SANDFIRE RESOURCES LIMITED — Capital/Financing Update 2019

Jun 23, 2019

ASX and Media Release

Monday, 24 June 2019

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Red Mountain High-Grade Zinc and Precious Metals VMS Project – Exploration Update

ASX Code: WRM

HIGHLIGHTS

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

Cash on hand (31 Mar 2019) $1.85M

• The 2019 exploration field program commences at White Rock’s highgrade zinc and precious metals VMS Project in Alaska.

• Camp established and 20 personnel mobilised to site.

• On-ground geological reconnaissance mapping, geochemical sampling and geophysics activities commenced.

• Diamond drilling has commenced.

Market Cap (21 June 2019) $8.2M at $0.005 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

• Program fully funded by our JV partner Sandfire Resources.

Diversified explorer and near-stage producer, White Rock Minerals Ltd ( “White Rock” or the “Company” ) in conjunction with its joint venture partner Sandfire Resources NL (ASX:SFR) ( Sandfire ) 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, with an Inferred Mineral Resource[1] of 9.1 million tonnes @ 12.9% ZnEq[2] for 1.1 million tonnes of contained zinc equivalent.

Summer field exploration activities commenced in late May with the camp re-established at Newman’s Creek in the northeast of the Company’s strategic and district-scale 475km² tenement package. On-ground activities during this time have included surface reconnaissance mapping, surface geochemical sampling (soils and rock chips), ground electrical geophysics (MT and CSAMT), downhole EM surveys and diamond drilling.

The surface geological reconnaissance and geochemical sampling has progressed rapidly with 2,116 soil samples and 264 rock chip samples collected (as at June 16) across the two main prospect trends: the Glacier Trend to the north west and the Dry Creek trend to the south (Figure 1). Soil samples are being analysed with a portable XRF to provide rapid geochemical results for identifying targets for ground electrical geophysics (CSAMT) and/or drill testing.

Rock chip sampling has included focused sampling of mineralised horizons and more systematic sampling of specific horizons and lithologic rock types for geochemical assessment to assist with vectoring towards likely massive sulphide accumulation within the stratigraphy. Rock chip assay results are awaited.

Prospecting of the Glacier Trend, a spatially extensive alteration zone with 10km of strike, has identified sulphide accumulations, chert and iron formations, all believed to be proximal to horizons prospective for base metal rich massive sulphides along strike and down dip. Work is now proceeding to define drill targets. Initial ground electrical geophysics (CSAMT) to define conductivity features has commenced with three lines completed at the Arete prospect (Figure 1). This prospect was successfully identified from reconnaissance work in just the last few weeks. Drilling of the Arete and other targets along the Glacier Trend is scheduled to commence in late June.

Ground electrical geophysics has also included a line of MT (magnetotellurics) undertaken to define the depth of the target horizon across the syncline between the high-grade West Tundra Flats and Dry Creek deposits (Figure 1). This technique is effectively mapping the depth of the prospective horizons across the syncline, with the depth of the hinge zone much shallower than first interpreted. The MT line also contains a strong conductor along strike from the West Tundra Flats deposit for further follow-up field reconnaissance, sampling, additional electrical geophysics and modelling, prior to finalising a drill target.

The first three diamond drill holes for this season’s program, located away from the two known deposits, have been completed with no significant massive sulphide mineralisation intersected. The first drill hole (WT19-30) tested a horizon 2km west along strike from the West Tundra Flats deposit, with associated surface geochemical anomalism and a coincident CSAMT conductivity feature. Drilling did not intersect any visual base metal mineralisation. A downhole EM survey did detect an off-hole conductivity anomaly that will be modelled ahead of possible follow-up drill testing.

The next two drill holes (HR19-05 & HR19-06) were completed at the Hunter prospect to test down dip and along strike (approximately 250m step-outs) of mineralisation intersected during the 2018 drill program[3] . Both drill holes intersected the target VMS horizon with thin intervals of massive sulphide and banded sulphide observed in both: 0.2m of massive sulphide in HR19-05 and 0.9m of banded pyrite-sphalerite in HR19-06. Downhole EM probing was completed on hole HR19-05 with no significant conductors identified.

Sampling of each drill hole is underway with assay results anticipated during July.

White Rock’s Managing Director, Matthew Gill said that the 2019 exploration program has had a great start. “We have just completed our first ever modern, high-powered airborne EM survey over our 475km[2] strategic belt-scale regional tenement package, and now we have safely and efficiently mobilised our field crews and have boots on the ground exploring the best of our many identified exploration targets, and the drill bit is now also turning.

The agreed exploration strategy with our JV partner Sandfire is to test away from the known high-grade deposits in pursuit of the next big deposit. This sees our activities testing many of the more regional targets identified from our work last year, and our current activities. We have already identified a drill target at the Arete prospect in just the first few weeks of our current activities. This is a great credit to our team on the ground,” Gill said.

1 Refer ASX Announcement 26th April 2017 “Maiden JORC Mineral Resource, Red Mountain”.

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 20th August 2018 “High Grade Zinc Discovery at the Hunter Prospect, Red Mountain”.

4 Refer ASX Announcement 4th December 2018 “New Geochemical Anomalies Associated with VMS Alteration, Red Mountain”.

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----- Start of picture text ----- Hunter ProspectDry Creek Trend----- End of picture text -----

Figure 1: Location of 2019 field activities (soils – green dots; rock chips – blue dots; CSAMT and MT – black lines; drilling – black dots) with respect to high priority stream sediment geochemical anomalies[4] including the Glacier Trend and Dry Creek Trend target areas, on the DGGS geology map (after Freeman et al., 2016) and terrain surface with locations for the Dry Creek and WTF VMS deposits.

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 .