G11 RESOURCES LIMITED — Capital/Financing Update 2016

Aug 3, 2016

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ASX Release – 4 August 2016
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Fieldwork confirms priority gold targets at Lignum Dam

• Six gold targets confirmed along strike from the Lindsay’s Gold Mining Centre

• Targets characterised by anomalous surface geochemistry over prospective rocktypes and / or existing bedrock gold mineralisation in historic drilling

• Resampling of historic drillhole 1 metre spoils returns up to 4.22g/t gold

• The targets remain largely underexplored with infill geochemical sampling and RAB / Aircore drilling planned

• Mithril to farm into adjoining tenement held by Lawson Gold Limited

Mithril Resources Ltd ( ASX: MTH ) is pleased to advise that recent fieldwork has confirmed six gold targets at the 100% owned Lignum Dam Project (located 50 kilometres north-northeast of Kalgoorlie Western Australia - Figure 1 ).

Mithril plans to carry out a program of infill auger geochemical sampling followed by RAB / Aircore drilling over the targets.

With an area of approximately 260km², Lignum Dam covers a package of gold and nickel prospective Archaean mafic, ultramafic, and felsic rocktypes directly along strike from the Lindsay’s Gold Mining Centre and the high grade Silver Swan nickel deposit.

The gold targets (A – F on Figures 2 and 3 ) are characterised by historic surface gold geochemical anomalies ( typically 2-3 x background values ) that occur within areas of residual soil cover over prospective mafic and felsic rocktypes interpreted from aeromagnetic data. Little if any effective drill testing of the anomalies has previously been undertaken.

Typically the historic anomalies have been generated from wide spaced BLEG, soil or auger sampling ( 400 – 800 metre spaced lines ) and as such infill auger geochemical sampling is required to better define specific drill hole locations.

Of note is the Forty Flats Prospect (Target B) where historic drill hole FFB008 finished in 3m @ 1.40g/t gold from 17 metres with the last metre returning 2.26g/t in an area dominated by shallow soil and sand cover.

Inspection of remnant spoils from this hole indicates the mineralisation is associated with a shear zone comprising altered mafic schist and quartz veining. Resampling from the last metre of this hole by Mithril has returned 4.22g/t gold ( Sample No. 0630_10 ).

T: (61 8) 8132 8800 ASX Code: MTH F: (61 8) 8132 8899 Issued Shares: 566,879,066 Page 1 of 10 E: admin@mithrilresources.com.au Market Capitalisation: $4.54 million

22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

Drillhole FFB008 is the westernmost hole on a historic drill traverse which has not been followed up. Given the resampling results and that aeromagnetic data shows that the prospect is directly along strike from Lindsay’s, the Forty Flats Prospect is a high priority target .

To increase its landholding in the Forty Flats area, Mithril has executed a Letter Agreement with Lawson Gold Limited ( ASX: LSN ) whereby Mithril can earn a 75% interest in their EL27/510 which lies adjacent to Forty Flats ( Figures 2 and 3 ) by completing exploration expenditure of $250,000 over 3 years.

Commenting on the results, Mithril’s Managing Director Mr David Hutton said “the identification of quality gold targets so close to Kalgoorlie reinforces the Company’s belief that significant opportunities still remain within so called mature terranes. We look forward to advancing the targets as well as generating further targets on the newly acquired Lawson Gold ground”.

About the Lawson Gold agreement

Mithril can earn a 75% interest in Lawson Gold’s EL27/510 by completing expenditure of $250,000 over 3 years - at which point a Joint Venture is formed and Lawson Gold can elect to maintain its 25% equity by funding on a pro rata basis.

If Lawson Gold elect not to contribute on a pro rata basis, it will dilute (via industry standard formula) until its equity drops below 10% at which point Lawson Gold will be deemed to have withdrawn from the Joint Venture and will be entitled to receive a 1.5% Net Smelter Royalty on all minerals.

Mithril is required to keep EL27/510 in good standing at all times and can only withdraw from the Agreement with 30 days’ notice provided the tenements are in good standing.

Table 1: Rockchip Sampling - results and location coordinates

Sample Id	Northing	Easting	Sample Description	**Au_ppb **	**Bi_ppm **	**Ni_ppm **	**Cu_ppm **	**Cr_ppm **	Mg_%
0630_01	6,644,226	371,347	calcrete	0.02	<2	80	37	220	0.50
0630_03	6,645,486	368,475	abundant UM float	0.02	3	1020	81	1800	15.20
0630_04	6,650,735	370,560	qtz vein chips in last m of FFB007	0.03	5	19	85	20	0.95
0630_05	6,650,735	370,560	bulk sample from last m - mafic	0.03	2	61	60	68	2.67
0630_06	6,650,700	370,573	ferruginousqtz outcrop	0.02	97	15	43	26	0.06
0630_07	6,650,690	370,586	ferruginousqtz outcrop	0.03	31	7	16	19	0.07
0630_08	6,650,690	370,556	ferruginousqtz outcrop	0.01	<2	35	167	14	0.06
0630_09	6,650,667	370,553	ferruginousqtz outcrop	0.01	3	6	6	17	0.01
0630_10	6,650,734	370,468	Qtz veining- FFB008 EOH drill spoils	4.22	285	19	16	26	0.11
0630_11	6,650,731	370,464	qtz material - FFB008 drill spoils	0.02	10	16	55	29	0.07
0630_12	6,654,796	365,178	near centre of Au anomaly	0.02	4	19	10	34	0.05
0701_01	6,659,338	356,212	qtz with Fe in old drillhole	0.01	<2	37	43	85	0.12
0701_02	6,660,952	357,637	hist RC hole, dissem sulph	0.02	<2	101	96	288	1.67

