GENESIS MINERALS LIMITED

ASX Announcement 17 December 2012

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ASX Code: GMD

Issued Capital 122.1 million shares 53.8 million options

Current Share Price $0.07

Market Capitalisation $9 million

Board Members

Michael Haynes Chairman

FIRST DRILL RESULTS HIGHLIGHT POTENTIAL FOR SUBSTANTIAL GOLD DEPOSIT AT LAS OPEÑAS PROJECT, ARGENTINA

Next drilling program set for new year, paving way for strong newsflow over coming months

Highlights

Wide, shallow intersections of gold, plus silver, lead and zinc, point to potential for substantial bulk-tonnage project at Las Opeñas
Results include:
115m @ 0.58g/t gold, 3.5g/t silver, 0.24% lead and
- 0.65% zinc from 18m to end of hole

Michael Fowler Managing Director/CEO

Damian Delaney Non-Executive Director Company Secretary

Major Share Holders Investmet Limited Argonaut Westoria Fund

ABN: 72 124 772 041

Registered Office

Unit 6, 1 Clive St West Perth, WA, Australia, 6005

PO BOX 437, West Perth WA, Australia, 6872

T: +618 9322 6178

[email protected] www.genesisminerals.com.au

Chile Office

Av. Estoril 200 Oficina 837 Las Condes Santiago, Chile T:+56 2 951 6785

  - **including 47.1m @ 0.84g/t gold, 3.5g/t silver, 0.21% lead and 0.63% zinc from 80.4m**

29.4m @ 0.57g/t gold, 9.9g/t silver, 0.29% lead and 1.1% zinc from 65m
Results highlight intermediate sulphidation epithermal mineralisation with strong potential to host bulk-tonnage gold deposits
Plus, rock chip samples point to existence of narrow, highgrade veins which would boost economics of a bulk-tonnage project
Large, strongly mineralised (gold-silver-zinc-lead) polymictic breccia system outlined – limited first pass evaluation
Numerous high-grade vein targets to be drill tested as part of new year’s exploration program

Genesis Minerals Limited (ASX:GMD) is pleased to announce that the first drilling program at its Las Opeñas Project in San Juan Province, Argentina has discovered wide zones of gold mineralisation with silver, lead and zinc (see Table 1) .

The results support Genesis’ belief that Las Opeñas has the potential to host a multi-million-ounce gold deposit in a large epithermal system.

Genesis also believes that rock chip samples and mapping confirm the strong potential for narrow, high-grade veins within this system. These veins, which will be drill tested as part of the new year’s exploration program, would significantly boost the economics of a bulk-tonnage operation.

ASX Release 17 December 2012

Genesis Minerals Limited

This theory is supported by the first and only hole drilled so far to test a high-grade vein target. This hole returned 1m @ 2.93g/t gold and 21g/t silver from 49m.

In the recently completed first drilling program, a wide zone of gold mineralisation ( see Figure 1) was intersected in drill hole 12 LODH 003, with analytical results including:

115m @ 0.58g/t Au, 3.5g/t Ag, 0.24% Pb and 0.65% Zn from 18m to end of hole
including 47.1m @ 0.84g/t Au, 3.5g/t Ag, 0.21% Pb and 0.63% Zn from 80.4m

Hole 12 LODH 011 located 340m to the northwest of 12 LODH 003 intersected:

29.4m @ 0.57g/t Au, 9.9g/t Ag, 0.29% Pb and 1.1% Zn from 65m

Exploration in the new year will be targeted at rapidly and systematically testing the breccia and high– grade vein systems at Las Opeñas with the aim of confirming the significance of the epithermal mineralisation at the Project.

Genesis Managing Director Michael Fowler said the initial results at Las Opeñas were extremely promising and validated the Company’s belief in the project and its geological model.

“Our first program of drilling at Las Opeñas confirmed the excellent potential of this Project,” Mr Fowler said. “This potential is demonstrated by the wide zones of gold mineralisation returned in the limited drilling completed so far, as well as the numerous high-grade structural targets that are untested at Las Opeñas.”

