Cautionary StatementThe Scoping Study referred to in this ASX...

Cautionary Statement

The Scoping Study referred to in this ASX release has been undertaken to evaluate the potential development of the Youanmi Gold Project (“Project”) near Mt Magnet, approximately 480 kilometres northeast of Perth, Western Australia. Rox Resources Limited (“Rox Resources, Rox, the Company”) owns 70% and is the operator of the Project. The Scoping Study is prepared based on a 100% basis and is a preliminary technical and economic study of the potential viability of the Youanmi Gold Project. It is based on low accuracy level technical and economic assessments that are not sufficient to support estimation of Ore Reserves. Infill drilling and evaluation work and appropriate studies are required before Rox Resources will be able to estimate Ore Reserves or to provide assurance of an economic development case. The Scoping Study has been completed to a level of accuracy of +/- 40%.Of the Mineral Resources scheduled for extraction in this Scoping Study production target, approximately 79% are classified as Indicated and 21% as Inferred in the first three years and 63% are classified as Indicated and 37% as Inferred over the evaluation period. There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.The Youanmi Gold Project has been mined successfully over four main campaigns since discovery of the original orebody in 1894, with approximately 667koz Au produced. The Company therefore considers the Youanmi Gold Project to be a very mature project which increases the confidence of converting the current Mineral Resources into Ore Reserves.Rox Resources confirms that the Project is financially viable when excluding Inferred Resources in the production schedule.The Company believes that it has a reasonable basis for providing these forward-looking statements and the forecast financial information based on material assumptions outlined in this release. One of the key assumptions is that the funding for the Project will be available when required. While the Company considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.To achieve the range of outcomes indicated in the Scoping Study, funding in the order of approximately $134m will likely be required comprising of approximately $99m in pre-production capital expenditure and approximately $35m in working capital and assumed financing charges. There is no certainty that the Company will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Rox Resources’ shares. It is also possible that Rox Resources could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Youanmi Gold Project. If it does, this could materially reduce the Company’s proportionate ownership of the Project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.