GWR : Exciting Drilling Results - Wiluna West Gold Project

15 January 2019

ASX Announcement

Exciting High Grade Drilling Results Further Supports Wiluna West Gold

Project Production Strategy

ABN 54 102 622 051

Highlights

• • 72 RC drill holes for 3,918 m completed at the Golden Monarch, Eagle and Emu prospects

• • High grade intercepts achieved in all three prospect areas results include;

  Golden Monarch

  • o WGRC0054, 7 m @ 12.0 g/t Au from 28 m, including 1 m @ 72.0 g/t Au

  • o WGRC0061, 7 m @ 11.8 g/t Au from 36 m, including 1 m @ 72.3 g/t Au

  • o WGRC0073, 7 m @ 8.3 g/t Au from 18 m, including 1 m @ 38.1 g/t Au

  Emu

  • o WGRC0092, 5 m @ 15.0 g/t Au from 45 m, including 1 m @ 69.4 g/t Au

  • o WGRC0096, 12 m @ 7.3 g/t Au from 48 m, including 3 m @ 25.3 g/t Au

  • o WGRC0101, 8 m @ 11.1 g/t Au from 53 m, including 3 m @ 25.0 g/t Au

  • o WGRC0105, 10m @ 2.6 g/t Au from 47 m

  Eagle

  • o WGRC0083, 12 m @ 2.1 g/t Au from 43 m

  • o WGRC0086, 6 m @ 3.7 g/t Au from 10 m

  • o WGRC0089, 7 m @ 3.0 g/t Au from 50 m

  • o WGRC0108, 6 m @ 4.00 g/t Au from 118 m

  • o WGRC0114, 5 m @ 9.7 g/t Au from 54 m, including 2 m @ 21.8 g/t Au

• • These outstanding results represent a significant game changer for GWR as it transitions from explorer to gold producer.

• • The Golden Monarch deposit targeted as the start-up mine via the Binding Heads of Agreement executed with Blackham Resources ("BLK") whereby BLK will form a joint venture to mine and mill Wiluna West gold deposits (refer to GWR, ASX announcement dated 23rd November 2018).

• • BLK own the Wiluna gold mill located 40km to the north east of the Wiluna West Gold project which is earmarked under the Binding HoA for processing.

• • Latest drilling shows the potential to provide the Wiluna Mill with an additional feed source.

• • Updated resource models will now be prepared for all three deposits.

• • Mining approvals are largely in place for Golden Monarch.

• • These exciting results will help underpin studies into the viability of all three deposits and further processing strategies.

GWR Group Limited (ASX: GWR) ("GWR" or "the Company") is pleased to announce that it has received the final assay results from the 72 reverse circulation ("RC") drill holes for 3,918 m recently completed at the Golden Monarch, Emu and Eagle deposits at its Wiluna West Gold Project.

The Wiluna West Gold Project contains a combined Mineral Resource estimate of 3.5 million tonnes at 2.3 g/t Au for 254,000 oz (refer to ASX announcement dated 31st October 2017). The project is locatedapproximately 40 km south west of the Blackham Resources Limited ("BLK") (ASX:BLK)) Matilda / Wiluna Gold Operation which includes a gold processing and treatment plant (Figure 1). The gold mineralisation at the Golden Monarch, Eagle and Emu deposits is within the regional Joyners Find shear zone and is hosted within steep westerly dipping banded iron formation units ("BIF"). All of the recent and most of the historical drilling is on an azimuth of 0900 inclined at -600 which is approximately perpendicular to the mineralisation.

Recently appointed GWR General Manager Adrian Costello who was appointed because of his extensive gold mining experience said: "The Company is excited by the very solid drilling results achieved at Wiluna West".

"GWR Group is in the process of transitioning from an explorer to a Gold producer and the results of this recent drilling adds more support to GWR's strategy of moving the Company into production," Mr Costello said.

Binding Heads of Agreement with Blackham a low capex route to gold producer

In November 2018 GWR executed a Binding Heads of Agreement ("HoA") with BLK for the establishment of a joint venture for the development, mining and processing of gold mineralisation from the Wiluna West Gold Project (refer to ASX announcement dated 23rd November 2018).

Under the terms of the HoA GWR is responsible for drilling deposits to JORC (2012) Indicated category, if successful it can nominate the deposit as a Proposed Qualifying Deposit and BLK will conduct feasibility studies and if positive, undertake mining, transport, and processing of the deposit.

