AERIS RESOURCES LIMITED — Capital/Financing Update 2019

Mar 17, 2019

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ASX announcement

1 8 March 2019

Torrens Drilling Recommences

Argonaut Resources NL (ASX: ARE) ( Argonaut or the Company ) is pleased to announce that drilling has recommenced at the giant Torrens copper-gold anomaly at Lake Torrens in South Australia.

Highlights

• Drilling has recommenced at the third prioritised copper target within the Torrens anomaly.

• The drilling rig has been moved from drill hole TD8 to drill hole TD9 (Figure 1) following the intersection of artesian ground water at a depth of 100m in TD8.

• It is Argonaut’s expectation that TD8 will be re-drilled later in the program.

Background

• Drilling commenced at the Torrens anomaly on 20 January 2019.

• Drill hole TD7 was drilled to a depth of 858m. Assay results are pending.

• The Torrens anomaly is an extensive series of gravity and magnetic targets located approximately 40km northeast of the spectacular Oak Dam West copper discovery, announced by BHP in November 2018.

• There are 28 distinct target zones within the broader Torrens anomaly. The anomaly has a footprint larger than Olympic Dam.

• The Torrens Joint Venture has committed to an initial 8-10 hole, $5,000,000 program which is part of an extensive 25-30 hole, $15,000,000 program, expected to take 18 to 24 months.

Registered Office Level 5 126 Phillip Street Sydney, NSW, 2000, Australia T +61 2 9299 9690 F +61 2 9251 7455 E sydney@argonautresources.com

Adelaide Office Level 1 63 Waymouth Street Adelaide, SA, 5000, Australia T +61 8 8231 0381 F +61 8 8231 6092 E adelaide@argonautresources.com

Argonaut Resources NL ABN 97 008 084 848

Torrens Drilling

A heli-portable drilling rig capable of drilling deep, cored holes in remote locations is drilling from custommade pontoons, designed to protect the salt crust and support the drilling rig. Holes will be drilled to depths of between 800 and 1,500m into dense, iron-rich rocks, interpreted to contained copper and gold mineralisation.

The program is targeting geophysical anomalies that have the properties of the Oak Dam West, Olympic Dam and Carrapateena copper deposits.

The Torrens Anomaly

The Torrens anomaly is a complex series of magnetic and gravity anomalies with a footprint larger than that of Olympic Dam. The anomaly is located over the Torrens Hinge Zone, a continent-scale zone of crustal weakness that appears to have been a conduit for mineralising fluids from the Earth’s mantle.

Drilling of the Torrens anomaly by Western Mining Corporation in the late 1970s and by the Torrens Joint Venture in 2007 and 2008 confirmed the existence of a major iron oxide copper-gold mineralising system beneath several hundred metres of sedimentary cover.

More drilling is required to intercept the modelled copper-gold mineralisation. In the event of a discovery, Torrens has the potential to host a world-class copper-gold deposit.

The Torrens Joint Venture

The Torrens Joint Venture is between Argonaut Resources NL and Aeris Resources Limited (ASX: AIS) and relates to the Torrens Project, EL5614.

The Torrens Joint Venture is exploring for iron oxide-copper-gold systems in the highly prospective Stuart Shelf region of South Australia. The Torrens Project is located near the eastern margin of South Australia’s Gawler Craton (Stuart Shelf), within 40 kilometres of BHP’s Oak Dam West copper discovery, 50 kilometres of Oz Minerals’ Carrapateena copper-gold deposit and 75 kilometres from BHP Billiton’s Olympic Dam mine.

In its role as manager of the joint venture, Argonaut’s wholly owned subsidiary, Kelaray Pty Ltd, secured access to the tenement in difficult circumstances for a planned drilling program targeting areas which have been geophysically modelled as having the physical properties of large iron oxide-copper-gold deposits. In September 2018, Argonaut’s partner, Aeris Resources, took over as manager of the joint venture.

Lindsay Owler

CEO and Director

Argonaut Resources NL

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750,000m E 755,000m E 760,000m E
Torrens Exploration Licence
Lake
6,605,000m N 2019 drillhole
EL 5614
Total area 295sqkm SC1
0 2 4
SC2
Kilometres
GO10
6,600,000m N
CO9
GO9
GO1
DP1
SC3
GO2
GO8 CO1
CO8
6,595,000m N
DP2
CO7 SC4
TD9
CO6
CO3
CO2
GO3
CO5
6,590,000m N TD7 TD8
CO4
GO4
DP3
GO7
GO5 SC5
Andamooka Island GO6
DP4
6,585,000m N
Partial to non coincident magnetic/gravity anomaly.
ANDAMOOKA SOUTH AUSTRALIA
Coincident magnetic/gravity anomaly.ISLAND TORRENS PROJECTEL 5614
Gravity only anomaly. Gravity GDD Isosurface
Inversion Model Targets
Deeper anomaly. 15 March 2019
Torrens 20
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Figure 1 Gravity inversion model targets by category.

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136° 30' E 137° 00' E 137° 30' E 138° 00' E
-30° 00' S
EL 6320
Olympic Dam
Andamooka
-30° 30' S
Roxby Downs Red Dam EL 6320
Acropolis Wirrda Well
EL 5614
Torrens
Island Dam
EL 5945
Murdie
-31° 00' S
Oak Dam West
(BHP discovery) West Lake Torrens
EL 5937
Woomera Khamsin Fremantle Doctor LAKE TORRENS
Carrapateena
-31° 30' S
Torrens JV (Argonaut-AIS) EL
Argonaut EL and ELA
Town
Highway
Main road
Railway
Major deposit
Significant prospect
Prospect
SOUTH AUSTRALIA
STUART SHELF COPPER TARGETS -32° 00' S
Location of tenure 0 20 40
Kilometres
15 March 2019
Torrens_25
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Figure 2 Torrens Project, copper mines and prospects, Stuart Shelf, South Australia.

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Argonaut Resources NL | ASX ANNOUNCEMENT