Navarre Minerals : 15/12/2016 – Broad zones of gold in drilling at Irvine

ASX Announcement

15 December 2016

Navarre Minerals Limited

ABN 66 125 140 105 ASX Code: NML

Corporate Details

Issued capital:

173.5M ordinary shares 35.2M unlisted options

Directors & Management:

Kevin Wilson

(Non-Executive Chairman)

Geoff McDermott (Managing Director)

John Dorward

(Non-Executive Director)

Colin Naylor

(Non-Executive Director)

Jane Nosworthy (Company Secretary)

Contact Details

Geoff McDermott Managing Director

Navarre Minerals Limited 40 - 44 Wimmera Street

Stawell VIC 3380 Australia

PO Box 385

Stawell VIC 3380 Australia

Tel: [phone]

Email: [e-mail] Website: www.navarre.com.au

Drilling defines broad zones of shallow gold mineralisation extending over 500m at Irvine

• AC drilling defines zones of oxide gold mineralisation of up to 30m width from surface over 500m length at Target 3 on Irvine gold prospect
• Significant results from the latest assays received include:
  • 7m at 2.7g/t gold from 31m (IAC034) within a broader zone of 36m at 1.0g/t gold from 2m down hole
  • 12m at 1.6g/t gold from 48m (IAC027), including 1m at 12.6 g/t gold
  • 12m at 1.2/t gold from 12m (IAC029) within a broader zone of 60m at 0.6g/t gold from surface
  • 14m at 1.4g/t gold from 5m (IAC040) from within a broader zone of 58m at 0.7g/t gold from 1m down hole
  • 11m at 1.4g/t gold from 56m (IAC043) from within a broader zone of 30m at 0.7g/t gold from 37m down hole
• Target 3 remains open to the north and at depth
• Further AC assay results expected in mid-January 2017 from testing of multiple targets
• Exploration is co-funded by a State Government TARGET Minerals Initiative grant

Navarre Minerals Limited (ASX Code: NML) (Navarre or the Company) is pleased to announce further assay results from its maiden 4,000m air-core (AC) drilling program underway at its 100%-owned Stawell Corridor Gold Project, located 15 kilometres south of Stawell in western Victoria (Figure 1).

The assay results are mainly from testing of the oxide zone in Target 3 (Figure 2). The highlight results are all from Target 3 and include: 7m at 2.7g/t gold from 31m down hole in IAC034 from within a broader zone of 36m at 1.0g/t gold from 2m down hole; 12m at 1.6g/t gold from 48m down hole in IAC027 including 1m at

1. g/t gold; 12m at 1.2/t gold from 12m down hole in IAC029 from within a broader zone of 60m at 0.6g/t gold from surface; 14m at 1.4g/t gold from 5m down hole in IAC040 from within a broader zone of 58m at 0.7g/t gold from 1m down hole; and 11m at 1.4g/t gold from 56m down hole in IAC043 from within a broader zone of 30m at 0.7g/t gold from 37m down hole (Table 1, Figures 2 - 8).

   The remaining results received are from Target 5 which failed to test the target adequately due to the extreme hardness of the ground in this locality.

   Navarre Minerals Limited | ABN 66 125 140 105

   40 - 44 Wimmera Street | PO Box 385 | Stawell VIC 3380 Australia t [phone]

   e [e-mail] | w navarre.com.au

   Figure 1: Stawell Corridor Gold Project location map

   Irvine AC Drill Results

   The Company has now received assay results for the first 47 drill holes of an ongoing 4,000m AC program which is expected to be completed in the coming week. The results relate to two targets located on opposite sides of the Irvine basalt dome (see Table 1; Figure 2).

   Target 3

   Results have now been received for 31 of 46 AC holes completed to test and map the geology and mineralisation of a coincident geochemical and IP geophysics anomaly of approximate dimensions of 200m wide by 750m long referred to as Target 3 (Table 1, Figures 2 - 8). The holes have been drilled on approximately 30m spacing on traverses 100m apart. Most holes have been sited orthogonal to strike and inclined at 60 degrees towards the east unless access requires a different orientation.

