SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2019

Sep 17, 2019

ASX and Media Release

Wednesday, 18 September 2019

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Red Mountain: EM Conductor discovered at Cir ue q

ASX Code: WRM

HIGHLIGHTS

Issued Securities Shares: 1,636 million Options: 565 million

Cash on hand (30 June 2019) $3.89M

Market Cap (17 Sept 2019) $11.4M at $0.007 per share

Directors & Management Peter Lester Non-Executive Chairman

Matthew Gill Managing Director & Chief Executive Officer

Jeremy Gray Non-Executive Director

Stephen Gorenstein Non-Executive Director

Shane Turner Company Secretary

Rohan Worland Exploration Manager

For further information, contact: Matthew Gill or Shane Turner Phone: 03 5331 4644

info@whiterockminerals.com.au www.whiterockminerals.com.au

• Fixed loop EM at Cirque has identified a clear conductive horizon (Figure 1 & 2).

• Conductance is low which may be consistent with a VMS horizon containing sphalerite (a zinc sulphide with poor conductivity).

• There is also evidence of a second conductive horizon to the south.

White Rock Minerals Ltd ( “White Rock” or the “Company” ) is pleased to provide an update on the 2019 exploration program underway at the Company’s globally significant Red Mountain high-grade zinc and precious metals VMS project in central Alaska ( Red Mountain Project ).

There are already two high grade deposits at the Red Mountain Project – Dry Creek and WTF, with an Inferred Mineral Resource[1] of 9.1 million tonnes @ 12.9% ZnEq[2] for 1.1 million tonnes of contained zinc equivalent.

During the latter half of the 2019 field season reconnaissance of historic VMS prospects has been completed with the Cirque prospect (Figure 3) identified as the highest priority area for follow-up. The Cirque prospect was discovered in 1976 by RAA, Getty and Phelps Dodge. Massive sulphide float blocks, of up to 2 metres thick, occur within 300m of mineralised calcschist and carbonate outcrop. Assays from 18 samples averaged 5.6% Zn, 1.7% Pb, 49g/t Ag & 0.5% Cu[3] .

A surface geophysics crew has now just completed a single fixed loop electromagnetic (EM) survey across two horizons of massive sulphide that extend east under glacial till cover. Modelling of the results by Newexco – a specialist geological and geophysical consulting firm - shows a clear long wavelength anomalous response on all four lines, consistent with a single, strike and depth extensive, conductive horizon. The conductance is low which may be consistent with a VMS horizon containing weakly conductive lead-zinc sulphides. A second conductive horizon to the south is very weak with further surveying likely required to better define this feature.

White Rock’s Managing Director, Matt Gill said “The potential for multiple VMS deposits throughout the Company’s large strategic tenement package, expanded to 475km² last year, is only now beginning to be understood. “Our first ground geophysics survey on a historic prospect has identified the type of conductor that could reflect significant massive sulphide accumulations. We continue to be excited by the targets being generated and the opportunities that presents for follow-up drilling.”

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Figure 1: Conductor (purple plate) modelled at Cirque viewed to the west. Depth to top of conductor is approximately 150m. Satellite imagery draped on surface topography shows a colour anomaly above the conductor associated with massive sulphide horizons observed at surface trending east under glacial till cover above the centre of the conductor.

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Figure 2: Oblique aerial view to the southwest at Cirque. Blue lines show rough approximation of the fixed loop and the 4 grid lines. The Discovery and Dol massive sulphide horizons are on the western side of the glacial cirque. Sulphide boulders and quartz-sericite-pyrite altered schists are found in the glacial moraine.

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Figure 3: Red Mountain Project tenement outline on terrain map with locations for the Dry Creek and West Tundra Flats VMS deposit Mineral Resources[1 ] and regional VMS prospects.

1 Refer ASX Announcement 26th April 2017 “Maiden JORC Mineral Resource at White Rock’s Red Mountain zinc-silver Project, Alaska.”