The recent RC drilling targeted Golden Monarch, Eagle and Emu as Proposed Qualifying Deposits.

Golden Monarch

The Golden Monarch deposit contains a combined Mineral Resource estimate of 747,000 tonnes at 2.2 g/t Au for 52,400 oz (refer to ASX announcement 31st October 2017 and Table 1). A total of 37 RC holes for a total of 1,636 m was recently completed over a strike length of 1,040 m (Figure 3). There is a substantial amount of previous drilling (340 holes for 14,411m) and the recent program was designed to infill the overall drill hole spacing to a minimum of 20 m north and 10 m east.

All significant intercepts from the recent RC drilling program are summarised in Table 2. Significant intercepts include;

• o WGRC0054, 7 m @ 12.0 g/t Au from 28 m, including 1 m @ 72.0 g/t Au

• o WGRC0055, 4 m @ 4.4 g/t Au from 50 m, including 1 m @ 13.6 g/t Au

• o WGRC0061, 7 m @ 11.8g/t Au from 36 m, including 1 m @ 72.3 g/t Au

• o WGRC0073, 7 m @ 8.3 g/t Au from 18 m, including 1 m @ 38.1 g/t Au

The shallow and robust nature of these intercepts confirms the potential of Golden Monarch

The results from the recent drilling are being compiled and it is intended to submit Golden Monarch to BLK as a Proposed Qualifying Deposit under the terms of the Binding HoA.

In addition to the recently completed drilling GWR has already commenced permitting / approvals process which is somewhat streamlined as it is largely within clearing permits and Mining Approvals already granted as part of the Wiluna West Iron Project.

Emu

The Emu prospect contains a JORC (2004) Inferred Mineral Resource estimate of 371,000 tonnes at 2.4 g/t Au for 28,700 oz (refer to ASX announcement dated 14th June 2010 and Table 1). A total of 17

RC drill holes for 1,124 meters was recently completed over a strike length of 440 m testing a mineralised BIF. Figure 4 shows the collar positions of drilling to date and Figure 5 provides a representative cross section of the mineralisation. The recently completed drilling has infilled the pattern to a nominal 40 m north and 15 m east spacing.

All significant intercepts are listed in Table 2 and include;

• o WGRC0092, 5 m @ 15.0 g/t Au from 45 m, including 1 m @ 69.4 g/t Au

• o WGRC0096, 12 m @ 7.3 g/t Au from 48 m, including 3 m @ 25.3 g/t Au

• o WGRC0101, 8 m @ 11.1 g/t Au from 53 m, including 3 m @ 25.0 g/t Au

• o WGRC0105, 10m @ 2.6 g/t Au from 47 m

The high grade intercepts achieved in some holes was unexpected and approximately 50% of recent drilling is outside of the current Resource model. Detailed geological mapping, plus review of optical televiewer data acquired from down hole surveys is planned to investigate potential structural controls to the high grade mineralisation. It is also planned to update the Resource model incorporating the recent drilling to JORC (2012)

Eagle

The Eagle prospect contains a JORC (2004) Inferred Mineral Resource estimate of 489,000 tonnes at 2.4 g/t Au for 37,800 oz (refer to ASX announcement dated 14th June 2010 and Table 1). A total of 18 RC drill holes for 1,158 m was recently completed over a strike length of 240 m testing a mineralised BIF. Figure 6 shows the collar positions of drilling to date and Figure 7 provides a representative cross section of the mineralisation. The recently completed drilling has infilled the pattern to a nominal 20 m north and 20 m east spacing.

All significant intercepts are listed in Table 2 and include;

• o WGRC0083, 12 m @ 2.1 g/t Au from 43 m

• o WGRC0086, 6 m @ 3.7 g/t Au from 10 m

• o WGRC0089, 7 m @ 3.0 g/t Au from 50 m

• o WGRC0108, 6 m @ 4.00 g/t Au from 118 m

• o WGRC0114, 5 m @ 9.7 g/t Au from 54 m, including 2 m @ 21.8 g/t Au

It is now planned to update the existing JORC (2004) model to JORC (2012) incorporating the recent drilling results.

