FOCUS MINERALS LTD — Capital/Financing Update 2019

Aug 12, 2019

12 August 2019

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ASX Announcement

Coolgardie Regional Exploration Update

West Australian gold explorer Focus Minerals ( ASX: FML ) ( Focus or the Company ) is pleased to announce results of RC drilling completed in the June quarter at its Coolgardie Gold Project ( Coolgardie Project ).

The drilling program, carried out in the last quarter, was part of the Company’s ongoing exploration efforts to maintain and add value to the Coolgardie Project, which is subject to an Exclusivity Deed[1] with Intermin Resources (ASX: IRC), now known as Horizon Minerals Ltd (ASX: HRZ) ( Horizon ).

Under the terms of the proposed sale of the Coolgardie Project to Intermin, Focus will receive A$40 million in cash and Horizon shares payable over 3.5 years ( Proposed Transaction ). Both Horizon and Focus remain fully committed to the Proposed Transaction and are in the process of securing the necessary approvals and finalising the documentation.

The latest results of Focus’ RC drilling at the Coolgardie Project returned the following significant intersections calculated with 0.5g/t Au cut off and up to 2m internal dilution:

• Dolerite NW prospects Emu Hill and Ada including: ▪ 19ADRC002 – 5m @ 2.58g/t from 58m

• 19EMRC001 – 6m @ 1.65g/t from 57m

• Nepean along more than 800m N-S strike including:

• 19NPRC004 – 1m @ 5.23g/t from 28m

• 19NPRC001 – 1m @ 1.08g/t from 81m

• Jolly Britton prospect:

• 19JBRC008 – 1m @ 1.0g/t from 43m

• 19JBRC010 – 2m @ 1.98g/t from 65m

• Garden Gully prospect:

▪ 19GGRC001 – 1m @ 2.27g/t from 25m

Commenting on the latest significant intercepts at the Coolgardie Project, Focus Minerals CEO, Mr Zhaoya Wang, said:

“The drilling at Dolerite NW has extended the strike of shallow gold mineralisation at both ADA and Emu Hill. In addition, a very large gold in soils anomaly at Nepean has been validated by recent wide spaced RC.

We realise those targets would still require a significant amount of time and effort to determine whether they are commercially viable. However, Focus is pleased to potentially preserve the upside by holding a substantial amount of Horizon’s shares, should the Proposed Transaction completes.”

1 See ASX announcements on 11 February 2019 and 02 July 2019.

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Figure 1: Location of drilling completed at the Coolgardie Projects in the first half of 2019. Nepean project tenements are highlighted green. Dolerite NW project area tenements are highlighted blue. Other focus tenements are coloured yellow. Significant results have been calculated using 0.5g/t cut off and up to 2m internal dilution.

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Dolerite NW Project Area
3 Mile Sill
Dolerite
2km
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Figure 2: Plan view Dolerite NW tenements (blue outline) that are located 7.5 km NW of Coolgardie townsite and host more than 8.5km strike of prospective 3 Mile Sill geological units (green polygons). The same units and sheared geological contacts host numerous open pits within Focus’ Coolgardie tenement package.

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Dolerite NW can be accessed by several roads including the Geordie Hills Rd, North Rd and Powerline access tracks (Figures 1and 2). Historical drilling on the tenements is limited and highly clustered. However, historical mining activity is extensive with numerous shafts, costeans and exposed stopes primarily targeting shears/veins located along the geological contacts of the 3 Mile Sill.

The 3 Mile Sill has been folded at Dolerite NW, developing an ENE plunging NNW verging antiform. The antiform is overprinted by a series of spaced NE-striking and SE-dipping cross faults with apparent dextral throw.

Historical gold mining predominantly targets the contact between dolerite and gabbro units of the 3 Mile Sill. The dips of the historical workings are quite variable and follow the folded geology. Typical exposed mined widths of veins and associated shears are 0.5m to +5m with strikes exceeding 250m (Figure 3).

