Navarre Minerals : 24/04/2017 – First two diamond drill holes confirm high-grade gold at Irvine, Western Victoria

ASX Announcement

24 April 2017

Navarre Minerals Limited

ABN 66 125 140 105 ASX Code: NML

Corporate Details

Issued capital:

173.9M ordinary shares 34M 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)

Shane Mele (Exploration Manager)

Contact Details

Geoff McDermott Managing Director

First Two Diamond Drill Holes Confirm High-Grade Gold At Irvine, Western Victoria

• Assays of the first two diamond drill holes at the Irvine Gold Project, 15kms south of the Stawell Gold Mine in Victoria, have returned high- grade gold hits including:

  o 2.9m @ 12.9 g/t gold (Au) from 79.7m in RD001 (incl. 0.7m @ 47.2 g/t Au)

  • 3.4m @ 3.4 g/t Au in RD001 from within a broader zone of 11.8m @ 1.6 g/t Au from 113.1m in RD001

  • 4.0m @ 9.8 g/t Au from 72m in RD002.

• Diamond drilling (DD) confirms the continuation of gold mineralisation at depth, below oxide gold at the Irvine Gold Project. Mineralisation remains open at depth and along strike.
• The new intercepts are comparable to intercepts of gold mined from Stawell's Magdala deposit, where 4 million ounces of gold was mined over a 3km strike length along the flanks of the Magdala Basalt from surface to a depth of 1.6kms.
• Drilling has advanced to hole RD006 at the Irvine Gold Project, with assay results received for the first two of five drill holes completed to date within a planned 3,000m DD program.
• To date, Navarre has only partially tested one prospect (the Resolution Lode) along the flanks of the +8km long Irvine Basalt, with multiple known targets and anomalies remaining to be drill tested.
• The DD program is co-funded by a Victorian Government TARGET Minerals Exploration Initiative grant

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

Navarre Minerals Limited (ASX Code: NML) (Navarre) is pleased to announce first

results from its maiden DD program at the Irvine Gold Project, which has intersected high-grade primary gold mineralisation below previous shallow air-core (AC) drilling.

To date, five DD holes have been completed (for ~ 1,200m) out of a planned total of 3,000m. Assay results have been received from the first two DD holes (RD001 & RD002) into the Resolution Lode, one of several targets within the 100%-owned Irvine Gold Project (Figure 1). DD holes RD003 to 5 have been geologically logged, and are in the process of being sampled and dispatched for assay.

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 Gold Corridor Location map showing proximity of the Irvine Gold Project to Stawell's 4Moz Magdala gold deposit.

The DD program follows recent shallow AC drilling that highlighted the potential for multiple zones of gold along both flanks of the Irvine Basalt, with impressive AC intercepts reported including 6m at 6.3g/t Au and 2m at 41.5g/t Au (see Navarre's ASX release dated 1 December 2016).

The drill program is the first diamond drilling undertaken by Navarre at the Irvine Gold Project and is being carried out to test the greater depth potential below gold mineralisation identified by the AC drilling at the Resolution Lode on the north-eastern flank of the Irvine basalt dome (Figure 2). The DD program is also helping determine the controlling structures of several other gold occurrences and discoveries identified from the AC program and will also test new anomalies identified from geophysical surveys that targeted both flanks of the Irvine basalt dome.

Commenting on the maiden DD program, Navarre Minerals' Managing Director, Geoff McDermott, said:

"We are very pleased with the initial results received from our diamond core drilling program at the Irvine Gold Project.

"It is a true test to drill below the shallow gold identified at the Resolution Lode and to intersect high-grade gold.

"It confirms continuity of gold mineralisation at depth. We have long believed that the Irvine Gold Project may be a potential multi-million ounce Stawell analogue, and that the best way to demonstrate this is to continue to expand our drill testing to the multiple prospects, targets and anomalies we have recently identified along both flanks of the +8km long Irvine basalt dome.

"What we have at Irvine is very exciting. Navarre looks forward to updating shareholders with the next round of assay results, once they come to hand."

The 3,000m DD program is expected to continue into June this year.

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 2: Geological interpretation of the Irvine basalt dome, location of the Resolution Lode, gold mineralisation targets and historic alluvial gold footprint of the 1Moz Ararat Goldfield.

