Additional Sponsorships of Artisanal Licence Areas

16 October 2014

Golden Saint Resources Ltd

("Golden Saint" or the "Company")

Additional Sponsorships of Artisanal Licence Areas and Trading Update

Additional Sponsorships of Artisanal Licence Areas

Further to the announcement made by the Company on 14 August 2014, Golden Saint (AIM: GSR) announces that Golden Saint Diamonds (SL) Ltd ('GSD), Golden Saint's 75 per cent. owned subsidiary, has reached an agreement with Mr Konneh Morrison from the Southern Chiefdom of Makpele, Ngelehun, who on 10 October 2014 was granted three artisanal mining licences (each of approximately 0.005 square kilometres) in the village of Ngelehun, Seitua section (Pujehun District) which are renewable on 10 October 2015 and which expire on 10 October 2018, to sponsor the alluvial diamond mining work to be performed in these three areas.

GSD has also reached an agreement with Mr Kamara Baimba from the Southern Chiefdom of Makpele, Ngelehun, who on 10 October 2014 was granted two artisanal licences (each of approximately 0.005 square kilometres) in the village of Ngelehun, Seitua section (Pujehun District) which are renewable on 10 October 2015 and which expire on 10 October 2018, to sponsor the alluvial Diamond mining work to be performed in these two areas.

The decision for GSD to sponsor the work was made following the recommendation of Golden Saint's local Managing Director, Mr Timothy Bangura following initial sampling work on the nearby Zimmi Areas which are already being sponsored by GSD as announced on 14 August 2014.

Under the terms of the agreement reached between GSD and Mr. Mohamed Mallue (the Chiefdom Speaker representing Mr Konneh Morrison and Mr Kamara Baimba) (the "Representative") dated 14 October 2014 ("Agreement") GSD will be exclusively responsible for all five of the above mentioned artisanal mining operations through Mr Timothy Bangura. GSD shall provide machinery, mining tools, food, fuel and lubricants and all other funds required for the smooth running of the initial gravel processing operation (Phase 1) and the subsequent mining operation (Phase 2) including the issuing and renewing of the artisanal licences when required in return for full control over the mining operations, confirmation that all diamonds and or gold won under the licence areas at the end of Phase 1 are to be sold to GSD and the proceeds of such sales are to be shared between GSD and the Representative as to 50 per cent. each and confirmation that all diamonds and or gold won under the licence areas at the end of Phase 2 are to be sold to GSD and the proceeds of such sales are to be shared between GSD and the Representative as to 70 per cent. and 30 per cent. respectively. As part of its corporate social responsibility strategy GSD has also agreed to ensure that part of the benefits derived from the Agreement will be used for the construction of infrastructure in the local areas. The Agreement is valid for an initial period of one year but may be renewed at the end of that period by mutual consent.

The assignment of Golden Saint Resources (Africa) Ltd's director Mr Timothy Bangura to oversee the artisanal operations in the Zimmi Areas as well as in the additional areas set out in this announcement, is a reflection of the importance that the Company's sponsorship agreements hold for Golden Saint. GDS is currently also negotiating with local suppliers for the purchase of a separate washing plant for the artisanal areas currently sponsored by GSD in these areas.

Ebola

While the Government and World Health Organizations try and control the spread of Ebola in Sierra Leone, the Company continues to make progress on the ground and bulk sampling operations in Baja are now progressing well. Additional sponsorship of local licence areas shows Golden Saint's determination to focus and expand on its near term revenue strategy for the coming dry season.

The Company is also currently looking at its Moa Licence area and is looking to identify targets for alluvial gold and diamond mining in the coming dry season while waiting for the Ebola situation to stabilises before going back to the Company's Tongo region. An exploration program for Tongo has already been recommended by Waddell Armstrong. The Company intends to commence work in all three exploration areas in the coming dry season.

The Company is in daily contact with its local national senior management to ensure they do not enter risk areas. To further help protect its employees and the local community Golden Saint has set up chlorine washing points at all of its operational sites.

Diamond Shipment

The Company is also currently awaiting the issue of the Kimberley Process Certificate ("KPC") from the Australian authorities so that it can send its remaining 200 carats of alluvial diamonds to Parikh Brothers in Mumbai for cutting and polishing. It is anticipated that the Company will receive the KPC shortly as all documentation required has now been submitted.

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