CLASSIC MINERALS LTD — Capital/Financing Update 2016

Dec 11, 2016

ASX Announcement

ASX: CLZ ACN 119 484 016

12 December 2016

CLASSIC MINERALS LIMITED ASX ANNOUNCEMENT

Sale of Mining Interests Agreement

Classic Minerals Limited (Classic or the Company) (ASX Code: CLZ) is pleased to announce the following developments relating to the Company’s projects, in particular the Mining Interest agreement on the Doherty’s Project and the Fraser Range Copper Nickel Project.

Highlights

• Sale of 100% Mining Rights assigned to Accelerated Mining

• Classic Deal tracking for new projects

• Classic shows off Fraser Range project for a JV partner

Classic Minerals limited and Accelerated Mining (AccMin) have been in discussions and have agreed to vary the terms of the original agreement announced on the 31 March 2016

The parties have agreed,

1. Classic will assign the Mining Rights to the Doherty’s Project M57/619 to AccMin for $500,000

2. AccMin shall be entitled to 100.00% of the Mining Rights of the Doherty’s Project M57/619.

3. Classic will sell and AccMin will purchase 100% of the Tenement for the purchase price of $2,200,000 (Tenement Purchase) with the Settlement due 24[th] March, 2017.

4. All Royalties pursuant to the AccMin and Classic Agreement dated 24[th] March 2016 remain in place.

5. AccMin will have the right to undertake limited exploration works prior to Classic receiving the Tenement Purchase payment of $2,200,000. For the avoidance of doubt, the exploration is to be limited to 6 (six) drill holes on the Tenement until the balance of the purchase price has been paid.

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ASX Announcement

12 December 2016

Classic views this variation as a positive step forward for both parties. Managing Director, Mr Justin Doutch said:

“Classic is mandated to deliver value to its shareholders. With this in mind, the Doherty’s transaction (as varied) is an excellent deal in that it delivers immediate cash to facilitate future growth through ongoing exploration at Frasers Range and through M&A opportunities; and also delivers prospects of a long-term income stream through the attractive royalty (7.5% NSR) attached to the Doherty’s tenement.

We recognise the terms of the deal have changed over time, and we commend Accelerated Mining’s efforts to raise capital in a tough market (particularly for private entities), however we are pleased with the variation as it delivers certainty and lowers any completion risk for CLZ.”

Acquisitions on the Horizon

At the Company’s Annual General Meeting in late November 2016, Classic’s shareholders approved the company to issue up to 100M shares to professional and sophisticated groups to assist with its growth strategy. While finalising the approvals of the company’s 2016 AGM and the show of continuing support from the company’s shareholders, Classic has already started looking locally for growth opportunities in and around the Gold and Lithium sectors. Classic’s ongoing strategy is to keep developing its flagship Fraser Range Copper Nickel Project, whilst continuing to develop and acquire new projects.

Fraser Range Project

The Company is currently seeking a joint venture partner to assist with further exploration and development of the company’s Fraser Range Nickel Copper Project, located 160 km ESE of Kambalda and in the FraserAlbany Mobile Belt. To the north hosts the 6.4 million ounce Havana and Tropicana gold deposits and 38 km to the south hosts the highly significant Independence Group NL- Nova Nickel/Copper sulphide deposit.

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Image 1: FRDC001 42.2m, Mammoth Ni, Cu Deposit- Semi Massive and veined mixed sulphides in sheared mafic host rock. Note: Image is from Company website www.classicminerals.com.au

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ASX Announcement

12 December 2016

For more information, please call the company on details below

Justin Doutch Managing Director

Classic Minerals Limited

Phone: (08) 6305 0221 Address: 71 Furniss Road, Landsdale WA 6065 Postal: PO Box 487, Osborne Park WA 6917 Website: www.classicminerals.com.au Email: admin@classicminerals.com.au

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