RLD.L Regulatory News (RLD)

Richland Resources Ltd

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

Sapphire Product & Test Display to Be Held in Hong Kong

· A product display and education session is to be held with Sightholders at the time of the June 2015 Hong Kong Jewellery show rather than a sale and the first sale has been rescheduled to Q3 2015

· Production in first weeks of the initial start up and production commissioning phase has been lower than projected due to a now rectified, electrical problem at the Capricorn Sapphire project, Australia that prevented consistent levels of processing

Richland Resources Ltd, the gemstone producer and developer of the Capricorn Sapphire project, today announces that, following consultation with key Sightholders, it will delay its first sapphire sale to Q3 2015 and hold a product display and education session on its first recovered sapphires at the time of the Hong Kong Jewellery show between 25 and 28 June 2015. Material will also be made available for further testing and cutting by potential Sightholders and other interested parties.

The decision to commence with a product display and education session was made as a consequence of reduced production, caused by a now rectified intermittent electrical fault that restricted processing recoveries over the initial month of operations. The resultant production to date. would not be sufficient to warrant the start of the formal sight system for the sale of Capricorn Sapphire sapphires. The product display and education session will be used to introduce the first Capricorn Sapphire sapphires to potential Sightholders and trade buyers, and discuss downstream branding.

The sapphire bearing ore mined while the intermittent electrical fault was rectified was stockpiled and processing of this material has recommenced and this product will be sorted and graded in preparation for sale in Q3.

Chief Executive Officer, Bernard Olivier said: "At the end of June we shall be able to showcase the first sapphires recovered from the Capricorn Sapphire mine. We have taken the decision not to make the event a formal sight as the quantity of gemstones is not sufficient for the type of marketing profile we wish to build with customers. Whilst it is disappointing, start-up issues like this forms part of a rapid mine redevelopment process as we continue our start-up and ramp-up phase. However I believe the best way to solve these issues are to identify and rectify them while in operation. "

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Notes to the Editor:

Capricorn Sapphire Project Summary

The purpose-built alluvial processing plant is one of the largest of its kind in the southern hemisphere, capable of treating up to 200 loose cubic metres (LCM) per hour. The Capricorn Sapphire mine consists of two new mining leases comprising about 490 hectares and associated assets and the project is 100% owned by Richland. The mining leases contain a JORC (2004) Measured Sapphire Resource of approximately 21.6 million grams (109 million carats) of sapphire, based on extensive previous exploration and following a brief period of mining by the previous owners. 'Fancy' coloured sapphire has traditionally been recovered from the project but the Board believes the value from Capricorn Sapphire comes from the consistent production of standard stone types sought in the manufacture of mainstream jewellery manufacture.

In 2015, Richland sold or closed all of its operation in Tanzania relating to gemstone mining. Previously the Company had operated the worlds largest and most advanced tanzanite mine. The mine was sold as conditions in Tanzania ceased to permit us to operate to standards of safety of employees and security of operations which we deemed essential for an ethical business.

The development of the Capricorn Sapphire project forms part of the Company's strategy to develop profitable gemstone operations, utilising its experience in coloured gemstone extraction, through efficient cost controls. The project offers a significant opportunity for Richland to develop a low cost, coloured gemstone operation selling fully certificated gemstones to the global market place. Queensland, Australia is a long established area for major mining operations, hosting one of the world's major sources for coal. With well-established legislation and permitting for mining in place, Queensland offers significant scope for the creation of a major coloured gemstone hub to promote ethically mined, natural Sapphire.