. To date, the plant has produced over 6,000 tonnes of LME Grade A copper cathode, all of which was sold at a premium to the LME price and without specification issues.

The current commissioning of a 25,000 t.p.a SX-EW facility will lift annual production capacity to 28,000 t.p.a. The Bankable Feasibility Study for the expansion project estimated a US$132.4M capital cost (excl. contingency) and a cash operating costs of US88c/lb Cu at an efficient production level.

Finders has successfully arranged a US$162 million senior facility and an additional US$45 million project level equity facility to fund the expansion project.

Opportunities for extending the mine life are strongly founded on exploration upside, focussing initially on the nearby satellite Meron deposit and other identified VMS copper and gold targets on Wetar Island including Karkopang.

Disclaimer

This announcement may or may not contain certain "forward-looking statements". All statements, other than statements of historical fact, which address activities, events or developments that Finders believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "targeting", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could", or "might" occur or be achieved and other similar expressions. These forward-looking statements, including those with respect to permitting and development timetables, mineral grades, metallurgical recoveries, potential production reflect the current internal projections, expectations or beliefs of Finders based on information currently available to Finders. Statements in this document that are forward-looking and involve numerous risks and uncertainties that could cause actual results to differ materially from expected results are based on the Company's current beliefs and assumptions regarding a large number of factors affecting its business. Actual results may differ materially from expected results. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of their likely impact, (ii) the publicly available information with respect to these factors on which the Company's analysis is based is complete or accurate, (iii) the Company's analysis is correct or (iv) the Company's strategy, which is based in part on this analysis, will be successful. Finders expressly disclaims any obligation to update or revise any such forward-looking statements.

No Representation, Warranty or Liability

Whilst it is provided in good faith, no representation or warranty is made by Finders or any of its advisers, agents or employees as to the accuracy, completeness, currency or reasonableness of the information in this announcement or provided in connection with it, including the accuracy or attainability of any Forward Looking Statements set out in this announcement. Finders does not accept any responsibility to inform you of any matter arising or coming to Finders' notice after the date of this announcement which may affect any matter referred to in this announcement. Any liability of Finders, its advisers, agents and employees to you or to any other person or entity arising out of this announcement including pursuant to common law, the Corporations Act 2001 and the Trade Practices Act 1974 or any other applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded.

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