FOCUS MINERALS LTD — Capital/Financing Update 2014

Oct 7, 2014

Level 2, 159 Adelaide Terrace East Perth WA 6004 PO Box 3233 East Perth WA 6892 T: +61 8 9215 7888 F: +61 8 9215 7889 E: info@focusminerals.com.au

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ASX ANNOUNCEMENT

8 October 2014

Focus Minerals Hits High Grade Gold at Bonnie Vale (including 5 metres at 17.8g/t)

Focus Minerals Ltd (ASX: FML) has successfully completed Stage 2 drilling of Bonnie Vale in Coolgardie, Western Australia. Stage 2 involved eleven RC holes for a total of 2,563m (Figure 1). Highlight results include hole BONC053, located in the central southeast of the area, which returned 5.0 meters at 17.8 g/t gold.

The purpose of Stage 2 was to test the potential of additional mineralisation down-dip and along strike of the main mineralised structures and follow up the significant intersections drilled in Stage 1 earlier this year, which included 6.0m @ 9.45 g/t in BONC035 and 6.0m @ 7.12 g/t in BONC033 (released to the ASX on 30 July, 2014).

Highlight Intersections from Bonnie Vale Stage 2*

• 1.0m @ 8.03 g/t Au from 192m in BONC045

• 2.0m @ 38.5 g/t Au from 95m in BONC046

• 1.0m @ 24.1 g/t Au from 58m in BONC047

• 2.0m @ 9.38 g/t Au from 92m in BONC050

• 4.0m @ 4.59 g/t Au from 100m in BONC052

• 5.0m @ 17.8g/t Au from 128m in BONC053

*Other significant intersections are presented in Table A below

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Figure 1 Bonnie Vale Drill Hole Locations

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Stage 1 drilling intersected quartz reefs with high grade gold mineralisation (ASX 30 July, 2014), Stage 2 confirmed the gold mineralisation extends down dip (Figure 2) and along strike, particularly the quartz reef intersected by BONC033 during the Stage 1 drilling. The mineralisation remains open in both directions.

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Figure 2: Bonnie Vale Cross Section (Facing Northwest)

Wanghong Yang, Interim CEO of Focus, commented “the strong results from this stage of drilling are particularly impressive in both the width and grade of the high-grade intervals. We are highly encouraged by these results and will continue to further define the economic extent of this reef”

Focus is currently planning additional drill holes to test the size and grade of the quartz reefs delineated in Stages 1 and 2 of the Bonnie Vale exploration campaign completed this year.

For further information please contact:

Dane Etheridge Andrew Paterson Company Secretary and GM Business Development GM Exploration & Resource Development Focus Minerals Ltd Focus Minerals Ltd Phone: +61 8 9215 7888 Phone: +61 8 9215 7888

Focus Minerals Limited - Focus owns two large gold projects in Western Australia’s Eastern Goldfields. The company is the largest landholder in the Coolgardie Gold Belt, where it owns the 1.2Mtpa processing plant at Three Mile Hill. 250km to the northeast Focus has the Laverton Gold Project which comprises a significant portfolio of highly prospective tenure. Focus also owns the 1.45Mtpa Barnicoat mill in Laverton which has been on care and maintenance since 2009.

Forward Looking Statements

This release contains certain “forward looking statements”. Forward-looking statements can be identified by the use of ‘forward-looking’ terminology, including, without limitation, the terms ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘predicts’, ‘intends’, ‘plans’, ‘propose’, ‘goals’, ‘targets’, ‘aims’, ‘outlook’, ‘guidance’, ‘forecasts’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future, assumptions which may or may not prove correct, and may be beyond Focus’ ability to control or predict which may cause the actual results or performance of Focus to be materially different from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions and contingencies and are not guarantees or predictions of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Similarly, no representation is given that the assumptions upon which forward-looking statements may be based are reasonable. Forward-looking statements speak only as at the date of this document and Focus disclaims any obligations or undertakings to release any update of, or revisions to, any forward-looking statements in this document.

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Table A: Significant Intersections

Hole ID	Easting	Northing	RL	Depth	Dip	Azimuth	From	To	Intersection
	(MGA 94 Zone 51)			(m)		(MGA94)	(m)	(m)	(ppm Au)
		BONNIE		VALE, COOLGARDIE GOLD PROJECT
BONC047	324286	6584243	389	222	-59.8	227	58	59	1m@24.1ppm
						And	166	167	1m@1.18ppm
BONC053	324370	6584134	386	160	-59.6	225	51	52	1m@2.81ppm
						And	83	84	1m@5.45ppm
						And	128	133	5m@17.8ppm
BONC049	324133	6584384	389	246	-60.1	225	119	120	1m@2.00ppm
BONC051	323969	6584491	393	264	-60.7	222	221	222	1m@4.63ppm
BONC052	323871	6584622	391	312	-61.1	225	100	104	4m@4.59ppm
BONC050	324015	6584408	390	294	-89.3	90	92	94	2m@9.38ppm
BONC048	324177	6584351	388	261	-61.3	225	134	135	1m@1.02ppm
						And	217	218	1m@1.80ppm
BONC046	324305	6584132	387	191	-59.3	224	60	62	2m@1.50ppm
						And	67	68	1m@1.35ppm
						And	74	76	2m@1.13ppm
						And	95	97	2m@38.5ppm
BONC045	324395	6584213	385	223	-60.1	222	74	75	1m@1.49ppm
						And	85	86	1m@3.84ppm
						And	115	117	2m@2.14ppm
						And	192	193	1m@8.03ppm
BONC044	324368	6584048	371	162	-59.7	221	4	5	1m@1.03ppm