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Emu Hill Shaft Ada East Exposed Stopes
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Figure 3: View south of shaft at Emu Hill and view of NW open stopes at Ada East

Much of the prospective Dolerite NW stratigraphy has been covered by 40m x 40m auger soils geochemistry. The soils highlight several +500m strike anomalies (Figure 4) that exceed 40ppb gold with peak values exceeding 200ppb gold.

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2km
18MYRC002
18MYRC003
18EMRC001
18MYRC001 18ADRC001
18ADRC002
18ADRC003
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Figure 4: Plan view summary of 2018 and 2019 drilling at Dolerite NW prospects with significant soil Au anomalies highlighted by orange polygons. 2018 drilling comprised: 3 x RC for 512m at Mystery Mint, 1 x RC for 170m at Emu Hill, 3 x RC for 434m at Ada East. 2019 drilling comprised 1 x RC for 120m at Emu Hill, 4 x RC for 522m at Ada West/East, 11 x RC for 924m at Jolly Britton.

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Mystery Mint

The 2018 drilling at the Mystery Mint prospect comprised three widely spaced TC holes for 512m (Figure 4). Results from the campaign were not encouraging, recording only two intersections exceeding 0.3g/t:

• 18MYRC001 1m @ 0.78g/t Au from 47m

• 18MYRC002 2m @ 0.38g/t from 148m

Emu Hill

One RC hole was drilled at Emu Hill in 2018, targeting an outcropping E-W striking vein/shear near a cross cutting NW striking fault. The results from the campaign, using a 0.5g/t Au cut off and up to 2m internal dilution, were encouraging and included:

• 18EMRC001 – 6m @ 2.05g/t Au from 48m

The 2018 campaign was completed as a step-back hole drilled under three 1985 RC holes completed by Emu Hill Gold Mines NL. The 1985 RC holes EHW1-3 were spaced at 13-20m over 33m E-W strike and drilling under several small ~4m deep open pits and a shaft with unknown production (Figures 3 - 5). Hole EHW4 was a step-out hole completed 225m east and along strike of the first three holes. Historical intersections exceeding 0.5g/t Au and up to 2m internal dilution reported by Emu Hill Gold Mines NL include:

• EHW1 - 5m @ 0.47g/t Au from 7m

• EHW2 - 3m @ 2.21g/t Au from 9m and 1m @ 1.92g/t Au from 17m

• EHW3 – 1m @ 1.37g/t Au from 12m and 3m @ 3.63g/t Au from 21m

• • EHW4 – 2m @ 2.2g/t Au from 11m

In May 2019, one additional RC hole for 120m was completed at Emu Hill delivering the following intersections calculated using 0.5g/t Au and up to 2m internal dilution:

• 19EMRC001 - 1m @ 0.61g/t Au from 22m and,

• 6m @ 1.65g/t Au from 57m

The 2019 intersection is located 40m east of 18EMRC001 with both Focus RC holes located 30m down dip of historic Emu Hill Gold Mines NL drill holes (Figure 5). The new drill holes confirm a significant increase in the width of the mineralisation and broadly similar grade approaching 2g/t Au.

A shallow drill target can now be defined at Emu Hill with about 225m open strike containing a steeply south dipping shear and associated veining. The width of the target based on current drilling ranges from 2-6m averaging 4m. Average intersection grades are approximating 2g/t Au. Additional follow-up shallow RC drilling is warranted at Emu Hill to determine if better grades/widths may be present to support commercial smallscale open pit mining.

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EHW3 EHW1
1m @ 1.37 g/t Au from12m and 5m @ 0.47 g/t Au from 7m
3m @ 3.63g/t Au from 21m
225m Potential Strike
EHW2
EHW4
3m @ 2.21 g/t Au from 3m and
2m @ 2.2 g/t Au from 11m
1m @ 1.92g/t Au from 17m
18EMRC001 19EMRC001
6m @ 2.05g/t Au from 48m 6m @ 1.65g/t Au from 57m
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Figure 5: View North Emu Hill shear with drilling and significant Intersections calculated using 0.5g/t Au cut-off and 2m internal dilution

