BARYS RESOURCES LIMITED — Capital/Financing Update 2013

Dec 3, 2013

MINING GROUP SIGNS PRODUCTION AGREEMENT OVER THE PANGA MINE

ASX ANNOUNCEMENT

4 DECEMBER 2013

Highlights

• Production agreement entered over the historic Panga Copper Mine at El Roble Copper Project, Chile

• Open ore faces exposed in development headings, with ore shoots open along strike and down dip

• Due diligence sampling has returned up to 4.76% Cu and 6.35g/t Au from underground and 3.72% Cu and 1.47g/t Au from along strike surface sampling

Mining Group Limited (ASX: MNE) is pleased to announce that it has entered into a production agreement at the El Roble Project, Chile (“El Roble Project”), which gives it access to the historic Panga Copper Mine.

Panga Production Agreement

The agreement gives Mining Group exclusive access to mine on three concessions consisting of approximately 11 hectares, which cover the historic Panga Mine and 1,100m of the strike extent of the mapped Panga vein.

The production agreement entitles Mining Group to extract up to 5,000 tonnes of ore per month under the current mine permit, under the following conditions.

• Minimum monthly payment of US$2,000 per month, per concession.

• The first US$200,000 of revenue per month will be subject to a 10% royalty.

• Every subsequent dollar of revenue over US$200,000 per month will be subject to a 5% royalty.

• Royalty payments will be made in lieu of the minimum monthly payment when royalty payments exceed US$2,000 per month.

• Mining Group will be liable for the minimum monthly payments from January 2014.

Therefore on monthly revenue of US$500,000, the total royalty would be calculated at 7%. On monthly revenues of US$1,000,000, the total royalty would be calculated at 6%.

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Figure 1 – El Roble Project structural map showing mapped copper bearing veins and location of currently active mines and the Panga mine. Large yellow rectangle is approximate position of map shown in Figure 2.

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Figure 2 – Ground magnetics image (total magnetic intensity) over the Panga area showing the strike extensiveness of the Panga vein (blue line). Production agreement area outlined in white and underground adit in black.

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Commenting on the signing of the Panga production agreement, Mining Group Managing Director, Mr Zeffron Reeves, said: “This production agreement marks a significant milestone for the Company in moving forward to achieve our short term goal of commencing small scale production at El Roble.

“The Panga mine has been historically mined with a number of small stopes mapped from underground and numerous workings mapped at surface along its 3km strike extent. This agreement gives us access to 1,100m of strike, where there is approximately 220m of adit development and open ore faces exposed at the bottom of the mine.

“We have identified Panga as one of the major primary, strike extensive structures at El Roble and we believe the immediate mine area has the potential to host numerous high grade copper and gold bearing ore shoots. The terms we have negotiated for this agreement are very attractive considering the potential to establish our first, extremely low CAPEX small scale mining operations where we expect to take advantage of the toll treatment facilities in the region.

“Now we have exclusive access to Panga, we will commit resources to fully assessing the area. This will include a small drill program targeting below the mined out historic stopes, which will assist the Company in delineating economic widths of high grade copper mineralisation and making a decision on whether the commencement of small scale mining at Panga is a feasible option,” added Mr Reeves.

Panga Mine

The Panga Mine is located approximately 4km north east of the Descubridora and Veta Gruesa mines (Figure 1), on the mineralised structure known as Panga, which Mining Group has mapped over a continuous strike length of 3,100m and is recognisable on the recently completed ground magnetic survey images (Figure 2). Recent mapping and interpretation by Dr Nick Oliver has identified Panga as a high priority exploration target, being one of the major primary copper ore bearing structures at El Roble, and also exhibits elevated gold grades in comparison to other parts of the Project area.

The Panga Mine consists of a 220m long, inclined adit along the strike of the vein installed predominantly in the footwall zone of the main mineralised vein (Figure 3).The orebody has subsequently been accessed via a number of small crosscuts from where stoping has occurred. A number of small stopes have been mapped which have been extracted by simple up-hole benching utilising handheld airleg drill and blast methods. Small mineralised pillars are left within the stopes for ground support. The average width of the mapped vein at surface is approximately 2.50m, with the average width of the extracted stopes being 3m.

The nature of the stoping and along strike development, with the drive being positioned predominantly in the footwall, has meant that safe access to the main ore shoots for sampling has been limited, however where sampling of remnant ore from within the stoped ore shoots has been completed - individual assay grades of up to 4.76% Cu and 6.35g/t Au have been returned. Sample widths returned represent channel width, with only remnant ore from stoping that was safely accessible being sampled. A full table of results from underground sampling to date at Panga is presented in Appendix 1.

Initial engineering assessment of the Panga Mine indicates the ground conditions are favourable for underground mining, with no ground support having been used in either the development adit or the stoped areas. Over the coming months, Mining Group intends to conduct more detailed geology and engineering studies at Panga with a view to making a decision on mining early in 2014.

