HELIX RESOURCES LIMITED — Capital/Financing Update 2018

Jun 7, 2018

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ASX ANNOUNCEMENT
8 June 2018
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Helix Secures Joint Venture Partner at Joshua Project, Chile Copper porphyry project to be advanced with large drilling program

Highlights

• Conditional Heads of Agreement signed with Manhattan Corporation (ASX:MHC) over Helix’s 100%-owned Joshua Copper Project in Chile.

• Provides for the potential progression of the Joshua Project through to completion of a BFS at zero cash outlay from Helix.

• To exercise its initial option, Manhattan must spend A$1.0 million on 3,000m of diamond drilling over nine months.

• Joshua is a highly prospective, large-scale porphyry system located 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 Heads of Agreement ( HOA ) with Manhattan Corporation Limited (ASX:MHC) ( Manhattan ) in relation to Helix’s 100%-owned Joshua Copper Project in Chile ( Joshua Project ).

The HOA provides for the potential progression of the highly prospective and large-scale Joshua Project right through to completion of a Bankable Feasibility Study ( BFS ) at zero cash outlay from Helix.

Key terms of the HOA

The HOA provides an avenue for Manhattan to earn up to an 80% interest in the Joshua Project in exchange for Helix being free-carried through to completion of a BFS.

Key terms of the HOA include:

• Stage 1: Helix has granted an option to Manhattan whereby Manhattan can exercise that option by sole funding expenditure of A$1.0 million on the Joshua Project within 9 months of the Commencement Date, such expenditure to be expended on 3,000m of diamond drilling ( Option ).

• If Manhattan exercises the Option by funding the requisite expenditure it shall have the right to earn up to an 80% interest in the Joshua Project on the following basis:

• Stage 2: Manhattan may earn a 51% Joint Venture Interest in the Joshua Project by sole funding the expenditure necessary to complete a further 5,000m of drilling within 18 months of the Commencement Date.

• Stage 3: If Stage 2 is completed, Manhattan may elect to earn a further 29% (giving it a total 80%) Joint Venture Interest by sole funding expenditure up to the completion of a BFS in respect of the Joshua Project.

• In the event that Helix chooses not to contribute to the Joint Venture after the completion of the BFS (Stage 3), it will dilute its Joint Venture Interest in exchange for an uncapped 1.0% Net Smelter Return royalty over the Joshua Project.

• Helix will be the Manager of the Joshua Project during Stage 1. Manhattan will be the Manager for Stages 2 and 3, unless Helix and Manhattan mutually agree that Helix is to be retained as Manager.

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

The HOA remains conditional upon:

• Manhattan completing its legal due diligence review of the Joshua Project within 14 days of the date of the HOA;

• Receipt of any regulatory approvals required under all applicable laws and regulations in relation to the entry into the HOA (including grant of the option) within 3 months of the date of the HOA; and

• Manhattan raising a minimum of A$3.0 million within 3 months of the date of the HOA.

Helix Managing Director, Mick Wilson, said: “This joint venture illustrates the depth that exists in Helix’s asset portfolio. Whilst the Company is focussed on advancing its flagship assets in NSW, we are always looking at other opportunities to realise value from within our broader portfolio of assets. We have a tremendous belief in the prospectivity of our Chilean assets, so we are very pleased to able to partner with the Manhattan team. Manhattan shares Helix’s vision for the Joshua Copper Project and sees the opportunity to advance a potentially significant porphyry project at a time where the copper market is increasingly supply constrained. We look forward to working closely with the Manhattan team including utilising our in-country knowledge to deliver the optimal outcome for all stakeholders.”

The Joshua Copper Project

The 100%-owned Joshua Project was a greenfield copper porphyry discovery by Helix, found in the world class mining jurisdiction of Chile. It is located 350km north of Santiago in the Coastal Belt, an area characterised by relatively low altitude and close proximity to existing key infrastructure including ports, roads and potential power and water solutions for future mining scenarios.

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Figure 1: Location of the Joshua Copper Project

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The Joshua Porphyry system is defined by a regionally significant alteration anomaly which covers a 6.5 km by 2.0 km area, centred on an outcropping silica-rich stockwork. The broad alteration response at Joshua is similar to the Andacollo Cu-Au mine operated by major Canadian miner, Teck Resources (TSX:TECK.B), which is located only 45km to the north-northwest of the Joshua Project.

The Joshua porphyry complex consists of multiple intrusive events with andesite, diorite and dacite composition intrusives identified in mapping and drilling so far. The Central stockwork is silica-rich with numerous cross-cutting quartz veining phases and tourmaline-rich breccias present. The porphyry complex is located on an east-northeast trending transfer zone on a northwest lineament, an excellent structural setting for porphyry-style systems in Chile.

An IP chargeability anomaly is coincident with the alteration system and significantly 90% of the +15mV/V response, which surrounds the central stockwork, is yet to be drill tested. This IP response is important because it encompasses the ore and ore-related alteration phases of many porphyry-related mineral systems around the world.

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Figure 2: Alteration anomaly and surface Xrf soils - evidence for large porphyry system present beyond the central stockwork

Only Central Zone (Stockwork) has been drilled so far, which represents a total area of only 700m by 500m – with only 16 RC-diamond holes drilled into less than 5% of the alteration system area. From that “proof-of-concept” drilling, significant multiple thick intersections of copper mineralisation (+ Mo-Au) were returned including 400m @ 0.25% Cu, 352m @ 0.27% Cu and 240m @ 0.22% Cu.

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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

For full details of exploration results refer to previous ASX announcements 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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