30 Mach 2016 Highlights POSITIVE METALLURGICAL RESULTS FOR THE TAMPIA GOLD PROJECT Gold minealisation is fee milling and non-efactoy Appoximately 70% of all gold epots to high gade sulphide float concentate 92-94% ecovey of gold fom concentate Futhe wok being undetaken on flotation tails to optimise ecovey Tageting oveall 85% - 90% aveage gold ecovey Scoping Study fo Tampia development to commence in ealy Apil with completion by August 2016 Explauum Limited (EXU:ASX) ( Explauum o the Company ) is pleased to announce esults fom the initial metallugical test wok pogam on the Company s Tampia Gold Poject in Westen Austalia. Final esults fom the bulk flotation metallugical test wok pogam to detemine the oveall gold ecoveies of flotation concentates wee eceived. The esults ae vey encouaging and confim that thee is no efactoy sulphide elated gold minealisation, with gold ecoveies significantly impoved by fine ginding. Comments fom John Lawton, Managing Diecto: The metallugical pogam is a positive fist step in detemining the optimal pocessing oute fo the minealisation at Tampia. The esults achieved confim the initial bottle oll testwok undetaken last Septembe that the gold at Tampia is not efactoy and is fee milling. We ae confident that we can impove esults futhe with met wok planned ove the coming months and ae tageting an aveage gold ecovey of 85%-90% fo use in the Scoping Study commencing in ealy Apil. Thee appeas to be stong economic advantages to adding flotation to the teatment pocess to educe the potential opeating cost. The esults ae an impotant step fowad in ealising the potential of the poject and povide confidence in testing tagets that exist within 2km of the cuent esouce along stike and down dip. Ealy indications fom the gavity pogam suggest it is poviding excellent definition of the minealised stuctue which can be utilised in planning the Apil dilling pogam. Pogam Summay Pevious bottle oll test wok undetaken by the Company (ASX elease 21 Septembe 2015) on 28 minealised diamond dill coe samples indicated pedominantly fee-milling potential, with 23 samples etuning an aveage 89% gold ecovey and 5 samples aveaging 47% ecovey (Figue 1). A stong invese coelation between gold ecovey and asenic concentation was obseved. Fo the cuent pogam, two composite samples wee pepaed fom minealised coe in 3 dill holes, epesenting high and low asenic concentation (Table 1) and gold gade epesentative of the Tampia esouce model. Registeed Office: Level 16, Watefont Place, 1 Eagle Steet, Bisbane QLD 4000 Postal Addess: PO Box 3249, Bisbane QLD 4001 Contact Details: Telephone +61 7 3333 2722 Email: info@explauum.com www.explauum.com
Figue 1. Bottle oll cyanide leaching of 28 pulveised samples Table 1. Composite assays Element Unit High Au:As Low Au:As Gold (duplicate) g/t 3.43/2.58 (av ) 2.67/2.39 (av ) Silve g/t <0.3 <0.3 Asenic g/t 912 6,550 Sulphu/Sulphide % 0.38/0.22 1.68/1.30 Cog % <0.03 <0.03 Te g/t <0.2 <0.2 Cu g/t 95 285 Flotation testwok was completed on thee epesentative samples of each composite unde vaying conditions (see Table 2 below). All tests exhibited nea complete ecovey of sulphides (97% to 99%) and gold ecovey to the float concentate anged fom 65.0% to 74.6%, and 58.6% to 72.0% fo the high and low gold:asenic (Au:As) composites espectively. Subsequent leaching of the flotation tailings esulted in an oveall incease in gold ecovey up to 90.8%. A bulk flotation test was conducted in ode to geneate sufficient mass of concentate fo ultafine ginding (UFG) and intensive cyanide leaching. The esults wee vey positive indicating the gold associated with sulphides is not efactoy, but athe fee milling and appaently sensitive to gind size. The implementation of flotation could potentially impove the poject economics and incease the options fo binging the poject into poduction, compaed with gavity sepaation and cyanide leaching alone. Futhe impovements in gold ecovey can be expected following futhe testwok on the flotation tailings. Next Steps The metallugical testwok pogam has povided significant pogess in undestanding the gold minealisation at Tampia and ultimately detemining the met pocess which will achieve the best potential financial etun fo both an initial toll teatment option as well as a futue standalone opeation. Testwok is in pogess on the flotation and leach tailings to diagnose the unecoveed gold and futhe impovement in gold ecovey is expected once cuent losses ae undestood. Comminution testwok is undeway to detemine the hadness and abasiveness of the minealisation fo futue plant design.
