AUREKA LIMITED — Capital/Financing Update 2012

Dec 17, 2012

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ASX Announcement

18 December 2012

Navarre Minerals Limited

ABN 66 125 140 105

ASX Code: NML

Corporate Details

Issued capital:

59.6M ordinary shares 5.13M unlisted options

Directors & Management:

Kevin Wilson (Non-Executive Chairman)

Geoff McDermott (Managing Director)

John Dorward (Non-Executive Director)

Colin Naylor (Non-Executive Director)

Jane Nosworthy (Company Secretary)

Wessley Edgar (Exploration Manager)

Contact Details

Drilling extends Macnaughtan line gold mineralisation

Highlights

• 3m @ 8.8g Au/t from 46.5m and 6m @ 2.2g Au/t from 79.5m downhole in air-core hole ACT172

• Macnaughtan line gold mineralisation extended by 400m to the north. Potential Bendigo-style saddle and leg reefs identified

• Alluvial gold potential confirmed at northern Tandarra

• Duplicate sampling shows a high nugget effect at Tandarra

Victorian based gold exploration company Navarre Minerals Limited (ASX Code: NML) today announces further potential ore-grade gold intercepts from air-core drilling at its 100% owned Tandarra prospect, part of the Bendigo North group of gold projects, located 40km north of Bendigo, Victoria, Australia (Figure 1).

“The latest Tandarra drill campaign comprising 60 air-core holes has extended the known gold mineralisation of the Macnaughtan line of reef by a further 400 metres to the north,” commented Navarre managing director, Mr Geoff McDermott (Figures 2 & 3). “This campaign has defined a new zone of contiguous assay results greater than one gram of gold per tonne along 400 metres of strike close to an interpreted Bendigo-style saddle reef located on the Macnaughtan line of gold mineralisation.” The Macnaughtan line is one of three lines of gold bearing quartz reef discovered by drilling at Tandarra.

Geoff McDermott Managing Director

Navarre Minerals Limited 40 – 44 Wimmera Street Stawell VIC 3380 Australia

PO Box 385 Stawell VIC 3380 Australia

Tel: +61 (0)3 5358 8625

Email: info@navarre.com.au Website: www.navarre.com.au

Best results include 3m @ 8.8 Au/t from 46.5m down-hole in ACT172 (see Table 1 & Figure 2). This is located 220m south of the previously announced high-grade intercept from ACT151 of 4.5m @ 23.1g Au/t from 69.0m (see ASX release of 17 October 2012).

“Testing of duplicate samples from these holes is highlighting the variable or nuggety nature of the gold contained within the quartz reefs,” Mr McDermott said. The intersection in ACT172 comes from duplicate samples which originally assayed 3m @ 1.9g Au/t from 46.5m with a primary sample within this interval of 0.05g Au/t reporting a duplicate grade of 11.9g Au/t (Table 1). This is an example of the coarse nugget effect found at Tandarra from routine duplicate analysis. Analysis of all duplicate sample pairs greater than 0.1g Au/t taken during the program shows an average upgrade of 32% in the duplicate sample set (see Table 2). “Our conclusion is that sampling and assaying at Tandarra using 2,000g leach methods is likely to under-represent the true concentrations of gold present,” he said.

Assay results from 60 holes comprising approximately 5,900 metres of drilling completed since early October 2012 are now to hand with only a small amount of duplicate samples awaited (see Table 1 & previous ASX release of 17 October 2012).

BURIED ALLUVIAL GOLD OPPORTUNITY

A small number of air-core holes drilled on the northern extensions to the Tomorrow and Macnaughtan lines have returned positive gold grades in the buried alluvial gravels and sands which form the base of the Murray Basin sediment cover (Figures 2 & 3). Navarre is presently assessing shallow geophysical techniques which may assist targeting of higher grade buried channels of alluvial gold for future drill confirmation and economic assessment.

“The extension of the Macnaughtan line and the recognition of potential saddle and leg reefs are exciting in their own right because the project continues to demonstrate analogies with the nearby 22Moz Bendigo Goldfield,” Mr McDermott said. “However, we are delighted about the prospect of uncovering alluvial gold deposited after erosion of the original quartz reefs in this vicinity over time, before the entire landscape was covered and preserved by Murray Basin clays and sands.”

“The Bendigo Goldfield was discovered because the gold-bearing alluvial gravels were so easily accessible. The early prospectors then turned their attention to mining the gold-bearing quartz reefs which were often outcropping. Our alluvials are harder to find because they are covered by 20 to 40 metres of mud and sand. This cover has preserved the alluvials and prevented the old timers from finding them and as such they remain an attractive target for us to explore,” Mr McDermott said.

