Boss Resources : Significant Increased Exploration Target over Honeymoon

ASX Announcement ASX: BOE

25 March 2019

Significant Increased Exploration Target over Honeymoon Uranium Project

HIGHLIGHTS

• • Global exploration review increases Exploration Target on the Honeymoon Uranium Project, South Australia

• • Increased Exploration Target is additional to the February 2019 Mineral Resource estimate of 24Mt at 660ppm U3O8 for a total contained uranium oxide content of 36 Mlbs U3O8, at 250ppm cut-off for the Honeymoon Re-Start Area

• • Revised 3D modelling within Honeymoon Re-Start Area shows mineralisation remains open along and across strike of known channel system

Boss Resources Limited (ASX: BOE) is pleased to announce a significant increase in the Exploration Target for its Honeymoon Uranium Project in South Australia. The Exploration Target comprises 10 areas; seven within the Eastern Region tenements and three located in the Western Region tenements (Figure 1).

The increased Exploration Target estimate for the Honeymoon Uranium Project now stands at 28 Mt to 133 Mt of mineralisation at a grade of 340 ppm to 1,080 ppm U3O8 for a contained 58 Mlbs to 190 Mlbs U3O (26,300 to 86,160 tonnes of contained U3O8), using a cut-off of 250ppm.

At the upper end of the target range this represents a 90% increase from the previously reported Exploration Target1.

Boss' increased Honeymoon Exploration Target does not include areas of existing Mineral Resource and the potential quantity and grade reported are conceptual only in nature. Insufficient exploration has been conducted to estimate a JORC-compliant Mineral Resource and it is uncertain whether future exploration will lead to the estimation of a Mineral Resource in the defined areas.

Boss Resources Managing Director Duncan Craib said, "The increased Exploration Target is another step forward and we look forward to unlocking additional large-scale uranium mineralisation within the broader Honeymoon Uranium Project. This has been made possible by the diligent efforts of the geology department re-analysing historical and recent drill and geophysical results.

"Having a fully permitted mining licence and existing infrastructure makes Honeymoon one of the few uranium projects worldwide positioned that can participate in the early stages of a new bull market."

1 Announced to the ASX on 8 December 2015

Suite 23, 513 Hay St, Subiaco WAP: [phone]

E:[e-mail]

ABN 38 116 834 336

Honeymoon Uranium Project Summary

The Honeymoon Uranium Project is situated approximately 80km northwest of Broken Hill, near the border of South Australia and New South Wales. The project is 100% owned by Boss Resources Ltd and covers 2,600km2, consisting of one granted Mining Licence, five granted Exploration Licences, three Retention Leases and two Miscellaneous Purpose Licenses.

The Honeymoon Uranium Project comprises two main areas (Figure 1):

• 1. The Eastern Region, which contains Honeymoon's Re-Start Area (ML6109, EL6081 and EL5621), hosting the Brooks Dam, Honeymoon, East Kalkaroo and separate Jason's Deposits; and

• 2. The Western Region (EL6020, EL5623 and EL5622) which hosts the Gould's Dam

  Deposit.

The Mineral Resource for the Honeymoon Re-Start Area totals 24Mt at 660ppm U308 for 36 Mlb U308, while the global Honeymoon Mineral Resource stands at 52.4 Mt at 620ppm U308 for 71.6 Mlb U308 , using a cut-off grade of 250 ppm.2

Resource Classification	Tonnage (Million Tonnes)	Average Grade (ppm U3O8)	Contained Metal (Kt, U3O8)	Contained Metal (Mlb, U3O8)
Jason's (March 2017) 2
Inferred	6.2	790	4.9	10.7
Gould's Dam (April 2016) 3
Indicated	4.4	650	2.9	6.3
Inferred	17.7	480	8.5	18.7
Honeymoon Re-Start Area (January 2019)
Measured	3.1	1,100	3.4	7.6
Indicated	14	610	8.7	19
Inferred	7.0	590	4.1	9.1
TOTAL HONEYMOON URANIUM PROJECT
Measured	3.1	1,100	3.4	7.6
Indicated	18.4	630	12.0	25.5
Inferred	30.9	570	18.0	38.5
Total	52.4	620	32.5	71.6

Table 1: Summary of upgraded Mineral Resource for the global Honeymoon Uranium Project

In addition to the global Mineral Resource, the Exploration Target estimate for the Honeymoon Uranium Project increased to 28 Mt to 133 Mt of mineralisation at a grade of 340 ppm to 1,080 ppm U3O8 for a contained 58 Mlbs to 190 Mlbs U3O (26,300 to 86,160 tonnes of contained U3O8), using a cut-off of 250ppm.

• 2 Announced to the ASX on 25 February 2019

• 3 Announced to the ASX on 8 April 2016

Honeymoon Exploration Targets

Honeymoon's Exploration Target is comprised of 10 target areas, of which five are in areas extensional to the existing Mineral Resources (Refer Figure 1). The remaining five areas target geophysical anomalies, i.e. identifiable features on regional-scale geophysical data that have historically been associated with known mineralisation elsewhere in the Honeymoon Project area. Only two of these anomalies are supported by some drilling.

