CLASSIC MINERALS LTD — Capital/Financing Update 2017

Jun 28, 2017

ASX Announcement

ASX: CLZ ACN 119 484 016

29 June 2017

CLASSIC COMPLETES PHASE 1 DRILLING PROGRAM AT FORRESTANIA GOLD PROJECT, WA

Highlights:

• Targeted mineralised zone at Lady Ada intersected successfully by diamond and RC drilling

• Initial RC samples dispatched to ALS lab for analysis – results expected imminently

• Phase 1 program at FGP to comprise ~3,700 metres of both RC and Diamond Drilling

• Additional POW approved enabling Phase 2 drilling to commence shortly at priority targets identified for high-grade depth extensions at both Lady Ada and Lady Magdalene

1. INTRODUCTION

WA-focused gold exploration and development company Classic Minerals Limited (ASX. CLZ) ("Classic", or "the Company") is pleased to advise that it has completed its Phase 1 drilling program at the Company’s Forrestania Gold Project in Western Australia.

Importantly, all of the drill holes intersected quartz veining as well as zones of silicified/bleached gabbro (which appear to be prospective for gold) within the targeted alteration zones. The Company has forwarded all samples for assay to ALS’s laboratory in Perth, and will report all assay data once it has been received, reviewed and verified in the coming weeks.

The Phase 1 drill program comprised 18 RC holes and 2 diamond holes for a total of ~3,700m (see Figure 2, 3 & 4). An additional POW (“Program of Works”) was lodged with the DMP (“Department of Mines and Petroleum”) for an extensive in-fill and extensional drilling program which has been approved – allowing Classic to rapidly move to the next phase of exploration and development at the FGP.

Classic’s Managing Director, Justin Doutch, commented:

“We are very pleased to have completed the Phase 1 drilling program at both Lady Magdalene and Lady Ada. The fact that we have intersected the targeted mineralised zone at Lady Ada is highly encouraging, and provides our technical team with a great deal of confidence as we progress to Phase 2 drilling shortly.

This is a great start for our exploration campaign at the Forrestania Gold Project and we are looking forward to reporting our first assay results in the coming weeks. As previously stated, CLZ’s aim is to systematically build out the existing gold resource at FGP and success in our first round of drilling will be a major step towards achieving this milestone.”

The Forrestania Gold Project contains an existing Mineral Resource of 5.9Mt at 1.25g/t for 240,000 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement 1 May 2017) suggesting both the technical and financial viability of the project. The current post-minin g Mineral Resource

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ASX Announcement

29 June 2017

for Lady Ada, Lady Magdalene and Lady Lila is tabulated below. Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcement s dated 14[th] March 2017 and 21[st] March 2017 .

		Indicated			Inferred
Prospect	Tonnes	Grade (Au g/t)	Ounces Au	Tonnes	Grade (Au g/t)	Ounces Au
Lady Ada	283,500	1.78	16,200	260,000	2.2	18,750
Lady Magdalene	1,828,500	1.08	63,700	2,450,000	1.5	118,000
Lady Lila				541,000	1.38	24,000
Total	2,112,000	1.17	79,900	3,251,000	1.53	160,750

• Notes:

• 1. The Mineral Resource is classified in accordance with JORC, 2012 edition 2. The effective date of the mineral resource estimate is 31 December 2016. 3. The mineral resource is contained within FGP tenements 4. Estimates are rounded to reflect the level of confidence in these resources at the present time. 5. The mineral resource is reported at 0.5 g/t Au cut-off grade 6. Depletion of the resource from historic open pit mining has been taken into account

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Figure 1: Diamond Drilling underway at FGP (June 2017)

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Figure 2: Lady Ada and Lady Magdalene oblique section looking North (local grid), showing the drill targets against the extent of the current mineral resource model and the exploration drilling results.

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3m @ 88.1g/t
HG Extensional Targets
2m @ 5.2 g/t
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Figure 3: Lady Ada oblique section looking North (local grid), showing the drill targets against the extent of the current mineral resource model and the exploration drilling results.

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3m @ 88.1g/t
2m @ 5.2 g/t
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Figure 4: Lady Ada cross section looking north east showing CLZ drill holes

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Figure 5: Lady Magdalene cross section looking north showing CLZ drill holes

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Figure 6: Lady Ada drill holes completed as part of Phase 1 Drilling Figure 7: Lady Magdalene drill holes completed as part of Phase 1 Drilling

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Figure 8: Regional Map

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ASX Announcement

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On behalf of the board,

Justin Doutch Managing Director

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Follow us on Twitter @ClassicMinerals

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

Forward Looking Statements

This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward looking statements are subjected to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to Resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the Countries and States in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s annual reports, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statements” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Competent Persons Statement

The information contained in this report that relates to Mineral resources and Exploration Results is based on information compiled by Edward S. K. Fry, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Fry is a consultant exploration geologist with BGM Investments Pty Ltd and consults to Classic Minerals Ltd. Mr. Fry has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration, and to the activity being undertaken 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. Fry consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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