Ann: PGO ANNOUNCES POSITIVE SCOPING STUDY FOR MOUNT BUNDY, page-2

HIGHLIGHTS  Initial life of mine of 9 years from current resources of 26.9Mt at 1.5g/t Au (1.24Moz gold)  AISC for first full 3 years at approximately $900/oz with LOM $1050  Low strip ratio at 1.8:1 over Rustlers Roost and Quest 29 open pits  Study based on 3.0Mtpa processing facility  Estimated Project CAPEX of $155M (includes underground refurbishment; excludes pre-production costs)  Significant scope for growth in current resource base via:  brownfields exploration to exploit known mineralisation at depth on all deposits; and  identified greenfield targets  Next phase of Mount Bundy development activity to include:  Commencement of exploration on the 1,500km2 highly prospective tenement package: - brownfields extension drilling; and - follow up of previous reconnaissance work within 15km radius of Rustlers Roost on lookalike geological formations of Rustlers Roost and Toms Gully Deposits - drilling anticipated to commence in May 2017 once wet season subsides  Progressing environmental approvals  Company to immediately initiate a PFS for Mount Bundy Gold Project  Strong cash position of $7.8m (31 March 2017) to continue work programs Cautionary Statement concerning Scoping Study Results including Inferred Resources The Scoping Study referred to in this announcement has been undertaken by Primary Gold Limited (the “Company”) to ascertain whether a business case can be made for proceeding to more definitive studies on the viability of the Mount Bundy Gold Project. It is a preliminary technical and economic study of the potential viability of the Mount Bundy Gold Project. It is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further exploration and evaluation work and appropriate studies are required before the Company will be in a position to estimate any ore reserves or to provide any assurance of an economic development case or that the conclusions of the Scoping Study will be realised.