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Coolgardie Gold Project	This report relates to results for Reverse Circulation (RC) drilling of Focus Minerals Coolgardie area. The summary table below lists metres drilled by drill type. RC percussion drill chips were collected through a cyclone and cone splitter. Samples were collected on a 1m basis. 4m composite samples were collected manually using spear sampling. In total 11 RC holes were drilled for 2,563 meters
	RC chips were passed through a cone splitter to achieve a sample weight of approximately 3kg. The splitter was levelled at the beginning of each hole using a bullseye level. Any RC composite samples returning an assay value of 0.2g/t Au or greater were then re-assayed in 1m intervals by submitting the 1m cone-split samples for fire assay by 40g charge.

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	At the assay laboratory all samples were oven dried, crushed to a nominal 10mm using a jaw crusher (core samples only) and weighed. Samples in excess of 3kg in weight were riffle split to achieve a maximum 3kg sample weight before being pulverized to 90% passing 75µm. The samples were then prepared for fire assay.
	When visible gold was observed in RC chips, this sample was then flagged by the supervising geologist for the benefit of the laboratory.
Drilling techniques	All drilling was completed using an RC face sampling hammer All holes were surveyed upon completion of drilling using a north-seeking gyroscope and all holes were surveyed open-hole.
Drill sample recovery	RC sample recovery was recorded by a visual estimate during the logging process.
	All RC samples were drilled dry whenever possible to maximize recovery, with water injection on the outside return to minimise dust.
	Study of sample recovery versus gold grade does not indicate a bias in the gold grade caused by any drop in sample recovery.
Logging	All RC samples were geologically logged to record weathering, regolith, rock type, colour, alteration, mineralisation, structure and texture and any other notable features that are present. The logging information was recorded into acQuire software format using a Toughbook notepad and then transferred into the company’s drilling database once the log was complete.
	Logging was qualitative, however the geologists often recorded quantitative mineral percentage ranges for the sulphide minerals present. Samples from RC holes were archived in standard 20m plastic chip trays.
	The entire length of all holes are logged.
Sub-sampling techniques and sample preparation	RC samples were cone split to a nominal 2.5kg to 3kg sample weight. The drilling method was designed to maximise sample recovery and delivery of a clean, representative sample into the calico bag. Where possible all RC samples were drilled dry to maximise recovery. The use of a booster and auxiliary compressor provide dry sample for depths below the water table. Sample condition was recorded (wet, dry or damp) at the time of sampling and recorded in the database.
	The samples were collected in a pre-numbered calico bag bearing a unique sample ID. Samples were crushed to 75µm at the laboratory and riffle split (if required) to a maximum 3kg sample weight. Gold analysis was determined by a 40g charge fire assay with an AAS Finish The difference in fire assay charge size was simply due to the use of two different commercial laboratories during the drilling campaign.
	The assay laboratories’ sample preparation procedures follow industry best practice, with techniques and practices that are appropriate for this style of mineralisation. Pulp duplicates were taken at the pulverising stage and selective repeats conducted at the laboratories’ discretion.
	FML inserts 2 standards and takes 4 duplicates for every 100 samples.

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	Field duplicates were collected from the cone splitter on the rig for RC samples at a frequency of one duplicate every 20 samples, excluding the 100th sample as this was a standard. Regular reviews of the sampling were carried out by the supervising geologist and senior field staff, to ensure all procedures were followed and best industry practice carried out.
	The sample sizes were considered to be appropriate for the type, style and consistency of mineralisationencountered during this phase ofexploration.
	The assay method and laboratory procedures were appropriate for this style of mineralisation. The fire assay technique was designed to measure total gold in the sample.
Quality of assay data and laboratory tests	No geophysical tools, spectrometers or handheld XRF instruments were used.
	The QA/QC process described above was sufficient to establish acceptable levels of accuracy and precision. All results from assay standards and duplicates were scrutinised to ensure they fell within acceptable tolerances.
	Significant intervals were visually inspected by company geologists to correlate assay results to logged mineralisation. Consultants were not used for this process.
Verification of sampling and assaying	Normally if old historic drilling was present, twinned holes are occasionally drilled to test the veracity of historic assay data; however no twinned holes were drilled during this program.
	Primary data is sent in digital format to the company’s Database Administrator (DBA) as often as was practicable. The DBA imports the data into an acQuire database, with assay results merged into the database upon receipt from the laboratory. Once loaded, data was extracted for verification by the geologist in charge of the project.
	No adjustments were made to any current or historic data. If data could not be validated to a reasonable level of certainty it was not used in any resource estimations.
	Drill collars were surveyed after completion, using a DGPS instrument. Down-hole surveys were completed using a north-seeking gyroscope operated by a qualified contractor.
Location of data points	All coordinates and bearings use the MGA94 Zone 51 grid system.
	Focus utilises Landgate sourced regional topographic maps and contours as well as internally produced survey pick-ups produced by the mining survey teams utilising DGPS base station instruments.
	Drill spacing across the Coolgardie prospects varied depending on the exploration stage that the drill target currently existed. Drilling varied from wide spaced exploration RC drilling to precisely placed diamond tails designed to test mineralisation at depth and along strike.
Data spacing and distribution	The data spacing of the drilling across Focus’s prospects during this campaign was not considered sufficient to be used in a Mineral Resource; the majority of drilling was completed to establish continuity of mineralisation and alteration at depth. Intercepted mineralisation will be digitized and incorporated into existing models or to create new models as required.

