Trading Update

12 August 2014

Golden Saint Resources Ltd

("Golden Saint" or the "Company")

Trading update, sponsorship of licence areas and resignation of Special Adviser

Golden Saint (AIM:GSR) announces an update on the bulk sampling on its Tongo and Baja licence areas, the sponsorship of new licence areas, an update on the local Ebola virus situation and the resignation of Mr Gabriel Yap, Special Adviser to the board of Golden Saint ("Board").

1. Update on Tongo and Baja diamond bulk sampling and the Ebola virus

The Ebola situation in the Kenema region has taken a turn for the worse. For the past few weeks, Golden Saint has been in the middle of creating a road to bring its bulk sampling plant, the Dove Explorer, to the area of the Tongo site where the diamond gravel stockpiles are located from its current location in Tongo. However, these efforts have been hampered by bad weather and the Ebola virus. Last week the government decided to create an isolation cordon around the Kenema region to try to isolate the spread of Ebola. Due to heavy rains and the high risk of Ebola to employees and contract workers, Golden Saint has made the decision to temporarily move away from the Tongo region. All diamond gravel stockpiles have been safely secured and 24 hour security is in place. In the meantime, arrangements are being made for the Dove Explorer to be relocated to the Baja region where the Company has accumulated stockpiles of diamond gravel in preparation for bulk sampling. On completion of the bulk sampling in the Baja area, and provided the Ebola situation has improved in the Tongo area, the Dove Explorer will be returned to Tongo to complete the bulk sampling for diamonds there.

While the Ebola virus has caused great concern for everybody in Sierra Leone, the Company's licence areas extend to approximately 340 square km over three different areas which gives the Company the flexibility of moving to areas where the Ebola virus is not found and to continue with bulk sampling. Delays in this exercise are due to logistical issues caused by both weather and the security situation in different areas in Sierra Leone; August being the wettest month of the year in Sierra Leone.

2. Sponsorship of new licences

i) Tonkolili - Konike Barina Chiefdom - Makali - Artisanal gold mining

On 10 February 2014, Mr Sesay Abdulai of the Chiefdom of Konike Barina in Tonkolili was granted a licence for the artisanal mining of gold in the village of Rowaka. Mr Sesay Abdulai approached Golden Saint's local director in Sierra Leone, Mr Timothy Bangura, requesting sponsorship for the work to be conducted in the area. Following site visits by members of the Board, the Board agreed that Golden Saint Diamonds SL Ltd (a 75% owned, Sierra Leone, subsidiary of Golden Saint with the minority 25% being held by local people) ("GSD") would sponsor the work on the Rowaka licence area given the Board's belief that the area is prospective for gold and given the potential for future involvement.

On 8 August 2014 a renewable, three year agreement was signed between Mr Abdulai Sesay and GSD under which GSD will provide machinery, mining tools, food, fuel, lubricants and all other funds required for the smooth running of the artisanal mining operation including the issuing and renewing of the licence when required in return for full control of the artisanal mining operation and confirmation that all gold won under the licence is to be sold to GSD and the proceeds of such sales are to be shared between GSD and Mr Sesay Abdulai as to 85% and 15% respectively.

For the last three months GSD has sponsored food and equipment to the village in order that they may extract the gravel for washing. In December last year, Golden Saint purchased four gold washing plants, two of which are now being commissioned at the Rowaka licence area. Washing of the gold gravels are anticipated to begin later this week and arrangements are currently being made for the third washing plant to be moved to the area.

The Board believe that the artisanal gold recovered from this area will form Golden Saint's next revenue streams. The intention is that the area will continue to be mined for the rest of the year. Mr Timothy Bangura is in discussions with Mr Sesay Abdulai to obtain further areas to mine. The licence is valid until 10 February 2018 with a renewal date of 10 February 2015 and covers an area of approximately 0.005 square km.

ii) Zimmi - Artisanal diamond mining licence

On 23 July 2014, Mr Maluei Mohamed from the Southern Zimmi Chiefdom of Makpele, Gelehun, was granted two artisanal mining licences, the first in the village of Gelehun in the Makpele Chiefdom (Pujehun District) and the second in the village of Mamie in the Soro Gbema Chiefdom (Pujehun District) (together the "Zimmi Areas"). Mr Maluei Mohamed has since approached GSD to sponsor the work on the Zimmi Areas where there are existing stock piles of gravel. GSD is currently in negotiations with Mr Maluei Mohamed to sponsor the work on the ground and the Company will make an announcement in due course. The wider area of Zimmi is well known for producing intense yellow diamonds and is an area that can be worked throughout the year including during the rainy season. Both licences are valid until 23 July 2018 with a renewal date of 23 July 2015 and each licence covers an area of approximately 0.005 square km.

3. Resignation of Special Adviser

Finally Golden Saint announces that Mr Gabriel Yap, Special Adviser to the Board, has resigned by mutual consent to avoid a potential conflict of interest and to pursue other business interests in South Africa. Mr Yap's resignation will be effective as of 31 August 2014.

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