TABLE 1: Significant new Tandarra air-core drill results (see Figure 2)

				End of Hole Depth (m)
		Gold Grade (g Au/t)	Depth From (m)
Air-Core Hole ID	Length (m)
					Comments
ACT153		NSA		69.0	Drill Refusal onquartz veiningat 69m
ACT154	3.0	0.21	51.0	88.5
ACT155	4.5	0.12	57.0	101.0	MurrayBasin sediments close to interface with basement
and	13.5	0.15	57.0
and	1.5	0.35	61.5		Quartzgravels orpossiblequartz vein at topof basement
and	7.5	0.13	63.0
ACT156	1.5	0.34	57.0	60.0	Clayat interface. Drill refusal onquartz veiningat 60m
ACT157		NSA		87.0	Strong quartz veining57m to 79.5m
ACT158		NSA		87.0
ACT159		NSA		102.0
ACT160	1.5	0.11	60.0	90.0
ACT161		NSA		93.0
ACT162	1.5	0.36	48.0	120.0	10%quartz in MurrayBasin clays at interface with basement
and	7.5	0.20	61.5
and	1.5	0.16	79.5
ACT163	1.5	0.14	43.5
and	12.0	0.80	63.0		Possible syncline axis
includes	6.0	1.43	63.0	114.0	1 – 5%quartz at base of oxidised basement
ACT164	15.0	0.76	63.0	81.0	MurrayBasingravels and underlying quartz veins
includes	1.5	1.64	63.0		Quartzgravels
includes	1.5	1.52	66.0		Hosted in shale immediatelybeneath MurrayBasin
includes	6.0	1.02	72.0		Quartz upto 20% within sandstones and shales
ACT165	7.5	0.76	51.0	92.0	Drill refusal on 60%quartz veiningat 92m
includes	4.5	1.08	51.0		Quartzgravels and clays
and	1.5	0.14	64.5		2%quartz

				End of Hole Depth (m)
		Gold Grade (g Au/t)	Depth From (m)
Air-Core Hole ID	Length (m)
					Comments
ACT166	3.0	*0.38	55.5	126.0	*duplicate assayof initial 0.22gAu/t
and	1.5	0.14	61.5		5%quartz with weak hematite alteration
ACT167		NSA		106.5
ACT168		NSA		111.0
ACT169	1.5	*0.19	82.5	120.0	MurrayBasin interface, *duplicate assayof initial 0.02gAu/t
ACT170		NSA		105.0
ACT171	3.0	0.27	57.0	111.0	MurrayBasin sands and clays underlying gravels
and	1.5	0.40	81.0
ACT172	1.5	0.23	40.5	96.0
and	3.0	0.11	42.0
and	3.0	1.88	46.5		5%quartz with weak limonite alteration
duplicate assay	3.0	8.83	46.5		Within hematite altered quartz veining *includes duplicate repeat assay 11.95g Au/t
includes	1.5	*11.95	48.0		*Initialgoldgrade 0.05gAu/t
and	3.0	0.30	58.5		On margins of 2%quartz zone with hematite alteration
includes	1.5	0.35	58.5
and	6.0	2.20	79.5		50%quartz veiningin bleached andpitted shales
includes	1.5	6.93	79.5
includes	1.5	1.71	82.5
ACT173	1.5	*0.29	79.5	108.0	5-10% quartz with strong limonite alteration.*duplicate assay, initial goldgrade less than detection(0.01gAu/t)
and	1.5	2.76	94.5		15%quartz veiningwith limonite in bleached sandstone
ACT174		NSA		102.0	Lowquartz content – near syncline axis
ACT175		NSA		102.0	Ferruginousquartz from 46m to 55m
ACT176		NSA		111.0	Weak hematite alteredquartz veiningat 67m
ACT177		NSA		111.0	Weak hematite alteredquartz veiningat 67m
ACT178		NSA		104.0	Tracepyrite near MurrayBasin interface
ACT179	6.0	0.73	52.5	90.0	Tracepyrite near MurrayBasin interface
includes	1.5	1.30	55.5		Topof basement or alluvialquartzgravel
ACT180	3.0	0.10	78.0	99.0	2%quartz. Wallrock bleached
ACT181		NSA		27.5	Drill-rigcould notpenetrate ferricrete startingat 25.5 to 27.5m
ACT182		NSA		108.0	12m at 10%quartz with low alteration,some strainedquartz
ACT183	3.0	0.24	70.5	94.5	Visiblegoldpanned
and	1.5	*0.34	79.5		*duplicate assayof initialgoldgrade 0.02gAu/t
ACT184		NSA		99.0	Moderate hematite and limonite alteration inquartz
ACT185		NSA		96.0	4.5m at 33%quartz with weak hematite alteration from 78m
ACT186	7.5	0.12	96.0	117.0	Part of 35%quartz interval
ACT187	1.5	0.12	34.5	87.0	1%quartz with weak limonite alteration
and	6.0	0.17	43.5		1%quartz with ferruginous wallrock alteration
ACT188	1.5	0.11	79.5	113.5	Minor limonite,hematite & chlorite alteration
ACT189		NSA		66.5	Blade refusal in 8m of quartz with average 20% to EOHwith moderate limonite alteration and minor hematite alteration. Probable saddle reefquartzbased on fold axis location
ACT190		NSA		102.0	Upto 50%quartz with minor chloritepresent
ACT191	1.5	0.30	37.5	71.8	Oxidised sandstone near 7.5m at 5%quartz interval
ACT192		NSA		96.0	Weak limonite & hematite alteration inquartz at 66-69m
ACT193		NSA		104.0	Contains some laminatedquartz