2 ZnEq = Zinc equivalent grades are estimated using long-term broker consensus estimates compiled by RFC Ambrian as at 20 March 2017 adjusted for recoveries from historical metallurgical test work and calculated with the formula: ZnEq =100 x [(Zn% x 2,206.7 x 0.9) + (Pb% x 1,922 x 0.75) + (Cu% x 6,274 x 0.70) + (Ag g/t x (19.68/31.1035) x 0.70) + (Au g/t x (1,227/31.1035) x 0.80)] / (2,206.7 x 0.9). White Rock is of the opinion that all elements included in the metal equivalent calculation have reasonable potential to be recovered and sold.

3 Refer ASX Announcement 11th November 2018 “Expanded Land Holding with Additional High-Grade VMS Prospects, Red Mountain”.

Competent Persons Statement

The information in this report that relates to exploration results is based on information compiled by Mr Rohan Worland who is a Member of the Australian Institute of Geoscientists and is a consultant to White Rock Minerals Ltd. Mr Worland 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Worland consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

No New Information or Data

This announcement contains references to exploration results and Mineral Resource estimates, all of which have been cross-referenced to previous market announcements by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

For more information about White Rock and its Projects, please visit www.whiterockminerals.com.au

For further information, contact: For Media and Broker queries Matthew Gill or Shane Turner Peta Baldwin 03 5331 4644 +61 455 081 008 info@whiterockminerals.com.au Cannings Purple www.whiterockminerals.com.au pbaldwin@canningspurple.com.au

About White Rock Minerals

White Rock Minerals is a diversified explorer and near-stage producer, headquartered in Ballarat, Victoria. The company’s flagship exploration project is Red Mountain in central Alaska, where it has an earn-in joint venture arrangement with Sandfire Resources. At Red Mountain, there are already two high grade deposits, with an Inferred Mineral Resource[1] of 9.1 million tonnes @ 12.9% ZnEq[2 ] for 1.1 million tonnes of contained zinc equivalent.

The Mt Carrington project, located near Drake, in Northern NSW, is a near-production precious metals asset with a resource of 341,000 ounces of gold and 23.2 million ounces of silver.

White Rock Minerals is listed on the ASX:WRM .

APPENDIX 1: JORC CODE, 2012 EDITION – TABLE 1

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location	•	The Red Mountain Project comprises 760 mining claims in the
tenement and		and ownership including agreements or		State of Alaska (‘the Tenements’).
land tenure		material issues with third parties such as	•	The Tenements are owned by White Rock (RM) Inc., a 100%
status		joint ventures, partnerships, overriding		owned subsidiary of Atlas Resources Pty Ltd, which in turn is a
		royalties, native title interests, historical		100% owned subsidiary of White Rock Minerals Ltd.
		sites, wilderness or national park and	•	The Tenements are subject to an agreement with Metallogeny
		environmental settings.		Inc, that requires further cash payments of US$850,000 over 3
	•	The security of the tenure held at the time		years. The agreement also includes a net smelter return
		of reporting along with any known		royalty payment to Metallogeny Inc. of 2% NSR with the option
		impediments to obtaining a licence to		to reduce this to 1% NSR for US$1,000,000.
		operate in the area.	•	The Tenements are subject to an agreement with Sandfire
				Resources NL (“Sandfire”) whereby Sandfire have an
				exclusive option to enter an earn-in joint venture agreement,
				which option may be exercised prior to 31 December 2018. If
				the option is exercised Sandfire can earn 51% by funding
				A$20 million over four years, with a minimum expenditure of
				A$6 million during the first year. Sandfire can then earn 70%
				by electing to fund a further $A10 million and delivering a pre-
				feasibility study over an additional two years, with an option to
				extend the time period a further year under certain
				circumstances. White Rock can elect to contribute at 30% or if
				not Sandfire can sole fund to earn 80% by completing a
				definitive feasibility study. White Rock can elect to contribute at
				20% or if not Sandfire can earn 90% by sole funding to
				production with White Rock’s retained interest of 10% earnt
				from project cash flow.
			•	AlloftheTenements are current andingood standing.
Exploration	•	Acknowledgment and appraisal of	•	The Red Mountain project has seen significant exploration
done by other		exploration by other parties.		conducted by Resource Associates of Alaska Inc. (“RAA”),
parties				Getty Mining Company (“Getty”), Phelps Dodge Corporation
				(“Phelps Dodge”), Houston Oil and Minerals Exploration
				Company (“HOMEX”), Grayd Resource Corporation (“Grayd”)
				and Atna Resources Ltd (“Atna”).
			•	All historical work has been reviewed, appraised and
				integrated into a database. A selection of historic core has
				been resampled for QAQC purposes. Data is of sufficient
				quality,relevance and applicability.
Geology	•	Deposit type, geological setting and style	•	Volcanogenic massive sulphide (“VMS”) mineralisation located
		of mineralisation.		in the Bonnifield District, located in the western extension of the
				Yukon Tanana terrane.
			•	The regional geology consists of an east-west trending schist
				belt of Precambrian and Palaeozoic meta-sedimentary and
				volcanic rocks. The schist is intruded by Cretaceous granitic
				rocks along with Tertiary dikes and plugs of intermediate to
				mafic composition. Tertiary and Quaternary sedimentary rocks
				with coal bearing horizons cover portions of the older rocks. The
				VMS mineralisation is most commonly located in the upper
				portions of the Totatlanika Schist which is of Carboniferous to
				Devonianage.
Drill hole	•	A summary of all information material to	•	No drilling results are being reported.
Information		the understanding of the exploration
		results including a tabulation of the
		following information for all Material drill
		holes:
		o easting and northing of the drill hole
		collar
		o elevation or RL (Reduced Level –
		elevation above sea level in metres) of
		the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception
		depth
		o hole length.
	•	If the exclusion of this information is
		justified on the basis that the information is
		not Material and this exclusion does not
		detract from the understanding of the
		report, the Competent Person should
		clearly explain why this is the case.

