CLASSIC MINERALS LTD — Interim / Quarterly Report 2015

Oct 23, 2014

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ACN 119 484 016
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corporate structure

Quarterly report September 2014

ASX Codes: CLZ, CLZO AbN: 77 119 484 016

total Number of Shares on Issue: 266,181,395 shares

total Number of Options: 101,137,607 Options (listed) Exercisable on or before 30/06/2015 13,591,667 Options (unlisted) $0.10 Options exercisable on or before 31/12/2015

Last Sale: $0.023 per share (as at COB 23 October 2014)

Quarterly activities report: september 2014

Highlights:

• All targets identified in the previous quarter’s Sub Audio Magnetic EM (SAM EM) survey were pre-collared by RC drilling, with five of the holes diamond core drilled.

• Program involved 7 RC/core holes drilled for 1,060.85m and 5 NQ2 diamond core tails for 981.95m

BOARD & MANAGEMENT

Justin Doutch, managing Director Stanislaw procak, Non-executive Director Kent Hunter, Non-executive Director Jeffrey Nurse, Company Secretary

ABOUT CLASSIC MINERALS

Classic minerals (ASX: CLZ) is a perthbased mineral exploration Company focused on advancing its Fraser range project e28/1904, in Western Australia. the Fraser range project is approximately 40km northeast of Sirius resources’ NL (ASX: SIr) Nova and bollinger nickel-copper discoveries, and has historic nickel-copper-zinc soil anomalies.

CONTACT

Level 1, 7/30 Hasler road Osborne park WA 6017 pO box 487, Osborne park WA 6917

phone: 08 94453008 Fax: 08 92428295

Web: www.classicminerals.com.au email: admin@classicminerals.com.au

• All diamond core intersected disseminated sulphide mineralisation, mainly pyrrhotite, at the target depths interpreted from the earlier SAM EM survey, validating the use of this geophysical tool at Fraser Range

• At target A17, deep drilling to 400m intersected disseminated sulphides, mainly pyrrhotite, at the predicted depth

• Drilling at SAM1 conductor target, 1km NE along strike from the Alpha copper deposit, intersected disseminated and semi-massive sulphides from 389.66m to 394.13m, with a 1.29m at 0.91% copper interval of semi-massive sulphides reported from 389.66m

• A topographic survey was undertaken at Alpha copper deposit to assist in planning future drilling.

• A detailed survey using a DGPS system accurate down to 20cm was utilised to pick up all the drillhole collars at the Fraser Range Project, Cowarna Rocks Hematite project and Doherty’s Gold project to assist in planning future drilling programs and the potential resumption of mining operations at Doherty’s.

• Rock chip sampling was undertaken in an area 3km by 1.5km at the Fraser Range Project, identified from calcrete sampling by earlier workers, with 63 samples taken for analysis for gold, and base metals.

INVESTOR RELATIONS

WArD HOLt public relations Consultants 0412 905 423

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ACN 119 484 016
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Quarterly report September 2014

Summary

the Fraser range drilling program carried out during the quarter has produced promising early results, intersecting sulphide mineralisation at the majority of targets. Importantly, it has also confirmed the validity of the earlier SAm em survey on which the drilling program was predicated, providing confidence for further use of this geophysical tool on the Fraser range project.

A key outcome of the program was the more accurate definition of future targets, enabling company resources to be more focused in future drilling programs. Importantly, this will also free up resources for the potential development of Classic’s Cowarna rocks Hematite and Doherty’s Gold projects.

managing Director of Classic minerals, mr. Justin Doutch, stressed that the company’s main focus would continue to be the development of its exciting Fraser range asset, but it would now also be investing some resources in the development of its other projects, in particular Doherty’s Gold, which has the potential to generate a future revenue stream.

“Our first year of active exploration has been spent better defining targets in the Fraser range project, and proving up our exploration methodologies, and I’m delighted with the substantial progress we have made in that direction,” he said.

“We are very excited at the prospects for the next stage of our drilling program at Fraser, we are awaiting further Geophysics and interpretation to be undertaken in November and drilling will commence shortly after”.

“However, while Fraser range is still very much the name of the game for us, we believe we have fine-tuned our activities there to the point where we can begin to direct some of our energies elsewhere”.

“In particular, we are very keen to pursue the potential of the Doherty’s Gold project. We’ll be drilling additional holes to enable us to define a mineral resource under the 2012 JOrC reporting Code and carrying out a feasibility study into the potential for an open cut mining operation.

Drilling of 6 SAM Targets at Fraser Range

the deep seeking Sub Audio magnetic (SAm) em survey identified 6 deep conductor targets at e28/1904 Fraser range during the June Quarter, and these targets were drilled by rC/ core drilling during the September quarter.

