DORAY ADVANCES TOWARDS FIRST GOLD POUR

Highlights

Stage 1 open pit completed on schedule Underground mining and development commenced Ball mill installed on-site ahead of schedule and commissioning of

processing plant commenced Exploration upside confirmed at Andy Well through targeting Increased land position in Northern Murchison region Drilling commenced at Nuckulla Hill

Doray Minerals Ltd (ASX: DRM, Doray or the Company) is pleased to present shareholders with the Company’s Quarterly Activities Report for the period ending 30 June 2013. During the quarter, Doray established the portal and commenced underground development of the high-grade Wilber Lode gold deposit and commenced commissioning of the Andy Well gold processing plant. Underground development of the high-grade Wilber Lode gold deposit continued on schedule with first ore from the horizontal development drives delivered towards the end of June. Commissioning of the gold processing plant is expected to take approximately four weeks to complete and gold production is currently scheduled to commence in August, approximately 3.5 years since discovery of the Wilber Lode. Recruitment of operations staff continued during the quarter. Mr Steve Howson was appointed as Mill Superintendent and a significant number of operations staff were hired in anticipation of production. Doray also drew down the final instalment of the $55 million project finance facility for the Andy Well Gold Project. The Company commenced a maiden drilling campaign at its 100% owned Nuckulla Hill gold project in South Australia, which is co-funded by the South Australian Government through its “PACE” scheme. Managing Director, Mr Allan Kelly, said Doray was looking forward to entering a new phase with the transition from development and construction into gold production in the very near future.

QUARTERLY REPORTPeriod ending 30 June 2013

ASX Release 22 July 2013

ASX Code: DRM Issued Capital (30 June 2013) 141.9M outstanding shares 9.4M unlisted options 52Wk Share Price Range $0.35 - $0.99 Market Capitalisation (at $0.50) $71M Board of Directors Peter Alexander Non-Executive Chairman Allan Kelly Managing Director Heath Hellewell Executive Director, Exploration and New Business Jay Stephenson Non-Executive Director Leigh Junk Non-Executive Director  

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ANDY WELL GOLD PROJECT Activity during the quarter included completion of the Stage 1 open pit and commencement of underground development along with continuation of the construction of the processing plant and other site infrastructure.

1.1. Safety

There were no Lost Time Injuries (LTI) during the quarter and, as of 30 June 2013, the Andy Well Gold Project had 227 days LTI-free since commencement.

1.2. Open Pit Mining The stage 1 open pit was completed during the quarter, allowing for the commencement of underground development on schedule (Figure 1). Waste material from the open pit was used for construction of various items of site infrastructure including the ROM pad, tailings storage facility and site access roads. Ore was stockpiled in anticipation of completion of construction and commissioning of the processing plant, scheduled for the September quarter.

Figure 1. Stage 1 Open Pit completed, showing recently established portal.

1.3. Underground Mining and Development

Underground development commenced during the quarter and continues on schedule with the first crosscut recently intersecting the high-grade Wilber Lode within the “1415 level” (Figure 2). Production of underground ore has therefore now commenced, initially from the horizontal development ore drives, and will be stockpiled with the existing high-grade stage 1 open pit ore in anticipation of the completion of processing plant commissioning. Underground mining and capital development will now continue concurrently with first production from the stoping ore forecast for September-October.

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Figure 2. First underground exposure of the high-grade Wilber Lode in the1415 level crosscut.

Figure 3. First truckload of high-grade underground Wilber Lode ore heading for the ROM pad. F

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1.4. Processing Plant and Site Infrastructure Construction of the processing plant and associated site infrastructure continued ahead of schedule with the following completed by the end of the quarter:

Crushing and screening Ore storage and reclaim Grinding and classification Gravity concentrator Leach and adsorption circuits Elution and gold recovery Plant site earthworks Water storage and reticulation Tailings disposal Compressed air circuitry Plant buildings

Electrical reticulation and piping were about 92%completed. The site laboratory building was in place and awaiting equipment to be installed. The power station housing on-site was completed and is awaiting delivery of generating sets. Commissioning of the processing plant started with temporary power sources and is expected to take approximately four weeks followed by commencement of ore processing. Based on the current schedule, first gold production is forecast for early August.

