MINREX RESOURCES LIMITED — Capital/Financing Update 2019

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ASX AND MEDIA ANNOUNCEMENT

7 November 2019

EAST PILBARA PROJECTS – EXPLORATION UPDATE

HIGHLIGHTS

• The multi-element assay results received for the 230 rock samples collected on MinRex’s two Bamboo Creek Project areas in the East Pilbara, from SeptemberOctober 2019 program;

• At the larger Bamboo Creek exploration licence (E45/4560) a total of 180 rock samples were collected from the three main prospect areas, at the Northern Area, at the BC07 prospect and the Nobb Hill prospect. New sampling tested outcrop and float of various rock types over a wide area beyond and around the previously sampled core prospect areas;

• In the Northern Area, five percent of the 100 samples collected assayed over 0.1g/t Au, with a highest value of 0.61g/t Au and anomalous gold values being spread over a large area along the southern (basal) contact of the ultramafic rock sequence;

• At the Nobb Hill prospect chrome values were up to 1640ppm Cr, nickel up to 1450ppm Ni and copper up to 284ppm Cu in this large layered intrusion;

• At the BC07 prospect gold values were up to 0.27g/t Au, copper up to 1.1% Cu, lead up to 0.61% Pb and zinc up to 1.4% Zn in this complex quartz vein system;

• At the second Bamboo Creek exploration licence (E45/4853) a total of 50 rock samples were collected from an area in the north of the licence where abundant mafic xenoliths, pegmatite and quartz veins occur within granite; and

• The new assay results from the sampling program at East Pilbara Project areas highlight the prospectivity of these Project areas and will be used to determine target areas for further future exploration and evaluation work.

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Figure 1: Location of MinRex’s Project Areas

_________________ MinRex Resources Limited Suite 159, Level 2, Equus ABN 81 151 185 867 580 Hay Street Perth WA 6000 P: +61 8 9486 8806

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MinRex Resources Limited (ASX: MRR) (‘MinRex’ or ‘the Company’) is pleased to announce that it has now received the assay results for the 230 rock samples collected at its two Bamboo Creek exploration licences during September/October 2019, during the sixth geological evaluation and sampling program at its 70% owned East Pilbara Project tenements (Figure 2).

East Pilbara Gold Projects

In the five previous field exploration programs completed from December 2017 to June 2019, at MinRex’s East Pilbara Project areas, a total of 610 rock samples were collected with many of the assays being highly anomalous for gold, copper, silver, nickel, chrome and zinc. The projects were also historically researched, old workings and prospects identified and extensive reconnaissance work completed, including air photo interpretation, metal detecting, photography and geological mapping.

This work recovered gold nuggets from the Marble Bar North tenement (P45/3040), along with a total of 80 rock samples. Further 90 rock samples were taken from the Marble Bar South tenement (P45/3039), 160 rock samples from the Daltons tenement (E45/4681) and 210 rock samples from the larger Bamboo Creek tenement (E45/4560) and 70 rock samples from the smaller Bamboo Creek tenement (E45/4853). The 100 rock samples from the Daltons Project, collected in June 2019, returned assays of up to 60.6/t Au and 5.8% Cu, with the average grade of all 100 samples being 1.80g/t Au and 0.12% Cu.[1]

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Figure 2: Geological map showing MinRex’s four East Pilbara Project Areas

1 Refer to 15 July 2019 ASX Announcement

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Work completed in September-October 2019

During mid-September to October 2019, MinRex completed its sixth field exploration program at East Pilbara. On the 18 September 2019, MinRex announced the current program commencement which completed on the 4 October 2019. The program focussed on following up on the earlier very encouraging rock sampling results from the two Bamboo Creek Project exploration licences with detailed rock sampling and geological mapping to better understand the gold and base metals prospects now identified and continue the search for as yet undiscovered mineralised systems. In all, 180 samples were collected from the larger exploration licence (E45/4560) and 50 samples from the smaller exploration licence (E45/4853) for a total of 230 rock samples.

The rock samples collected during September-October 2019 were submitted to the Bureau Veritas Laboratory in Perth, where they were analysed for a total of 26 elements. These were gold, platinum, palladium, silver, arsenic, cobalt, copper, chrome, barium, bismuth, iron, lithium, manganese, molybdenum, nickel, lead, antimony, sulphur, tin, tellurium, titanium, thorium, uranium, tungsten, vanadium and zinc. The results returned a few samples anomalous in various elements but the outstanding results were in the gold and base metals assays. The full assay results for gold and base metals are listed below in Appendices 1-4, while a variety of elemental results are depicted on the individual plans that follow below.

