De Grey Mining : Mallina gold mineralisation continues to deliver

ASX Announcement

1 March 2019

Mallina gold mineralisation continues to deliver.

• ➢ Step-out resource drilling continues to expand the resource potential at Mallina with results extending mineralisation along strike beyond the existing resources (160,700oz).

• ➢ 4 additional diamond holes have been completed, stepping out below known thicker zones of gold mineralisation.

• ➢ Core from 2 additional diamond holes undergoing metallurgical test work.

• ➢ Diamond drill hole MLRC 259D (results pending) has intersected a 50-70m wide zone of alteration including sulphides and limited quartz veining. This zone is geologically similar to:

  MLRC214D (56m @ 3.04g/t including 30m @ 5.29g/t) - 80m immediately above; and MLRC 215 (16m @ 3.00g/t including 6m @ 4.66g/t) - 50m immediately above.

• ➢ New 5km x 1km detailed Sub-Audio Magnetic ("SAM") geophysical survey commenced and expected to be completed during March.

• ➢ SAM survey is expected to provide greater ability to target further along strike extensions and gain a greater understanding of controlling structures.

• ➢ Significant new drill results (>5 gram x metres) include:

4.93m @ 1.23g/t Au from 106.32m in MLRC253D incl 1.19m @ 3.73g/t Au from 109.17m

5m @ 2.04g/t Au from 81m in MLRC255

6m @ 1.29g/t Au from 70m in MLRC257 incl 1m @ 5.66g/t Au from 70m

11m @ 1.05g/t Au from 101m in MLRC257 incl 2m @ 2.66g/t Au from 106m

14m @ 1.05g/t Au from 130m in MLRC257

4m @ 1.52g/t Au from 44m in MLRC258

7m @ 1.33g/t Au from 89m in MLRC258 incl 2m @ 2.85g/t Au from 92m

5m @ 1.87g/t Au from 151m in MLRC260

8m @ 1.23g/t Au from 62m in MLRC261 incl 2m @ 3.08g/t Au from 65m

14m @ 1.59g/t Au from 75m in MLRC261 incl 4m @ 3.17g/t Au from 77m

5m @ 1.51g/t Au from 66m in MLRC269

De Grey Mining Limited (ASX: DEG, "De Grey", "Company") is pleased to announce an update on drilling results from the Mallina deposit that forms part of the 1.4Moz Pilbara Gold Project, located near Port Hedland in the Pilbara region of Western Australia. (ASX release "2018 Total Gold Mineral Resource increases to 1.4Moz", 3 October 2018)

ASX Code: DEG FRA Code: WKN 633879
Level 3, 24-26/22 Railway Rd	PO Box 2023	T: [phone]	E:[e-mail]
Subiaco WA 6008, Australia	Subiaco WA 6904	F: [phone]	W:www.degreymining.com.au

De Grey Mining Limited (ABN: 65 094 206 292)

At Mallina, a drill program comprising four diamond tails (total 464m) and 15 RC holes (total 1673m), has been completed, with further encouraging results showing along strike extensions outside of the existing resource model (Figure 2). An additional two diamond holes drilled last year for metallurgical purposes have been partially assayed, and are currently undergoing metallurgical test work with final results pending.

Results for the RC drilling, one of the diamond holes and the precollars of the three other diamond holes have been received. Significant intersections greater than 5 gram x metres are provided in Table 1 and pending results of the three diamond holes are expected during March.

The RC drilling targeted a number of selected lodes with step out extensions both along strike and down dip. The Central Zone has been extended 50m to the west and remains open (Figure 1). An intersection of 5m @ 2.03g/t was intersected in MLRC255, a 50m step out to the west of the current resource in the Mallina Central Zone. Together with intercepts such as 5m @ 1.51g/t Au in lodes to the southeast of the Alfred-Argyle workings, these holes and planned follow up drilling is expected to add to the current Mallina resource base.

The step out diamond drill holes targeted both deeper down dip extensions of the previously intersected wide alteration and gold zones on section 609315E and known mineralised lodes for metallurgy test work. MLRC259D is an 80m step-out below the broad 50-70m wide alteration zone previously intersected (and reported) in MLRC214D (56m @ 3.04g/t including 30m @ 5.29g/t) and 50m below MLRC215 (16m @ 3.00g/t including 6m @ 4.66g/t). Logging of this new hole shows a similarly wide 50-70m alteration zone, including sulphides and limited quartz veining (Figure 1). Assay results are pending for this hole.

Figure 1

Mallina Central Section 603915E

MLRC213D was drilled on the same section as MLRC214D, and results suggest the gold mineralisation has been intersected in weathered portion of the precollar with 11m @ 0.91g/t reported. In general, at the Mallina deposit, the upper weathered portion to approximately 30m depth is interpreted to be partially depleted of gold. This result is consistent with this interpretation. Mineralisation associated with the deeper porphyry in this hole was unfortunately in an area of poor core recovery and does not effectively test this zone. The tail end of MLRC259D has intersected the visibly altered porphyry with results pending.

