Richland Res. issues quarterly ops, sales update

Richland Resources is pleased with the operational progress made during Q3, as the company once again achieved its production target as part of the ongoing ramp-up and development of the Carpricorn project.

"During the quarter Richland also concluded an extensive review of our sales and marketing systems and strategies, which led to a series of new developments beginning with the appointment of Anthony Brooke, following successfull trial sales," said CEO Bernard Olivier.

"We shall announce further news to the market shortly relating to our adoption of an intergrated beneficiation model and new sales initiatives and partnerships."

HIGHLIGHTS:

- 801,443 carats produced during Q3 2016 as part of the production and ramp-up process for the Capricorn Sapphire mine held by Capricorn Sapphire Pty Ltd ("Capricorn" or "Capricorn Sapphire"), the Company's wholly owned subsidiary: Q3 2016 production target of 800,000 carats achieved; Average grade of 14 carats per tonne from 55,985 tonnes of mined and processed alluvial material

- Capricorn received research and development incentive net rebates of US$236,000 for the 2015 fiscal year from the Australian Federal Government

- US$143,000, total revenue achieved from the sale of approximately 241,000 carats of rough untreated sapphire and corundum at an average price of US$0.59 per carat

- Anthony Brooke appointed as Capricorn Sapphire's Vice-President of Marketing and Sales: Thailand based and the Managing Director of Gem Dreams Co., Ltd ("Gem Dreams") in Bangkok; Vice President of the Thai Gem and Jewelry Traders Association; Anthony and his team to lead Capricorn's revised sales initiatives which will focus on further down-stream beneficiation of Capricorn's product, vertical integration and new market development

POST PERIOD END

- US$348,000 total revenue achieved from the sale of approximately 250,000 carats of rough sapphire and corundum during Q4 to 18 November 2016 at an average price of US$1.39 per carat

- Planning commenced on the final stage of production ramp-up which is aimed at increasing production to 1.2 million carats per quarter during 2017

- Sales of treated, cut and polished material to commence in Q1 2017 in addition to the ongoing sale of rough untreated material.