BARYS RESOURCES LIMITED — Capital/Financing Update 2014

Feb 26, 2014

27 February 2014

ASX ANNOUNCEMENT

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LOW COST MINING PREDICTED AT EL ROBLE

Perth-based copper developer Mining Group Limited (ASX: MNE) is pleased to announce underground mining cost estimates from its El Roble Copper Project in Chile.

Highlights

• US$54.00/tonne underground development cost, for copper bearing rock delivered to toll treatment plant, internal estimation for El Roble.

• US$30.50/tonne for production stoping, for copper bearing rock delivered to toll treatment plant, internal estimation for El Roble.

• Toll Treatment Payment Rates at local plants for February 2014

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The Company has engaged the services of global mining consultancy firm MEC Mining and Minotaur Pro SpA JV who has assisted in completing an internal cost study to determine the overall mining cost and viability for the extraction of 5,000 tonne of copper bearing rock per month underground mining operation at El Roble.

Development costs are estimated to be US$54.00/ tonne for the installation of horizontal drives along the strike of the mineralised veins. Stoping costs are estimated to be US$30.50/tonne for production stoping activities carried out between levels. Tables 1 and 2 present assumptions used and a breakdown of estimated underground mining costs at El Roble.

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Commenting on the estimate mining costs for El Roble, Mining Group’s Managing Director Mr Zeff Reeves, said: “These initial cost estimates for small scale, airleg style mining at El Roble highlight the cost benefit of operating in Chile. We have access to a highly skilled mining workforce in a country with a long history of exploiting narrow vein style deposits such as those we are targeting at El Roble.”

“The fact that we have virtually no capital expenditure requirement and potentially very low operating costs mean the Company can take full advantage of the nearby toll treatment plants and begin moving toward production over the coming months”

‘In line with our strategy to fund long term growth from small scale production, in the coming weeks we will continue our work to evaluate the most prospective mining areas to commence production, and these cost estimates provide an indication that narrow vein mining on the high grade El Roble veins to be profitable at small tonnages, particularly given the copper grades we have recently seen from Panga, Paraguay and Descubridora” Mr Reeves added.

Underground Mining Costs

Underground mining costs have been estimated for horizontal development and for production stoping. Costs have been estimated using a number of assumptions as presented in Table 1. The proposed mining method is that of a retreat sub level stoping method. Figure 1 shows a schematic diagram of the proposed mining method.

Costs are broken down into development and stoping costs. Development consists of the installation of horizontal tunnels along the strike of the mineralised vein and stoping is carried out post development where bulk material is extracted between the development tunnels. (Figure 4)

MiningMethod	Airlegdevelopment and sub-level stoping
Development drive dimensions	2.20m x2.20m
Vertical distance between levels	6.00m
Horizontal development rate	50m advanceper month
Production rate	5000tper month
Exchange rate	USD1.00 = CLP547.00

Table 1 – assumptions used in cost estimates.

Direct onsite underground development cost*	US$51.00/T
Direct onsite underground stopingcost*	US$30.50/T
Onsite administrative costs	US$3.00/T

Table 2- Summary of underground mining cost estimates for El Roble. * Direct costs are inclusive of all technical support (geology, survey, and engineering) and transport of ore to toll treatment facilities.

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Figure 1 – Schematic diagram of proposed mining method for the El Roble vein system. Step 1 is to install horizontal development drives along the strike of the vein a nominal 6m vertical distance apart (Level 1). Step 2-Stoping, is to then extract rock from between each development drive utilising a bulk mining method such as long hole stoping via the blasting of vertical holes drilled between levels with either a small mechanised drilling machine or by an airleg miner (Level 2, 3 and 4).

TOLL TREATMENT PAYMENT RATES

Within 80km by road from El Roble are two government owned toll treatment copper plants, each plant is capable of processing copper oxide rock and fresh sulphide rock. Each month the payable rates are published on the government website (www.enami.cl), the base rates published are for a delivered copper grade of 2.50% Cu, with a minimum acceptable grade of 1.20% Cu. An escalation rate is also published which is used to calculate the reduction or increase in payment based on actual grade delivered. The escalation rate is based on each 1.00% contained Cu increment and is pro-rated up or down.

The current published February payment rates for oxide copper are: Base Rate (2.5% Cu) = CLP$49,208

Escalation Rate (for each 1% Cu increment) = CLP$26,151

Based on these rates, Table 3 shows payment rates for various grades of sulphide and oxide delivered to the plant. For payment calculations please refer to Appendix 1.

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Cu Grade %	Sulphide Ore Payment/tonne - USD (Cu only)	Oxide Ore Payment /tonne-USD
1.50	55.57 $	42.15 $
2.50	112.96 $	89.96 $
3.50	170.35 $	137.77 $
4.50	227.74 $	185.58 $
5.50	285.13 $	233.38 $
6.50	342.52 $	281.19 $
7.50	399.91 $	329.00 $
DIRECT SMELTER ORE/tonne(>9% Cu)
9%	485.82 $
10%	553.33 $
11%	620.85 $
12%	688.37 $
13%	755.89 $
14%	823.41 $
15%	890.93 $

Table 3 – Table of payment per tonne rates at various copper grades for sulphide and oxide rock (does not account for gold in sulphide rock) 9.00% Cu and above is direct smelter rock. Exchange rate- USD1.00 = CLP547.00. Refer to Appendix 1 for calculations.

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 8 9322 4328 P: +61 400 009 774

About Mining Group Limited

Mining Group Limited (ASX:MNE) is an Australian based company that acquires and develops copper and gold projects around the world with a focus on Chile. The Company has an interest in the highly prospective, high grade El Roble Copper Project in Region III of Chile, targeting IOCG style copper and gold mineralisation. The Company is focused on achieving growth and shareholder value through the development of near term small scale mining operations at El Roble which will enable self-funded growth into the future. El Roble is ideally located 25km's from the port of Caldera and within 80km's of two copper toll treatment plants within the world class Atacama IOCG region which has a history of high grade copper production.

Mining Group also has an interest in the Comval Copper Project in the Philippines and their Australian based projects, Boorara and Teutonic Projects, are prospective for gold and basemetals.

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 mineralization 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 – TOLL TREATMENT PAYMENT CALCULATIONS

Calculation of Payment Examples (note currency in Chilean Peso’s)

If a grade of 3.50% Cu is delivered the actual payment received would be calculated at: Base rate +((Actual grade- Base Rate)x Escalation Rate) =$49,208+ ((3.50-2.50)x$26,151) =$75,359.00

Using an exchange rate of US$1.00=CHP$547.00 this equates to a payment of US$137.77/tonne for 3.50% oxide rock delivered to the plant.

The table below presents the February payment rates for oxide rock, sulphide rock and direct smelter rock as published by ENAMI.

DELIVERY PURCHASE	RATES FOR FEBRUARY 2014	RATES FOR FEBRUARY 2014
	COPPER		GOLD
	BASE	Escalation	BASE	Escalation
	$/2.5%Cu	$/1% Cu	$/5g/t Au	$/1G/T
Copiapoplant rate for copper sulphide rock	59,888	30,233	46,401	12,958
Copiapoplant rate for oxide rock(sxew)	46,659	24,771	NA	NA
DIRECT SMELTING COPPER: BASE 12%(min 9%)	367,668	35,191	NA	NA

Published ENAMI payment rates for February 2014. Payment is received for contained gold in sulphide rock with a minimum gold grade of 0.10g/t Au. Direct smelting rock minimum grade is 9% Cu.

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