EMMERSON RESOURCES LIMITED — Capital/Financing Update 2019

May 7, 2019

ASX Announcement

8 May 2019

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Placement completion and additional gold royalty payment funds further exploration success at Mauretania

Highlights

• Territory Resources completes the $1.0m second tranche placement in Emmerson at 10.35c per share

• Receipt of second payment of the 12% gold production royalty from processing of Edna Beryl ore

• Processing of the gravity concentrate from the first ore parcel mined at Edna Beryl is now in progress, with additional 12% royalty payments pending

• Mill head grade from first ore parcel at Edna Beryl averaged ~30g/t gold – making it one of Australia’s highest-grade producers

• First diamond hole at the 100% Emmerson owned Mauretania prospect has intersected hematite ironstone – typically the host to high-grade gold

Emmerson Managing Director Mr Rob Bills commented :

“The completion of the second tranche placement at a significant premium to our current share price is a strong sign of continued support from our strategic partner Territory Resources. This now completes the conditions subsequent to the previously announced Exploration and Small Mines Joint Venture over the Southern Project area of Emmerson’s Tennant Creek project.

“Toll treatment of the first 3,000t of ore from the Edna Beryl mine is nearing completion and Emmerson continues to receive a 12% royalty on all gold produced from the mining and processing funded by Territory. The processing of the gravity concentrate component from toll treating of the first parcel of ore from Edna Beryl is now underway and is expected to generate the majority of revenue from this campaign. Proceeds from the first royalty payment from CIL recovery are being used to undertake the first diamond drilling at our exciting 100% owned Mauretania discovery, and to fund further geophysical programs in the Tennant Creek Mineral Field.”

Placement

Territory’s completion of the second $1.0m tranche of the two tranche, $2.0m placement at 10.35c a share is at a ~60% premium to recent trading. 9,661,835 fully paid ordinary shares will be issued and the relevant Appendix 3B submitted to ASX as soon as practicable. The placement has been completed within Emmerson’s placement capacity under Listing Rule 7.1. This now satisfies the final conditions of both the Exploration Earn-In and Joint Venture and the Small Mines Joint Venture Agreements.

Emmerson Resources Limited ABN 53 117 086 745

t: +61 8 9381 7838 | e: admin@emmersonresources.com.au | w: www.emmersonresources.com.au 3 Kimberley St, West Leederville 6007 WA

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The Exploration and Mining Joint Ventures over the Southern Project Area (SPA) at Tennant Creek (Figure 1) aims to accelerate the discovery of new deposits or extensions to known areas of mineralisation, plus generate cash for Emmerson from a low risk royalty stream. Emmerson receives a 12% and 6% gross royalty on all gold produced from the Edna Beryl and Chariot mines respectively. The Company receives a 25% profit share from any other mine developed within the SPA, in exchange for Territory developing, mining and processing the gold (Figures 2 and 3).

The second royalty payment from the toll treatment of the first parcel of ore from Edna Beryl has now been received, bringing the total to date of ~$242k. The majority of the value from the processing of the first 3,000t parcel is anticipated from the processing of the gravity concentrate, which is now in progress.

Mauretania

Diamond drilling is underway at Emmerson’s 100% owned Mauretania project in the Northern Project Area at Tennant Creek (Figure 1). The first drill hole has intersected brecciated hematite ironstone in the oxide zone, which is geologically similar to the previous Reverse Circulation (RC) drilling where results (ASX 18 February 2019) included:

• 11m at 54g/t gold incl. 6m at 98.5g/t gold from 72m (MTRC034)

• 22m at 36g/t gold incl. 6m at 122g/t gold from 73m (MTRC031)

• 24m at 15.7g/t gold incl. 10m at 32.3g/t gold from 90m (MTRC032)

• 7m at 13.4g/t gold from 51m (MTRC027)

Three deep holes at Mauretania, designed to test the upper oxide and lower primary gold zones are being completed in the current program. Assay results from this drilling are expected in the current June quarter.

Exploration at Mauretania will also trial a relatively new geophysical technique (Sub-Audi Magnetics or SAM) to map the extent of the host to the mineralisation, which consists of sheared hematite and magnetite ironstones. SAM has been developed for simultaneously mapping electrical and magnetic responses. It is a high definition, ground based technique that has applications to shear hosted gold and copper, and in an early prototype, was successful in mapping out the shear hosted mineralisation at the Orlando copper-gold open pit (now owned by Evolution Mining).

In addition, SAM will also be applied to the Black Snake – Three Thirty area within the Southern Project Area. As these projects are greenfields in nature and the efficacy of the SAM technologies is largely unknown, application for 50% co-funding of this geophysical program has been lodged with the Northern Territory Government under their 2019 CORE initiative. The survey is expected to commence in the current June quarter and forms part of the Territory funded earn-in.

For further information, please contact:

Rob Bills

Managing Director and CEO E: rbills@emmersonresources.com.au T: +61 8 9381 7838

Media enquiries Michael Vaughan, Fivemark Partners E: michael.vaughan@fivemark.com.au T: +61 422 602 720

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About Emmerson Resources, Tennant Creek and New South Wales

Emmerson is fast tracking exploration across five exciting early-stage gold-copper projects in NSW, identified (with our strategic alliance partner Kenex Limited) from the application of 2D and 3D predictive targeting models – aimed at increasing the probability of discovery. The highly prospective Macquarie Arc in NSW hosts >80Mozs gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson’s five exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain underexplored due to historical impediments, including overlying cover (farmlands and younger rocks) and a lack of exploration. Kadungle is a JV with Aurelia Metals covering 43km[2] adjacent to Emmerson’s Fifield project.

In addition, Emmerson has a commanding land holding position and is exploring the Tennant Creek Mineral Field (TCMF), one of Australia’s highest-grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot, and Golden Forty. These highgrade deposits are highly valuable exploration targets, and to date, discoveries include high-grade gold at Edna Beryl and Mauretania, plus copper-gold at Goanna and Monitor. These are the first discoveries in the TCMF for over two decades.

Emmerson recently announced the formation of a strategic alliance with Territory Resources to build a central mill in Tennant Creek to support the processing from Emmerson’s small gold mines and other third-party feed. This alliance also extends to a $5m earn-in by Territory Resources over Emmerson’s southern tenements (where ERM is the Operator and Manager) plus a Mining Joint Venture over a portfolio of Emmerson’s small mines that is on a 75/25 profit share basis, except for the Edna Beryl and Chariot mines which respectively have a 12% and 6% gold production royalty.

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.

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 plus a geophysical survey to improve the 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.

Competency Statement

The information in this report which relates to Tennant Creek Exploration Results is based on information compiled by Mr Steve Russell BSc, Applied Geology (Hons), MAIG, MSEG. Mr Russell is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition and the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell is a full-time employee of the Company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Emmerson Resources Limited’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "expect," "intend," "may”, "potential," "should," and similar expressions are forward-looking statements. Although Emmerson believes that its expectations reflected in these forwardlooking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that further exploration will result in the estimation of a Mineral Resource.

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Figure 1: Location of Emmerson’s tenement 100% package (blue) and recently completed drill program targets (yellow dots). The above exploration results were reported in ASX Announcement dated 18 February 2019 and there is no new information or data that materially affects the information included in those previous announcements.

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Figure 2 . Edna Beryl Royalties benchmarked against the global Royalties from leading Royalty companies

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Figure 3 . Edna Beryl Royalties benchmarked against the global Royalties from leading Royalty companies

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