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Excellent Assay Results have now been received from the ten rock chip samples collected within Marble Bar project area P


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9 February 2018


Excellent Assay Results have now been received from the ten rock chip samples collected within Marble Bar project area P45/3039 in December 2017. These samples all have anomalous gold values with a maximum value of 17.1g/t Au and an average of 2.6g/t Au, five of the samples (half) exceed 1g/t Au. The samples from P45/3039 are from old gold workings and diggings which are not recorded in the Department of Mines, Industry Regulation and Safety databases. These results confirm the prospectivity of the Marble Bar project areas, in conjunction with the six gold nuggets totaling 22.7g recovered from P45/3040 in December 2017. Additional work is recommended on the projects, following completion of the final conditions precedent to the settlement of the acquisition of the East Pilbara Tenements.

MinRex Resources Limited (ASX:MRR) (‘MinRex’ or ‘the Company’) is pleased to announce that the assay results have now been received for the ten rock chip samples collected from the Marble Bar project tenement P45/3039, during the mid-December site inspection, field trip evaluation and technical due diligence (as announced in an ASX release on 14 December 2017) of the East Pilbara projects (Figures 1 and 2 and Table 1). During this site visit all of the projects currently being acquired (ASX release 28 November 2017) were visited.

Figure 1: Location of MinRex Project Areas

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Figure 2: East Pilbara Map Showing the Location of MinRex’s East Pilbara Project Areas A total of ten rock chip samples were collected from the Marble Bar project tenement, P45/3039, in December 2017. Rock chip samples were collected in this area as metal detecting was impractical due to the presence of scattered scrap metal, on the surface, adjacent to numerous old workings. These rock chips were all of vein quartz rocks collected from the surface expressions of old workings and diggings along a ridge line in the northern quadrant of the tenement area, adjacent to a significant number of historical workings that are up to 10m deep (Figure 3). These workings are not in the DMIRS MINDEX database and no historical production records are available. In January 2018, the rock chip samples were sent to Perth for geological examination and interpretation, data recording and subsequent chemical analysis. The field team were targeting the basal part of a conglomerate along strike from gold occurrences on the adjacent Haoma Mining (ASX:HAO) tenements (Figure 3). Regional mapping by the Western Australian Geological Survey has identified these conglomerates as a part of the Mt Roe Basalt, the basal part of the Fortescue Group. Tenement Number E45/4560





Bamboo Creek Granted

23 Blocks




3 Blocks

E45/4853 P45/3039 P45/3040

Bamboo Creek Granted Marble Bar Pending Marble Bar Pending

2 Blocks 8.260Ha 3.025Ha

Sorrento Resources Sorrento Resources Elysian Resources R. Parker R. Parker


Grant Date

Expiry Date

27 October 2017

26 October 2022

13 July 2017

12 July 2022

11 October 2017

10 October 2022

19 July 2017 19 July 2017

Table 1: Details of East Pilbara Project Tenements being acquired


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Figure 3: Aerial photo overview of Marble Bar project tenement P45/3039, showing rock chip sampling area (in foreground) and Haoma Mining’s Comet gold mine in the background The co-ordinate locations of these ten rock chip samples are given in the table below (Table 2) along with their assay values for gold, silver, arsenic, copper, chrome, nickel and zinc. The highest gold value is 17.1g/t Au, while the average for all ten samples is 2.6g/t Au. Five (half) of the samples have assay values in excess of 1g/t Au. The metallic elements other than gold are also elevated but not considered significantly anomalous. Sample Easting Northing Au Ag As Cu Cr Ni Zn No. m m ppm ppm ppm ppm ppm ppm ppm MB39R001 783816 7648191 1.57 1 143 607 495 198 26 MB39R002 783816 7648191 1.48 0.55 68 80 145 57 15 MB39R003 783799 7648140 0.19 0 34 5 225 74 24 MB39R004 783799 7648140 0.13 0.1 96 65 1050 211 42 MB39R005 783800 7648132 0.50 0.15 94 14 305 106 27 MB39R006 783791 7648114 0.72 0.15 117 98 455 204 52 MB39R007 783801 7648101 2.20 0.15 418 60 360 150 74 MB39R008 783792 7648092 17.1 0.8 185 44 480 197 60 MB39R009 783780 7648070 0.47 0.05 43 11 430 162 40 MB39R010 783763 7648065 1.34 0.15 40 28 140 55 19 Table 2: Assay results for ten rock chip samples from East Pilbara Project Tenement P45/3039 MinRex will be targeting the collection of a large number of rock chip samples from along this ridge line and throughout the entire P45/3039 tenement as part of its initial exploration work on


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the Marble Bar tenements of the East Pilbara project. The large number of old workings and diggings in this area, in conjunction with the excellent assay results received from these initial ten rock chip samples is considered highly encouraging for the discovery of potentially economic gold mineralisation in this area.

