POLARX LIMITED — Capital/Financing Update 2016

Jun 22, 2016

SECOND DRILLING RIG ARRIVES AT THE CARIBOU DOME COPPER PROJECT

Highlights

• A second drilling rig has arrived at the Caribou Dome Copper Project to expedite the Company’s 8,000m drilling program

• Initial drill‐testing of the very‐high priority Menel Target will commence immediately

• Initial drill‐testing of the very‐high priority Guardian Target will follow shortly thereafter

• New copper mineralisation mapped directly above the Menel Target and immediately along strike from the Guardian Target

• Drilling with the first rig, which is currently testing the Lense 3, 9 and 1 Target areas, is progressing well

• Ground geophysics survey also progressing well

Coventry Resources Limited (ASX:CYY; “Coventry” or “the Company”) is pleased to announce that a second diamond core drilling rig has arrived at the Company’s high‐grade Caribou Dome Copper Project in Alaska, USA (“Caribou Dome Project” and “Project”).

Second Drilling Rig

A second rig has been mobilised to expedite the ongoing 8,000m drilling program at the Project, where numerous very‐high priority targets will be evaluated with drilling for the first time.

This second drilling rig will be used to immediately commence testing the very‐high priority Menel Target – a strong induced polarisation (“IP”) anomaly that coincides with strong copper‐in‐soil anomalism immediately along strike from the 700m‐long corridor of mineralisation drilled to date (see Figure 1). Encouragingly, while preparing to drill the Menel Target, significant copper mineralisation has been mapped directly above and immediately along strike from the Menel IP anomaly (see photo below).

Some of the outcropping copper oxide mineralisation adjacent to the Menel IP anomaly

==> picture [196 x 147] intentionally omitted <==

Coventry Resources Limited (ACN 161 615 783): Suite 9, 5 Centro Avenue, Subiaco Western Australia 6008 PO Box 457, West Perth Western Australia 6872 t: +61 8 9226 1356 f: +61 8 9226 2027 e: info@coventryres.com www.coventryres.com

==> picture [225 x 54] intentionally omitted <==

Initial testing of the Guardian Target will follow immediately after the initial holes are drilled at the Menel Target. This is another strong untested IP anomaly that was delineated during 2015. Very encouragingly, outcropping gossans were identified during follow‐up mapping; with rock chip samples assaying up to 16.5% copper .

In the past week, while undertaking earthworks to construct drill pads to evaluate the Lense 9 IP Target, geologists identified outcropping copper mineralisation (including bornite) immediately along strike from (to the southwest of) the Guardian IP anomaly. It is very encouraging that such mineralisation is present in close proximity to these high‐priority targets.

Whilst the second drilling rig commences testing the Menel and Guardian Targets, the drilling rig that arrived on site earlier this month will continue to test the Lense 3, 9 and 1 Targets. The first hole has been completed in this area, intersecting mineralisation where predicted. A second hole is progressing well.

Drill core is being processed, with initial assay results from the current drilling program expected in mid‐late July. With two rigs operating, a steady stream of results is expected to follow.

==> picture [461 x 435] intentionally omitted <==

Figure 1. Plan view of inverted IP data acquired at the Caribou Dome Project during 2015. There is a strong correlation between IP anomalism and known mineralisation. The undrilled strong IP anomalies at the Menel, Guardian, Lense 9 and Lense 3 Targets are all located immediately along strike from the drill‐tested mineralisation. Initial drill‐testing of these targets is underway, with two drilling rigs now on site.

CYY – Second Drilling Rig Arrives at the Caribou Dome Copper Project

Page 2

==> picture [225 x 54] intentionally omitted <==

Ground Geophysics Survey

A geophysical survey crew has been collecting new IP data at the Caribou Dome Project for the past week and a half. Initial surveying has been over the Menel and Guardian Targets, utilising a survey configuration that facilitates detection of responses from deeper sources than those delineated during the Company’s IP survey last year. IP surveying will progressively be extended to the north‐east of this area, where no IP data has been acquired previously, but where extensive copper‐in‐soil anomalies were delineated within the prospective geological horizon in 2015 (see Figure 2).

The IP surveying is expected to take around a month to complete. Data will be used to continue to reprioritise drill targets. With two drilling rigs now on site, follow‐up drill testing of the highest priority new IP anomalies will be implemented rapidly.