SAm 1 target 1.2km along strike from Alpha copper deposit was drilled as rC with a diamond core tail and intersected disseminated sulphides from 389.66m to 394.13m, with a 1.29m at 0.91% copper interval of semi-massive sulphides reported from 389.66m. See Figure 1.

the SAm 1 target is interpreted by consultant geophysicists as a shallow west dipping conductor plate 450m by 450m, and the first hole was positioned to intersect the centre of this plate. the hole ended at 454.9m, and a downhole em survey (DHem) will be conducted in the next few weeks to allow the conductor to be more accurately defined, prior to follow up drilling.

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Figure1: SAM-1 Conductor Plate Model (Initial hole FRDH006, intersected semimassive sulphides 1.3m at 0.9% Cu)

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Quarterly report September 2014

the drilling into the SAm targets A15West, A15east, A17, SAm3 and SAm2 was also undertaken with disseminated sulphides intersected at the target zones for A15 west and east and at A17, where two holes were drilled 200m apart along strike. the analysis results for these disseminated sulphide zones were anomalous for Copper and Zinc (see ASX announcement 18th September 2014). See Vtem Figure 2.

Drilling at SAm 3 intersected clay to 45m and then gneiss to 94m, and was abandoned as a spurious target, as suspected.

SAm 2 was pre-collared to 134m by rC, and then halted to allow a DHem survey to be undertaken to better define the diffuse target. this hole remains to be completed by diamond drilling.

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Figure 2: Image shows SAM Electromagnetic conductor targets in the “Hot Zone” of Fraser Range E28/1904

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Quarterly report September 2014

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Figure 3: Image shows southern SAM Conductor targets A15 West And A15 East with diamond hole locations

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Quarterly report September 2014

Rock Chip Sampling and Mapping at Nickel/Copper/Zinc Anomaly at Fraser Range

Historical calcrete geochemical sampling conducted by GSWA, Homestake and Geographe resources identified a zone of anomalous Ni/Cu/ Zn near the centre of the project area. the area of interest is 3km by 1.5km, and has areas of outcrop as well as areas covered by shallow sand cover. See Figure 4.

A program of rock chip sampling and mapping was undertaken during September, with 63 samples taken for analysis for gold, and base metals. these samples have been submitted to for analysis and results are awaited. bedrock sampling in areas of transported sand cover will under taken by Aircore drilling on a 200m by 200m grid pattern and analysed for gold and base metals.

Of significance were two large areas of outcrop of mafic rocks in an area previously considered to be largely metasediments, now metamorphosed to gneiss. the mafic rocks are in an area which shows a weak northeast trending linear feature on aeromagnetic imagery. two mafic rock samples are being submitted for mineralogical examination.

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Figure 4: Image shows the area of interest with Historical Ni Geochemistry

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COMPETENT PERSONS STATEMENT

the information in this report that relates to exploration results is based on information compiled by mr Andrew rust, who is a member of the Australasian Institute of mining & metallurgy. mr rust is employed by Shearwater Australia pty. Ltd who is a consultant to Classic minerals Ltd. mr rust has sufficient experience 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 rust consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Quarterly report September 2014

Detailed Hole Survey at all Projects

A detailed survey using a DGpS system accurate down to 20cm was utilised to pick up all the drill hole collars at the Fraser range project, Cowarna rocks Hematite project and Doherty Gold project. this will enable all the holes to be accurately plotted, and plans and sections prepared for reporting and to assist in planning follow up drilling.

A topographic survey was undertaken at Alpha copper deposit to assist in planning future drilling. A topographic survey was also completed over the historical Doherty gold mine to assist in planning future holes, and the potential planning of an open cut pit.

Doherty Database

the historical data for the old gold mines at Doherty’s, and the exploration data for drill holes and mapping has been acquired and is being compiled into a computerised database. this will allow any gaps in the data for the mineralisation to be identified, and holes planned to infill and extend the known mineralization.

Gold mineralization at Doherty’s occurs in north trending, flat easterly dipping quartz filled shears, which are interpreted to have developed on anticlinal fold limbs and closures that plunge at 30° to the northwest. the high grade quartz vein has been largely stoped out from the main shaft, down to the 4 level at about 50m depth, but diamond core intercepts of the quartz vein beyond this level demonstrates the continuity of narrow high grade quartz veining with a best recorded intercept of 1.55m down hole (hole vertical, therefore not true thickness) at 82g/t Au.

Additional holes will be drilled where necessary to delineate the plunging mineralisation up to a crosscutting fault which offsets the mineralisation. the database will be used to prepare a 3D wire frame model of the mineralisation, with a resource in accordance with the 2012 JOrC code being calculated by independent resource consultants.

A feasibility study will be undertaken with a view to undertaking mining operations. the ore could potentially be treated with a small mill erected at site, or trucked up to 100km to nearby mills for treatment. this could potentially result in gold production and future cash flow to the company.

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Justin Doutch managing Director phone: 08 94453008 justin@classicminerals.com.au

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