Figure 4. Overview of the processing plant site, showing construction progress up to the end of June. For

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1.5. Andy Well Exploration

Reinterpretation of exploration targets at Andy Well and refinement of proposed drilling programs was undertaken during the quarter. All necessary permits were obtained to enable the recommencement of exploration drilling during the September 2013 quarter. The Company was recently advised by the West Australian Government (DMP) that it has been successful in obtaining EIS co-funding for a number of drill holes at Andy Well, including a horizontal diamond drill hole to be drilled from underground to test for northern extensions to the high-grade Judy Lode as well as for additional parallel quartz lodes to the east of the Judy Lode.

Figure 5. Andy Well Project showing drill targets and interpreted basement geology (light green – mafic volcanics, pale yellow – felsic porphyry, purple – ultramafics, grey – sediments, pale blue – BIF).

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2. REGIONAL EXPLORATION Doray Minerals has an exploration tenement portfolio covering a total of approximately 4,000km2 in both Western Australia and South Australia. In the northern Murchison Region of WA, Doray is actively exploring for gold mineralisation which has the potential to provide additional near-term development opportunities for its Andy Well Gold Operations while continuing to explore for large, stand-alone development opportunities over its entire exploration portfolio in WA and SA. 2.1. Northern Murchison Region

Side Well (Doray 80%) Final processing of airborne EM (HeliTEM) data was completed, with the data highlighting a number of structural trends not previously recognised in historic geophysical datasets. Data from this survey will aid in the identification of potential structural controls on the extensive zone of mineralisation discovered to date and will provide drill targets for future evaluation beneath the soil cover at Side Well. Abbotts (Doray 80%) Final processing of airborne EM (HeliTEM) data was completed during the quarter. Geological mapping and a program of geochemical rock chip sampling was undertaken to complement and ground-check the interpretation of the EM data and previously completed soil geochemical surveys. This preliminary work has identified two new target areas, including the Cloudkicker prospect, where several anomalous rock chip samples were collected from an area of quartz veining and alteration in sheared outcrops of felsic and sedimentary rocks. These programs are part of a project-wide data review and targeting exercise, which will culminate in a prioritised list of drilling targets at Abbots. Caravel Project Acquisition (Doray 100%) During the quarter, Doray announced that it had reached agreement to purchase a number of highly prospective gold exploration and mining leases within potential trucking distance of its high-grade Andy Well Gold Project in the northern Murchison region of Western Australia. Doray reached agreement with Caravel Minerals Ltd (ASX: CVV, Caravel) to purchase the Abbotts and Meeka East projects, as shown in Figure 6. In exchange for 100% of the projects (in part, subject to 1.5% pre-existing royalty) and all related data, Doray will make a $150,000 cash payment to Caravel. The purchase agreement is subject to a number of terms and conditions usual for this type of transaction. The Abbotts project covers the south western portion of the Abbotts Greenstone Belt and abuts Doray’s existing 80% owned Abbotts project. The combined projects give Doray ownership of a significant portion of the area of the Abbotts Greenstone Belt. Extensive geochemical sampling over the project by previous owners, primarily focussed on base metal mineralisation, has provided several targets for immediate follow-up. In addition, there are areas of historic gold workings that require immediate drill testing and verification, including the Mt Vranizan/New Murchison King workings where historic drilling has indicated gold mineralisation over a strike length of approximately 600m. The Meeka East project complements tenure already held by Doray within the 80% owned Side Well project, east of Meekatharra. The majority of the area has been the subject of first pass, shallow RAB/AC drilling to an average depth of approximately <20m. Several immediate targets have been

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identified from historic drill data that indicate the potential for Andy Well style, narrow vein, high-grade gold mineralisation. At the completion of the transaction, Doray plans to integrate the new projects into the upcoming Murchison region prioritised exploration program for 2013-14.

Figure 6. Northern Murchison region with existing Doray tenure and newly acquired tenure in red.