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Ada

The Ada Prospect is littered with many small-scale historical shafts/stopes/mined voids (Figure 3). The area has had limited and highly clustered drilling by a variety of parties including Croesus and Focus Minerals (Figure 6). In December 2018 following field mapping, a small number of very widely spaced exploration holes were completed targeting mapped outcropping veins and historical workings with limited or no historical drilling. The following intersections were recorded using a 0.5g/t Au cut-off and up to 2m internal dilution:

• 18ADRC002 – 2m @ 2.98g/t Au from 54m

• 18ADRC003 – 1m @ 1.25g/t Au from 55m

The results indicated some narrow low-level gold mineralisation at Ada and follow-up was planned for 2019. In May 2019, four RC holes were completed at Ada for 522m. Two holes - 19ADRC001 and 19ADRC004 - were wide-spaced holes targeting new targets (Figure 4). Neither returned significant intersections.

The other two holes - 19ADRC002 and 19ADRC003 - were drilled primarily as follow-up to 18ADRC002 and as a secondary target extension towards 18ADRC003 (Figure 6). Using a 0.5g/t Au cut-off and up to 2m internal dilution the following intersections were returned:

1. 19ADRC002 – 5m @ 2.58g/t Au from 58m

2. 19ADRC003 – 8m @ 0.8g/t Au from 48m (4m composite samples awaiting 1m resplit analysis).

Hole 19ADRC002 intersected mineralisation 40m east of the original intersection recorded by 18ADRC002. The location of this mineralisation tends to suggest that mineralisation is steeply NW dipping and may extend 120m further SE to 19ADRC003. This inferred strike is supported by the mapped location of a 400m long NW dipping stope located 80m up dip of the listed intersections. Additional follow-up RC drilling is warranted to determine if better grades/widths may be present to support commercial small-scale open pit mining.

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19EMRC004 19EMRC003
8m @ 0.8g/t Au from 48m (4m Composite samples) Probable
sub-parallel structure hangingwall to other intersections
18ADRC002
2m @ 2.98g/t Au from 54m
18ADRC003
19EMRC002 1m @ 1.25g/t Au from 55m
5m @ 2.58g/t Au from 58m
Soil sample point –
186ppb Au
400m
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Figure 6: Plan view Ada East drilling and mapping with significant 2018/2019 RC drilling results calculated using a 0.5g/t Au cut-off and up to 2m internal dilution. Intersections from holes 18ADRC002, 18ADRC003 and 19ADRC003 are interpreted to be located on the down-dip extension of a +350m striking NW dipping historic stope (dashed red line). Outcropping veins are shown by magenta lines. The Ada East soil Au anomaly is highlighted by the orange polygon.

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Jolly Britton

The Jolly Britton target (Figures 2 and 4) is located immediately south and along strike of the Patricia Jean open pit (Figure 7). Jolly Britton and Patricia Jean are located on the steeply east-dipping limb of ENE plunging northwest verging synform (Figure 2 and 7). The structural control on the mineralisation comprises regularly spaced, moderately NE dipping fault set with apparent sinistral throw (Figure 7). The faults have been intruded by a porphyritic granodiorite, which hosts the highest grades. Furthermore, the folded 3 Mile Sill Dolerite has been intruded by a N-S trending steeply east-dipping porphyritic granodiorite, which also hosts higher grade mineralisation (Figure 7). The widest intersections and best grades occur on the intersection of the two structural sets, where the Patricia Jean open pit is located.

In May and June 2019, eight RC holes for 690m were drilled into three up-dip extensions of the Jolly Britton shallow NE dip fault sets. The targeted structures were located in the footwall on the N-S trending porphyritic granodiorite that links Jolly Britton and Patricia Jean. The results were disappointing, with only one intersection exceeding 0.5g/t:

• 19JBRC008 - 1m @ 1g/t Au from 43m

In June 2019, Jolly Britton East was targeted with three RC holes for 252m. Results were moderately better and included:

• 19JBRC010 - 2m @ 1.98g/t Au from 65m

The results indicate that lithological host unit and structure are the primary control on the distribution of gold mineralisation at Jolly Britton. It is recommended that existing mineralisation at the Jolly Britton should be modelled to determine if there is sufficient remnant mineralisation to justify additional down dip/infill drilling.