==> picture [448 x 361] intentionally omitted <==

Figure 2. Plan view of copper‐in‐soil geochemistry data acquired at the Caribou Dome Project during 2015, also showing the area covered by IP surveying in 2015 and the areas to be surveyed with IP during the forthcoming survey. It is also noteworthy that all drilling to date has been within a 700m long corridor at the western end of a strong, coherent 2km long copper‐in‐soil anomaly. The undrilled strong IP anomalies at the Menel, Guardian, Lense 9 and Lense 3 Targets are all located within this 2km long copper‐in‐soil anomaly and will be systematically drill tested during the current 8,000m drilling program.

Mike Haynes Managing Director/CEO

CYY – Second Drilling Rig Arrives at the Caribou Dome Copper Project

Page 3

==> picture [225 x 54] intentionally omitted <==

COVENTRY RESOURCES LIMITED ‐ BACKGROUND

Coventry Resources Ltd is an ASX‐listed copper explorer. Coventry’s primary asset is its right to acquire an 80% interest in the highly prospective, high‐grade Caribou Dome Copper Project in Alaska, USA.

==> picture [145 x 206] intentionally omitted <==

The Caribou Dome Project is located 250km north‐east of Anchorage, Alaska’s main port. There is road access all the way to the Project. Rail and high voltage power are both accessible 100km west of the Project, at Cantwell.

Alaska is a stable, pro‐mining jurisdiction. Approximately 80% of the state’s GDP comes from mining and resources, with six large‐scale mines currently in production. Alaska’s largest alluvial gold field, Valdez Creek, is ~15km from the Caribou Dome Project.

Mineralisation was discovered at the Project in 1963. From 1963‐1970 nine lenses of sediment‐hosted copper mineralisation were delineated over approximately 700 metres of strike. 95 diamond core holes were drilled during this period, from surface and underground. This drilling was concentrated primarily on just 250 metres of strike, at Lenses 4, 5 and 6.

Very limited exploration had been undertaken since 1970, until Coventry secured the rights to explore and develop the Project in February 2015.

Since then Coventry has compiled all historic technical information, prioritised targets arising, undertaken a ground geophysics (induced polarisation) survey, and completed 4,300 metres of diamond core drilling. Confirmatory drilling has validated previous work and the Company’s initial results from work undertaken to further expand the resources at the Project have been very promising. All previous drilling is within a 700m long corridor, with mineralisation remaining open in both directions along strike and at depth. Significant intersections in drilling include:

• 51.1m* at 5.3% Cu from 4.4m

• • 18.1m at 9.3% Cu from 22.7m • 14.1m at 9.9% Cu from 134.6m • 18.4m at 6.3% Cu from 31.4m

• 15.4m at 7.0% Cu (U/G drill hole)

• • 10.4m at 7.9% Cu from 14.0m

• 12.8m at 5.8% Cu (U/G drill hole)

• 13.0m at 4.9% Cu (U/G drill hole)

• • 10.1m at 7.1% Cu from 39.0m • 9.1m at 7.0% Cu from 28.7m • 10.2m at 6.2% Cu from 46.6m • 12.2m at 5.0% Cu from 27.1m

• True width estimated to be approximately 25m

Multiple high‐priority targets remain undrilled. With >18km of the stratigraphic horizon that hosts the mineralisation evident within the Company’s project area, there is considerable potential to discover additional high‐grade mineralisation and to continue to expand the resource base at the Project. The Company commenced a second, substantial program of field work at the Project in May 2016.

Qualified and Competent Person

The information in this announcement that relates to exploration results for the Project is based on information compiled by Mr Ben Vallerine, who is a consultant to the Company and holds an indirect shareholding in the Company. Mr Vallerine is a Member of the Australian Institute of Geoscientists. Mr Vallerine has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results (JORC Code). Mr Vallerine is also a Qualified Person as defined by Canadian National Instrument 43‐101 Standards of Disclosure for Mineral Projects. Mr Vallerine consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

CYY – Second Drilling Rig Arrives at the Caribou Dome Copper Project

Page 4

==> picture [225 x 54] intentionally omitted <==

Forward Looking Statements

This news release may contain "forward‐looking statements" and/or "forward‐looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, “forward‐looking information"). Any forward‐looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, Coventry does not intend, and does not assume any obligation, to update this forward‐looking information.

Any forward‐looking information contained in this news release is based on numerous assumptions and is subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward‐looking information. Readers are cautioned not to place undue reliance on forward‐looking information due to the inherent uncertainty thereof.

CYY – Second Drilling Rig Arrives at the Caribou Dome Copper Project

Page 5