Table 2: Historic drilling – collar coordinates and significant intercepts

Hole_No	Easting	Northing	DTM_RL	Azimuth	Dip	From	Width	Goldg/t
FFB008	370,464	6,650,731	400	90	-60	17	3	1.40
				Including		19	1	2.26

T: (61 8) 8132 8800 ASX Code: MTH F: (61 8) 8132 8899 Issued Shares: 566,879,066 Page 2 of 10 E: admin@mithrilresources.com.au Market Capitalisation: $4.54 million

22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

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Figure 1: Kalgoorlie Project Location Plan

T: (61 8) 8132 8800 ASX Code: MTH F: (61 8) 8132 8899 Issued Shares: 566,879,066 Page 3 of 10 E: admin@mithrilresources.com.au Market Capitalisation: $4.54 million

22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

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Figure 2: Lignum Dam Project Target Summary Plan showing location of priority targets, geochemical anomalies and historic drill collars.

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22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

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Figure 2: Lignum Dam Project Target Summary Plan showing location of showing location of priority targets, geochemical anomalies and historic drill collars on a RTP magnetic image background

T: (61 8) 8132 8800 ASX Code: MTH F: (61 8) 8132 8899 Issued Shares: 566,879,066 Page 5 of 10 E: admin@mithrilresources.com.au Market Capitalisation: $4.54 million

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JORC Code, 2012 Edition - TABLE 1 (Section 1: Sampling Techniques and Data)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.	Rockchip sampling: 1 – 3kg samples of either outcrop, sub crop or float/lag material was collected at various locations based on prospective geology. Surface geochemical sampling: Auger, BLEG or soil sampling were typically collected on either 800 x 400m centres or 400 x 200m centres. The sampling is historic in nature and no further details are known.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Each rock chip location (easting and northing) was collected by a handheld GPS. A brief sample description and additional comments as necessary were recorded at every sample location. All sampling protocols remained constant throughout the program.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	1 – 3kg rock chip samples were collected from either outcrop or sub crop and placed inside calico sample bags for transport to ALS Laboratories in Kalgoorlie, WA for sample preparation. Subsequent geochemical analysis was conducted by ALS in Perth WA. In the laboratory, samples are crushed and pulverised to produce a representative 30g sub-sample for analysis using fire assay with ICP-AES finish for Au, Pt, and Pd (PGMICP23 – Lab Code) and Four Acid ICP-AES analysis for Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W, and Zn (ME-ICP61 – Lab Code).
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	Not Applicable as no drilling was undertaken.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Not Applicable as no drilling was undertaken.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Not Applicable as no drilling was undertaken.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Not Applicable as no drilling was undertaken.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Rock chip samples have been described geologically but not to a level of detail suitable for Mineral Resource estimation, mining and metallurgical studies.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography	Logging of rock chip samples is of a qualitative nature. Samples are logged for lithology and sometimes logged for colour, texture, weathering, minerals and alteration. An overall sample description and general comment on location is also included.
	The total length and percentage of the relevant intersections logged.	Logging was restricted to describing individual rock sample collected for analysis.
Sub- sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Not Applicable as no drilling was undertaken.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	Rock chip samples were collected from outcrop, sub crop or float and all samples were dry.
	For all sample types, the nature, quality and	The samplepreparation of the rock chipsamples follows industry

