Magnetic Resources NlASX: MAU

Robust gold targets at Wheel of Fortune and Christmas Well

· Issued by Magnetic Resources NL
ASX Release ASX code: MAU 28 June 2017

Level 1 44A Kings Park Road

PO Box 1388

West Perth WA 6872 Telephone 08 9226 1777 www.magres.com.au

ROBUST GEOCHEMICAL GOLD TARGETS AT WHEEL OF FORTUNE AND CHRISTMAS WELL Wheel of Fortune

Soil sampling at Wheel of Fortune, part of Magnetic Resources NL's 100% owned Hawks Nest project (E38/3127), 15km southwest of Laverton, has mainly outlined two NNW-trending gold anomalies within a 250m x 150m area, as shown in Figure 1.

A detailed ground magnetic survey indicates two north-trending magnetic zones (Figure

2) with the western magnetic anomaly having an anomalous gold western contact with soil gold values up to 33.9g/t (33900ppb), 1.1g/t and 0.6g/t with some workings on the northern end. After some field checking, AC drilling is planned to test this highly anomalous gold zone.

Gold values in the eastern anomalous zone range from 141 to 607ppb Au (Figure1and 2)) and are generally associated with the western to central parts of a well-defined eastern magnetic anomaly assumed to be mafic rocks. A series of shallow historical diggings occurs in the area in both meta-basalt and porphyry rock types. Shallow historical drilling, as shown in Figure 1, does not appear to have tested all the eastern gold anomaly.

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Figure 1. Wheel of Fortune Gold geochemistry, historical workings and drill holes

ABN 34 121 370 232

Figure 2. Wheel of Fortune Ground magnetic image, gold geochemistry, historical workings and drill holes Christmas Well

Shallow RAB (

A significant 800m-long N-S anomalous gold zone, which is open to the north and south has been defined with values up to 194ppb and 39.7g/t (39,730ppb) centred on the historical Triumvirate workings. Historically similar high grades were mined with 1500g of gold being recovered from 50 tonnes of ore extending over 110m of workings, striking SSE in a vertically dipping quartz lode hosted by meta-basalts near the contact with felsic schists (WAMEX report A27915).

This N-S structural zone is parallel and close to the Mertondale shear zone where a number of significant mines have been mined including Mertondale 1,2,3,4,5 (395,000oz) and the recent Kin Mining Discovery at Cardinia (>193,000oz). Magnetic Resources is encouraged by these early geochemical results and 10 new shallow RAB lines are planned, shown in yellow in Figure 3, to both infill and extend this anomalous gold geochemical zone.

Figure 3. Christmas Well Shallow RAB Results, Aeromagnetics Image

For more information on the company visit www.magres.com.au

George Sakalidis Managing Director Phone (08) 9226 1777

Mobile 0411 640 337

Email george@magres.com.au

The information in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a Director of Magnetic Resources NL. George Sakalidis 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'. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

  • Wheel of Fortune: Soils samples of approximately 2kg were taken at a depth of 25cm using hand held tools. In total 197 samples were taken on a 25 x 25m spacing with duplicate samples taken on average every 30 samples.

  • Christmas Well: RAB geochemical drilling below hardpan for total of 110 DH's (360m)

Drilling techniques

  • Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • Christmas Well: Rotary air blast

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • Not Applicable.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

  • The total length and percentage of the

  • Not applicable.

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