Navarre Minerals : 20/02/2017 – Hunt intensifies for primary gold orebody near Stawell

ASX Announcement

20 February 2017

Navarre Minerals Limited

ABN 66 125 140 105 ASX Code: NML

Corporate Details

Issued capital:

173.9M ordinary shares 34.7M 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

Hunt intensifies for primary gold orebody near Stawell, Victoria

• 3,000m diamond drill program to kick-off in March 2017 testing for depth extension of the Resolution Lode (previously known as Target 3)
• Resolution Lode remains open along strike and at depth
• Results for final 10 holes of recent aircore drilling outline two new mineralised trends for follow-up
• Geochemical mapping and geophysics planned to extend over interpreted 8km strike of Irvine basalt dome as precursor to further AC drilling program
• Diamond drilling program co-funded by the Victorian Government's TARGET Minerals Exploration Initiative grant

Navarre Minerals Limited (ASX Code: NML) (Navarre or the Company) is pleased to announce a 3,000m diamond drilling program at its 100%-owned Stawell Corridor Gold Project, located 15km south of Stawell in western Victoria (Figure 1).

Navarre's Managing Director, Geoff McDermott said a new oxide gold reef system has been discovered in the Company's recently completed maiden air-core (AC) drilling program at the Irvine gold prospect.

"This new gold discovery has geological similarities to the 4.5 million ounce Magdala gold mine (1982-2016) at Stawell," Mr McDermott said.

"Stawell-style gold orebodies are highly prized because the gold is fine-grained, more continuous and predictable, and extend to a greater depth (Magdala produced gold from surface to 1,640m) than gold mineralisation typically found at Victoria's other goldfields such as Bendigo and Ballarat.

"The results from Navarre's AC drilling program give confidence to intensify the hunt for a potential primary orebody below the Resolution Lode (formerly Target

1. and in other areas adjacent to the flanks of the Irvine basalt dome.

   "A 3,000m diamond drilling program, co-funded by the Victorian Government's TARGET Minerals Exploration initiative, will soon kick off to target these areas.

   "Results from the final 10 regional reconnaissance AC drill holes highlight other mineralised trends off the west flank of the Irvine basalt, with similar potential to contain significant primary gold mineralisation.

   "We are now expanding our search for similar gold reef systems further south to cover a total distance of 8 km of where we interpret the location of the Irvine basalt dome. This is situated beneath the 1 Moz alluvial gold footprint of the Ararat Goldfield."

   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

   ASX Announcement

   20 February 2017

   Figure 1: Stawell Corridor Gold Project location map.

   Diamond Drill Program

   A drilling program comprising up to 18 diamond holes for approximately 3,000m of drilling has been designed to test for the depth continuity of the recently discovered Resolution Lode, part of the Irvine gold prospect. The main target area of the diamond drill program is shown in a long projection (Figure 2).

   The diamond drill program follows a maiden 105 hole, 4,906m air-core (AC) drilling program which resulted in the discovery of significant oxide gold mineralisation from surface to an average depth of 45m (referred to as the Resolution Lode). The gold mineralisation occurs over a strike length of 800m and remains open along strike and at depth. Significant results, previously reported (see NML ASX releases of 1 & 15 December 2016 and 16 January 2017), from the initial AC drilling include:

   • 6m at 6.3g/t gold from 66m (IAC018) including 1m at 24.6 g/t Au
   • 2m at 41.5g/t gold from surface (IAC018)
   • 6m at 4.2 g/t gold from 17m (IAC058)
   • 4m at 2.2 g/t gold from 25m (IAC054)
   • 7m at 2.7g/t gold from 31m (IAC034)
   • 12m at 1.6g/t gold from 48m (IAC027), including 1m at 12.6 g/t gold

   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

   • 12m at 1.2/t gold from 12m (IAC029) from a broader zone of 60m at 0.6g/t gold from surface
   • 14m at 1.4g/t gold from 5m (IAC040)
   • 11m at 1.4g/t gold from 56m (IAC043)

     The Resolution Lode gold mineralisation, discovered to date, dips steeply to west and has horizontal widths of up to 30m at surface. Mineralisation widths reduce to approximately 5-10m at the base of oxidation where higher- grade un-oxidised mineralisation commences (e.g. IAC018 6m at 6.3 g/t gold).

