HELIX RESOURCES LIMITED — Capital/Financing Update 2018

Sep 4, 2018

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ASX ANNOUNCEMENT
5 September 2018
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Helix Farms Out Samuel Copper Project - Chile Three Stage US$2.4M Earn-in JV to be funded by JOGMEC

Highlights

• A binding interim Joint Venture agreement over the Samuel Copper Project has been executed with the Japanese Government Organisation - Japan Oil, Gas and Metals National Corporation (JOGMEC).

• The Joint Venture Agreement requires JOGMEC to fund exploration of up to US$2.4m to earn a 60% interest in the Samuel Copper Project in Region IV – Chile.

• The Agreement is part of Helix’s project rationalisation process and provides for the exploration of another of its Chilean copper projects.

• Delivers additional copper exploration news-flow from a third-party funded program and an opportunity to potentially partner with a Japanese company on the project.

• The Samuel Copper Project is an early-stage and highly prospective, large-scale porphyry and manto-style copper target located 25km southwest the Joshua Porphyry Copper Project in the Coastal Belt of the world class mining jurisdiction of Chile.

Helix Resources Limited (ASX:HLX) ( Helix or the Company ) is pleased to advise that the company has executed a binding Interim Joint Venture Agreement ( IJVA ) with JOGMEC in relation to Helix’s 100%-owned Samuel Copper Project in Chile ( Samuel Project ).

The IJVA provides for the continued exploration of the copper prospective and large-scale Samuel Project from a conceptual target without financial contribution from Helix through the earn-in period. In addition, Helix will receive a management fee while Helix’s Chilean team manages the JV through Stages 1- 3.

Key terms of the IJVA

The IJVA provides an avenue for JOGMEC to earn up to a 60% interest in the Samuel Project by funding a 3 stage US$2.4M program to 31 March 2021. The JV terms are:

• Stage 1: Contribute US$0.4M (Minimum Commitment) by 31 March 2019 primarily for the purpose of undertaking of large-scale geophysical surveys and mapping of the Samuel porphyry and manto-style copper systems.

• Stage 2 : Contribute US$0.8M by 31 March 2020 primarily for the purpose of undertaking initial diamond drilling to drill test the identified mineralised systems.

• Stage 3 : Contribute US$1.2M by 31 March 2021 primarily for the purpose of undertaking a second phase diamond drilling to establish scale and continuity of an identified mineralised system.

• At completion of Stage 3 JOGMEC will earn an option to acquire 60% equity in the project and have the right to sell their joint venture interest by tender to a Japanese company.

• Helix’s Chilean team will manage the project until the completion of Stage 3 with Helix receiving a Management Fee for these services.

Helix Managing Director, Mick Wilson, said: “We are very pleased to have signed another large-scale copper JV in Chile as part of our portfolio rationalisation strategy. We are partnering with the highly regarded Japanese

Helix Resources Limited I ACN 009 138 738 I 78 Churchill Ave, Subiaco WA 6008 P: +61 8 9321 2644 F: +61 8 9321 3909 I www.helix.net.au I Email: mick.wilson@helix.net.au

organisation JOGMEC at the Samuel Copper Project. Our JV’s in Chile will now see over AUD$6m in fully-funded programs on two of our large copper projects over the next couple of field seasons. This allows Helix to continue to focus on advancement of our flagship copper assets in NSW, whilst retaining material interests in potentially significant copper projects in a world-class copper jurisdiction. The JV will be utilising our in-country team and operational knowledge to deliver an optimal outcome from the program and funding. We look forward to working closely with the JOGMEC team”.

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Figure 1: Location of the Samuel Project, situated on the intersection of two major regional structures, 25km southwest of Ovalle City – Region IV Chile

The Samuel Copper Project

The Samuel Copper Project is located southeast of Ovalle City in Region IV, approximately 25km southwest of the Joshua Project and 320km North of Santiago - Chile. The Samuel Project lies on the intersection of the regionally significant Los Mantos Fault and a major NW trending lineament, both structures control numerous mineral deposits and mines in the district (Refer Figure 1).

The project is prospective for both porphyry and manto-style copper mineralisation. The target area is defined by an approximate 19km² zone of mixed intrusives, volcanics, stockworks and breccias with porphyry related alteration defining the extent of the system (Refer Figure 2).

Previously, Helix’s Chilean team had mapped and surface sampled the main target area, collecting rock chip samples returning peak results of 7.7% Cu, 0.8g/t Au and 176ppm Mo within the system¹. Of significance, samples of the quartz-limonite stockwork present at Samuel highlighted the presence of several primary and secondary copper sulphide species (Refer Photo 1-3).

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Figure 2 Samuel Project previous geological mapping and position of rockchip samples (Max 7.7% Cu) collected in 2014¹

The exploration activities at the time on the Samuel Project included collection of samples for petrology and photomicroscopy, to identify the copper minerals present. This work highlighted the presence of high-grade supergene copper mineral djurleite (“white chalcocite”) and chalcopyrite in the limonite veinlets associated with the quartz-limonite stockworks that are present throughout the Samuel Project. These target areas will be prioritised in the early stages of the Samuel Project JV.

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Photo 1: Extensive stockwork present at the Samuel Project containing limonite after sulphides¹.

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CPY grains
Djurleite (CC) Vein
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Photo 2 and 3: Microphotographic images of thin-sections from the location shown on photo 1. Photo 2 shows fine grains (<1mm) of chalcopyrite preserved in limonite veins. Photo 3 shows a vein of djurleite (white chalcocite) within the limonite veins¹.

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For further information:

Mick Wilson Managing Director mick.wilson@helix.net.au Ph: +61 8 9321 2644

Competent Persons Statement

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information reviewed by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which 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 and 2012 Editions of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Details of the assumptions underlying any Resource estimations are contained in previous ASX releases or at www.helix.net.au

¹ For full details of exploration results refer to previous ASX announcements 17 October 2014 and 30 January 2015 on Helix’s website. Helix Resources is not aware of any new information or data that materially effects the information in this announcement

Forward-Looking Statements

This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Helix Resources Ltd.’s current expectations, estimates and assumptions about the industry in which Helix Resources Ltd operates, and beliefs and assumptions regarding Helix Resources Ltd.’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward- looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Helix Resources Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward- looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Helix Resources Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

No new information that is considered material is included in this document. All information relating to exploration results has been previously released to the market and is appropriately referenced in this document. JORC tables are not considered necessary to accompany this document

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