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Patricia Jean Open Pit
600m
Jolly Britton East
19JBRC010
2m @ 1.98g/t Au from 65m
Outline Significant Soil Anomalies
19JBRC008
1m @ 1.0g/t Au from 43m
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Figure 7: Plan view Jolly Britton geology and structure with 2019 drilling (blue collar/black arrows). Main N-S trending and footwall porphyritic granodiotite is shown with yellow/magenta dashed line. Cross-cutting moderate NE dipping mineralised structure usually with nearby historic workings are detailed by white/magenta dashed lines. Significant soil Au anomalies are located within the orange polygons.

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Bonnie Vale

In May and June, two holes were drilled to test targets at Bonnie Vale (Figure 4). Firstly, a 546.7m deep RCDD hole with 167.5m RC pre-collar was completed for geotechnical purposes and to test the Quarry lode down dip (Figure 8). This hole is awaiting geotechnical logging and sampling prior to sampling for gold assay.

A second short 60m RC hole was drilled to test an Ultramafic/Granodiorite contact interpreted from AMAG. The hole did not intersect the targeted geological contact. It is considered probable the contact is dipping parallel to hole dip. Follow-up drill testing will require a new drill pad and change of azimuth.

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400m
Ultramafic
and
Komatiites
Granodiorite
Granodiorite
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Figure 8: Bonnie Vale geology on Topo photo with underlying Bonnie Vale block model Au Ok g/t coloured as per inset legend. 2019 holes have thicker trace and labels. 2018 deep RCDD holes have thicker trace and no label. 19BVRD001 is awaiting geotech logging/sampling prior to cut and sample for gold. 19BVRC002 is a short 60m hole targeting an interpreted granodiorite contact .

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Garden Gully

Garden Gully is located 1km southeast of Coolgardie and can be accessed from Ladyloch Rd. Geologically it is located on a parasitic antiform hosted in Burbanks Basalt on the west side of the Big Blow Fault (Figure 9). The mineralisation is primarily hosted by “Quartz” Dolerite that has intruded the big blow fault and several parasitic folds on the west side of the fault.

At Garden Gully the limbs of the antiform dip steeply WSW and ENE to form a west-verging, north-plunging antiform (Figure 10). Mineralisation is primarily hosted by the western limb of this antiform over about 350m NNE trending strike. The west limb has also been the main target of historical mining and drilling (Figure 9).

A recent review of the Garden Gully mineralisation identified that higher grades were located on the intersection of steeply ESE dipping structures with moderate east dipping cross structures (Figure 10).

The purpose of the limited 2019 RC drilling was to test the western fold limb at one of these intersections and attempt to intersect inferred steep ESE dipping structures at shallow depths. Unfortunately, drill collar locations had to be shifted from planned positions due to the extensive nature of the historic mining. As such the eventual holes narrowly missed the steep ESE dipping structure but managed to drill the western fold limb of the Garden Gully antiform to test the approximate location of an intersection with the moderate east-dipping structural set. The results from the drilling were poor, with only one intersection exceeding 0.5g/t:

• 19GGRC001 1m @ 2.27g/t Au from 25m

It is recommended to complete geological modelling incorporating historical mine plans prior to further drilling at Garden Gully. It will then be possible to determine if the target around the western “Quartz” Dolerite dyke is sufficiently prospective to support small-scale open pit mining and where drilling can add value to the project.