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Criteria	JORC Code explanation	Commentary
	appropriateness of the sample preparation technique.	best practice, involving oven drying (110°C) where necessary, crushing and pulverising (~90% less than 75μm).
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Sub-sampling will only occur if the sample is >3kg. All samples submitted were <3kg so no sub sampling occurred.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	No field duplicates were taken. All samples collected were ~1 – 3kg, and entire sample pulverized.
	Whether sample sizes are appropriate to the grain size of the material being sampled	Sample sizes are considered appropriate for the exploration method.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Fire Assay method used is considered to be a total digest and is appropriate for analysing for Au, Pt & Pd. Four Acid digestion is a near total digestion and is a trace level detection analysis suitable for base metals.
	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No applicable as no geophysical tools were used.
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	For Fire Assay Gold, each fire (usually 84 pots) contains one blank to monitor the purity of the reagents and a minimum of two certified reference materials and three replicates to monitor accuracy and precision of results from the individual fire. For Multi-element analysis, each rack (40 tubes) contains one blank to monitor the purity of the reagents. Each rack contains two duplicate samples and the results are reported in a QC report at the end of the analytical report. Each rack contains two digested standards to monitor the accuracy of the method. The laboratory also conducts monthly round robin programs for fire assay gold and base metal analysis. The laboratory expects to achieve a precision and accuracy of plus or minus 10% for duplicate analyses, in-house standards and client submitted standards, when conducting routine geochemical analyses for gold and base metals. These limits apply at, or greater than, fifty times the limit of detection.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Significant Results detailed in this Report have been verified by the Company’s Geology Manager and Managing Director
	The use of twinned holes.	Not Applicable as no drilling was undertaken.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Handwritten data entry was used for documenting the rock chip sampling.
	Discuss any adjustment to assay data	None undertaken.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Data points (rock chip sample locations and historic drill hole collars) were recorded using a handheld GPS with an expected accuracy of+/- 5m. For the nature of the program completed, this level of accuracy is considered to be suitable.
	Specification of the grid system used.	Data points have been quoted in this Report using the MGA Zone 51 (GDA94) coordinate system.
	Quality and adequacy of topographic control.	Level of topographic control offered by the handheld GPS was considered sufficient for the work undertaken.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	As detailed in Table 1 of this Report. The rock chip samples were randomly located based on where prospective rocks occurred as either outcrop or sub crop at the surface.

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Criteria	JORC Code explanation	Commentary
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	The data spacing and distribution is not sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s).
	Whether sample compositing has been applied.	No composite sampling has been applied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Rockchip samples were collected at random locations based on prospective geology. Given the lack of knowledge about underlying structures it is not known whether sampling achieves unbiased sampling of possible structures.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Not Applicable as no drilling was undertaken.
Sample security	The measures taken to ensure sample security.	Not Applicable as no drilling was undertaken.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	All results were reviewed by Company personnel including the Geology Manager and Managing Director. No negative issues were identified from these reviews.

JORC Code, 2012 Edition - TABLE 1 (Section 2: Reporting of Exploration Results)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The work described in this Report was undertaken on EL27/538 which is owned by Minex (Aust) Pty Ltd – a wholly owned subsidiary of Mithril Resources Ltd. EL27/510 is owned by Lawson Gold Limited and is subject to a farmin agreement with Mithril, whereby Mithril can earn a 75% interest by completing expenditure of $250,000 over 3 years.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	There are no known existing impediments to the tenements.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Previous exploration has been carried out through the tenement area by a number of companies including KalNorth Gold Mines, Rox Resources, Pioneer Exploration, Hemisphere, Western mining and Normandy Exploration. Previous explorers have focussed on gold and nickel exploration.
Geology	Deposit type, geological setting and style of mineralisation.	Lignum Dam is prospective for Archean lode gold mineralisation associated with major shear zones within mafic – ultramafic – felsic sequences.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar, elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar, dip and azimuth of the hole, down hole length and interception depth, hole length.	A summary of all material information referred to in this Announcement is presented in Figures 1 to 3, and Tables 1 and 2 of this Report.

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22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

ASX Code: MTH Issued Shares: 566,879,066 Page 8 of 10 Market Capitalisation: $4.54 million

Criteria	JORC Code explanation	Commentary
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	No information has been excluded.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	No cut-off grades have been applied.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	No aggregation has been applied.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalents have been used.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	The relationship between mineralisation widths and intercept lengths is unknown.
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	Not known.
	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	Only down hole widths have been reported. True widths are unknown.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	See Figures 1 - 3 of this Report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All new exploration results have been reported.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All relevant data has been included within this Report.
Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	Infill auger geochemical sampling and RAB / Aircore drilling (if warranted) of the targets are planned as the next step.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Figures 1 - 3 display areas of interest within the area.

T: (61 8) 8132 8800 F: (61 8) 8132 8899 E: admin@mithrilresources.com.au

22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

ASX Code: MTH Issued Shares: 566,879,066 Page 9 of 10 Market Capitalisation: $4.54 million

ENDS

For Further Information Contact:

Mithril Resources Ltd David Hutton, Managing Director admin@mithrilresources.com.au

22B Beulah Road Norwood, South Australia 5067 ABN: 30 099 883 922 T: (61 8) 8132 8800 F: (61 8) 8132 8899 www.mithrilresources.com.au

Competent Persons Statement:

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hutton, who is a Competent Person, and a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Hutton is Managing Director and a full-time employee of Mithril Resources Ltd.

Mr Hutton has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Mithril Resources Ltd:

Mithril Resources is an Australian resources company whose objective is the creation of shareholder wealth through the discovery and development of mineral deposits.

The Company is actively exploring throughout two highly prospective areas of the Western Australian Goldfields, namely the Kalgoorlie District for gold, lithium and nickel deposits and the Meekatharra District for copper-nickel deposits.

The Company is also exploring South Australia’s far western Coompana Province for magmatic nickel – copper deposits with OZ Minerals Limited.

T: (61 8) 8132 8800 F: (61 8) 8132 8899 E: admin@mithrilresources.com.au

22B Beulah Road Norwood, South Australia, 5067 www.mithrilresources.com.au

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