EMMERSON RESOURCES LIMITED — Capital/Financing Update 2016

Mar 2, 2016

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ASX Announcement

ASX: ERM

ABN: 53 117 086 745

3 March, 2015

New Gold-Copper Projects

• Application of ‘Big Data’ through the use of proprietary predictive targeting methodology identifies new gold and copper-gold projects in the highly endowed Lachlan Fold belt of NSW.

• Strategic alliance with Kenex continues to deliver compelling opportunities through applying predictive geological inputs that have captured 56 mozs of gold (from a total known endowment of 59 mozs of gold).

• New tenement applications over district scale epithermal gold-silver and porphyry copper-gold targets that have similar tectonic, geological, geophysical and geochemical addresses to known resources but remain under explored – further projects to be announced.

• Emmerson pro-actively taking advantage of the current market downturn to secure new high calibre projects for a modest capital outlay.

• Emmerson remains well funded going into 2016 with ~$5.6m in available cash and the JV over our Tennant Creek project funded by Evolution Mining.

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New Projects

Emmerson Resources Limited (“Emmerson”, ASX: ERM) is pleased to announce the first batch of targets from the previously announced strategic alliance with Kenex Limited (ref ASX release 27 August 2015). Kenex are highly regarded, global experts in providing predictive targeting models from “big geoscientific data sets” (figure 1). These targets and initial tenement applications capture some of the highest ranking areas that occur on “open ground” and that share most if not all of the attributes that are present within the larger gold and copper-gold deposits within the Lachlan Fold Belt such as Cadia, Ridgeway, Cowal etc.

The first four district scale targets occur near Wellington, Parkes, Temora and Fifield (figure 2), collectively constituting some 768km[2] in area and ranking highly with respect to the predictive targeting model for both epithermal gold-silver and porphyry copper-gold. Some of these targets contain historical workings and or previous exploration which support the Kenex predictive work. The first phase of data compilation and evaluation is underway as the applications proceed towards grant.

These applications are consistent with the Emmerson strategy of systematically picking up large, district scale opportunities where the probability of discovery is maximised yet is at comparatively low cost by virtue of the current downturn in exploration/resource cycle – these new opportunities will be explored by ERM or possibly in joint venture with other interested parties.

Emmerson Managing Director, Mr Rob Bills commented, “ the first batch of targets from the strategic alliance with Kenex are underpinned by a very rigorous process of identifying the key elements that pinpoint world class mineralisation in the Lachlan Fold Belt. Kenex are experts in this field, having produced similar products in over 20 countries/regions around the world including in Oman (for VMS mineralisation), New Zealand (epithermal gold) and more locally, at our Tennant Creek Project in the Northern Territory, and the emerging Tampia gold deposit in the Narembeen area of Western Australia.

Thus we are confident that this innovative approach and investment in area selection will produce high quality projects and eventually mines. Further targets, both on open and held ground are currently being assessed in the Cloncurry IOCG province and southern Queensland. We anticipate undertaking the first phase of exploration this year over a number of these targets and in parallel, have received interest from a number of larger companies that understand the science behind this innovative approach to targeting. “

Kenex’s Managing Director, Dr Greg Partington added: “ For Kenex, this strategic alliance goes a long way to meeting the goals and ambitions that we set ourselves as a company over the last few years. The prospectivity and targeting we have been developing is a much undervalued process and will deliver industry leading advantages to the alliance. We have long believed in this approach for our own business, and it is in no small part the result of developing and maintaining our own dedicated

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and skilled technical team. Coupling this with the capability of the highly regarded Emmerson exploration team, provides an exciting future for both companies.”

Investor Enquiries: Mr Rob Bills Managing Director & Chief Executive Officer Tel: +61 8 9381 7838 www.emmersonresources.com.au

About Tennant Creek and Emmerson Resources

The Tennant Creek Mineral Field (TCMF) is one of Australia’s highest grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from a variety of deposits including Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty, all of which are within Emmerson Resources (ASX: ERM) exploration and joint venture portfolio. These deposits are considered to be highly valuable exploration targets and, utilising modern exploration techniques, Emmerson has been successful in discovering copper and gold mineralisation at Goanna and Monitor in late 2011, the first discoveries in the TCMF for over a decade. To date, Emmerson has only covered 5.5% of the total tenement package (in area) with these innovative exploration techniques and is confident that, with further exploration, more such discoveries will be made.

Emmerson holds 2,500km[2] of ground in the TCMF, owns the only gold mill in the region and holds a substantial geological database plus extensive infrastructure and equipment. Emmerson has consolidated 95% of the highly prospective TCMF where only 8% of the historical drilling has penetrated below 150m.

Emmerson is led by a board and management group of experienced Australian mining executives including former MIM and WMC mining executive Andrew McIlwain as non-executive chairman, and former senior BHP Billiton and WMC executive Rob Bills as Managing Director and CEO.

Pursuant to the Farm-in agreement entered into with Evolution Mining Limited (Evolution) on 11 June 2014, Evolution is continuing to sole fund exploration expenditure of $15 million over three years to earn a 65% interest (Stage 1 Farm-in) in Emmerson’s tenement holdings in the TCMF. An option to spend a further $10 million minimum, sole funded by Evolution over two years following the Stage 1 Farm-in, would enable Evolution to earn an additional 10% (Stage 2 Farm-in) of the tenement holdings. Evolution must spend a minimum of $7.5 million on exploration, or pay Emmerson the balance in cash, before it can terminate the farm-in. Emmerson is acting as manager during the Stage 1 Farm-in and is receiving a management fee during this period. Exploration expenditure attributable to the Stage 1 Farm-in to date is approximately $8.1 million.

About Kenex

Kenex is a Wellington and West Australian based company which was established in 2002 to provide GIS and exploration services and advice for the exploration and mining industries in Australia and New Zealand. Over the last 10 years, we have broadened our international experience through involvement with projects and clients in the Middle East, Africa, Scandinavia, Asia-Pacific and Latin America. Kenex is a group of highly motivated research professionals who have more than 85 years of combined experience and knowledge in exploration and mining, locally (New Zealand/Australia) and abroad, including the Solomon

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Islands, Africa, Papua New Guinea, Asia and Latin America. We also have growing expertise in the marine minerals sector.

Kenex specialise in predictive modelling for minerals (2D and 3D) where it is at the forefront of providing these services to businesses to generate targets with the greatest geological potential in relation to the mineral system being evaluated. This delivers to our client’s outcomes which can be used for a variety of purposes including regional evaluation of a mineral belt, identification of opportunities for acquisition, the tools for effective exploration work programme planning and in the case of predictive 3D modelling, drill hole targeting.

Under the alliance, Emmerson will hold the exclusive rights to any new targets identified for a period of 12 months and may, through a modest payment to Kenex, acquire full exclusivity. Kenex can earn up to a 10% interest in any tenements acquired as part of the alliance upon achieving certain predetermined milestones, with exploration costs shared proportionally.

Regulatory Information

The Company does not suggest that economic mineralisation is contained in the untested areas, the information contained relating to historical drilling records have been compiled, reviewed and verified as best as the Company was able. As outlined in this announcement the Company is planning further drilling programs to understand the geology, structure and potential of the untested areas. The Company cautions investors against using this announcement solely as a basis for investment decisions without regard for this disclaimer.

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Figure 1: Graphical representation of a prospectivity model

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Figure 2: Location of the first batch of target areas

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