Much of the data used in the Exploration Target estimation process came from historical work undertaken around the project area between 1972 and 2003 by many different companies. Due to the changing nature of project ownership over time, and transfer of project data to the next generation of explorers, it is not always possible to comment on the accuracy or quality of much of the exploration drilling, sampling or uranium grades derived from downhole logging prior to the purchase of the Company's PFN tools in 2003. However, based on the large volume of data reviewed and used in the recently upgraded, February 2019 Mineral Resource estimate for the Honeymoon Re-Start Area, Boss'

Competent Person believes the pre-2003 historical data to be of sufficient quality to be indicative of potential uranium grades around the project area.

Figure 1: Honeymoon Uranium Project Exploration Target Areas. Boss' increased Honeymoon Exploration Target does not include areas of existing Mineral Resource and the potential quantity and grade reported are conceptual only in nature. Insufficient exploration has been conducted to estimate a Mineral Resource and it is uncertain whether future exploration will lead to the estimation of a

Mineral Resource in the defined areas.

Work involved in the recently updated Mineral Resource estimate for the Honeymoon Re-Start Area2 consisted of the construction of new 3D geology and mineralisation models, based on a full review and reinterpretation of all available drilling data. Modelling aimed to provide updated information for the wellfield design stage of the Definitive Feasibility Study. However, a secondary objective was to use these models in a systems-style approach for regional exploration in order to a) find deposits analogous to the Honeymoon domains, or b) identify uranium deposits of different morphology but still amenable to extraction via in-situ recovery.

Mineralisation within the Honeymoon Re-Start Area is present in the form of tabular lenses in a palaeovalley-type, sandstone-hosted deposit associated with the vertical and lateral movement of oxidation-reduction interfaces and hosted within the sediments of the broad-scale, buried Yarramba Palaeovalley (refer Figure 2). The sediments infilling the buried palaeovalley are approximately 70m below ground surface to a maximum depth of approximately 130m and filled by Paleogene-aged, fining up sequences of sand, interbedded silts and clays. The valley systems were incised into the surrounding country bedrock of the Willyama Supergroup, and drain into Lake Frome, northwest of the Project area.

Structural interpretation from regional-scale geology and geophysics also indicated multiple cross-cutting structural features that could potentially create complexities in channel formation, such as offsets and jogs. These structural features would most likely be situated in the basement formations and also provide ideal conduits for reducing fluids and gases, such as hydrocarbons, to be transported upwards into the overlying sedimentary strata.

Drilling observations, during the 2018 infill and exploration campaigns, noted the appearance of an oily slick on the surface of the sump waters that was distinctly different from any drilling muds or fluids being used at the time. The appearance of hydrocarbons could also provide an additional control on mineralisation and is being considered as part of the model for future exploration.

Figure 2: Honeymoon Re-Start Area - distribution of mineralisation

2019 Exploration Activities

Boss Resources seeks to employ the most advanced and cost-effective multi-disciplinary exploration alternatives to conduct large-scale exploration while increasing project value for shareholders. Taking into consideration the existing Mineral Resource to sustain Honeymoon's re-start of mining operations,

and the current uranium price, the Company is pursuing cost effective alternatives to regional exploration in order to discover new economic mineral deposits.

Boss' 2019 exploration program will focus on passive seismic exploration in the Eastern Region

(comprising tenements EL5621, EL 6081 and ML 6109), and an airborne survey over the Western Region

(containing tenements EL 5622, EL 5623, EL 6020, and Retention Licences overlying Gould's Dam).

The Company looks forward to reporting on exploration results as programs are completed.

Eastern Region

In December 2018, Boss re-initiated exploration activities with a short ground-based gravity orientation survey over selected parts of the East Kalkaroo, Brook's Dam and Jason's Deposits.

Results successfully confirmed the position of the palaeovalley extents, as previously indicated by minor historic drilling. The gravity survey results and concurrent airborne EM data suggest the accumulation of conductive material on the shallower edges of the palaeovalley which, if this material is organic, may provide one explanation for the concentration of economic uranium mineralisation in these areas as opposed to the deeper parts of the palaeovalley.

Boss' 2019 exploration program will begin with a passive seismic orientation survey over the East Kalkaroo deposit and coincident with areas of existing drilling. The Passive Seismic method is a proven cost-effective exploration alternative used extensively throughout Australia for multiple mineral commodities and deposit types, with particular success in the identification of mineralised palaeochannels. The technique was first introduced to the Australian mineral exploration industry in 20134 with specific focus on the exploration of shallow, sub-surface, sediment-hosted deposits.

The objective of this survey is to create a deposit-specific depth-to-basement model using the known depths to basement from drilling and the new data acquired from the passive seismic survey. A topographic map of the basement surface subsequently produced should highlight areas of basement depression (likely narrow channels) within the broader palaeovalley system. If successful, the resulting depth-to-basement model will be applied to future regional passive seismic surveys in areas of little to no existing drilling, assisting with the identification of new potential drill targets.

4 Readers are referred to the Geological Survey of Western Australia, Record 2014/09: "Application of passive seismic to estimate cover thickness in Greenfields areas of Western Australia - method, data interpretation and recommendations" (A.J. Scheib)