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Data	•	In reporting Exploration Results, weighting	•	No drilling results are being reported.
aggregation		averaging techniques, maximum and/or
methods		minimum grade truncations (eg cutting of
		high grades) and cut-off grades are usually
		Material and should be stated.
	•	Where aggregate intercepts incorporate
		short lengths of high grade results and
		longer lengths of low grade results, the
		procedure used for such aggregation
		should be stated and some typical
		examples of such aggregations should be
		shown in detail.
	•	The assumptions used for any reporting of
		metal equivalent values should be clearly
		_stated. _
Relationship	•	These relationships are particularly	•	No relationship known about mineralisation and the conductor
between		important in the reporting of Exploration		at this stage.
mineralisation		Results.
widths and	•	If the geometry of the mineralisation with
intercept		respect to the drill hole angle is known, its
lengths		nature should be reported.
	•	If it is not known and only the down hole
		lengths are reported, there should be a
		clear statement to this effect (eg ‘down
		_hole length, true width not known’). _
Diagrams	•	Appropriate maps and sections (with	•	Refer to figures in body of report.
		scales) and tabulations of intercepts
		should be included for any significant
		discovery being reported These should
		include, but not be limited to a plan view of
		drill hole collar locations and appropriate
		_sectional views. _
Balanced	•	Where comprehensive reporting of all	•	No drilling results are being reported.
reporting		Exploration Results is not practicable,
		representative reporting of both low and
		high grades and/or widths should be
		practiced to avoid misleading reporting of
		_Exploration Results. _
Other	•	Other exploration data, if meaningful and	•	Geophysical contractor Zonge International completed a fixed
substantive		material, should be reported including (but		loop electromagnetics survey with readings completed on four
exploration		not limited to): geological observations;		200m spaced lines and 25 to 50m spaced stations.
data		geophysical survey results; geochemical	•	Modelling of results by Geophysical consultants Newexco
		survey results; bulk samples – size and		show a clear long wavelength anomalous response on all four
		method of treatment; metallurgical test		lines, consistent with a single, strike and depth extensive,
		results; bulk density, groundwater,		conductive horizon.
		geotechnical and rock characteristics;	•	The modelled conductor measures >1700m by >600m with a
		potential deleterious or contaminating		40° dip towards 190°.
		substances.
Further work	•	The nature and scale of planned further	•	The 2019 field program will finish by the end of September.
		work (eg tests for lateral extensions or		Follow-up programs for the 2020 field program will be planned
		depth extensions or large-scale step-out		in the coming months.
		drilling).
	•	Diagrams clearly highlighting the areas of
		possible extensions, including the main
		geological interpretations and future
		drilling areas, provided this information is
		not commercially sensitive.