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500m
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Figure 9: Garden Gully geology/structure on topography with drill collars coloured by maximum gold g/t in hole, 2019 Coolgardie drill collars by prospect, FML tenements, and labelled gross mineralised structure at Garden Gully

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19GGRC001
1m @ 2.27g/t Au from 25m
GGC-239 Topographic surface
3m @ 20.14g/t Au from 45m
inc.
1m @ 56.12g/t Au from 45m
Burbanks
Basalt
GGC-237 100m
1m @ 18.95g/t Au from 31m
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Figure 10: View of North Garden Gully section through 2019 RC holes 19GGRC001 and 19GGRC002 (thicker traces) with ±25m clipping window. The Garden Gully parasitic antiform has been interpreted (blue/grey/dark-green polygons) along with gold mineralisation (yellow polygon). Simplified geology is shown along with location of “Quartz” Dolerite dykes (red polygons). Higher grades appear to be localised proximal to the intersection of moderate east-dipping cross structure and steeply ESE dipping structures (red/orange poly lines). The steeper structural set is sub-parallel to the west limb of the fold striking NNE and dipping ESE. The plunge of interpreted mineralisation is very shallow towards the NNE. The widest and thicket intersections to date are further localised proximal to the “Quartz” Dolerite Dyke. 2019 RC drilling was targeted to test an inferred up-dip/shallow intersection of the western limb of the Garden Gully antiform with moderate east-dipping structure. Results were not encouraging. It is recommended to complete modelling of mineralisation at Garden Gully to determine if it warrants selective infill around the “Quartz” Dolerite as a small-scale open pit exploration target.

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Nepean Gold Project

The Nepean Project is located 26km SSW of Coolgardie and accessed by mostly sealed roads (Figure 1). In February 2019, Nepean was subject to routine desktop review. Key findings included:

• The southern Nepean tenements were covered by a very large N-S trending+20ppb gold-in-soil anomaly. The anomaly is strike parallel over at least 2.8km and of average width of more than 200m.

• • This gold-in-soil anomaly included several linear N-S trending +28ppb to+40ppb peak trends that closely align with linear features interpreted from AMAG.

• At least 19 reasonably significant gold-producing shafts were historically sunk on the tenements.

• Out of more than 5,800 holes drilled at Nepean, less than 10% had even partial gold analysis.

• Historically, kilometres of costeans were cut but not systematically sampled for gold (Figures 12 and 13).

• Of the very limited and restricted gold sampling database there were numerous significant gold intersections, most of which had no follow-up. Some of the better multi-sample intersections calculated at 0.5g/t cut and up to 2m internal dilution include:

• UG271 – 3.24m @ 4.45g/t Au from 4.11m

• NP5170-3 - 4m @ 12.2g/t Au from 72m

• UG404 – 1.9m at 3.63g/t Au from 165.1m

• NS007 – 2m @ 3.9g/t Au from 8m

In summary, Nepean is a greenfield project with significant gold mineralisation potential.

In April 2019, following a quick review of drilling, geology and available geophysics, a short RC program was developed to test a couple of the obvious structural trends. The program comprised six widely spaced RC holes testing two of the interpreted structural locations with coincident peak soil anomalies.

The tenements were visited prior to the drilling to confirm the best sites for the holes. During the site checks large areas of sub-cropping buck quartz veins, brecciated quartz-iron oxide veins and chips of epithermal textured quartz vein float were noted (Figure 11).

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Figure 11: Epithermal vein float on Nepean tenement M15/709 with breccia fragments rimmed by colloform quartz

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Figure 12: Left-hand side view north of costean wall cutting sub-vertical mylonitic contact between Amphibolite and Granodiorite with boudinaged quartz veins. Right-hand side spoil from a trench with altered granitoid and quartz vein.

Holes were drilled at 50-degree dips to cut across as much of the strike as possible. It should be noted this first-pass drilling program was very much a reconnaissance effort and a long way short of systematic exploration.

The eastern-most drill target comprised many exposures of sub-cropping N-S striking vein sub-crop in the approximate location of the steeply west-dipping contact between sheared mafic amphibolite and pyroxenite. The same structural location had been exploited by several reasonably large vertical shafts. Each of the four holes testing this inferred structure over more than 800m strike intersected 1 meter of gold mineralisation that exceeded 0.5g/t Au.

