Golden Saint Resources Regulatory News (GSR)

23 October 2014

Golden Saint Resources Ltd

("Golden Saint" or the "Company")

Statement by the Executive Chairman of Golden Saint

"Further to the Company's announcement of the 20 October 2014 regarding the agreement reached with Darwin Strategic Limited ("Darwin"), Golden Saint confirms that it received the first tranche payment on 21 October 2014.

The board of Golden Saint ("Board") would like to emphasise to all shareholders of the Company ("Shareholders"), the necessity for a company to make sure that it has enough working capital to sustain its operations and have the ability to continue to progress with its strategy in the event of turbulent market conditions. Golden Saint currently faces an unusually unstable situation in Sierra Leone with the prevalence of Ebola throughout West Africa. As many of you will be aware, AIM quoted London Mining Plc, a mining company operating in Sierra Leone, appointed administrators last week following a longer than expected period of negotiations between senior lenders and the potential acquirers of its Marampa mine, as well as a lack of liquidity due to the dramatic fall in iron ore prices. The Board is of the view that the ongoing Ebola situation would also have exacerbated matters. As a Board we believe it was important to take steps to secure the future of Golden Saint and its tenements in Sierra Leone. The Board, having made an informed decision on how best to safeguard the Company and its tenements, entered into the agreement with Darwin.

The funding provided under the agreement with Darwin provides Golden Saint with the ability to continue to pursue its strategy confidently and without having to worry about external situations beyond its control. The additional capital allows us to purchase, inter alia, ancillary plant and equipment such as excavators and loaders which would otherwise have to be leased on a day to day basis at far greater cost to the Company The Company should be able to purchase and own such equipment for the price of a six month lease, and be able to maintain such equipment internally offering greater reliability. The Company is currently looking at purchasing a Dense Media Separation (DMS) plant ("DMS Plant") that can process between 20 tonnes to 40 tonnes of gravel per hour and is currently in negotiations with two potential suppliers.

The cost of the DMS Plant is likely to be in the range of between US$700,000 to US$1 million depending on specification. The purchase, delivery and set up of the DMS Plant is expected to take around six months from the time of order confirmation. The DMS Plant is an important piece of equipment that will allow the Company to not only centralise and secure the location where gravel is processed, but to significantly scale up operations. It is almost certain that the DMS Plant will be located in the Baja area. The DMS Plant will prepare the Company for the next stage of the Company's bulk sampling programme. In addition to the DMS Plant the Company will also require a DMS fleet to extract and transport the gravel.

Golden Saint is also in the process of purchasing a locally made diamond washing plant in Sierra Leone for use by the local artisanal miners in the Zimmi Areas and those in the village of Ngelehun. A site visit in the Zimmi Areas is currently underway to determine the logistics and manpower needed to begin operations and the Board is expecting a report back from the Company's local geologists and technicians shortly.

Golden Saint owns a total of four gold washing plants of which two have been deployed in the Makali region and two are on standby. Soil sampling is currently being carried out in Makali before the Company gives approval for further gravel extraction. At the request of the Company's Resident Geologist Mr Ernst Gbappi and the local Chief of the Makali region, Golden Saint has agreed to carry out further soil testing to determine the areas which give the best possibilities for gravel extraction (the initial random extraction and washing of gravel by the artisanal miners produced approximately six ounce of gold over an eight day working period). As soon as the best areas for extraction are determined, the washing of the gravel will resume in Makali and at this point it is the Company's intention to deploy all four washing plants to obtain maximum possible returns.

The Company hopes that as and when it is in the position to update the market regarding the discovery of further artisanal diamonds, the discovery of which the Company is prioritising alongside further exploration, that Shareholders will see an increase in their Company's value. The Board believes that the Company is now adequately financed to pursue its stated strategy and that it is now the Board's responsibility to deliver results to its Shareholders.

It is my belief, as your Executive Chairman, that given the Company's financial position following the agreement with Darwin, that the Company can deliver on results to Shareholders despite the unusually unstable situation in which the Company finds itself. However I need Shareholders to understand that Golden Saint, in the view of the Board, is both philanthropic and to a certain extent revolutionary in what it is trying to achieve in its early stages, and always dealing with the local population fairly is very important to us. This has led to early opportunities with the locals in the Zimmi Areas coming to us and requesting our assistance in mining for the renowned Zimmi yellow diamonds. Despite having to mothball the Tongo project, due to Ebloa, the locals in Tongo have continued to keep their faith in us and what comes out of our ongoing bulk sampling exercise in Baja should, in our view, return confidence to the market. I am confident that our vision and our focus is on the right track, although in the early stages I agree that it could have been handled better.

We at Golden Saint look forward to being able to take the Company to the next level. The share price should adjust itself as news flows from the Company and it is in this vein that I look forward to being able to update Shareholders on further recovery of diamonds from both our bulk sampling and artisanal sponsorship."

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