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Figure 1 . Las Opeñas drill hole locations and results.

In addition to the results from holes 12 LODH 003 and 011, very encouraging results from near surface have been returned from 10 of the other 12 holes drilled, including:

12 LODH 005 - 8.15m @ 0.55 g/t gold, 4.78 g/t silver, 0.32% lead and 0.88% zinc
12 LODH 007 - 1.5m @ 4.75 g/t gold, 14.8 g/t silver, 0.3% lead and 0.48% zinc
12 LODH 009 - 59.6m @ 0.24 g/t gold, 2g/t silver, 0.1% lead and 0.27 % zinc

ASX Release 17 December 2012

Genesis Minerals Limited

Very wide zones of strongly anomalous base metal mineralisation ( see Figure 1 ) have been returned from all holes targeting the breccias at Las Opeñas, including:

12 LODH 005 - 87.9m @ 0.20% lead and 0.43% zinc
12 LODH 007 - 104m @ 0.11% lead and 0.53% zinc
12 LODH 008 - 97.9m @ 0.14% lead and 0.45% zinc

Mineralisation intersected in 12 LODH 003 ( see Figure 2) is hosted by a weakly to moderately argillic altered, polymictic breccia comprising clasts of dacite, granodiorite and fine-grained sediments. Pyrite, sphalerite and galena occur as disseminations within the clasts and matrix as well as within veinlets cutting both clasts and matrix. The mineralisation is open at depth and along strike and is interpreted to develop in an overall ENE orientation.

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Figure 2 . Schematic cross section 12 LODH 003

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Figure 3 . Schematic cross section 12 LODH 011.

ASX Release 17 December 2012

Genesis Minerals Limited

Gold mineralisation in hole 12 LODH 011 (see Figure 3) is hosted within moderately silicified, strongly argillic altered polymictic breccias and fine grained sediments with pyrite, sphalerite and galena mineralisation being strongly disseminated and within later crosscutting veinlets. Only one hole tested this target.

Next Steps

A program of detailed mapping, geophysical surveying (ground magnetics and induced polarisation) and soil geochemical sampling is proposed for completion over the coming months. Subject to Teck’s earnback rights, drilling at Las Opeñas in February 2013 will systematically test the large (>1km x 1km) area of breccia targets highlighted in Figure 4 and also test the high-grade epithermal vein system which is, to date, untested by drilling. Rock chip sampling of the vein system has previously returned values up to 49g/t gold, 183g/t gold and 6,800g/t silver.

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Figure 4. High-grade vein targets and breccia hosted mineralisation

Target Type

Recent exploration highlights the potential to discover a large “intermediate sulphidation” epithermal gold mineralised system at Las Opeñas, similar to those being developed at numerous locations in northern South America (e.g. Fruta del Norte, Ecuador, and Buritica, Colombia) and being mined in Mexico (e.g. Penasquito). Intermediate sulphidation epithermal systems typically have highgrade, narrow, sulphide-only veins within haloes of lower grade gold-silver-base metal mineralisation. This style of mineralisation commonly has a strong base-metal mineralisation and large vertical extent. A number of these types of deposits have been discovered in South America in the past 5 to 10 years ( see Figure 5).

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Figure 5. Intermediate Sulphidation Deposits

ASX Release 17 December 2012

Genesis Minerals Limited

Background

Genesis Minerals Limited has agreements with Teck Argentina Ltd. (“Teck”), a wholly owned subsidiary of Teck Resources Limited, to acquire 100% of Teck’s right and interest in the Poncha and Las Opeñas epithermal gold projects in San Juan Province, Argentina subject to an earn-back right or royalty to Teck.

Location and Access

The Poncha and Las Opeñas Projects are located 200km northwest of the regional capital San Juan and about 40km northwest of the town of Rodeo in the foothills of the Andes, at elevations of between 2,800m and 4,500m above sea level. Infrastructure in the area is good. Access to the Projects is gained via good paved and gravel roads from Rodeo. The Projects are approximately 25km apart.