Irvine Gold Project

The Irvine Gold Project is located between Stawell and Ararat in western Victoria, within a deformed belt of auriferous rocks referred to as the Stawell Corridor (Figure 1). Approximately six million ounces of historic and modern gold production has occurred from the Stawell Corridor, exclusively from the Ararat and Stawell goldfields.

The Irvine Gold Project is located 15kms south of Stawell's Magdala Gold Mine (now on care and maintenance) and was identified in 2015 (Navarre ASX release 12 June 2015). The project occupies the bulk of the Ararat Goldfield, which is estimated to have produced approximately one million ounces of gold, mainly from alluvial and deep-lead production during the period 1854 to 1930.

Production of primary hard-rock gold from the Ararat Goldfield was low, given the richness of the alluvial (secondary) deposits, in contrast to the Stawell Goldfield, and is one of the reasons why Navarre is searching for economic primary gold mineralisation near the richest alluvial gold deposits.

Navarre believes that a basalt dome more than 8km long (Irvine basalt) controls the distribution and geometry of primary gold mineralisation and has identified several prospects, targets and anomalies, most of which have never been drill tested.

Resolution Lode:

The Resolution Lode was discovered on the north-east flank of the Irvine basalt dome and was the first prospect targeted in Navarre's 2016 AC drilling campaign following encouraging results from mapping, rock chip sampling and geophysics (Figures 2 and 3). A shallow oxide gold zone, extending over a strike length of 800m, was discovered and remains open to the north and south, and at depth (Figures 3 and 4).

The aim of the current DD campaign is to test for primary gold mineralisation beneath the existing oxide gold that was discovered in AC drilling in December 2016. To date, the DD program has not only provided the first detailed and important structural and stratigraphic information about the prospect, but has also confirmed significant depth extension of the gold mineralisation (Figure 4).

Results from the first two diamond drill holes have returned significant high-grade gold including:

• 12.9 g/t Au over 2.9m (ETW 1.7m) from 79.7m, including 47.2 g/t Au over 0.7m (ETW 0.4m) in hole RD001;

• 3.4 g/t Au over 3.4m (ETW 2.0m) from within a broader zone of 1.6 g/t Au over 11.8m (ETW 7.1m) from 113.1m in hole RD001; and

• 9.8 g/t Au(1) over 4.0m (ETW 2.4m) from 72m in hole RD002.

(1) Visible gold present in drill intercept

ETW - Estimated True Width (see JORC Table at the end of this release for further explanation) All drill results and drill collars are presented in Table 1, below.

Drill intersection details:

Diamond drill holes RD001 and RD002 intersected 3.4 metres at 3.4 grams per tonne gold and 4.0 metres at 9.8 grams per tonne gold, respectively, representing a discrete sub-vertical shear zone (Resolution east shear) located on and within the most eastern basalt flow (Figures 5 and 6). A secondary, sub-parallel mineralised zone (Resolution west) is located approximately 30m - 40m west of the Resolution east shear and was intersected in RD001 returning

1. metres at 12.9 grams per tonne gold.

   The primary gold mineralisation is associated with quartz veins that contain disseminated sulphides including arsenopyrite, pyrite and pyrrhotite with associated alteration assemblages including chlorite, sericite, silica and quartz-carbonate veining. Two fine specks of visible gold were detected in the drill core of hole RD002. Drill holes RD001 and RD002 are approximately 260m apart.

   In summary:

   • The results from the Resolution Lode drilling come from two discrete sub-parallel surfaces representing quartz-sulphide zones;

   • The mineralised zones are sub-vertical, inclined steeply to the west or east;

   • The DD indicates, to date, that the high-grade mineralisation of the Resolution east shear appears continuous over a 260m strike length and remains open along strike and at depth;

   • The extent of Resolution west is unclear at this stage;

   • Hole RD005 contains similar quartz-sulphide mineralisation and is awaiting assay (see Figure 7); and

   • Diamond drilling confirms the down-dip continuation of gold mineralisation below the oxide gold first detected from AC drilling.

Southern Targets:

Navarre also reports that its geochemical mapping and sampling, gradient array induced polarisation (GAIP) and induced polarisation (IP) geophysics surveys on the southern extension of the Irvine basalt dome are now largely complete. These surveys have located several targets and anomalies along both flanks of the Irvine basalt dome (Figure 2). Coincident geochemical and geophysics anomalies are being examined for targeted DD and AC drilling.