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1km
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Figure 13: plan view of the Nepean tenements on regional AMAG overlain by: plus 20ppb Au soil anomaly (orange polygon) – note anomaly is not closed off and extends to the limit of sampling - historic drill collars (grey circle – no Au analysis/stars – some Au analysis), a selection of historic significant Au intersections (grey labels), historic costean traverses awaiting Au sampling/mapping (NE strike black-dashed lines), historic gold mine shafts (light blue polygons), collars from April 2019 RC drilling (green triangles) with significant intersections calculated using 0.5g/t Au cut off and up 2m internal dilution.

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The following intersections exceeding 0.5g/t Au were returned from the program:

• 19NPRC001 – 1m @ 1.08g/t Au from 81m

• 19NPRC003 – 1m @ 0.7g/t Au from 24m,

• 1m @ 0.7g/t Au from 33m and,

• 1m @ 0.83g/t Au from 62m

• 19NPRC004 – 1m @ 5.23g/t Au from 28m and,

• 1m @ 0.66g/t Au from 74m

• 19NPRC005 – 1m @ 0.8g/t Au from 93m

The narrow intersections support and validate the Nepean soil geochemical sampling and confirm the presence of gold mineralisation over at least 800m strike. It is recommended that all sub-surface sampling costeans (Figure 13 – black dashed lines) are mapped and sampled for gold prior to working up additional drill targets at Nepean.

.

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Table A: Significant Intersections – Regional Coolgardie Drilling Programs Received in the June Quarter 2019 JORC Code, 2012 Edition – Table 1 Report

Note:

Significant results form 2018 drilling have been incorporated into this table.

Apart from 18MYRC002 (0.3g/t cut off) all other intersections are calculated using a 0.5g/t Au cut off, up to 2m internal dilution.

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Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria	Explanation
Sampling techniques	This report relates to results from Reverse Circulation (RC) and diamond core drilling. RC Sampling • RC percussion drill chips were collected through a cone splitter from the drill rig. The bulk sample from drilling was placed in neat rows directly on the ground (not bagged) with the nominal 2-3kg calico split sub-sample placed on top of the corresponding pile. • RC chips were passed through a cone splitter to achieve a nominal sample weight of approximately 3kg. The splitter was levelled at the beginning of each hole. Geological logging defined whether a sample was to be submitted as a 1m cone split sample or a 4m spear composite sample. Split samples (1m) were transferred to sample numbered calico bags for submission to the laboratory. Composite samples were spear sampled using a scoop to obtain a small representative sample and deposited into numbered sample bags. Diamond Sampling • Geotechnical logging/sampling of diamond core from the Bonnie Vale hole is yet to occur and will be the precursor to follow up sampling for gold mineralisation.. • Diamond core will be sampled across geologically identified zones of mineralisation, the sample widths varied between a minimum of 0.2m and a maximum of 1.2m with material on either side sampled to capture the entire mineralised zone. • The diamond core was marked up for sampling by the supervising geologist during the core logging process, with sample intervals determined by the presence of lithology, alteration and where applicable core loss. The core will be cut in half using a core saw and the same half of the core (RHS looking downhole) will be routinely sent to the laboratory for analysis.
Drilling techniques	• RC drilling was conducted using a 5 3/8inch face sampling hammer for RC drilling. • At hole completion, downhole surveys for RC holes were completed at a 10m interval by using True North Seeking Gyro tool. • At hole completion diamond holes were survey using a single shot tool at a range of intervals between 20m and 50m, averaging 30m • NQ2 Diamond drilling was completed as a tail to an RC precollar.. • The precollars was cased off and the diamond component of the drill hole completed using NQ2 (producing 50mm core diameter). • Wherever core conditions and hole orientation would allow, drill core was oriented by the drilling contractor using the electronic ACT III Tool.
Drill sample recovery	• RC sample recovery was recorded by a visual estimate during the logging process. • DD sample recovery was measured and calculated (core loss) during the logging process. DD core recovery was excellent and generally 100%
Logging	• All RC samples were geologically logged to record weathering, regolith, rock type, colour, alteration, mineralisation, structure, texture and any other notable features that are present. All data is entered directly into validating digital software directly. • All core samples were oriented where possible, marked into metre intervals and compared to the depth measurements on the core blocks. Any loss of core was noted and recorded in the drilling database. • All diamond core was logged for structure, geology and geotechnical data using the same system as that for RC. • Logging was qualitative, however the geologists often recorded quantitative mineral percentage ranges for the sulphide minerals present. • The logging information was transferred into the company’s drilling database once the log was complete. • Diamond core will be photographed one core tray at a time using a standardised photography jig. RC chip trays are routinely photographed. • The entire length of all holes is geologically logged.
Sub-sampling techniques and sample preparation	• All samples were collected in a pre-numbered calico bag bearing a unique sample ID. • 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. • Gold analysis was by 40g Fire Assay with an AAS Finish. • Jinning Testing & Inspection completed the assay testing, with sample preparation completed in Kalgoorlie or Perth and analysis completed in Perth.

