LEFROY EXPLORATION LIMITED — Capital/Financing Update 2018

May 31, 2018

ASX RELEASE-1 June 2018

Lucky Strike Update Successful EIS Drill Grant

Lefroy Exploration Limited (ASX: LEX) (“Lefroy” or “the Company”) is pleased to advise that is has been awarded a $100,000 grant by the WA State Government to co-fund two proposed deep diamond holes at the Lucky Strike Prospect within the Lefroy Gold Project, 50km south east of Kalgoorlie.

The co-funding is provided under the Exploration Incentive Scheme (EIS) managed by the Geoscience and Resources Strategy Division (GRSD) of the Department of Mines, Industry Regulation and Safety (DMIRS) to stimulate increased resource exploration leading to new mineral discoveries. The Company acknowledges this significant support from the EIS.

Drilling at Lucky Strike

Lucky Strike is located approximately 5kms to the northwest along strike of the high grade Lucky Bay open pit mined by Silver Lake Resources (ASX: SLR) during 2015, and 5km south west of the SLR’s Randalls Processing Plant.

The co-funded drilling will be two deep (400m) diamond drill holes to evaluate the down dip extensions to the established Lucky Strike gold system and includes evaluation of the contact with the footwall basalt. The EIS co-funding drilling is to be completed in the 2018-2019 financial year and the grant of $100,000 will be refunded after the reporting of the drilling program to the GRSD.

Drilling to date at Lucky Strike has included 34 RC and 5 diamond holes. Better intersections from the previously reported April 2018 RC program (refer LEX: ASX release 16 May 2018) include 5m at 13.6g/t Au from 84m in LEFR070 and 14m at 2.81g/t Au from 78m in LEFR074 including 3m at 9.37g/t Au from 81m.

The latest drilling was a three hole diamond drill program completed in May 2018 (LEX: ASX release 28 May 2018) which was designed to gain a further geological appreciation of the high grade (+5g/t) gold mineralisation within the multiple banded iron formation (BIF) host units. These holes were completed near LEFR070 and LEFR074 and have provided information on structural controls on the gold mineralisation which will assist in the design of deeper drill programs. Assay results are expected in mid-June.

E: info@lefroyex.com T: +61 8 9321 0984 ARBN: 052 123 930

Australian Registered Office Level 2, 11 Ventnor Avenue West Perth, 6005

ASX Code: LEX Shares on Issue: 64.8M Market Capitalisation: $11.3m

www.lefroyex.com

ASX Announcement 1 June 2018

About Lefroy Exploration Limited and the Lefroy Gold Project

Lefroy Exploration Limited is a WA based and focused explorer taking a disciplined methodical and conceptual approach in the search for high value gold deposits in the Yilgarn Block of Western Australia. Key projects include the Lefroy Gold Project to the south east of Kalgoorlie and the Lake Johnston Project 120km to the west of Norseman.

The 100% owned Lefroy Gold Project contains mainly granted tenure covering 547km[2] , located in the heart of the world class gold production area between Kalgoorlie and Norseman. The Project is in close proximity to Gold Fields’ St Ives gold camp, which contains the Invincible gold mine located in Lake Lefroy, and is also immediately south of Silver Lake Resources’ (ASX: SLR) Daisy Milano gold mining operation.

==> picture [310 x 352] intentionally omitted <==

Location of the Lefroy Gold Project relative to Kalgoorlie, major gold deposits in the district and land holdings of Gold Fields, Northern Star Resources Ltd and Silver Lake Resources Limited.

For Further Information please contact:

Wade Johnson

Managing Director Telephone: +61 8 93210984

Email: wjohnson@lefroyex.com