23/08/2017 – CYL: Bulk leach results confirm high grade gold assays

ASX ANNOUNCEMENT 23 AUGUST 2017 BULK LEACH ASSAYS CONFIRM HIGH GRADE GOLD ASSAYS AT FOUR EAGLES AND TANDARRA GOLD PROJECTS

• Hayanmi Zone bulk cyanide leach assays confirm very high-grade gold intersections at Four Eagles Gold Project

   20m @ 21.4g/t Au

   22m @ 36.5g/t Au

   6m @ 21.5g/t Au

• Visible gold logged in RC drilling chips at Four Eagles Gold Project
• Bulk leach assays from Tomorrow Zone at Tandarra Gold Project also show good correlation with 25 gram samples:
  • 10m @ 14.0g/t Au from 47 metres
  • 17m @ 7.1g/t Au from 30 metres
  • 21m @ 6.5g/t Au from 27 metres
• Low nugget effect at Four Eagles and Tandarra confirmed by good assay correlation between small (25 gram) and large (2 kilogram) samples
• Gold potential of Catalyst tenements enhanced by high grade Fosterville discoveries

Catalyst Metals Limited (Catalyst or the Company) (ASX: CYL) is pleased to announce that bulk cyanide leach assays of previously reported high grade assays at the Four Eagles and Tandarra Gold Projects have confirmed the outstanding gold intersections reported previously. In hole FERC185, one intersection increased to 22.0 metres @ 36.5g/t Au while the other reduced in grade to 20.0 metres @ 21.4g/t Au. FERC185 finished in high grade gold mineralisation of 24.4g/t Au at 138 metres depth. It was very encouraging that even high-grade assays (>100g/t Au) were confirmed by the bulk leach assays with visible gold observed in at least two samples.

High grade gold intersections at the Tandarra Gold Project were also generally confirmed by the bulk cyanide leach assays with both positive and negative variations. Catalyst is earning an interest in the Tandarra Gold Project from Navarre Minerals Limited (Navarre) (ASX: NML).

This announcement finalises all assay results from the January to May 2017 drilling programmes at the Four Eagles and Tandarra Gold Projects.

The Four Eagles Gold Project and the Tandarra Gold Project are situated about 15 kilometres apart along the Whitelaw Fault Corridor which is considered to be a major structural control of gold mineralisation north of Bendigo. Catalyst manages the entire Whitelaw Gold Belt and has interests in eight Exploration Licences which extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo in Victoria (Figure 1). The Company has also lodged a large exploration licence application (Drummartin EL006507) over two potential regional faults to the east of Four Eagles, and north of the Fosterville Gold Mine. Recent spectacular gold discoveries at Fosterville by TSX listed Kirkland Lake Gold Ltd have provided added confidence to Catalyst in its exploration on the Whitelaw, Drummartin and Redesdale Fault Corridors.

44 Kings Park Road West Perth WA 6005 PO Box 778, Claremont WA 6910 Telephone: [phone] Facsimile: (61-8) 9284 5426

www.catalystmetals.com.au ABN 54 118 912 495

FOUR EAGLES GOLD PROJECT (CATALYST 50%: GEV EARNING 50%)

Catalyst retains a 50% interest in the Four Eagles Gold Project whilst Gold Exploration Victoria Pty Ltd (GEV) (a wholly owned subsidiary of Hancock Prospecting Pty Ltd) is earning up to a 50% interest from Providence Gold and Minerals Pty Ltd by spending $4.2 million on exploration. To date, GEV has already earned a 25% interest in the Four Eagles Gold Project by spending $2.1 million and is expected to complete the remaining expenditure during 2017 to earn its additional 25%.

RC BLADE/HAMMER DRILLING

This programme involved the drilling of angled large diameter air core holes (RC Blade/Hammer) on the Hayanmi and Boyd's Dam gold structures to give a better understanding of the shapes of the gold mineralisation (Figure 2a and 2b).

Hayanmi RC Blade/Hammer Drilling

Thirteen RC holes were drilled over a 400-metre strike length of the Hayanmi Trend to test the gold mineralisation down to a vertical depth of about 100 metres. The objective of the programme was to test the Hayanmi structure at a traverse spacing of about 50 metres in order to interpret the shape of the gold mineralisation. Preliminary 25-gram aqua regia AAS assays have been reported previously and bulk leach assays are reported here in Appendix 1. The bulk leach data confirm the strong intersections reported in the previous announcement with a maximum value of 313g/t Au over a one metre interval. Significant intersections are listed below and are shown in plan view on Figure 3 and in longitudinal projection on Figure 4:

• 20.0m @ 21.4g/t Au including 5.0m @ 82g/t Au from 76 metres (FERC185)
• 22.0m @ 36.5g/t Au from 116 metres including 8.0m @ 90.2g/t Au from 130 metres (FERC185)
• 6.0m @ 21.5g/t Au from 77 metres including 4.0m @ 31.5g/t Au from 79 metres (FERC183)

Mr Bruce Kay, Catalyst's Technical Director, stated, "These assay results using the more reliable bulk cyanide leach method confirm the best results yet received at the Four Eagles Gold project. Panning of several of the high-grade samples has shown considerable fine-grained gold as well as the coarser gold samples shown below. We believe that the distribution of the gold will not be nuggetty like Bendigo and should produce consistent assay values."

