Macphersons Resources : Standout Boorara Drill Results 158 metres at 1.6*g/t Gold

ASX Announcement 1 March 2017 Standout Boorara Drill results 158 metres at 1.6*g/t Gold

Outstanding Reverse Circulation result from recently drilled hole BORC

173 intersected near continuous gold mineralisation of 158 metres grading 1.6 g/t from 56 metres downhole.

Intersection is drilled perpendicular to high grade sheeted vein mineralisation within quartz granophyre unit of the Boorara Dolerite to a vertical depth of 185 metres.

Selected drill highlights from the first three Reverse Circulation drill holes drilled at the Boorara Southern Stockwork deposit to follow up on BODH 025 include:

 BORC 173 56-214m 158m @ 1.6 g/t

Incl 161-162m 1m @ 19.25 g/t

 BORC 171 109-142m 33m @ 2.75 g/t

155-175m 20m @ 2.83 g/t

178-211m 33m @ 1.05 g/t

• BORC 172 Target missed due to hole deviation caused by soft sediments

Deepest MacPhersons drill hole intersections at Southern Stockwork Deposit and confirms an increase of grade at depth.

The company is confident it will grow the size and increase the grade of the current Boorara Gold Resource.

Reverse Circulation drilling results confirm current geological model and understanding of mineralisation geometry.

*composite interval >0.3 g/t bottom cut-off, includes up to 4m of internal dilution as host rock and mineralisation and alteration similar down hole.

109 Maritana Street, Kalgoorlie WA 6430, Australia: P O Box 10977 Kalgoorlie WA, Australia

ABN 98 139 357 967 T [phone] F [phone] E [e-mail]

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MacPhersons Resources Limited (ASX: MRP) is pleased to announce an initial set of three (3) Reverse Circulation (RC) drill results from a total 5 RC holes drilled at the Boorara project to support the outstanding result previously reported at BODH 025 of 163 metres (m) grading 1.94 grams per tonne (g/t) with a top-cut to 24 g/t. These new results confirm an extension of the Boorara Southern Stockwork deposit at a vertical depth below 185 metres from the surface and 40 metres on north along strike from BODH 025 (see ASX release of BODH 025 dated 14 February 2017).

The RC drilling strategy for this program was test the geology model and scope out the extent of mineralisation associated with diamond hole BODH 025.

RC holes were planned at 40 metre spacing as;

• BORC 171 and 172 were collared 40 metres grid east of BODH 025 at an azimuth of 150° drilling through sediments into the dolerite. Risks associated with strategy are drilling through soft sediments that the drill rods will not remain straight which proved correct with a hole abandoned at 72m due to excessive hole deviation.

• BORC 173 & 174 were collared in dolerite (40 metres and 120 metres grid north of BODH 025) and drilled across the contact at an azimuth of 115°.

• BORC 175 collared in ultramafic (40m grid west of BODH 025) and drilled at an azimuth of 115°.

• Results for BORC 174 and BORC 175 have not been received.

Drilling Progress on site

The RC drilling rig has completed five holes and Company has contracted a diamond drill rig to extend diamond tails below holes BORC 174 & 175. We will continue diamond drilling on the same azimuth 115° and dip -60°.

RC drill hole BORC 173 at the Southern stock work deposit was drilled perpendicular to high grade quartz vein arrays within dolerite, and intersected 158 metres grading 1.6 grams per tonne (g/t) cut grade (See Appendix 1 for all the 1 metre gold assays).

This hole is the deepest MacPhersons has drilled at the Boorara southern stockwork deposit and was planned to be drilled perpendicular to NW dipping quartz vein arrays within the Boorara dolerite. This mineralised zone was extended to a vertical depth of 185 metres and is located between 200-300 metres south west of the Boorara trial pit that recently produced 30,000t of ore grading 1.73 g/t.

Quartz veining was logged in reverse circulation holes BORC 171 & 173 that is associated with higher grade gold mineralisation confirmed the dominant quartz vein geometry was shallow NW dipping similar to those seen in the Boorara trial pit (see figure 3). The 25 ounces of coarse gold recovered from a NW dipping quartz vein in the Boorara trial pit clearly validates the potential of high grade quartz veins intersected in BODH 025 to upgrade the Boorara deposit.

The current drill program again demonstrated that Boorara gold mineralisation is hosted by quartz-dolerite in moderately NW-dipping quartz-carbonate-sulphide veinlet arrays with iron-carbonate alteration halos controlled by bounding shear zones and late cross faults similar to the 6 million ounce Mount Charlotte gold deposit (part of the nearby Kalgoorlie Golden Mile).

Western Mining Corporation Ltd recognised the importance of drilling perpendicular to the NW dipping quartz veins at Mt Charlotte to better estimate gold grade, this same strategy has been adopted by MacPhersons at Boorara.

Cataract Gold Mine (30,000 oz; 1897-1907) is located one kilometre to the North West of BODH 025 and BORC 173 within the Boorara dolerite. The deposit had two major stope geometries, one striking 040° dipping to the North West and the other striking 330°/90°. The significance of these stope geometries is that structural controls on historically mined high-grade gold veins in the NW dipping quartz vein arrays are the same as encountered in the current drilling program.

A recent reinterpretation of the geometry of mineralisation at Boorara is as a result of structural mapping and interpretation of the Boorara gold project (Tripp 2017). The new Boorara structural geological model has allowed MacPhersons to make a better estimate of the true gold grade and size of the existing Boorara resource based on an interpretation of mineralised NW-dipping quartz vein arrays. This is verified by structural mapping from the Boorara Trial Pit, and further substantiated by vein orientations in BODH 025 (see figure 6).

The high grade mineralised dolerite has a potential strike length of 500 metres whereas the width of the granophyric dolerite cannot be accurately determined based on drilling to date, it is estimated to be 20 metres in width.

The one metre results of reverse circulation drill holes BORC 171 and 173 can be found in a table as appendix 1.

Figure 1: Plan view of BORC 173 relative to previously drilled and announced MacPhersons drill holes.

Figure 2: Cross section 5660N perpendicular to BORC 157 showing an oblique view of BORC 173.