Figure 4: Various views of the ridge line in P45/3039 showing old workings, diggings and sampling areas The December 2017 field inspection also located six gold nuggets, totalling 22.7g, in the Marble Bar P45/3040 tenement area (as announced in an ASX release on 15 January 2018). Table 3 below details the location and size of these nuggets, while Figure 5 shows the nuggets themselves and Figure 6 is a photograph of the location of the nuggets relative to historical workings within P45/3040. Nugget Easting Northing Nugget Tenement No. m m Weight (g) Au01 786296 7657578 P45/3040 0.1 Au02 786295 7657575 P45/3040 0.8 Au03 786293 7657545 P45/3040 3.7 Au04 786284 7657590 P45/3040 11.1 Au05 786283 7657586 P45/3040 6.5 Au06 786294 7657564 P45/3040 0.5 Total 22.7 Table 3: Location of the nuggets previously recovered fromP45/3040


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Figure 5: Gold nuggets recovered from P45/3040 in December 2017 It is also intended that the initial exploration of the East Pilbara project areas will include the collection of a significant number of rock chip samples from the areas of old workings in P45/3040, during the proposed field work and geological mapping. The results received to date suggest that both P45/3039 and P45/3040, at Marble Bar, are highly prospective for gold mineralisation.

Figure 6: View of old workings in P45/3040 with the site of nuggets recovered shown as a yellow line


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Additional work has been recommended on all of the East Pilbara project areas; including extensive rock chip sampling and the excavation of bulk samples from the Marble Bar tenements along with detailed geological mapping once the historical data compilation is completed. The data compilation and review of historic mining and mineral exploration within the project areas is now underway, following shareholder approval being obtained for the acquisition of the projects at the General Meeting of the Company on 19 January 2018. As previously announced (in an ASX release on 29 January 2018), the final conditions precedent to the settlement of the acquisition of the East Pilbara Tenements are expected to be completed in the near future. MinRex has commenced the preparation of an initial program of works, with a view to commencing exploration and field work on these highly prospective tenements, as soon as is practicable following settlement. MinRex Executive Director, Simon Durack commented, “These excellent gold assay results from P45/3039, further enhance the prospectivity and potential of the East Pilbara project areas. We look forward to the completion of the final conditions precedent to the settlement of the acquisition of the East Pilbara tenements and commencing our exploration programs as soon as possible thereafter.”

For further information, please contact: Simon Durack Executive Director MinRex Resources Limited T: +61 8 9486 8806 M: +61 408 012 600 F: +61 8 9321 3559 [email protected]

Competent Persons Statement: The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Kieron Munro, a Competent Person who is a Member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Munro is employed as an independent geological consultant by MinRex and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.


Appendix A: JORC Code Table 1

Section 1 Sampling Techniques and Data

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(Criteria in this section apply to all succeeding sections.) CRITERIA Sampling techniques

Drilling Techniques

Drill Sample Recovery


Sub-sampling techniques and sample preparation

 JORC CODE EXPLANATION  Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 50gm charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.  Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).  Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.  Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.  If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all subsampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.

COMMENTARY Rock chip samples were collected from the surface by random sampling of outcropping rocks from the vicinity of old workings and diggings. A Minelab GPZ7000 metal detector was used to identify anomalous zones and gold nuggets from the surface and sub surface. It is expected that this type of metal detector would not penetrate any deeper than 30cm. Any responses from the metal detector were investigated using hand tools with any nuggets then recovered. Nuggets totalling 22.8g were recovered with 22.7g from P45/3040 (Marble Bar) and 0.1g from E45/4681 (Daltons). .

No Drilling is being reported

No Drilling Results

The rock chip samples have been geologically interpreted and rock types described and recorded. No geological logging has been conducted during metal detecting. All nugget locations were located with a GPS and photographed.

