Registered Office: Ground Floor, 1 Havelock Street WEST PERTH WA 6005 Phone: +61 8 9488 5220 Fax: + 61 8 9324

2400 Principal Place of Business: Level 2, 41-43 Ord Street WEST PERTH WA 6005 Phone: + 61 8 9481 3992 Fax: + 61 8 9481 5665 ABN: 45 141 450 624

4 June 2013

The Manager Company Announcements Australian Securities Exchange Limited Level 6, 20 Bridge Street Sydney NSW 2000 By e-lodgement MILESTONE MINING AGREEMENT

Highlights
Agreement entered into with MJF Mining Contractors to upgrade mining and processing operations at Paynes Find Target increase of at least 20,000 tpm within 6 months and processing plant upgraded to at least 200 tph Contractor to install 3 stage track mounted crushing and screening circuit to exploit selective open pit development plan previously designed by Paynes Find Paynes Find to receive 50% of gold produced (all mining expenditure borne by contractor)

The Directors of Paynes Find Gold Limited (Paynes Find or the Company) (ASX:PNE) are pleased to announce that the Company has entered into a milestone agreement with MJF Mining Contractors (MJF) to fully exploit the previously announced strategy of selectively mining specific high-grade lodes by open-cut mining methods down to depth of approximately 40-50m. Results from the Company's Stage 1 and Stage 2 drilling programmes indicated the presence of several gold-rich envelopes including remnants of previously mined high grade quartz veins and stringer mineralisation. MJF will move into immediate development of 2 pits (subject to any further regulatory approvals) with an aim processing at least 20,000 tonnes per month (within 6 months) at an average head grade based on historical results of between 2.0 to 4.0 AU per tonne.

Arial View Pit 1

Arial View Pit 2

Processing Plant to be upgraded

Under the agreement Paynes Find is entitled to 50% of the recovered gold taking into account refining costs which are minimal given the gravity recovery nature of the ore. Further details will be provided upon mine plan being finalised and contractor mobilised on site. For and on behalf of the Board.

Carl Popal Executive Director

For further information please contact: Carl Popal Executive Director T: + 61 8 9481 3992 Jane Flegg Company Secretary T: +61 8 9488 5220

Competent Persons Statement Information in this report which relates to Exploration Targets, together with any related assessments and interpretations, is based on information compiled by CSA Global Pty Ltd on behalf of Mr Giles Rodney (Rod) Dale. Mr Dale is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Dale is a consultant to the company and is employed by G R Dale & Associates. Mr Dale has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Mr Dale consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The Companys Exploration Targets include potential quantity and grade and is conceptual in nature. There has been insufficient exploration to define a Mineral Resources, and it is uncertain if further exploration will result in the determination of a Mineral Resource.