The main focus of the current exploration program was on the two exploration licences that comprise the Bamboo Creek Project. This is a very large project area, being several times the size of all of the other East Pilbara project areas combined, in a remote location and under-explored history of the area combine to make it ideal for more detailed study, sampling and mineral exploration (Figure 3).

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Figure 3: Geological map showing the Bamboo Creek Project area and Main Prospects

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The Bamboo Creek Project area is prospective for gold mineralisation of the Bamboo Creek style. The Bamboo Creek goldfield lies just 5-10km to the north and east, and along strike within the Warrawoona Group Greenstones that occur in the northern portion of the exploration licence (Figure 4). There is also potential for the felsic porphyry-hosted base metal and molybdenum mineralization of the Spinifex Ridge (Coppin Gap) type, with the Spinifex Ridge Mo-Cu deposit being just 2km to the west of the northern portion of the exploration licence, occurring within a porphyry intrusion into the Warrawoona Group Greenstone sequence. There is also potential for chrome-nickel mineralization in ultramafic bodies, as at Nobb Hill as well as anomalism in other, as yet unidentified, mineralization styles.

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Figure 4: Outcropping Warrawoona Group rocks in the northern portion of E45/4560

The Bamboo Creek gold mining centre was discovered in the 1890’s and has been active, on and off for over 120 years. The first gold battery was established at the centre in 1892 and the centre was historically one of the major gold producers in the Pilbara region, with over 250,000oz of gold mined and recovered. Eight major mines were developed along the Main Line Reef, with multiple other smaller operations nearby. The nearby Spinifex Ridge molybdenum-copper porphyry deposit also contains a major JORC compliant mineral resource of molybdenum and copper.

At the main Bamboo Creek Project exploration licence (E45/4560) a total of 180 rock samples (BBR211-390) were collected, from multiple areas, but including some of the named prospects, including the Northern Area ultramafic rock sequence, which represents the along strike continuation of the Bamboo Creek goldfield, the BC07 prospect and the Nobb Hill layered ultramafic prospect. These samples were collected from a wide spread of rock types, outcrop, float and scree zones, beyond and around the main core prospect areas to test for extensions and different mineralized zones.

In the Northern Prospect area, five percent of the 100 samples collected assayed over 0.1g/t Au, with a highest value of 0.61g/t Au and anomalous gold values being spread along the southern (basal) contact of the ultramafic rock sequence with underlying mafic rocks and chert, with this contact thought to represent the shear zone which hosts gold mineralisation at the nearby Bamboo Creek mining centre. The full assay results for gold and base metals are listed below in Appendix 1, while the better results are also shown on the plan below (Figure 5). These samples were mainly of iron-stained quartz vein rocks, outcrop and float, within the Warrawoona Group ultramafic greenstone rocks.

Previous sampling in proximity to this contact zone has returned values up to 1.16 g/t Au and previous sampling at the nearby Norms Find prospect has also returned assay values of up to 22.9g/t Au, 36g/t Ag and 18.5% Cu (Figure 6).

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Figure 5: Map of the Northern Prospect Area and the 100 new sample results in this area

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Figure 6: Map of the Northern Prospect Area and All sample results to date in this area

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More samples were also collected at the BC07 prospect area, with the sampling having been extended along this extensive quartz vein system and into the footwall and hanging wall rocks, which include extensive xenoliths and rafts of greenstones within the roof zone of the Coppin Gap Granodiorite.

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Figure 7: View of the BC07 Prospect Area (E45/4560) and the 40 new rock sample results

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Figure 8: View of the BC07 Prospect Area (E45/4560) and All rock sample results to date

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Potential mineralization types present in the Bamboo Creek Project includes felsic porphyryhosted base metal and molybdenum mineralization of the Spinifex Ridge (Coppin Gap) style, which is related to the intrusion of granitic rocks. As the Spinifex Ridge Mo-Cu deposit is just 2km to the west of the northern portion of the exploration licence, the BC07 prospect area may be related to this style of mineralization. During the current exploration program a total of 40 rock samples were collected from this prominent BC07 prospect, which comprises a complex system of fluorite-carbonate-quartz veins, with anomalous copper values. This sampling covered a more extensive and wider area than that previously tested.

The current BC07 vein sampling returned gold values of up to 0.27g/t Au, copper up to 1.1% Cu, lead up to 0.61% Pb and zinc up to 1.4% Zn. The full assay results for gold, base metals, nickel and chrome are listed below in Appendix 2, while the better results are also shown on the plan above (Figure 7). Previous sampling on the BC07 quartz veins returned values up to 0.89 g/t Au, 10.5 g/t Ag and 1.1% Cu, as shown on Figure 8.