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Criteria	Explanation
	• 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. • QAQC checks involved inserting standards 1:20 samples (with minimum 3 standards every submission). Duplicate samples for RC were achieved by producing 2 samples for each metre one hole every 20th hole drilled and submitting all produced samples. The remaining bulk sample was also bagged to plastic bags for retention and further checks. Diamond core field duplicates were not taken. • 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 appropriate for the type, style and consistency of mineralisation encountered during this phase of exploration.
Quality of assay data and laboratory tests	• 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. • No geophysical tools, spectrometers or handheld XRF instruments were used for assay determination. • 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 and where they didn’t further analysis was conducted as appropriate. • Umpire samples are collected on a routine basis will be submitted to independent ISO certified labs in 2019 • Additional bulk mineralised RC samples have also been collected and retained for follow up QAQC, metallurgical and sample characterisation purposes
Verification of sampling and assaying	• Significant intervals were visually inspected by company geologists to correlate assay results to logged mineralisation. Consultants were not used for this process. • Primary logging 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 thegeologist in charge of theproject.
Location of data points	• Drill collars are surveyed after completion. • Where possible, all drill core was oriented by the drilling contractor using an ACT III electronic system. • A True North Seeking Gyro was used to survey RC and DD holes at CGO during the June Qtr 2019. • All coordinates and bearings use the MGA94 Zone 51 grid system. • FML 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.
Data spacing and distribution	• Drill Spacing at jolly Britton, Ada East, Garden Gully approximates 40m x 40m • Other drilling is step out or explorative and does not easily fit a drill spacing.
Orientation of data in relation to geological structure	• Drilling was designed based on known/developing geological models, field mapping, verified historical data, cross-sectional and long-sectional interpretation. • Where achievable, drill holes were oriented at right angles to strike of deposit, with dip optimised for drill capabilities and the dip of the ore body • True widths have not been calculated for reported intersections. However, drill orientation was wherever possible consistently optimised to approximate true width of mineralisation.
Sample security	• 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. The bags were placed into plastic green bags with a sample submission sheet and delivered directly from site to the Kalgoorlie laboratories by FML personnel at completion of each hole.

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Section 2 Reporting of Exploration Results