A scoping study will commence in ealy Apil to assess the development options fo the Tampia esouce. Results of this study will be available by August 2016. The detailed gound gavity pogam (ASX elease 22 Mach 2016) is appoximately 50% complete with the initial data econciling well against the cuent minealisation and also identifying the potential fo futhe minealisation along stike and down dip. The pogam is expected to be completed shotly with esults expected in ealy - mid Apil. The findings fom the pogam will be in incopoated in to the poposed dill pogam expect to commence in mid Apil 2016. Table 2. Flotation and Leaching Testwok Results Paamete Flotation Stage* Unit Test 1 High Au:As Test 2 Test 3 Bulk Float Test 1 Low Au:As Test 2 Test 3 Bulk Float Gold Feed Gade (calc/assayed) g/t 2.86/ 3.43/ 2.15/ 2.26/ 2.77/ 2.78/ 2.67/ 2.49/ Recovey to concentate Mass % 2.71 2.17 2.34 3.49 6.7 6.31 6.33 7.11 Au % 71.9 65.31 74.6 79.3 72 58.59 70.7 62.5 S % 97.6 97.66 97.5 97.7 96.9 95.63 97.7 96.7 Sulphide % 97.5 97.56 97.4 97.6 99.4 97.71 99.4 99.3 As % 88 74.22 81.64 65.1 73.9 53.33 63.1 43.9 Concentate Gade Au g/t 76 103 68.5 51.2 29.8 25.83 29.7 21.9 As % 3.4 3.5 3.7 2.2 9.3 7.5 7.5 4.1 Flotation Tailings Gold Gade g/t 0.83 1.22 0.56 0.49 0.83 1.23 0.84 1.01 Leaching of Flotation Tails** Au Extaction % 39.2-53.6 50.2 28.8-22.8 17.9 Leach Residue Gade g/t 0.52-0.29 0.26 0.56-0.63 0.77 Oveall Recovey (Flotation + Cyanide Leach) % 83.6-90.0 90.8 80.8-77.7 69.2 UFG, Int Leach of Float Concentate *** Au Extaction % - - - 94.4 - - - 91.6 Oveall Recovey (Float Con % - - - 86.3 - - - 63.9 Leach + Tails Leach) * Flotation Test Conditions: Test 1: P 80 125µm, natual ph, 50g/t CuSO4, 100g/t PAX, IF50, site wate Test 2: P 80 125µm, natual ph, 20g/t MX900, 100g/t PAX, IF50, site wate Test 3: P 80 75µm, natual ph, 50g/t CuSO4, 100g/t PAX, IF50, site wate Bulk Float: Same as Test 3 ** Leach Test Conditions: ph 10, 500ppm NaCN initial, 300ppm maintained, oxygen spaged, site wate *** Flotation Concentate gound to P 80 15µm then leached at 3% NaCN initial, 1% maintained, ph>9.8, oxygen spaged
Fo futhe infomation, contact: John Lawton Mak Caldewood Managing Diecto Technical Diecto Explauum Limited Explauum Limited +61 7 3333 2722 +61 8 6144 1704 Competent Peson s Statement The infomation in this announcement that elates to Metallugical Results is based on infomation compiled by M Bant Tapley, who is a Membe of The Austalasian Institute of Mining and Metallugy. M Tapley is Pincipal Metallugist and Diecto of Mintap Pty Ltd and has sufficient expeience elevant to the style of minealisation unde consideation and to the activity which he is undetaking to qualify as a Competent Peson as defined in the 2012 edition of the Austalasian Code fo Repoting of Exploation Results, Mineal Resouces and Oe Reseves. M Tapley consents to the inclusion in this epot of the mattes based on his infomation in the fom and context in which it appeas. About Explauum Limited and the Tampia Gold Poject Explauum s key asset is the 90% inteest in the