				End of Hole Depth (m)
		Gold Grade (g Au/t)	Depth From (m)
Air-Core Hole ID	Length (m)
					Comments
ACT194	1.5	0.53	54.0	112.5	Visiblegoldpanned
and	1.5	2.88	105.0		30%quartz with weak limonite alteration
ACT195	6.0	1.02	52.5	111.0	Oxidised basement with 15-30%quartz veining
includes	1.5	3.40	52.5
and	4.5	0.25	63.0		Pyrite weathering pits inquartz and shales.
ACT196	10.5	0.84	88.5	137.0	Quartzgravels at basement/MurrayBasin interface
includes	1.5	4.00	91.5

TABLE NOTES:

All assay results have been determined by Leachwell[©] (24 hour) cyanide leach 2,000g analysis. Minimum sample intervals are 1.5m in length. Significant results are >0.1g Au/t. A series of external standards and blanks are used to assess laboratory assay quality control. The assays reported in this table are from grab sampling of variably wet to dry air-core samples, some downhole contamination below the Murray Basin is logged. Intervals are length weighted grade averages. True widths are yet to be determined. NSA refers to no significant assay. Abbreviation “includes” is a subintersection of the above mentioned interval/result. All holes are vertical except holes ACT182-187 and ACT190-192 (see inset plan in Figure 2). There has been insufficient drilling undertaken on the Tandarra prospect to define a Mineral Resource and it is uncertain if further exploration will result in determination of a Mineral Resource.

TABLE 2: Tandarra Q4 2012 Air-core duplicate sample assay comparisons

Visible Au Visible Au Visible Au Visible Au Visible Au MEAN : MEDIAN :	Original Sample Au(ppm)	Duplicate Sample Au(ppm)
			% Variance
	0.22	0.38	71 %
	0.04	0.10	148 %
	0.02	0.11	458 %
	0.02	0.19	1022 %
	0.01	0.10	563 %
	3.71	5.72	54 %
	0.05	11.95	22106 %
	0.14	0.07	-47 %
	0.35	2.62	654 %
	0.25	0.18	-30 %
	0.20	0.18	-10 %
	0.10	0.11	14 %
	0.05	0.11	145 %
	6.93	0.48	-93 %
	0.08	0.10	23 %
	1.71	0.61	-64 %
	0.10	0.16	70 %
	0.07	0.10	49 %
	0.06	0.11	84 %
	0.02	0.14	758 %
	0.01	0.29	2785 %
	2.76	0.01	-99 %
	0.07	0.12	70 %
	1.30	0.03	-98 %
	0.14	0.01	-91 %
	0.29	0.69	135 %
	0.18	0.01	-95 %
	0.02	0.34	1767 %
	0.16	0.20	26 %
	0.13	0.11	-16 %
	0.41	0.57	38 %
	0.63 ppm Au 0.84 ppm Au 32 % 0.13 ppm Au 0.14 ppm Au 10 %

- ENDS –

For further information contact:

Geoff McDermott Managing Director E: info@navarre.com.au T: +61 (0)3 5358 8625

Competent Person Declaration

The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Wessley Edgar, who is a Member of The Australasian Institute of Mining and Metallurgy and who is Exploration Manager of Navarre Minerals Limited. Mr Edgar has sufficient experience which is relevant to the style of mineralisation and type of deposit 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 Exploration Results, Mineral Resources and Ore Reserves’. Mr Edgar consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

This announcement contains “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “objectives”, “outlook”, “guidance” or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Navarre and any of its officers, employees, agents or associates. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Exploration potential is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Readers are cautioned not to place undue reliance on forward-looking statements and Navarre assumes no obligation to update such information.

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Figure 1: Location map of the Bendigo North group of gold projects.

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Figure 2: Satellite image of part of the Tandarra prospect showing near surface gold mineralisation trend, its projection to the north and south and location of air-core drill holes.

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Dingee Rd
Open to South ACT151
ACT172
Area to be drilled – Previously under Crops Un-tested for repetitions
Potential Reef Mineralisation
Reef Mineralisation
50 m
Northern Alluvial
200 m
Macnaughtan Line gold Potential
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Gold Legend
(g Au/t)
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Figure 3. Longitudinal projections of Macnaughtan and Tomorrow Lines showing high-grade gold areas (see thematic gold legend). Recently completed air-core drill holes are shown in blue.

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Murray Basin – Basement contact:
Alluvial Gold Potential :
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Line of Gold Mineralisation
50 m
Northern Alluvial
Tomorrow Line gold Potential 200 m
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