Attila Resources : FURTHER TAILINGS DRILLING ASSAYS CONFIRM HIGHER GRADE

ASX / MEDIA ANNOUNCEMENT ASX: NCZ

14 August 2017

FURTHER TAILINGS DRILLING ASSAYS CONFIRM HIGHER GRADE & STRONG POTENITAL FOR RESOURCE INCREASE

• Assays for 112 holes of 173 hole program received to date

• Continued zinc grades in excess of current Mineral Resource, highlights include:

  o 20.0m at 3.43% Zn, 0.63% Pb & 14.8g/t Ag (TSF303) o 21.7m at 3.34% Zn, 0.79% Pb & 17.4g/t Ag (TSF305) o 19.0m at 3.32% Zn, 0.74% Pb & 17.7g/t Ag (TSF299) o 21.1m at 3.31% Zn, 0.67% Pb & 14.9g/t Ag (TSF304) o 19.6m at 3.28% Zn, 0.79% Pb & 19.8g/t Ag (TSF297) o 21.6m at 3.22% Zn, 0.66% Pb & 15.6g/t Ag (TSF292)

• Weighted average of all assays received 3.07% Zn (vs 2.73% Zn in Mineral Resource)

• Potential for increased Mineral Resource tonnage via increase in dry bulk density

• Excellent vertical and lateral grade continuity across the Century Tailings Deposit

• Additional silver & lead assays further increase potential for payable metal credits

• Tailings drilling program now completed, awaiting final assay results

New Century Resources Limited (Company or New Century) (ASX:NCZ) is pleased to announce the receipt and interpretation of assays from an additional 90 holes of the tailings infill drilling program at the Century Zinc Mine in Queensland. This brings the total results received and interpreted to date to 112 holes of the 173 hole program. Drilling is now complete with results pending for the remaining 61 drill-holes.

Commenting on the drilling results, New Century Resources Managing Director Patrick Walta stated:

"The drilling results continue to demonstrate the homogenous nature of the Century Tailings Deposit, with highly consistent zinc, silver and lead grades throughout. We also continue to achieve zinc grades well in excess of the current the Mineral Resource.

In addition, it is exciting to receive initial dry bulk density data which is significantly higher than what was assumed in the current Mineral Resource. Should these results continue then significant potential exists for an increase in total tonnage of the Deposit."

The current Century Tailings Resource stands at an Indicated Resource of 12.8Mt at 2.97% zinc and Inferred Resource of 58.2Mt at 2.68% zinc for a total 71.0Mt at 2.73% zinc (1,940,000t of contained zinc metal).

Only the Indicated Resource area (see Figure 1) had been subject to drilling prior to the 2017 program recently completed by New Century. The process for calculation of the Inferred Resource area was via deduction of the Indicated Resource from an assumed total resource, which had been calculated from irregular tailings feed assays and unreconciled tonnage deposition data since commencement of operations in May 2000.

The results in this announcement mark completion of a total of 67% of the total drilling program.

As shown in Table 1, the drilling results received to date from New Century's 2017 program have produced an average grade of 3.07% zinc (inclusive of the initial assays announced on the ASX on 27 July 2017). This represents a 12.5% increase on the average global Mineral Resource grade of 2.73% zinc, providing potential for a material increase in both the local and global zinc grade across the Century Tailings Deposit.

In addition, based on preliminary results from 43 holes analysed to date, potential for a material increase in the dry bulk density has been identified. Results to date all relate to the high grade Southern portion of the Century Tailings Deposit, with preliminary analysis indicating an average calculated dry bulk density of 2.00t/m3. This represents a 24% increase compared to the Mineral Resource dry bulk density value of the Inferred Resource area of 1.61t/m3.

New Century is currently undertaking survey work to assess any potential surface elevation changes from settling and dewatering since the February 2016 LiDAR aerial survey, which was used in the calculation of the current Mineral Resource. Should the higher dry bulk density values continue across the Century Tailings Deposit and the updated survey show minimal settling since 2016, significant potential exists for a material upgrade to the total Mineral Resource tonnage.

Table 1: Overview of historical Mineral Resources and comparison with the 2017 drilling program results

Drilling/Resource Area	Zinc (%)	Lead (%)	Silver (g/t)	Dry Bulk Density (t/m3)
Indicated Resource Area (2015 drilling program)	2.97%	Not Assayed	Not Assayed	1.86 t/m3
Inferred Resource Area (Calculated via deducting Indicated Resource from assumed total tailings resource from operational inputs)	2.68%	Not Assayed	Not Assayed	1.61 t/m3
2017 Preliminary Results	3.07% (112/173 holes)	0.52% (112/173 holes)	13.8 g/t (112/173 holes)	2.00 t/m3 (43/173 holes)

Furthermore, New Century's 2017 drilling program has analysed for lead and silver which were not reported within the existing Mineral Resource estimate for the Century Tailings Deposit. The

average of results achieved to date is 0.52% lead and 13.8g/t silver, providing potential for additional payable metal credits in concentrate.

Cross sections through the current drilling (see Figures 2 to 5) demonstrate the vertical and lateral consistency of zinc grades across the tailings dam, in addition to the continued observation of higher grades compared with the previously reported Inferred Resource. These cross sections also demonstrate strong consistency between the results of the 2015 and 2017 drilling programs within the Indicated Resource area.

A vertical exaggeration of 20:1 has been applied to all cross sections for purpose of grade interpretation at the metre scale. All holes drilled in 2017 were at 125m grid spacing.

Figure 1: Century Tailings Deposit drilling overview

Figure 2: Cross section A-A' of the Century Tailings Deposit (see Figure 3 for zoom in of the 2015 Century Tailings Deposit drilling program)

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