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

Criteria	Explanation
Mineral tenement and land tenure status	• The drilling was conducted on tenements 100% owned by Focus Minerals Limited 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	• Ada East has no historical drilling • Ada West has been targeted previously with two holes drilled by Goldfan in 1997 • Emu Hill has been drilled by Emu Hill Gold Mines NL in 1985 • 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. • Garden Gully has previously been explored by Golden Deeps Ltd/New Hampton Goldfields NL/Cerep Pty Ltd see Annual Reports A50544, A53263, A57976, A61096, A61684, A64724, A66981, A68186, A71807, A74621, A76898, A80470, for years 1997-2008 • Nepean tenements have extensive nickel exploration by several parties – Redemption JV A77508 – 2008 SIPA Exploration NL A71684 – 2006 SIPA Exploration NL A69913 – 2005 Austminex NL A67950 – 2004 St Francis Group LTD Annual Reports A65184, A63266, A62440, A59035, A58719, A55424, A49235, A45088 for Years 1995 - 2002
Geology	• The mineralisation at Ada East is located on a series of NW striking NE dipping structures. The most prominent of these is located between dolerite and gabbro units of the 3Mile Sill and has open stopes exposed over 200-400m strike • Ada West is located in the Hinge of a NE plunging Synform. Mineralisation has been targeted with a single RC holes in the vicinity of several historical workings/mill footings. The workings are situated along the contact of the 3 Mile Sill Dolerite and Gabbro • The mineralisation targeted at Bonnie Vale by 19BRD001 is located on the Quarry Lode structure which dips steeply NW and it localised on the hangingwall contact of a granodiorite that has intruded a sequence of ultramafics/komatiites • Hole 19BVRC002 targeted a NW striking Granodiorite/Ultramafic contact interpreted from AMAG. The contact was not intersected and it may be dipping south • Mineralisation at Jolly Britton is predominantly located on the hangining wall of a steeply west dipping porphyritic granodiorite located on the west limb of a NE plunging synform. The hanging wall of the granodiorite intrusion is cut by numerous NW dipping structures that appear to localise higher grades. • Mineralisation at Garden Gully is complex and located in a parasitic anticline on the west side the Big Blow Fault. There are two main strikes of mineralisation hosted along the NNE and NNW trending fold limbs. Both fold limbs have been intruded by “Quartz” Dolerite. In addition a moderated E dipping set of cross structures appear to control some mineralisation extending between the two limbs. • Nepean hosts a series of ultramafic rocks meta morphosed to Amphibolite facies. The Geology strikes mostly N-S and NNW. Structure is localised on Para Amphibolite.Ultramafic intrusive and Komatiite contacts. Some of which are also intruded by pegmatites and granitoids. Gold mineralisation has been located at numerous locations in the tenement despite no attempt at systematic gold exploration. Gold was located by Focus in 2019 over +800m strike along a sheared N-S striking west dipping amphibolite/Pyoxenite contact. The gold mineralisation _intersected in 2019 is coincident with an elevated soilgold anomaly. _
Drill hole information	See Table A
Data aggregation methods	• New regional exploration results are reported at a 0.5g/t Au cut-off with a minimum reporting width of 1mand up to 2m internal dilution.
Relationship between mineralization widths and intercept lengths	• Wherever possible holes were drilled orthogonal to mineralisation
Diagrams	• Accurate plans are included in this announcement. 3D perspective views and schematic cross-sections are included to illustrate the distribution of grade

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Criteria	Explanation
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.
Other substantive exploration data	• There is no other material exploration data to report at this time.
Further work	• FMLanticipates additional drilling to follow up on encouraging results inCoolgardie.

For further information please contact:

For media and investor enquiries please contact:

Zaiqian Zhang Peter Klinger Chief Financial Officer Focus Minerals Ltd Cannings Purple Phone: +61 8 9215 7888 Phone: +61 411 209 459

About Focus Minerals Limited (ASX: FML)

Focus is a Perth-based, ASX-listed gold exploration company with projects in Laverton and Coolgardie.

The company is focused on delivering shareholder value from its Laverton Gold Project, in Western Australia’s northeastern Goldfields. The Laverton project covers 507km[2] area of highly prospective ground that includes the historic Lancefield and Chatterbox Trend mines. Focus’ priority target is to confirm the extent of gold mineralisation at deposits Beasley Creek and Lancefield Thrust and advance the Sickle, Ida-H and Karridale-Burtville deposits and targets.

Focus also owns the non-core Coolgardie Gold Project, also in the Goldfields, which includes a 1.2Mtpa processing plant at Three Mile Hill. The plant is on care and maintenance. Focus is pursuing a divestment strategy for its Coolgardie Project and continues to maintain them and add value while this process continues.

Competent Person Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an employee of Focus Minerals Limited. Mr Aaltonen 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 Aaltonen consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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