The Board of Geopacific Resources Ltd (Geopacific or the Company; ASX: GPR) is pleased to advise that Tim Richards has formally commenced in the role of Chief Executive Officer (CEO) and will lead the Company on the delivery of the Woodlark Gold Project and further exploration.

In another significant step forward, Geopacific is delighted to announce that it has selected Sprott Private Resource Lending II L.P. (Sprott) as its preferred financier for the development of the Woodlark Gold Project. The Company has entered into a period of exclusivity with Sprott to finalise a US$85 million Project Finance Facility (the 'Project Finance Facility') and a US$15 million Callable Gold Stream (the 'Gold Stream') for development of the Company's Woodlark Gold Project (referred to as the Woodlark Facilities). The Project Finance Facility and the Gold Stream remain subject to usual conditions, including Sprott credit committee approval and final documentation (among other things).

Background

Sprott has been in discussions with the Company to fund the development of the Woodlark Project since 2018. This exclusivity arrangement with Sprott follows the positive results of extensive technical due diligence on the Woodlark Gold Project by Sprott and its advisors. Sprott's technical due diligence is expected to be finalised shortly after completion of the Company's definitive feasibility study revalidation process which is planned for Q4 CY2020. Sprott's ongoing commitment to the Woodlark Gold Project provides strong validation of robust project economics, that have been further enhanced by the record gold price.

Chairman Mr Ian Clyne stated: 'Two extremely important milestones have now been achieved. Firstly, our shareholders and the investment community have been positively anticipating Tim stepping into his new role as CEO of Geopacific. Tim brings significant experience in Papua New Guinea along with a reputation for the delivery of a successful gold mining operation. The Board of Directors welcomes Tim to lead the Geopacific team.

Secondly, Geopacific is delighted to be working with Sprott to fund development of the Woodlark Gold Project. Sprott's selection as preferred project financier follows a wide-ranging global selection process. This step continues the momentum of the Company towards full project funding in Q1 2021. We have continued to make significant progress in relation to all workstreams including the revalidation of the Woodlark Gold Project 2018 Definitive Feasibility Study, execution of our early works program and planning for project execution and operational readiness. Geopacific remains fully committed to successfully delivering the Woodlark Gold Project to the benefit of its shareholders and all stakeholders'.

Greg Caione, Managing Partner of Sprott commented: 'As one of the largest investors dedicated to the natural resources sector, Sprott is excited to partner with Geopacific on the development of the Woodlark Gold Project. Our financing of Geopacific is consistent with our strategy to provide innovative and flexible capital to maximise the value of exceptional projects and support strong management teams. We are pleased to be investing in Papua New Guinea - a country with a strong and rich mining culture, in a socially and environmentally responsible manner that is consistent with industry and International Finance Corporation guidelines and protocols. With a supportive government, our expectation is that the Woodlark Gold Project will create jobs and training for the communities of Woodlark Island, and assist Papua New Guinea's overall economic growth given current global circumstances.'

About Sprott

Sprott is an alternative asset manager and global leader in mining and real asset investments. Through its subsidiaries in Canada, the US and Asia, Sprott is dedicated to providing investors with best in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad, and Vancouver and the shares of its parent company, Sprott Inc., are listed on the Toronto Stock Exchange and the New York Stock Exchange under the symbol (TSX/NYSE:SII).

Contact:

Tel: +61 8 61431820

Email: info@geopacific.com.au

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