ZEUS RESOURCES LIMITED — Interim / Quarterly Report 2017

Apr 20, 2017

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QUARTERLY ACTIVITIES REPORT

For the period ending 31[st] March 2017

The Board of Zeus Resources Limited is pleased to release its Third Quarterly Activities Report covering the period ending 31[st] March 2017.

Highlights

• The Company currently is continually investigating the mineral projects in Laos;

• Mortimer Hills Lithium Project – joint venture partner Segue Resources Ltd (SEG) carried out a stream sediment survey over E09/1618, seeking to follow up on previously identified anomalous results at the Camel Hills Prospect. This work continues to support the projects prospectivity to host LCT pegmatites.

Corporate and Financial

• Quarterly administrative and other operational expenditures are within budget;

• The EGM was held in February 2017.

Tenement Status

No changes to Zeus' granted tenement holding during the Quarter. Tenements are shown in Figure 1 and detailed in Table 1.

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Figure 1. Zeus Resources Tenement Location Map.

Region	Project	Tenement	Status	Holder	Operator	Comments
Wiluna	Lake Way	E 53/1601	Granted	Zeus Resources Ltd	Zeus Resources Ltd
		E 53/1603	Granted	Zeus Resources Ltd	Zeus Resources Ltd
		E 53/1604	Granted	Zeus Resources Ltd	Zeus Resources Ltd
	Yeelirrie South	E 36/733	Granted	Zeus Resources Ltd	Zeus Resources Ltd
Narnoo	Narnoo North	E 39/1683	Granted	Zeus Resources Ltd	Zeus Resources Ltd
	Narnoo South	E 28/2097	Granted	Zeus Resources Ltd	Zeus Resources Ltd
Gascoyne	Mortimer Hills	E 09/1618	Granted	Zeus Resources Ltd	Segue Resources Ltd
		E 09/2147	Granted	Zeus Resources Ltd	Zeus Resources Ltd	Granted 15/09/16
		Table 1. Zeus Resources Tenement Details

Exploration Program

No fieldwork was completed during the quarter on tenements managed by Zeus Resources Ltd.

Wiluna Project

Zeus continues to explore options for follow up drilling on the Lake Way and Yeelirrie South Projects.

The proposed drilling is a follow up to a successful drilling program conducted in December 2014 where prospective reduced sediments were determined to be widespread at depth within the Lake Way and Yeelirrie Palaeochannels, with two regionally extensive target sand horizons determined to be restricted to the palaeovalley axes.

The follow up drill program has been planned to target these prospective reduced palaeochannel sandstones within the Kukububba (Lake Way) and Yeelirrie South Palaeochannels.

Approval for this drilling program has been granted by the DMP, with Aboriginal heritage clearance also obtained, for these drill locations within the Lake Way and Yeelirrie South Project areas.

Narnoo Project

The Narnoo South project remains an area of strong interest for Zeus, and as at the Wiluna Project options for follow up drilling of the Narnoo South (E28/2097) uranium prospect ae currently being explored.

The follow up drilling program of 12 (priority 1) holes at Narnoo South is designed to confirm uranium grade and thicknesses within the Driller’s Palaeochannel which was identified during the drilling program conducted in May 2015.

Approval for this drilling program has been granted by the DMP for these drill locations and Zeus currently plans to undertake the proposed drilling in the first half of 2017.

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Gascoyne Project

Over the past quarter, joint venture partner Segue Resources Ltd (“Segue”) has carried out a small stream sediment survey on E09/1618 over the Camel Hill Prospect. The stream sediment survey was designed to extend upon the previous work to cover off on the prospective ground around Camel Hill within the metasediments of the Mount James Subgroup and Leake Springs Maetamorphics.

Given the well-developed drainage patterns and abundant outcrop of the Gascoyne Project area, it was decided that a stream sediment survey would be the most effective and efficient program for geochemical evaluation.

Samples were collected at an average sample density of 2.5 samples per square kilometre from appropriate drainages, representing their respective areas.

Samples consisted of 150-200 grams of -80 mesh (-177 micron) stream sediment material collected from each sample location from along the stream. Samples were then dispatched to ALS laboratories in Perth for ultra-trace multi-element analysis by a four-acid digest and ICP-MS finish via method ME-MS61L.

Assay results for this program are currently pending at ALS Laboratories in Perth and once the assay data has been received, the results will be reviewed and a follow up soil geochemical program planned accordingly.

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Figure 2. Sample locations on 250k Geology within tenement E09/1618. Anomalous sample locations at Camel Hill highlighted in red.

(source: Segue Resources Ltd ‘Gascoyne Lithium – E09/1618 Update April 2017’ to Zeus Resources Ltd)

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Competent Person Statement:

Information in this release that relates to Exploration Results is based on information compiled by Mr Warrick Clent, who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Clent is a director of Clent Advisory Proprietary Limited. Mr Clent is engaged by Zeus Resources Limited as an independent consultant and holds no shares in the company. Mr Clent has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Clent consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

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