     Figure 2: Longitudinal projection of the Resolution Lode showing recent AC drill intercepts and the area of the proposed diamond drill program (refer to Figure 3 for location of Resolution Lode).

     The planned diamond drilling program is expected to comprise HQ size core (64mm diameter), which will allow for representative samples and data to be collected for:

   • gold grade determination;

   • geotechnical logging and rock strength;

   • structural measurements;

   • petrological examination;

   • metallurgical sampling and test work; and

   • twin holes of selected AC drill holes for validation purposes.

     The program will consist of angled drill holes ranging in length from 150m to 250m, drilled along the 900m extent of the target area (Figure 2 above shows a plan of the recent AC drilling with the planned diamond drill target area).

     The drill program is expected to commence in early March 2017 following completion of access approvals, and will take up to 3 months to complete.

     Irvine AC Drill Results

     In mid-December 2016, the Company completed its maiden AC drilling program at the Irvine gold prospect. The program comprised 105 AC drill holes for a total of 4,906m. Assay results for all drill holes have now been received and interpreted. Results for the first 95 drill holes were previously reported to the ASX in releases on 1 and 15 December 2016, and on 16 January 2017.

     One of the main targets of this drill program was the Resolution Lode (formerly Target 3) where 46 AC drill holes in eight 100m (north - south) spaced drill traverses were completed across the mineralised structure (Figures 2 & 3).

     The results for the final 10 AC holes (IAC096-105) are from broader reconnaissance-style first-pass testing of several geochemical and geophysical targets located off the western side of the Irvine basalt dome (See Table 1 and Figure 3).

     Although requiring infill and step-out drilling, the results from the final set of AC holes are pleasing as the drilling has intersected structures containing gold and highlighted the presence of a possible new mineralised trend (Westgate) and a potential significant strike extension of the Great Western trend (Figure 3).

     Westgate trend

     Two reconnaissance AC holes were drilled to test a surface gossanous outcrop located during geological mapping and interpreted to be the surface expression of the Cathcart Fault. The Company believes this fault is a controlling structure and a potential primary source of gold to an array of west-draining historical alluvial leads mined during the 19th century on the western side of the Great Dividing Range (Figures 3 & 4).

     The drill holes appear to have intersected the same steep west-dipping structure, but at different elevations. Both holes returned better than 1 gram per tonne gold from shallow levels:

   • 1m at 2.0 g/t gold from 4m (IAC099)
   • 1m at 1.6 g/t gold from 40m (IAC100)

     Further mapping and geochemical sampling is underway along this trend to define zones of gold anomalism as a precursor to follow-up AC drill testing.

     Great Western trend

     Three traverses of reconnaissance AC drilling have been completed across a coincident Induced Polarisation (IP) and geochemical anomaly, located approximately 200m west of the Irvine basalt, over a strike length of 1,200m, now referred to as the Great Western trend (Figure 3).

     On 16 January 2017 the Company released the results for most of the northern two traverses of drilling which included some significant gold results from a quartz reef (Figure 3):

   • 3m at 1.5 g/t gold from 45m down hole (IAC073) and 1m at 1.7 g/t gold from 29m down hole (IAC073)
   • 2m at 2.9 g/t gold from 30m down hole (IAC066)

     Results have now been received for the southern traverse and from IAC102 located on the west side of the middle drill traverse (Table 1 and Figure 3).

     Significant results include:

   • 3m at 1.2 g/t gold from 20m down hole (IAC102) including 1m at 2.6 g/t gold from 21m
   • 1m at 0.6 g/t gold from 32m down hole (IAC103)

All three drill traverses have intersected anomalous gold mineralisation within quartz lode structures potentially over a strike extent of 1,200m. The quartz structures have been subject to small-scale historic reef mining above the water table (approximately 30-40m depth). These quartz lode structures are analogous to the Hangingwall