Operational and Sales Update on Capricorn

1 December 2015

Richland Resources Ltd

("Richland" or "the Company") (AIM: RLD)

Operational and Sales Update on Capricorn

Richland Resources Ltd, the gemstones producer and developer, today announces an operational update on the ramp up of production and sales from the Capricorn mine during November. All figures are unaudited.

Highlights

· US$212,485 total revenue achieved from the sale of approximately 159,000 carats of lower quality sapphire and corundum during November 2015

o First sales of various lower quality sapphire and corundum parcels concluded during November

o Average price per carat of US$1.34 achieved for lower quality sapphire and corundum

· Production target for Q4 2015 already achieved with over 250,000 carats, larger than 4mm produced to date during the quarter as part of production start-up and ramp-up process

· Two new exploration licences awarded for highly prospective sapphire exploration areas in Central Queensland

· Fourth Quarter 2015 Operational and Sales update to be released in January 2016

· First auction / sight sale of higher quality sapphire set for late Q1 2016

Commenting on the results, Chief Executive Officer, Bernard Olivier said: "I am delighted that Richland has received its first Sapphire revenues from the sale of our lower quality sapphire and corundum parcels mined through our ramp up phase. We monitor opex closely and the results to date following this first sale and a very efficient operation are positive. We have already recovered a large number of higher quality sapphires and these are currently being prepared for either the higher quality sale in H1 2016 or for potential sale on our online retail division (www.richlandgemstones.com). Richland is focused on efficient cashflow and the creation of first profit from an advanced gemstone mine, operated by an experienced team in one of the world's most established and politically stable mining areas. I am also delighted that we managed to secure two very prospective areas under exploration licence"

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Notes to the Editor:

Further information is available on the Company's website: www.richlandresourcesltd.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Production and Sales

Richland's wholly owned subsidiary, Capricorn Sapphire Pty Ltd ("Capricorn"), is pleased to report that it has already surpassed its fourth quarter production target of 250,000 carats, larger than 4mm, as announced on 19 October 2015. The target of 250,000 carats set for Q4 2015 forms part of the Company's current production start-up and ramp-up process and is operations are currently progressing well ahead of schedule.

During November 2015 various parcels of lower quality sapphire and corundum totaling approximately 159,000 carats were sold for total revenue of approximately US$212,485. An average price per carat of US$1.34 was achieved for the lower quality sapphire and corundum sold.

The first auction / sight sale of higher quality sapphire is planned to occur in H1 2016.

The Q4 2015 Operational and Sales update will be released in January 2016.

Exploration

Capricorn has received notification from the Queensland Government regarding the grant of its exploration licences (EPM 25973 and EMP25978) that were under application. The exploration areas are located adjacent to know sapphire producing areas and RA1 Areas (restricted areas earmarked for sapphire mining and fossicking with the grant of exploration licences within the area prohibited). The exploration areas were also selected to include sapphire bearing palaeo-alluvial terraces with adjoining reworked colluvial and alluvial deposits. Historical sampling of the terraces has recovered sapphire samples from the basal gravels.

EPM 25973 has an exploration area of 39 sub-blocks (133 sq. km) and EPM 25978 has an exploration area of 29 sub-blocks (99 sq. km) Both EPM areas are located within the Anakie sapphire deposit in Central Queensland and are located within 45km of the Capricorn mine.

Both exploration licences are valid for an initial 3 year period effective from 12 November 2015 and are renewable with a required 40% relinquishment in size, if the minimum expenditure are met. The licences have a total combined minimum expenditure requirement over the 3 year period of around USD$60,000. Capricorn is planning to conduct a structured exploration programme on both licences that will include, geological mapping and sampling and large diameter drilling in order to enable a JORC resource evaluation.

Qualified Person's Declaration

Bernard Olivier has reviewed and approved for release the technical information contained within this press release in his capacity as a qualified person, as required under the June 2009 Edition of the AIM Note for Mining, Oil and Gas Companies. Dr Olivier, CEO of the Company, has relevant experience and knowledge in the gemstone exploration and is a Member, in good standing, of the Australasian Institute of Mining and Metallurgy.