ARK MINES LIMITED - Capital/Financing Update 2016

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Fra n ces Creek Update

Sydney, 18 February 2016: A r k Mines Ltd (ASX: AHK) is pleased to ann o unce recent mapping and rock chip sampling succes s , at its Frances Creek high grade gold prosp e ct near Pine Creek, in the Northern Territory.

Frances Creek Highlights

Sub-vertical quartz veins and adjacent gold-bearing alteration zo n es outcrop on top of steep ridge crests that a re amenable to simple, low cost, open pit m ining.
� The deposits are only 20km from a gold plant, with current cap a city to process oxide gold.
Additional exposed gol d veins, within the Frances Creek project area, require drill testing.
� The deposits are close to AHK’s Mount Porter (34,000oz gold) mineral resource and to Pine Creek township.
Oxide down to 60m.
Existing Haul road run n ing from Frances Creek to the local Mill (dir e ctly past Mt Porter).

Results of Recent Work

Recent work has provided further extensions to known vein systems an d delivered strong drill targets.

AHK Managing Director Roger Jackson said: “These results are exciting for Ark, as it takes us one step closer to get Frances Cre e k ready for mining”.

Whilst the mapping undertaken by Ark to date has been limited, t h e results have been impressive, in the context of e x tending the known gold vein exposure.

AHK recently undertook a two-day reconnaissance mapping progra m focussed on gold mineralisation near to known gold veins at Frances Creek. The mapping was completed in the areas around Golden Honcho, Golden Senorita and Golden Gulf prospe c ts within the Francis Creek exploration lease.

The mapping unveiled numerous new occurrences of quartz veins. Furthermore, the study extended known veins and st r uctures and three of the most promising locations were assigned as new prospects: Golden Honcho North, Golden Dias and Golden Sierra.

At Golden Honcho North, quartz veining and stock work – type mineralisation was recorded in the Golden Honcho structural corridor, for a further 600m to the n orth of the existing mineralisation. Two relatively t hin 0.2- 0.3m veins returned 12.3 and 0,88 p pm Au. This prospect is thought to be of high priorit y for further exploration including rock chip g eochemistry and drill testing (refer to Figure 1).

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Further to the north across a v alley, a series of prominent, up to 1 m thick veins was recorded on a plateau somewhat parallel t o Golden Slips, previously named Golden Di a s. The veins at Golden Dias, arching from the meridi o nal to north eastern strike were traced for a distance of over 200 m with individual veins being 8 0-120 m long. One of the northernmost 0.3 m-thick veins returned 0.77 and 0.11 ppm Au. This pr o spect, demonstrating a significant-scale, go l d-bearing vein system, is potentially related to the s ame Golden Honcho structural corridor a n d warrants follow-up exploration work (refer to Figure 1).

The Golden Sierra prospect is located on the next ridge to the east of th e Golden Sips northern extension. A series of quartz veins was documented; the major 0.4m-thic k vein outcropping for a 25m distance along a road ret u rned 0.32ppm Au (refer to Figure 1). This are a also warrants a follow up work.

Immediate Plans

Undertake further shallow RC drilling directed at the above mentio n ed targets.
� Undertake further ma p ping and rock chip testing further north.
Complete mineral re s ource estimations for the Golden Honc h o and Golden Slips prospects, reportable u nder the JORC Code (2012).
� Undertake feasibility s t udy and, if positive apply for mining lease/ s , and other necessary permitting, with a vie w to commencing operations at the Frances Creek gold prospects.