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Previous Exploration by Teck

An extensive high-grade epithermal system has been identified by mapping at Las Opeñas at surface over 4.5 km of strike, with rock grab sampling returning values including 49 g/t gold, 183 g/t gold and 6,800 g/t silver. Teck´s channel sampling of outcropping breccia bodies returned results including 20m @ 4.69 g/t gold together with strongly anomalous zinc, lead and silver (see Genesis ASX Release dated April 6, 2011).

Michael Fowler

Managing Director

Further Information

Contact - Michael Fowler

+61 8 9 322 6178 or [email protected]

The information in this announcement was compiled by Michael Fowler, Genesis Minerals Limited’s Managing Director, who is a Member of The Australasian Institute of Mining and Metallurgy. Michael Fowler 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 2004 JORC Code. Michael Fowler consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

ASX Release 17 December 2012

Genesis Minerals Limited

Table 1 Significant mineralisation > 0.1g/t gold – 12 LODH 001 to 12 LODH 014

	East Posgar2	North Posgar2								Au (ppm)	Ag (ppm)	Zn (%)	Pb (%)
Hole ID			mRL	Depth	Az	Dip	From	To	Interval

12-LODH-001 12-LODH-002 12-LODH-003 12-LODH-004 12-LODH-005 12-LODH-006 12-LODH-007 12-LODH-008 12-LODH-009 12-LODH-010 12-LODH-011 12-LODH-012 12-LODH-013 12-LODH-014	2,466,310 2,466,310 2,466,239 2,466,237 2,465,740 2,465,946 2,465,910 2,465,863 2,465,817 2,466,622 2,465,992 2,466,994 2,466,141 2,466,381	6,705,426 6,705,425 6,705,395 6,705,406 6,705,083 6,705,357 6,705,337 6,705,313 6,705,066 6,705,545 6,705,612 6,705,632 6,705,269 6,705,205	3,321 3,319 3,335 3,328 3,440 3,482 3,456 3,455 3,433 3,273 3,391 3,234 3,352 3,353	100 101 134 101 113 109 119 113 101 100 128 85 90 106.25	150 0 150 0 150 330 330 330 330 330 150 0 150 330	-60 -60 -60 inc. -60 -60 inc. -60 -60 inc. -60 -60 -60 -60 -60 -60 -80	15.7 61.3 18.2 80.4 NSA 13.1 27.7 15.7 14.8 35 15.05 16.4 49 65 NSA 2.80 53.20	33.35 75.3 134 127.5 101 35.85 85.1 119 36.5 113 76 50 100.4 90.0 80.0	17.65 14 115.8 47.1 87.9 8.15 69.4 104.2 1.5 97.95 59.6 1 29.4 87.20 26.80	0.12 0.27 0.58 0.84 0.55 0.1 4.75 0.24 2.93 0.57	0.9 6.6 3.5 3.6 4.8 1.7 14.8 1.8 2.01 21 9.9 2.2	0.24 0.63 0.65 0.63 0.43 0.88 0.51 0.53 0.48 0.45 0.27 0.13 1.1 0.20 0.19	0.1 0.15 0.24 0.21 0.20 0.32 0.05 0.11 0.3 0.14 0.07 0.29

Final assay results from ½ HQ diamond core
Analysis completed by ALS., Mendoza
All samples were analysed for gold and silver by fire assay, and copper, lead, and zinc by ICP

 Reference standards, duplicate and blank samples were routinely submitted and were within acceptable limits based on current data.

 Drill hole collar positions surveyed by GPS (+-3m) and down hole surveys by a down hole Reflex EZ Track instrument.

ASX Release 17 December 2012

AI assistant

GENESIS MINERALS LIMITED Capital/Financing Update 2012

64997_rns_2012-12-16_709458f2-871a-450c-b09e-975c77411d63.pdf

ASX Announcement 17 December 2012