Emmerson Managing Director Mr Rob Bills commented: 'The first phase of drilling at Kiola has been highly successful in providing new insights into the subsurface geology of the 15km2 Kiola Geochemical Zone (KGZ).

We eagerly await the assay results which will guide further exploration'

Kiola Project one of Emmerson's five NSW projects

The 100% owned Kiola project is one of Emmerson's highest ranked, early stage gold-copper projects and is centred on the 15km2 Kiola Geochemical Zone (KGZ). This area encompasses historic workings within favourable Ordovician age rocks that display anomalous gold, copper and molybdenum geochemistry. Recent work has confirmed that the KGZ contains many of the attributes of world class porphyry goldcopper mineralisation and is divided into a northern area centred on the Nasdaq skarn, and a southern area around the South Pole, Kiola and Right Hand Creek mine.

First stage diamond drilling comprising four holes for 1,130m has just been completed and assay results are pending. Visual results and alteration across all drill holes confirm the potential for underlying porphyry copper-gold

The mineralisation consists of chalcopyrite and in at least two holes, iron-rich sphalerite within skarn, in quartz veins and as blebs with pyrrhotite and chalcopyrite. Noting that skarn mineralisation is characteristic of the outer/peripheral zones of porphyry copper-gold systems. The mineralisation typically occurs with pyrite, pyrrhotite and alteration of chlorite, actinolite - epidote and calcite. Minor intrusions plus zones of brecciation were also evident. Mineralisation of pyrite-pyrrhotite-chalcopyrite in drill hole KIODD004 extended the Nasdaq skarn some 200m to the east before entering weak chlorite-epidote alteration within volcanic siltstone and limestone.

The chargeability anomalies from the Induced Polarisation geophysics correspond to zones of intense pyrrhotite-pyrite +/- chalcopyrite and, in combination with the magnetics, will assist in focussing the next round of drilling to test the core of the mineralisation. Drilling at Kiola is partly funded by the NSW Government's New Frontiers Cooperative Drilling grant announced earlier this year. Emmerson Resources will be reimbursed for 50% of its direct drilling costs following the completion of all associated reports.

Kadungle Project deep drilling aimed at testing the source of the copper and gold

As previously reported (ASX:14 April 2020) Emmerson was pursuing several avenues to restore its ownership of EL6226, which was formerly held by Emmerson subsidiary Lachlan Resources in joint venture with Aurelia Metals Ltd (ASX:AMI). Following successful negotiation with new applicant, Bacchus Resources Pty Ltd, Emmerson is pleased to report it has agreed terms to restore full ownership to this tenement (ELA 5947) including the 15% ownership to Aurelia Metals. Moreover the $100k funding grant toward direct drilling costs from the NSW Government New Frontiers program has also been restored.

There are a number of conditions that still need to be finalised ahead of this agreement coming into effect. As part of this negotiation with Bacchus Resources, Emmerson has entered into a drilling agreement with AMWD (a drilling company associated with Bacchus Resources) to undertake a minimum $200k drilling program at Kadungle (stage 1 drilling). Plus a further $1.0m drilling over three years on Emmerson's tenements anywhere in Australia, providing AMWD meets certain criteria, including agreement around competitive drill rates, and professional/safe work practices.

Emmerson has used AMWD in previous programs and is pleased to have secured a highly competent and professional drilling company that has capabilities in diamond, RC, aircore and auger drilling. Following a review of internal tenement management procedures, AMETS has been appointed to manage Emmerson's large tenement packages in NSW and Tennant Creek.

Contact:

Rob Bills

Tel: +61 8 9381 7838

Email: rbills@emmersonresources.com.au

About Emmerson Resources, Tennant Creek and New South Wales

Emmerson is fast tracking exploration across five exciting early-stage gold-copper projects in NSW, identified (with our strategic alliance partner Kenex/Duke Exploration) from the application of 2D and 3D predictive targeting models - aimed at increasing the probability of discovery. Duke can earn up to 10% (to pre BFS) of any project generated providing certain success milestones are met.

The highly prospective Macquarie Arc in NSW hosts >80Mozs gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson's five exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain underexplored due to historical impediments, including overlying cover (farmlands and younger rocks) and a lack of exploration. Kadungle is a JV with Aurelia Metals covering 43km2 adjacent to Emmerson's Fifield project.

In addition, Emmerson has a commanding land holding position and is exploring the Tennant Creek Mineral Field (TCMF), one of Australia's highest-grade gold and copper fields producing over 5.5 Moz of gold and 470,000 tonnes of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot, and Golden Forty. These high-grade deposits are highly valuable exploration targets, and to date, discoveries include high-grade gold at Edna Beryl and Mauretania, plus copper-gold at Goanna and Monitor. These are the first discoveries in the TCMF for over two decades.

Emmerson announced the formation of a strategic alliance with Territory Resources in 2018 and a further strategic alliance with NT Bullion in 2020. Both companies plan to build mills/processing facilities in Tennant Creek to support the mining and processing from Emmerson's small gold mines. Both alliances also extend to separate earn-in and joint venture agreements whereby by Territory Resources and NT Bullion are obligated to spend $5m over 5 years to earn a 75% interest. In addition, there are separate Mining Joint Ventures over a portfolio of Emmerson's small mines whereby Emmerson receive a variety of 12% and 6% gold production royalties or profit share.

New Frontiers Cooperative Drilling

The NSW Government has announced $2.2 million in grants to 22 mineral exploration projects across the state as part of the third round of the New Frontiers Cooperative Drilling grants program. The grants reimburse successful explorers for 50 per cent of per metre drilling costs, up to a maximum of $200,000.

The program aims to support the long-term sustainability of the NSW resources sector by encouraging mineral exploration and discovery, particularly drilling programs that target underexplored areas in the state, or that test new geological ideas and models. The projects are predominantly exploring for copper and gold in key areas in Central and Far Western NSW, as well as other target metals such as cobalt, platinum, nickel, silver, lead, zinc, tin and tungsten. Emmerson has been successful in gaining drilling grants for both our Kiola and Kadungle projects

(C) 2020 Electronic News Publishing, source ENP Newswire