Next steps

The following activities are planned;

• o continue Golden Monarch feasibility studies

• o Complete permitting and mining approvals for Golden Monarch

• o Compile Eagle and Emu data and update Resource models and plan work required to allow submission to BLK as Proposed Qualifying Deposits

• o Undertake a comprehensive review of the entire project to prioritise targets for future work

- ENDS

Adrian Costello
General Manager	David Utting
David Utting Corporate
Ph: [phone]	[phone]

Wiluna West Gold Project

JORC 2004 and JORC 2012 Gold Resources

JORC Status	Prospect	Resource Type	Tonnes	Grade (g/t Au)	Ounces
JORC2012	Golden Monarch	Indicated	474,000	2.4	36,600
at 0.5 g/t cut off	Inferred	273,000	1.8	15,800
TOTAL	747,000	2.2	52,400
JORC2004	Bottom Camp	Inferred	329,000	2.0	21,100
at 1.0 g/t cut off	Bowerbird	Inferred	169,000	3.1	17,000
Bronzewing	Inferred	104,000	2.4	8,000
Brilliant	Inferred	342,000	2.5	27,900
Wren	Inferred	61,000	2.5	4,800
Emu	Inferred	371,000	2.4	28,700
Eagle	Inferred	489,000	2.4	37,800
Comedy King	Inferred	183,000	1.8	10,800
Goldfinch	Inferred	80,000	1.4	3,600
Iron King	Inferred	481,000	2.3	35,600
Iron Hawk	Inferred	138,000	1.5	6,800
TOTAL	2,747,000	2.3	202,100
TOTAL JORC2004 & JORC2012			3,494,000	2.3	254,500

Notes

Differences may occur due to rounding. For JORC 2004 refer to ASX announcement 14th June 2010. The Mineral Resource Estimates shown as JORC 2004 compliant were first prepared and disclosed under JORC 2004 and have not been updated to comply with JORC 2012 on the basis that the information has not materially changed since they were last reported. For JORC 2012 refer to ASX announcement 31st October 2017

Significant RC Drill Hole Intercepts

Hole ID	Prospect	Easting	Northing	RL	From	To	Interval	Au (g/t)
WGRC0051	Golden Monarch	793423.6	7033237.1	594.3	46	51	5	1.00
				and	53	55	2	3.28
WGRC0052	Golden Monarch	793408.5	7033237.1	593.4	66	72	6	2.86
				Incl.	70	71	1	10.00
WGRC0053	Golden Monarch	793440.21	7033196.92	593.7	20	22	2	3.82
WGRC0054	Golden Monarch	793430.7	7033259.4	595.0	28	35	7	12.01
				Incl.	33	34	1	72.00
WGRC0055	Golden Monarch	793419.6	7033277.4	594.1	58	62	4	4.37
				Incl.	60	61	1	13.56
WGRC0056	Golden Monarch	793439.82	7033297.7	596.0	17	22	5	1.84
WGRC0057	Golden Monarch	793424.3	7033298.2	594.7	50	52	2	1.89
WGRC0058	Golden Monarch	793437.6	7033318.3	595.6	21	30	9	1.62
WGRC0059	Golden Monarch	793423.0	7033318.3	594.4	51	55	4	1.69
WGRC0060	Golden Monarch	793444.3	7033358.8	595.9	24	27	3	1.07
WGRC0061	Golden Monarch	793435.1	7033377.9	594.8	36	43	7	11.75
				Incl.	36	37	1	72.31
WGRC0062	Golden Monarch	793450.7	7033398.37	595.6	18	23	5	0.98
WGRC0063	Golden Monarch	793435.4	7033398.9	594.5	46	52	6	1.24
WGRC0064	Golden Monarch	793450.3	7033419.2	595.2	No significant intercept
WGRC0065	Golden Monarch	793444.1	7033458.3	594.4	No significant intercept
WGRC0066	Golden Monarch	793445.2	7033479.3	594.0	43	46	3	1.55
WGRC0067	Golden Monarch	793457.1	7033580.2	591.1	54	58	4	3.39
				Incl.	55	56	1	10.16
WGRC0068	Golden Monarch	793487.5	7033649.4	593.5	No significant intercept
WGRC0069	Golden Monarch	793491.8	7033688.7	594.81	17	22	5	1.20
WGRC0070	Golden Monarch	793497.7	7033708.2	595.7	No significant intercept
WGRC0071	Golden Monarch	793489.5	7033748.6	596.4	46	49	3	2.56
WGRC0072	Golden Monarch	793508.7	7033749.5	597.27	9	13	4	1.80