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Figure 3 – Plan view of the Panga Mine showing high grade sample highlights from samples taken from remnant ore.

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Figure 4 – Long section looking north west of the Panga Mine area showing location of access adit and mapped stopes and currently planned drilling to assess below current workings.

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Figure 5 – Long section looking north west showing potential strike and height extent of the Panga vein and potential high grade ore shoot targets.

Mining Group has an exclusive option to acquire the El Roble Project, which is located in the IOCG Coastal Cordillera Belt of Chile, approximately 30km from the Chilean port of Caldera. The Project covers approximately 6,000 Ha and is currently being actively mined on a small scale by the current owner, with ore being trucked at grades in excess of 6% copper. Ore is treated at one of the two toll treatment plants located within 70km by road of the Project.

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Figure 6- El Roble Project location map showing proximity to two toll treatment plants

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For further information please contact: Investors Zeffron Reeves Ronn Bechler Managing Director Market Eye zreeves@mininggroup.net.au ronn.bechler@marketeye.com.au P: +61-400 009 774

P: + 61 8 9322 6424

About Mining Group Limited

Mining Group Limited (ASX: MNE) is an ASX listed, Australian based exploration company established to explore, evaluate and acquire commercially significant resource projects in Australia and overseas.

Mining Group seeks to develop the Comval Copper Gold Project in the Philippines and establish near term production at its Chilean copper project El Roble. Further, it continues to evaluate the prospective Western Australian based Boorara and Teutonic Projects.

Mining Group has a strong Board and management team with considerable technical, commercial and corporate experience in the resources sector.

For more information visit the Mining Group website at www.mininggroup.net.au

The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) (Applied Geology) MBA, MAIG), a member of the Australian Institute of Geoscientists and is an employee of the Company. Mr Reeves has sufficient experience that 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

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APPENDIX 1 – PANGA UNDERGROUND CHANNEL SAMPLING DATA

Channel ID	Prospect	mE	mN	mRL	Length
RCPCH047	Panga Mine	346187	7010483	999	1.65
RCPCH048	Panga Mine	346221	7010517	991	0.90
RCPCH049	Panga Mine	346221	7010516	991	1.00
RCPCH050	Panga Mine	346227	7010522	989	0.80
RCPCH051	Panga Mine	346236	7010528	988	0.80
RCPCH052	Panga Mine	346242	7010533	987	0.60
RCPCH053	Panga Mine	346242	7010533	987	0.50
RCPCH054	Panga Mine	346256	7010546	983	1.55
RCPCH055	Panga Mine	346276	7010556	981	0.45
RCPCH056	Panga Mine	346284	7010568	981	1.20
RCPCH057	Panga Mine	346306	7010587	977	0.90
RCPCH058	Panga Mine	346306	7010586	977	1.20
RCPCH059	Panga Mine	346335	7010619	967	1.00
RCPCH060	Panga Mine	346335	7010619	967	0.50
RCPCH061	Panga Mine	346323	7010606	959	0.65

Channel location table – channels highlighted in grey denote sample taken from historic stope remnant.

Channel ID	Sample_ID	From	to	Cu%	Au(ppm)	Co(ppm)	Fe(%)	Mo(ppm)
RCPCH047	3201	0.00	1.65	0.37	1.355	30	21.3	250
RCPCH048	3202	0.00	0.90	0.36	1.480	50	8.53	160
RCPCH049	3203	0.00	0.30	4.76	6.350	480	23.5	320
RCPCH049	3204	0.30	1.00	1.74	0.722	130	17.25	270
RCPCH050	3205	0.00	0.80	0.56	1.840	370	19.65	160
RCPCH051	3206	0.00	0.80	0.61	0.338	520	19.65	310
RCPCH052	3207	0.00	0.60	1.93	0.222	700	18.05	160
RCPCH053	3208	0.00	0.50	3.30	0.751	1040	24.3	150
RCPCH054	3209	0.00	1.10	0.54	0.126	810	17.1	30
RCPCH054	3210	1.10	1.55	1.83	0.019	80	2.93	10
RCPCH055	3211	0.00	0.45	0.73	0.065	20	5.39	40
RCPCH056	3212	0.00	1.20	0.66	0.100	280	26.2	280
RCPCH057	3213	0.00	0.90	1.04	0.662	140	30.5	130
RCPCH058	3214	0.00	1.20	0.33	0.024	30	12.8	40
RCPCH059	3215	0.00	1.00	0.53	0.213	390	31.7	420
RCPCH060	3216	0.00	0.50	0.10	0.017	90	6.45	20
RCPCH061	3217	0.00	0.65	1.02	0.081	460	15.4	190

Assay table- channels highlighted in grey denote sample taken from historic stope remnant.

