FOCUS MINERALS LTD — Capital/Financing Update 2018

Apr 26, 2018

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

27 April 2018

Laverton Exploration Update

Focus (ASX:FML, “the Company”, “Focus”) is pleased to provide an update on the Company’s recent activities at Laverton.

Highlights

All results from 2017 Laverton drill programs were received and reported on in the last Quarter of 2017. This enabled progress on a Maiden Resource Estimation for Karridale Announced to the ASX on 23 February 2018.

The JORC 2012 Karridale Mineral Resource is reported above a 0.6g/t cut-off and comprises:

• Indicated Resource 2.7Mt @ 1.5ppm au for 135,000 contained ounces

• Inferred Resource 10Mt @ 1.3ppm au for 403,000 contained ounces

• • Total Resource 12.7Mt @ 1.3ppm au for 538,000 contained ounces

Only FML holes drilled between 2013 and 2017 were used for the Maiden Karridale Resource Estimate. This drill database comprises 129 RC and 25 diamond holes for a total of 39,038m drilling.

The Karridale Resource is open along strike and down dip. In the March Quarter planning for Karridale extension drilling was progressed to develop an exploration plan for the remainder of 2018.

Project Update

Following drilling at Lancefield in September 2017 a review of the deposit is underway and will be completed in the second Quarter 2018.

A review of all Laverton historical mining and exploration targets is in progress to rank/plan drilling for the remainder of the year. The first pass ranking highlighted opportunities in the following areas:

Karridale – Burtville Extension - a +1.5km x +800m area with limited historical drilling and potential to host mineralisation similar to Karridale/Burtville;

Karridale Resource Infill - several areas that are up dip of high grade Karridale mineralisation and can be targeted with shallow to moderate depth drilling (Figure 1).

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Figure 1: Greater Karridale - Burtville Project Area (Red Dashed), Karridale Resource Area Reported to the ASX on 23/02/2018 (Black Cross Hatched), Historic Burtville Mine Area (Blue Hatched), Karridale-Burtville Extension Target (White Cross Hatched) , Karridale Infill Resource Drilling Target (Dark Stiple).

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Wedge to Lancefield North – four historic Western Mining/Ashton Mining oxide pits with potential for shallow to moderate depth gold mineralisation (Figure 2)

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Figure 2: Wedge South to Lancefield North Drill Target Area with contoured Max Au in Drill hole and outline of shallow historic pits

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Sickle South – the south end of the Sickle deposit hosts a relatively thick and high grade south dipping structure that links between the Barnicoat Structure and a SSE striking splay. This structure has limited exploration drilling due to historic sub-parallel oriented drilling. Despite being the major producer in the Sickle Pit this structure has had limited follow up drill testing (Figure 3).

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Figure 3: View NE Sickle Pit and Interpreted Drill target based on 0.5ppm au Cut off interpretation.

Beasely Creek – Relatively large historic Western Mining/Ashton Mining oxide pit with southern extension and potential to host open pitable gold mineralisation (Figure 4).

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Figure 4: View SW across Beasley Creek OP and Southern Beasley Creek with 3D contoured composite drill intersections greater than 1ppm Au Cut Off.

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Planned Work

Planning and detailed budgeting for exploration at Laverton is well underway.

Geological review of the Karridale – Burtville will commence in May. The review will comprise development of a geological model for applications in the wider Karridale – Burtville area. The model will be built from logging, petrology and geochmical sampling of completed Karridale holes in conjunction with mapping in the Burtville Pit. The results of this work will inform the planned programs in the wider Karridale – Burtville area.

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Figure 5: Planned work for 2018

RC drilling is expected to start in June 2018 and continue throughout the remainder of the year for about 25,000m. The final program design and ranking will be progressed in the second Quarter 2018 ahead of drilling.

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For further information please contact:

Zaiqian Zhang

Chief Financial Officer Focus Minerals Ltd Phone: +61 8 9215 7888

Alex Aaltonen

General Manager - Exploration Focus Minerals Ltd 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.

Competent Person’s Statement – Laverton Gold Project

The information in this announcement that relates to Exploration Results regarding the Laverton Gold Project is based on information compiled by Mr Jeff Ion, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Member of the Australian Institute of Geoscientists (AIG). Mr Ion holds shares in Focus Minerals Limited and is a director of Jeffrey Geo Pty Ltd, under contract to Focus Minerals Limited. Mr Ion has sufficient experience that is relevant to the style of mineralization 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 Ion consents to the inclusion in the announcement of the matters based on the information compile by him in the form and context in which it appears.

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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