No Sub Sampling – No drilling undertaken


Sample security

 JORC CODE EXPLANATION  The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.  The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.  Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.  Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.  Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.  The measures taken to ensure sample security.

Audits or reviews

 The results of any audits or reviews of sampling techniques and data.

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CRITERIA Quality of assay data and laboratory tests

Verification of sampling and assaying

Location of data points

Data spacing and distribution

Orientation of data in relation to geological structure

COMMENTARY The rock chip samples were delivered to the Bureau Veritas laboratory in Perth for processing and analysis. They were crushed, pulverised and analysed using industry standard methods. The samples were digested with Aqua Regia; and Au, Ag, As and Pb determined by ICP-MS; Cr, Co and Cu were determined by ICP-OES. Bureau Veritas routinely uses standards, blanks and duplicates. No chemical analysis has been undertaken on the gold nuggets and none is reported in this report. No verification sampling has been conducted

Both rock chip samples and gold nugget locations were located using a hand-held GPS with a nominal accuracy of +/- 5m. All locations are based on the GDA (MGD94) Zone 50.

Gold nugget locations and rock chip samples are randomly spaced due to being associated with outcrop and metal detecting. None of the work reported will be used for Mineral Resource Estimation. No composite samples have been applied. All surface sampling, no orientation of sample points.

The rock chip samples were couriered to Perth and then hand delivered to the laboratory. All gold nuggets are currently held by Keystone Gold Pty Ltd. No audits have been completed


Appendix B: JORC Code Table 2

Section 2 Reporting of Exploration Results

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(Criteria in the preceding section also apply to this section.) CRITERIA Mineral tenement and land tenure status

 JORC CODE EXPLANATION  Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Exploration done by other parties

 Acknowledgment and appraisal of exploration by other parties.


 Deposit type, geological setting and style of mineralisation.

Drill hole Information

 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:  easting and northing of the drill hole collar  elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar  dip and azimuth of the hole  down hole length and interception depth  hole length  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

COMMENTARY All tenements are subject to a sale and purchase agreement between those parties identified in Appendix A to the Company’s ASX announcement on 28 November 2017 and MinRex Resources Limited. Shareholder approval of the transaction was granted in a General Meeting of MinRex to be held 19 January 2018. The acquisition is now proceeding but has not yet been finalised. Table 1 in the report details the tenement details. All tenements are either granted or remain as tenement applications. All granted tenements are in good standing. There is a large amount of information available on historic exploration in the project areas. This historical exploration data is currently being compiled by MinRex. The rock chip sampling and metal detecting work was done by Keystone Gold Pty Ltd, a prospecting and logistics company on behalf of MinRex Resources Limited. Significant historical prospecting has been conducted on the tenements since gold was initially discovered in the area during the late 1800’s. The geological setting of the three East Pilbara projects is highly varied. Within P45/3039, where the rock chip samples were collected, the geological survey has mapped typical Marble Bar Greenstone type mafic and felsic volcanic rocks and the basal contact with the Mt Roe Basalt. Within P45/3040, where the nuggets were located, the geological survey mapping has identified a granitic intrusive with auriferous quartz veins. Detailed geological mapping is planned once data compilation is completed. The gold nuggets are considered most likely to be sourced from structurally controlled gold bearing quartz veins. No Drill holes reported. Locations of all rock chip samples and gold nuggets are tabulated in the body of the report.


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CRITERIA Data aggregation methods

Relationship between mineralisation widths and intercept lengths


Balanced reporting

Other substantive exploration data

Further work

 JORC CODE EXPLANATION  In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.  These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).  Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.  Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.  Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.  The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

COMMENTARY No aggregation has been undertaken, only raw chemical assay results of individual samples are included in this report.

No mineralised widths have been reported

Diagrams relevant to the report content are included in the body of the report.

Due to the erratic nature of gold in quartz and gold nuggets in the surface and near surface environment caution should be exercised when considering the lateral or depth extensions to the rock chip samples and gold nuggets identified during the site visit. Additional exploration and geological interpretation is required to determine if the reporting is balanced. No other exploration work has been conducted by MinRex on the projects to be acquired. The acquisition of the project areas is currently yet to be finalised.

Additional work has been recommended including; Historical data compilation. Detailed geological mapping. More extensive rock chip sampling. Additional prospecting and metal detecting. Possible bulk sample of the basal Mt Roe Basalt conglomerate.