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2.2. South Australia Nuckulla Hill (Doray 100%) A program of RC and aircore drilling commenced at Nuckulla Hill just prior to the end of the June quarter. The program is designed to follow up a number of historic drill results at the Bimba Prospect, including results up to 24m @ 1.0g/t. The drilling will also test extensions of the main mineralised Yarlbrinda Shear Zone north of the Bimba Prospect where the shear zone is obscured by geochemically blind soil cover. This program is a cooperative exploration drilling program partially funded by the South Australian Government (DMITRE) under the PACE 2012 discovery drilling program. A program of surface geochemical sampling is also ongoing at Nuckulla with the aim of better defining further prioritised targets for future drill programs.

Figure 7. Nuckulla Hill Project showing location of main prospects in relation to the Yarlbrinda Shear Zone and neighbouring Tunkillia Au-Ag Deposit.

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3. CORPORATE

3.1. Financial Doray’s cash position at 30 June 2013 was approximately A$25.7 million. The A$55 million project finance facility has now been fully drawn down. The Company has 45,000oz hedged at A$1620/oz over the first 14 months of production. The hedging program underpins the Company’s proposed debt repayment schedule. Doray recently received a $2.5 million research and development tax refund, which will be put towards exploration drilling. Doray’s Chief Financial Officer, Mr Grant Dyker, resigned during the quarter. The Company has commenced the recruitment process for a suitably experienced replacement.

4. TENEMENT HOLDINGS

Doray Interest Tenement

Tenements Granted - -

Tenements Acquired/Applied for

100% 100% 100%

E51/1577 P51/2832

ELA2013/080

Tenements Relinquished 100% 100%

E20/515 P51/2807-P51/2824

About Doray Minerals Limited Doray Minerals Limited (ASX: DRM) is Western Australia's newest high-grade gold miner. The Company commenced mining its high-grade Wilber Lode deposit at the Andy Well Gold Project in the northern Murchison region of Western Australia in November 2012 and is targeting first gold production in the September quarter of 2013 Doray has a strategic portfolio of gold exploration properties within WA and South Australia and the Company's board and management team has expertise in discovery, development and production. As Doray works towards its first gold pour in 2013, it looks forward to a significant near-term re-rating as a low-cost gold producer. About the Andy Well Gold Project Doray’s 100%-owned Andy Well Gold Project is located approximately 45km north of Meekatharra, in Western Australia’s northern Murchison region. In March 2010, Doray announced the discovery of the very high-grade Wilber Lode gold deposit, adjacent to the Great Northern Highway. Since announcing a maiden high-grade JORC-compliant gold Mineral Resource for the Wilber Lode in February 2011, the Company has announced subsequent increases to the Wilber Lode Resource in December 2011 and again in March 2012. During 2012, Doray achieved several important milestones after announcing the maiden high-grade open pit and underground Mining Reserve for the project. The Company completed a positive bankable feasibility study; made a formal decision to mine; increased its ownership of the project to 100%; secured a project finance facility from the Commonwealth Bank of Australia; and completed a capital raising to fund all operating, exploration and corporate costs prior to first gold production. Open pit mining commenced in November 2012 and first gold production is scheduled for the September quarter of 2013.

