CLASSIC MINERALS LTD — Capital/Financing Update 2020

Jan 8, 2020

ASX Announcement

09 January 2020

RC DRILLING RE-COMMENCES AT KAT GAP

Highlights:

• December round of drilling curtailed due to bush fires;

• 1 hole for 117 metres drilled before Christmas;

• Drilling recommenced in early January after receiving official permission to re-enter Kat Gap.

• 1500m of RC drilling now underway at Kat Gap;

• Hole depths ranging from 110m to 170m.

• Assay results expected before end of January ;

• RC Drilling program designed to ascertain deeper down-plunge orientation of shallower high-grade mineralisation on the granite-greenstone contact over a 100m of strike adjacent to the crosscutting Proterozoic dyke already tested by the Company;

• Understanding the down-plunge orientation of high-grade gold mineralisation will aid significantly in the planning of future RC drilling programs on the south side of the Proterozoic dyke.

• Previous RC drilling by Classic at Kat Gap has returned outstanding high-grade gold intercepts from shallow depths including:

5m @ 14.10g/t Au	from 17m	in FKGRC001
12m @ 7.52g/t Au	from 39m	in FKGRC006
8m @ 19.05g/t Au	from 32m	in FKGRC008
8m@ 7.14g/t Au	from 82m	in FKGRC010
12m @ 5.39g/t Au	from 30m	in FKGRC012
4m @ 9.53g/t Au	from 70m	in FKGRC014
10m @ 30.78g/t Au	from 28m	in FKGRC018
10m @ 4.18g/t Au	from 26m	in FKGRC022
9m @ 8.08g/t Au	from 95m	in FKGRC025
10m@ 8.17g/t Au	from 7m	in FKGRC059
7m @ 24.34g/t Au	from 24m	in FKGRC060
9m @ 15.21g/t Au	from 22m	in FKGRC061
7m @ 9.55 g/t Au	from 89m	in FKGRC063
8m @ 8.26 g/t Au	from 58m	in FKGRC092
9m @ 20.94 g/t Au	from 123m	in FKGRC095
3m @ 20.70 g/t Au	from 39m	in FKGRC113

ASX Announcement

09 January 2020

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Figure 1: Kat Gap RC drilling – January 2020.

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ASX Announcement

09 January 2020

Classic CEO Dean Goodwin said:

Following on from the great results of our last two drilling programs, including multiple high-grade gold hits close to the surface, extensions at depth down dip and along strike to the north, we are excited to be back at Kat Gap so soon to undertake more follow up drilling. This round will be focused solely on Kat Gap which has delivered outstanding results from the previous 6 drill campaigns. Drilling will again focus on the main granite – greenstone contact of which only 500m of a total 3.5km of potential strike has been tested by the Company.

We are planning to drill below recent high-grade gold intercepts along a 100m section north of the crosscutting Proterozoic dyke in an attempt to gain a far better understanding of the plunge orientation. This will aid us greatly in planning future RC drilling programs further north along strike and more importantly on the south side of the dyke which to date has received very little attention. The program is designed to probe between 110m and 150m below surface.

INTRODUCTION

WA-focused gold exploration and development company Classic Minerals Limited (ASX. CLZ) ("Classic", or "the Company") is pleased to announce that it has recommenced RC drilling at its 100% owned Kat Gap Gold Project covering exploration licences E74/422 and E74/467.

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Figure 2: Kat Gap plan view showing recent and previous Classic RC drilling plus significant gold intersections.

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ASX Announcement

09 January 2020

PREVIOUS RC DRILLING AT KAT GAP BY CLASSIC

Classic has completed 6 separate drilling campaigns at Kat Gap prior to the most recent RC drilling program. A total of 106 holes for 7.811m was completed between May 2018 and August 2019 all returning significant high-grade gold intercepts. The majority of the drilling is relatively shallow, down to approximately 60m vertical depth below surface and covered a strike length of the granite – greenstone contact of approximately 400m. The main area of drilling has been focused primarily on and adjacent to both contacts of a cross-cutting Proterozoic dyke where it intersects the main granitegreenstone contact. At this location the gold mineralisation has been significantly enriched.

Better results from the first six drilling programs include:

•	8m @ 19.05 g/t Au	from 32m	including 4m @ 28.80 g/t Au	in FKGRC008
•	12m @ 7.52 g/t Au	from 39m	including 2m @ 20.20 g/t Au	in FKGRC006
•	12m @ 5.39 g/t Au	from 30m	including 1m @ 20.80 g/t Au	in FKGRC012
•	10m @ 30.78 g/t Au	from 28m	including 2m @ 116.10 g/t Au	in FKGRC018
•	10m @ 4.18 g/t Au	from 26m	including 1m @ 15.10 g/t Au	in FKGRC022
•	9m @ 8.08 g/t Au	from 95m	including 1m @ 62.30 g/t Au	in FKGRC025
•	3m @ 38.33 g/t Au	from 21m	including 1m @ 111.00 g/t Au	in FKGRC039
•	5m @ 5.61 g/t Au	from 6m	including 1m @ 12.00 g/t Au	in FKGRC040
•	3m @ 14.10 g/t Au	from 10m	including 1m @ 37.40 g/t Au	in FKGRC042
•	3m @ 9.64 g/t Au	from 20m	including 1m @ 25.10 g/t Au	in FKGRC043
•	10m @ 8.17 g/t Au	from 7m	including 1m @ 66.20 g/t Au	in FKGRC059
•	7m @ 24.34 g/t Au	from 24m	including 1m @ 78.50 g/t Au	in FKGRC060
•	9m @ 15.21 g/t Au	from 22m	including 1m @ 58.30 g/t Au	in FKGRC061
•	7m @ 9.55 g/t Au	from 89m	including 1m @ 42.40 g/t Au	in FKGRC063
•	13m @ 4.91 g/t Au	from 33m	including 1m @ 22.00 g/t Au	in FKGRC090
•	8m @ 8.26 g/t Au	from 58m	including 1m @ 21.80 g/t Au	in FKGRC092
•	9m @ 20.94 g/t Au	from 123m	including 1m @ 125.00 g/t Au	in FKGRC095

2 ABOUT THE FORRESTANIA GOLD PROJECT

The FGP Tenements (excluding Kat Gap) are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd (ASX:HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans has maintained its 20% interest in the gold rights. For the avoidance of doubt Classic Ltd owns a 100% interest in non-gold rights on the Kat Gap Tenements including but not limited to nickel, lithium and other metals.

The FGP contains an existing Mineral Resource 6.18 Mt at 1.36 g/t for 270,100 ounces, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2nd May 2017) suggesting both the technical and financial viability of the project. The current post-mining Mineral Resource for Lady Ada and Lady Magdalene is tabulated below.

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ASX Announcement

09 January 2020

Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table as attached to ASX announcement dated 18[th] December 2019 .

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On behalf of the board,

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Dean Goodwin CEO

Classic Minerals Limited

Phone: (08) 6305 0221 Address: 71 Furniss Road, Landsdale WA 6065 Postal: PO Box 1318, Wangara DC WA 6947 Website: www.classicminerals.com.au Email: contact@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 Dean Goodwin, a Competent Person who is a Member of the Australian Institute of Geoscientists (AIG). Mr Goodwin is a consultant exploration geologist with Reliant Resources Pty Ltd and consults to Classic Minerals Ltd. Mr. Goodwin 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. Goodwin 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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