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Figure 9: View of the prominent BC07 prospect quartz veins at the Bamboo Creek Project

A total of 40 new samples were also collected at the large, coarse-grained ultramafic intrusion in the eastern portion of E45/4560 which comprises the Nobb Hill prospect. This prominent hill outcrops in the eastern portion of the exploration licence and consists of layered bands of serpentinised peridotite and metapyroxenite, with some talcose alteration zones. Relatively few samples have been collected from this prospect and the extent of any differentiation and accumulation of nickel, chromite and other metals within the intrusive body is as yet poorly understood.

The current sampling returned assay values of up to 0.16% Cr, 0.15% Ni and 91ppm Co and copper up to 284ppm Cu, lead up to 917ppm Pb and titanium up to 1700ppm Ti. The full assay results for gold, base metals, nickel and chrome are listed below in Appendix 3, while the better results are also shown on the plan below (Figure 10). The current samples were also tested for platinum and palladium, which are often associated with similar geological settings but with no significant results being returned.

A number of the new samples were also collected from a large quartz vein, which lies about 600m to the west of Nobb Hill. This vein had previously returned one anomalous assay value of 1.05 g/t Au and elevated arsenic, lead and zinc values. The current sampling only returned a single value of 44ppb Au and minor elevated metal values.

More systematic and detailed sampling is required to fully test the large layered intrusion at Nobb Hill in an effort to identify individual zones and layers that hold higher levels of nickel, chrome and copper, or other anomalous metal-rich layers. All of the sample results returned to date are shown on Figure 11.

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Figure 10: View of the Nobb Hill Prospect Area (E45/4560) and the 40 new rock sample results

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Figure 11: View of the Nobb Hill Prospect Area (E45/4560) and All rock sample results to date

At the smaller Bamboo Creek Project licence (E45/4853) a total of 50 rock samples (BCR071-120) were collected over a wide spread of locations and rock types across the northernmost portion of the licence. This area is north of the two geophysical target areas (BC12 and BC13) that were previously sampled and occurs in a zone that has earlier been interpreted, from geophysical

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imaging to contain xenoliths of mafic rock, some fault zones, narrow intrusive felsic dykes, abundant small pegmatite dykes and quartz veins, all within the larger Mt Edgar Granitoid Complex.

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Figure 12: EL45/4853 at the Bamboo Creek Project showing assay results – new with larger circles

The 50 samples collected on this occasion were from a variety of rock types, including granite, mafic greenstone, pegmatite, quartz vein and surface weathered zones. These samples returned low assay values, with maximum values of 3ppb Au, 51ppm As, 153ppm Li, 148ppm Cu, 59ppm Mo, 43ppm Pb and 139ppm Zn. The full assay results for gold, base metals, nickel and chrome are listed below in Appendix 4, while the better results are also shown on the plan above (Figure 12). The northernmost samples with larger circles depict the current sample results.

Future exploration work in this exploration licence area will focus on soil sampling and further rock sampling, in order to detect any anomalous areas of mineralization. The presence of mafic greenstone xenoliths, geophysical anomaly zones and traces of base metals and gold during the current sampling work is considered encouraging for further follow-up work.

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Figure 13: View of outcropping quartz vein in E45/4853 at the Bamboo Creek project

Further work is planned for the near future on all four of MinRex’s East Pilbara Project areas, which will include rock and soil sampling and geological mapping. The next phase of field work in the East Pilbara will again incorporate visits to all four of the project areas around the Marble Bar area. Further detailed rock sampling, soil sampling in colluvium and soil covered areas and detailed geological mapping will be utilised to better understand these complex gold, base metal and poly-metallic mineralised systems. This work will commence in the near future, as weather conditions permit, avoiding the summer heat and rain.

For further information, please contact:

Simon Durack Executive Director MinRex Resources Limited Ph: (08) 9486 8806 [email protected]

Competent Persons Statement:

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Kieron Munro, a Competent Person who is a Member of the Australian Institute of Geoscientists and has sufficient experience that 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 Munro is employed as an independent geological consultant by MinRex and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 1 – Bamboo Creek Project (E45/4560) – Northern Area & Norms Find Sept-Oct 2019 Rock Sample Assay Results

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Appendix 2 – Bamboo Creek Project (E45/4560) – BC07 Prospect Area Sept-Oct 2019 Rock Sample Assay Results

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Appendix 3 – Bamboo Creek Project (E45/4560) – Nobb Hill Prospect Sept-Oct 2019 Rock Sample Assay Results

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Appendix 4 – Bamboo Creek Project (E45/4853) – Smaller Exploration Licence Sept-Oct 2019 Rock Sample Assay Results

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Table 1) – Bamboo Creek, Daltons and Marble Bar Projects – Rock Sampling

Section 1 Sampling Techniques and Data

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

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

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