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In March 2013, Doray announced a maiden high-grade JORC-compliant gold Mineral Resource for the Judy Lode, a second high-grade deposit within the project, increasing the overall Andy Well Project Resource inventory by 30%. For further information, please contact: Allan Kelly Managing Director Doray Minerals Limited +61 (08) 9226 0600 info@dorayminerals.com.au Media enquiries: Investor enquiries: Margie Livingston Anna Nahajski Staples AMN Corporate AMN Corporate +61 (0)4 38 661 131 +61 (0)400 205 433 Margie@amncorporate.com anna@amncorporate.com Competent Person Statements The information in this announcement that relates to Ore Reserves is based on information compiled by Peter Bamford. Mr Bamford is a full-time employee of Doray Minerals Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Bamford has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activities, which he is undertaking. This qualifies Mr Bamford as a “Competent Person” as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Bamford consents to the inclusion of information in this announcement in the form and context in which it appears. The information in this announcement that relates to Mineral Resources is based on information compiled by Mark Cossom. Mr. Cossom is a full time employee of Doray Minerals Ltd and is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Cossom has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activities, which he is undertaking. This qualifies Mr. Cossom as a “Competent Person” as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Cossom consents to the inclusion of information in this announcement in the form and context in which it appears. The information in this announcement that relates to Exploration Results is based on information compiled by Brad Drabsch. Mr Drabsch is a full-time employee of Doray Minerals Ltd and is a Member of the Australian Institute of Geoscientists (AIG). Mr Drabsch has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activities, which he is undertaking. This qualifies Mr Drabsch as a “Competent Person” as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Drabsch consents to the inclusion of information in this announcement in the form and context in which it appears. F

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Page 1

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report Name of entity

Doray Minerals Limited

ABN Quarter ended (“current quarter”)

48 138 978 631 30 June 2013

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter $A’000

Year to date 12 Months

$A’000 1.1 Receipts from product sales and related debtors

- -

1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration

(647)

(22,246) -

(680)

(3,300)

(62,449) -

(3,677) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature

received 109

614

1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other – R&D refund 2,954 2,954

Net Operating Cash Flows

(20,510)

(65,858)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets

- -

(626)

- -

(1,629) 1.9 Proceeds from sale of:

(a)prospects (b)equity investments (c)other fixed assets

- - -

- - -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other – purchase of minority JV partner interest - (4,000)

Net investing cash flows

(626)

(5,629) 1.13 Total operating and investing cash flows

(carried forward)

(21,136)

(71,487) For

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Page 2

1.13 Total operating and investing cash flows

(brought forward) (21,136) (71,487)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. net of costs

- 42,863

1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings 15,000 49,145 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (provide details if material) - -

Net financing cash flows 15,000 92,008

Net increase (decrease) in cash held

(6,136)

20,521

1.20 Cash at beginning of quarter/year to date 31,835 5,178 1.21 Exchange rate adjustments to item 1.20 - -

1.22 Cash at end of quarter 25,699 25,699

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000

1.23

Aggregate amount of payments to the parties included in item 1.2 223

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

Director Fees and Wages, Consulting fees

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

55,000 55,000

3.2 Credit standby arrangements

- -

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Page 3

Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation

2,043

4.2 Development

-

4.3 Production 20,206

4.4 Administration 1,178

Total 23,427

Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 25,699 31,835

5.2 Deposits at call - -

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 25,699 31,835

Changes in interests in mining tenements Tenement reference Nature of interest

(note (2)) Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

P51/2807 – P51/2824 E20/515

Application Granted

100% 100%

0% 0%

6.2 Interests in mining tenements acquired or increased

ELA 2013/80 E51/1577 P51/2832

Application Application Application

0% 0% 0%

100% 100% 100%

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Page 4

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

141,866,768 141,866,768

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

7.5 +Convertible debt securities

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (description and conversion factor)

2,682,488 1,250,000 150,000 250,000 2,000,000 175,000 50,000 100,000 315,000 150,000 150,000 100,000 2,062,500

Exercise price 20 cents 20 cents $1.14 $1.20 $2.37 $1.65 $2.03 $2.08 $2.00 $1.93 $1.79 $1.27 $1.10

Expiry date 3 Sept 2014 4 Feb 2015 31 Aug 2014 31 Mar 2015 31 Dec 2013 31 Oct 2015 12 Dec 2015 5 Dec 2015 1 Mar 2016 28 Feb 2016 10 Apr 2016 30 June 2016 20 Nov 2014

7.8 Issued during quarter

7.9 Exercised during quarter

7.10 Expired during quarter

437,500 150,000 75,000

$1.10 $2.06 $2.00

20 Nov 2014 31 Aug 2015 1 Mar 2016

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Page 5

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)

Compliance statement 1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act. 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 22 July 2013

(Director/Company secretary) Print name: Iain Garrett

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