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	Additional infill drilling will be required before this mineralisation can be used in the estimation of a Mineral Resource or Ore Reserve.
	Sample compositing has not been applied to the reporting of exploration results.
	Drilling was designed based on known geological models, field mapping, verified historical data and cross-sectional interpretation. Drill holes were oriented at right angles to the strike of the deposit, with dip optimised for drill capabilities and the dip of the mineralised body.
Orientation of data in relation to geological structure	No orientation and sampling bias has been recognised in the drilling data to date.
Sample security	Coolgardie Gold Project All samples were reconciled against the sample submission with any omissions or variations reported to FML. All samples were bagged in a tied numbered calico bag, grouped into green plastic bags. The bags were placed into cages with a sample submission sheet and delivered directly from site to the Kalgoorlie laboratories by FML personnel on a daily basis.
Audits or reviews	A review of sampling techniques was carried out by Roredata Pty Ltd in late 2013 as part of a database amalgamation project. Their only recommendation was to change the QA/QC intervals to bring them into line with the FML Laverton system, which uses the same frequency of standards and duplicates but has them inserted at different points within the numbering sequence.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project
Mineral tenement and land tenure status	All drilling was conducted on tenements 100% owned by Focus Minerals Limited or its subsidiary companies Focus Operations Pty Ltd. All tenements are in good standing. There are currently no registered Native Title claims over the Coolgardie project areas.
Exploration done by other parties	Bonnie Vale is the site of a number of historic workings including the “Varischetti Mine” (Westralia). Modern exploration has been conducted by Coolgardie Gold NL, Gold Mines of Coolgardie and Focus Minerals.
Geology	Bonnie Vale mineralisation is historically contained within large (300m strike length) planar reef structures on or near the contact of the Bonnie Vale tonalite and an overlying ultramafic unit. FML drilling is investigating potential extensions to these structures at depth and along strike.
Drillhole Information	Hole ID BONC043 BONC044 BONC045 BONC046 BONC047 BONC048	Easting	Northing	RL	Depth	Azimuth	Dip	Tenements M1500877 M1500595 M1500595 M1500595 M1500595 M1500595
		324522	6583936	386	228	220	-61	M1500877
		324368	6584048	371	162	221	-60	M1500595
		324395	6584213	385	223	222	-60	M1500595
		324305	6584132	387	191	224	-59	M1500595
		324286	6584243	389	222	227	-60	M1500595
		324177	6584351	388	261	225	-61	M1500595

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Criteria				Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project	Coolgardie Gold Project
		BONC049	324133	6584384	389	246	225	-60	M1500595
		BONC050	324015	6584408	390	294	90	-89	M1500595
		BONC051	323969	6584491	393	264	222	-61	M1500595
		BONC052	323871	6584622	391	312	225	-61	M1500595
		BONC053	324370	6584134	386	160	225	-60	M1500595
Data aggregation methods		Mineralised intersections are reported at a 1.00g/t Au cut-off with a minimum reporting width of 1m, reported as length-weighted average grades.
Relationship between mineralization widths and intercept lengths		Holes were drilled orthogonal to mineralisation as much as possible, however the exact relationship between intercept width and true width cannot be estimated exactly in all cases. Holes BNOC 050 drilled was drilled vertically due to site access issues associated with open pit geometries.
Diagrams		Accurate collar plans are included in this announcement. Representative cross sections are included to depict the attitude and style of mineralised structures.
Balanced reporting		Drilling results are reported in a balanced reporting style. The ASX announcement shows actual locations of holes drilled, and representative sections as appropriate. Holes shown on the collar location plan which are not reported in the table of significant intercepts did not intersect reportable mineralisation.
Other substantive exploration data		There is no other material exploration data to report at this time.
Further work		The company is designing drilling program to follow up results from Bonnie Vale

Competent Person’s Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Andrew Paterson who is a member of the Australasian Institute of Mining and Metallurgy. Mr Paterson is employed by Focus Minerals Limited and has sufficient experience that is 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 Paterson consents to the inclusion in this announcement of the matters based on the information compiled by him in the form and context in which it appears.

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