   The results to date demonstrate:

   • several broad zones of oxide gold mineralisation (refer Figures 3-8):

     • extending from surface to about 40m depth (base of oxidation);

     • over a strike length of > 500m, open to the north; and

     • with horizontal widths of 30m at surface narrowing to approximately 10m at the base of oxidation where un-oxidised mineralisation commences.

   • gold grades in the oxidation zone range from 1.2g/t - 2.7g/t within a broader supergene halo of 0.3g/t - 1.0g/t gold (intercepted by 8 holes);

   • gold mineralisation below the base of oxidation is less dispersed and generally of higher grade. Gold grades and down hole widths from the fresh rock (4 holes) include:

     • 6m at 6.3g/t gold from 66m (IAC018), including 1m at 24.6g/t gold (previously reported 1 Dec 2016);

     • 12m at 1.6g/t gold from 48m (IAC027), including 1m at 12.6g/t gold; and

     • 6m at 1.9 g/t gold from 41m (IAC046), including 1m at 3.9g/t gold and 2m at 3.24g/t gold.

   • the geology and mineralisation appears to be continuous over 500m of strike and is open to the north and at depth. Results for a further 15 AC holes testing the northern extension of Target 3 are expected in the coming weeks.

Interpretation:

• Target 3 is believed to represent "classic" Stawell-style gold mineralisation where quartz stockwork veining is developed over a basalt flow termination or 'nose,' transitioning to typical basalt-contact style gold mineralisation at depth on the footwall-side (eastern flank ) of the basalt;

• the gold mineralisation is enclosed within a broader halo of intense arsenic alteration reflecting a gold-in- arsenopyrite association, also typical of Stawell-style mineralisation;

• similar extensive shallow oxide gold mineralisation occurs at Stawell's Big Hill Project (138koz @ 1.36g/t gold; Kirkland Lake Gold 29 September 2016 presentation); and

• Target 3 occurs within the Irvine basalt in a band of internal sediments that extends for at least 3km further south. An additional 3 similar type targets occur within this band of internal sediments and will become the focus of future drill testing.

  Target 5

  Results have now been received for all 16 AC holes designed to test a geochemical and IP geophysics target on the northwest margin of the Irvine basalt dome within the contact metamorphic aureole of the Stawell Granite (Table 1, Figure 2).

  As mentioned in the Company's 1 December 2016 ASX release, the AC testing failed to adequately penetrate the meta-sediments due to the extreme hardness of the rocks in this area interpreted to be a result of 'baking' caused by proximity to the granite. Despite the drilling difficulties, some interesting intercepts were generated:

  • 2m at 1.5g/t gold from 30m down hole in IAC010

  • 1m at 37.3g/t silver from the end of hole depth of 30m in IAC009

  • 2m at 5.6g/t silver from 11m down hole in IAC014

These intercepts and other areas of Target 5 will require further investigation that are likely to require percussion or diamond drilling to fully test for its gold and silver mineralisation potential.

Further drill results

The current AC drilling is expected to complete this week and is likely to have tested a total of 8-10 Targets (Figure 2). These targets include potential Stawell-type vein and stockwork positions on the western side and flank of the Irvine basalt dome. Drill results are expected to become available by mid- January 2017.

Once the results are received, a diamond drilling/RC follow-up program will be designed to confirm mineralised targets, including primary gold mineralisation located below the base of oxidation starting from 50m depth. This drilling is expected to commence in February 2017.

Future Exploration Plan

The results from Target 3 are highly encouraging and are from the northern extent of a zone of internal sediments within the Irvine basalt. The Irvine basalt is believed to extend for at least another 6km to the south from Target 3 and is interpreted from geophysics to extend for a total of 8km. Historic alluvial workings have been mapped over much of the Irvine basalt (refer Figure 2) and these provide encouragement for further exploration along this structure.

An exploration plan for the entire 8km extent of the Ararat Goldfield is under consideration and a geochemical and geophysical data acquisition program, as a potential precursor to more AC drilling, is expected to start early in the new year.