Full assay data using bulk leach analysis on the RC Blade/Hammer holes is shown on Table 1 of Appendix 1 where maximum gold values in each hole are tabulated. Previous intersections shown on Figures 3a and 3b have been reported under the 2004 JORC Code.

Hole FERC185 contains two strong zones of high grade gold mineralisation which may represent stacking of the gold zones and the enhanced ounces of gold per vertical metre is important for both open pit or underground mining.

Plates 1 and 2 below show the nature of some of the coarser gold in FERC185.

Plate 1: Visible disseminated gold in quartz in FERC185 (77-78 metres). Grain is approximately 7mm by 3mm in size. One metre sample assayed 274g/t Au. Plate 2: Visible gold in quartz in FERC185 (131-132 metres). Grains are approximately 2 to 3mm in size. One metre sample assayed 313g/t Au. TANDARRA GOLD PROJECT (EL4897) (CATALYST EARNING 51% FROM NAVARRE MINERALS LIMITED)

The Tandarra Project is comprised of Exploration Licence 4897, which is owned by Navarre Minerals Limited. Under a farm-in arrangement with Navarre, Catalyst is earning a 51% equity interest in Exploration Licence 4897 by spending $3 million on exploration over a four-year period. In September 2016, Catalyst satisfied an initial two-year expenditure commitment by spending a minimum of

$800,000 on the Tandarra Gold Project (Figure 5).

RC BLADE DRILLING: TOMORROW ZONE

In April 2017, a 3,819 metre RC Blade drilling program commenced at the Tomorrow Gold Prospect to provide detailed grade information on the shallow, high-grade gold occurring within the top 60 metres of depth over a strike length of about 450 metres (Figures 6, 7, and 8).

The programme of 64 angled, large diameter RC Blade drill holes was designed to test the continuity of the gold mineralisation that could be amenable to open pit mining. The drill traverse spacing was approximately 25 metres north-south and will enable mineralised shapes to be estimated with confidence in an area where the un-mineralised cover is relatively shallow (18 to 30 metres).

Each drill hole was sampled on one-metre intervals with sample splitting prior to despatch to the laboratory. Initial assays are reported in this announcement.

The drilling programme has confirmed high grade mineralisation over thick widths down to a vertical depth of about 60 metres and should enhance the grade in a portion of the shallow gold mineralisation. After modelling, it should be possible to determine the plunge of the shallow mineralisation thus providing drill targets at deeper levels. Best intersections (Assay in g/t Au X metre length > 15 gram- metres) from the 2017 drill programme are shown as follows and diagrammatically on the longitudinal projection and cross section on Figures 7 and 8:

Tomorrow Prospect 2017 Intersections:

• 6.0m @ 6.1g/t Au from 34 metres (RCT155)
• 8.0m @ 5.2g/t Au from 42 metres (RCT156)
• 8.0m @ 1.4g/t Au from 59 metres (RCT169)
• 3.0m @ 5.6g/t Au from 31 metres (RCT170)
• 10.0m @14.0g/t Au from 47 metres (RCT172)
• 17.0m @ 7.1g/t Au from 30 metres (RCT173)
• 7.0m @ 5.6g/t Au from 67 metres (RCT174)
• 21.0m @ 6.5g/t Au including 3.0m @ 33.3g/t Au from 27 metres (RCT177)
• 9.0m @ 2.2g/t Au from 44 metres (RCT178)
• 4.0m @ 7.0g/t Au from 36 metres (RCT183)
• 7.0m @ 2.8g/t Au from 22 metres (RCT184)
• 6.0m @ 2.6g/t Au from 40 metres (RCT187)
• 6.0m @ 3.0g/t Au from 32 metres (RCT194)
• 2.0m @ 6.6g/t Au from 54 metres (RCT196)
• 2.0m @ 9.4g/t Au from 57 metres (RCT197)
• 13.0m @1.3g/t Au from 32 metres (RCT199)
• 8.0m @ 3.1g/t Au from 31 metres (RCT204)

Full bulk leach assay data for the Tomorrow drilling is shown on Table 2 of Appendix 1. Modelling of the shallow gold zone at Tomorrow will be carried out during the next two months.