Tampia Gold Poject, located appoximately 300km east of Peth in the wheat belt of Westen Austalia. A 2012 JORC Infeed esouce of 4.7 million tonnes (MT) gading 2.0g/t Au (cut) o 2.5g/t Au (uncut) containing 310,000 380,000 ounces of gold, including 1.6 MT at 3.4 g/t Au (cut) o 4.6g/t Au (uncut) containing 170,000 237,000 ounces gold announced in Apil 2015 (Table 1). BHP Mineals ( BHP ) discoveed gold minealisation at Tampia in 1987 fom follow up of a egional BLEG steam sampling pogam. BHP and subsequent ownes in the 1990s established the following featues of the minealisation: Gold minealisation is high gade and nea suface The esouce was well dilled in pat to mostly shallow depth, but open in all diections and at depth The esouce aea has significant gaps in dilling. If infill dilling is successful, an incease in esouces is anticipated Thee is significant potential fo futhe discoveies within 10km adius with a numbe of stong geochemical and auge/rab anomalies Tampia is located on pivate land close to sealed oads, powe, wate, accommodation, sevices and labou Tampia is located 135km by oad fom Westonia and about 185km by oad fom Southen Coss and Mavel Loch. Notable histoic dill intecepts include: GR028 17m at 27.5g/t Au fom 8m including 4m at 108.9g/t Au fom 9m; NRC4 11m at 28.1g/t Au fom 21m including 5m at 57.7g/t Au fom 25m; GDH01 9m at 18.3g/t Au fom 19m including 1m at 55.5g/t Au fom 23m and 2m at 43.5g/t Au fom 25m and a deepe intecept of 11m at 10.1g/t Au fom 50m including 2m at 41.9g/t Au fom 50m; GR001 25m at 11.0g/t Au fom 0m to the end of the hole including 8m at 29.3g/t Au om 14m;
GR003 25m at 10.1g/t Au fom 0m to the end of the hole including 3m at 52.7g/t Au fom 19m; NRC41 5m at 34.9g/t Au fom 79m including 1m at 165g/t Au fom 79m; GDH09 29m at 5.9g/t Au fom 35m including 1m at 154g/t Au fom 59m; NRC16 4m at 19.2g/t Au fom 33m and 6m at 16.1g/t Au fom 45m including 1m at 64.0g/t Au fom 49m; GR026 9m at 16.5g/t Au fom 16m including 4m at 32.5g/t Au fom 19m; GR411 31m at 3.9g/t Au fom 64m; NRC6 13m at 7.6g/t Au fom 59m including 2m at 24.8g/t Au fom 67m; and NRC15 18m at 5.3g/t Au fom 67m. In 2014 and ealy 2015, the Company completed 10 diamond dill holes (totalling 481.3m), with six holes tageting known minealisation in the vicinity of the Gault esouce. A futhe 7 diamond dill holes wee completed in July 2015 (totalling 766.5m), and 45 RC dill holes (totalling 2798m) wee completed in Decembe 2015 pedominantly within the toll teatment pit aea. All esults fom these pogams have been fully epoted and available at www.explauum.com. Table 1: JORC 2012 Infeed Mineal Resouce (gold), Gault Pospect, Tampia Poject Cut off Tonnes Au (cut) Contained gold Au (uncut) g/t Au (,000) g/t Au Ounces g/t Au 0.7 7,100 1.6 370,000 2.0 1.0 4,700 2.0 310,000 2.5 2.0 1,600 3.4 170,000 4.6 Notes: i) appox. 90% of the esouce (at 0.7g/t) is less than 100m depth (73% shallowe than 80m) ii) details of the estimation ae set out in Appendix 1 iii) oxide Resouces ae not significant at about 15,000 ounces at a 0.7g/t cut off.