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APPENDIX 2: JORC Table 1, Section 1 Sampling Techniques and Data

APPENDIX 2: JORC	Table 1, Section 1 Sampling Techniques and Data
Criteria	Explanation
Sampling techniques	• Rock chip samples collected are of a minimum 2kg weight. • Minimum sample interval was 0.50m and maximum of 2.00m were collected along adit roof and adit walls. • Samples sent to ALS Laboratories, Copiapo, Chile • Samples were pulverised to obtain a 30g charge for fire assay for gold • A 0.5g charge was digested by four acid near total digest and analyses using ICP-OES for multi-element analysis, including copper • Ore grade copper samples over 10,000ppm (10%) were re-assayed using AAS .
Drilling techniques	• No drilling has been undertake at Panga to date.
Drill sample recovery	• No drilling has been undertake at Panga to date.
Logging	• All channel samples are geologically logged by qualified geologists. • Geological data is recorded in the Company’s geological database. • Logging is qualitative in nature and describes lithology, alteration, structure and mineralisation visually observed by the logging geologist. • Total length of each sample interval has been logged.
Sub-sampling techniques and sample preparation	• The sample collection and preparation technique is deemed suitable and industry standard for rock chip/channel sampling. • Samples are coarse crushed to 70% passing 2mm and then split produce a 30g sample for gold assay and 0.5g sample for multi-element assay. Sub samples are then pulverised to 85% passing 75 microns prior to assay. • No duplicate samples have been carried out. • Sample size is deemed appropriate.
Quality of assay data and laboratory tests	• Assay techniques are deemed suitable and accurate for the elements being tested. • Standard reference materials have been submitted in each sample run every 20 samples. • Blank reference materials are submitted in each sample run every 50 samples.
Verification of sampling and assaying	• All significant intersections have been calculated using weighted averaging to sample length. • All significant intersections have been checked by alternative company geological personnel. • No duplicate sampling or twinned holes have been completed • All data collected is done so in accordance with the Company’s written data collection procedures and is kept within the Company’s electronic database. Original sample logs and written data collection forms are also retained in the Company’s data library. • No adjustment to data has been done.
Locations of data points	• All channel locations have been surveyed using a total station survey instrument with appropriate control points used and referenced to ensure accuracy of survey information. • Co-ordinates have an error of +/-10cm.. • Co-ordinates are recorded in WGS84 co-ordinate system
Data spacing and distribution	• The current sample is deemed appropriate for the current early stage of mine assessment.
Orientation of data in relation to geological structure	• Wherever possible channels have been planned to intersect mineralised structures perpendicular to the structure. • Channel intercepts are downhole widths and do not indicate true widths of any mineralised structure.
Sample security	• All sampling was conducted under the supervision of the Company’s Exploration Manager who conducted sample collection and the chain of custody from the sample location to the sample preparation and logging facility is continually monitored by the Exploration Manager. Samples are shipped to the lab by qualified couriers or Company personnel under locked bags.
Audits or reviews	• No audit or review has been conducted due to the early stage exploration nature of the work.

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JORC Table 7: Section 2 Reporting of Exploration Results

Criteria	Explanation
Mineral tenement and land tenure status	• Mining Group does not own any of the properties sampled or mapped and sampling and mapping completed was done so as part of a due diligence process in order to assess the properties. • Mining Group has an production agreement over the Panga Mine, granting exclusive access to carryout furthergeological and miningstudies and to extract copper andgold ore.
Exploration by other parties	• No information has been used in this report from exploration by other parties.
Drill hole information	• Details of channel locations, depth and intercept depths are contained within this announcement (Appendix 1).
Geology	• The El Roble Project and Panga mine area consists of quartz and iron oxide veins, containing copper and gold mineralisation. The veins are hosted within intrusive dioritic and andesitic volcanic rocks of the Chilean Cretaceous Belt.
Data aggregation methods	• Intercept widths are along channel widths, intercept calculated by length weighted average for all samples and no internal dilution was used, where length is the along channel length for each sample interval • Intercepts comprise of aggregated length weighted average for all samples taken in each channel. Length weighted averages have been calculated using the following formula assuming 3 samples were taken from the channel, where: A=sample interval, B=sample assay value 1) A1xB1 = C1, A2xB2=C2, A3xb3=C3 2) A1+A2+B2= total interval 3) (C1+C2+C3)/total interval = length weighted grade average • No metal equivalent values have been used.
Relationship between mineralization widths and intercept lengths	• Channels were designed to be installed perpendicular to the interpreted strike of the mineralized structures unless stated. • Intercept widths are along downhole widths and are not true geological widths.
Diagrams	• Pertinent maps, plans and sections are within this announcement
Balanced Reporting	• Full results of all samples taken from the underground Panga Mine are presented in Appendix 1 of this announcement.
Other substantive exploration data	• No other data other than that presented has been used or relied upon.
Further work	• Further exploration work including mapping, sampling and drilling is required, on areas throughout the property. • These areas will be identified in the future through further analysis and interpretation of results. • Diagrams cannot be provided until areas for future exploration have been identified, other than what is presented within this notice.

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