Two additional diamond holes drilled for metallurgy purposes have been submitted to ALS Metallurgy for test work, including gold assay. Results are pending and are expected during March.

As part of ongoing activities, a Sub-Audio Magnetic (SAM) survey has commenced and is expected to finish in approximately 1-2 weeks. This survey is designed to provide greater ability to target along strike extensions by providing more confidence in the lateral extents of the controlling mineralised structures and allow for larger drill programs to be designed going forward. These larger drill programs are expected to enable larger and more rapid resource extensions to be defined.

Further resource extension drill programs are to be planned based on the results of the SAM survey and the pending diamond core.

For further information:

Simon Lill (Executive Chairman) or

Andy Beckwith (Technical Director and Operations Manager)

De Grey Mining Ltd

Phone [phone]

[e-mail]

Competent Person Statements

The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr. Phil Tornatora, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr. Tornatora is a consultant to De Grey Mining Limited. Mr. Tornatora 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 Resource and Ore Reserves". Mr. Tornatora consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Figure 2

Mallina hole collar locations and new significant results (>5gram x metres)

Table 1

Mallina - Significant Drill Intersections (>2 gram x m)

Area	HoleID	Depth From (m)	Depth To (m)	Downhole Width (m)	Au (g/t)	Collar East (GDA94)	Collar North (GDA94)	Collar RL (GDA94)	Dip (degrees)	Azimuth (GDA94)	Hole Depth (m)
Central	MLDD001	51	57	6	0.60	609338	7690946	50	-54	181	70
Central	MLRC253D	106.32	111.25	4.93	1.23	609438	7690969	49	-56	183	113
Central	incl	109.17	110.36	1.19	3.73	609438	7690969	49	-56	183	113
Central	MLRC255	44	54	10	0.59	609016	7690988	49	-55	179	108
Central	MLRC255	81	86	5	2.04	609016	7690988	49	-55	179	108
Central	MLRC256	2	8	6	0.60	609065	7690977	49	-55	180	108
Central	MLRC256	49	52	3	1.56	609065	7690977	49	-55	180	108
Central	incl	49	50	1	3.42	609065	7690977	49	-55	180	108
Central	MLRC256	59	65	6	0.74	609065	7690977	49	-55	180	108
Central	MLRC256	70	75	5	0.67	609065	7690977	49	-55	180	108
Central	incl	71	72	1	2.50	609065	7690977	49	-55	180	108
Central	MLRC257	8	10	2	1.41	609264	7691009	49	-56	174	149
Central	MLRC257	52	53	1	2.26	609264	7691009	49	-56	174	149
Central	MLRC257	57	66	9	0.67	609264	7691009	49	-56	174	149
Central	MLRC257	70	76	6	1.29	609264	7691009	49	-56	174	149
Central	incl	70	71	1	5.66	609264	7691009	49	-56	174	149
Central	MLRC257	101	112	11	1.05	609264	7691009	49	-56	174	149
Central	incl	106	108	2	2.66	609264	7691009	49	-56	174	149
Central	MLRC257	130	144	14	1.05	609264	7691009	49	-56	174	149
Central	MLRC258	44	48	4	1.52	609366	7691000	49	-55	177	150
Central	incl	47	48	1	3.82	609366	7691000	49	-55	177	150
Central	MLRC258	89	96	7	1.33	609366	7691000	49	-55	177	150
Central	incl	92	94	2	2.85	609366	7691000	49	-55	177	150
Central	MLRC258	106	112	6	1.02	609366	7691000	49	-55	177	150
Central	MLRC259D	59	66	7	0.63	609317	7691000	49	-56	171	195
Central	MLRC260	107	115	8	0.64	609466	7690983	50	-56	177	156
Central	MLRC260	120	133	13	0.67	609466	7690983	50	-56	177	156
Central	incl	127	128	1	2.48	609466	7690983	50	-56	177	156
Central	MLRC260	151	156	5	1.87	609466	7690983	50	-56	177	156
East	MLRC261	62	70	8	1.23	610466	7690922	49	-60	170	138
East	incl	65	67	2	3.08	610466	7690922	49	-60	170	138
East	MLRC261	75	89	14	1.59	610466	7690922	49	-60	170	138
East	incl	77	81	4	3.17	610466	7690922	49	-60	170	138
South	MLRC265	63	65	2	1.19	608242	7690765	50	-56	178	66
South	MLRC266	1	4	3	0.66	608441	7690752	50	-55	173	120
South	MLRC267	83	85	2	1.16	608541	7690757	50	-56	176	138
South	MLRC267	96	103	7	0.60	608541	7690757	50	-56	176	138
South	MLRC268	15	18	3	1.35	608592	7690701	50	-55	179	78
South	incl	16	17	1	3.02	608592	7690701	50	-55	179	78
South	MLRC268	77	78	1	2.39	608592	7690701	50	-55	179	78
South	MLRC269	66	71	5	1.51	608591	7690740	50	-55	176	120
South	MLRC269	90	92	2	1.36	608591	7690740	50	-55	176	120