Attila Resources : IDENTIFICATION OF HIGH GRADE MINERALISATION AT WATSONS LODE

ASX / MEDIA ANNOUNCEMENT ASX: NCZ

24 August 2017

IDENTIFICATION OF SIGNIFICANT HIGH GRADE MINERALISATION AT THE WATSONS LODE PROSPECT

• Watsons Lode Prospect - a high-grade Zn-Pb-Ag vein system over 4km strike:

   23.0m at 13.7% Zn+Pb from 30m (LH007)

   14.0m at 35.3% Zn+Pb from 33m (LH011)

   7.0m at 20.6% Zn+Pb from 50m (LH003)

   11.5m at 17.2% Zn+Pb from 145.3m (WLQ007)

   3.8m at 23.7% Zn+Pb from 64.8m (WLQ042)

   3.5m at 49.8% Zn+Pb from 55m (WLQ038)

   9.0m at 28.9% Zn+Pb from 138m (WLQ038)

   5.7m at 21.3% Zn+Pb from 90.7m (WLQ039)

   9.7m at 17.2% Zn+Pb from 150.9m (OZM771)

   9.0m at 27.5% Zn+Pb from 174m (ZCL642)

• Watsons Lode has strong potential to build on substantial existing in-situ resources at Silver King, East Fault Block & identified mineralisation at South Block

Figure 1: Overview of historical drilling results at the Watsons Lode prospect

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New Century Resources Limited (Company or New Century) (ASX: NCZ) is pleased to announce the results of a preliminary review and verification of historical drilling information from the prospect known as Watsons Lode at the Century Zinc Mine.

As outlined in the Independent Geologist's Report in the Company's Prospectus (see ASX announcement dated 20 June 2017), Watsons Lode represents a high priority prospect requiring follow up drilling.

Watsons Lode is located on the exploration permit (EPM 10544) surrounding the Century mining leases and is approximately 10km from the existing Century Processing Plant. Watsons Lode is one of many prospects in the vicinity of the Century Zinc Mine, with 40 targets identified to date.

Figure 2: Location of Watsons Lode and other prospects around the Century Zinc Mine

Numerous high-grade intersections have been reported from historical drilling at Watsons Lode as well as historical mining development and production. During previous small scale operations the Watsons Shaft was sunk to 100ft and combined with Lucky Dollar and Coughlans Lode produced 176t of lead and 1,100oz silver. A long section of the main part of Watsons Lode is shown in Figure 3.

Commenting on Watsons Lode New Century Resources Managing Director Patrick Walta said:

"The historical drilling results from Watsons Lode show this Prospect has the potential to deliver a high-grade resource with strong geological similarities to the Silver King deposit. The Company is now planning a drilling program over the Prospect with the aim of bringing the existing mineralisation into a compliant Mineral Resource.

Any additional resources from Watsons Lode will compliment other established in-situ Mineral Resources from Silver King, East Fault Block and the recently identified mineralisation at South Block. These identified resources and prospects in turn provide significant additional value beyond the Century Tailings Deposit which is the current focus of initial development."

Figure 3: Long section A-A' through the Watsons Lode prospect. Zones with strong mineralisation within the overall envelope are highlighted.

Watsons Lode Geology

The Watsons Lode vein system occurs over a strike of close to 4000m and comprises a series of fault-filling epithermal, quartz-carbonate-sphalerite-galena veins containing high grade lead-zinc- silver within a broader mineralised envelope. The individual veins are up to 15m wide and form an array in a zone up to 50m wide.

Figure 4: Hole ZCL642 showing massive sphalerite mineralisation (honey colour) within the interval 174-183m grading 27.5% Zn + Pb

Figure 5: Perspective of the Watsons Lode veins, looking to the south-west, and close-up of the lode near Watsons shaft, showing the quartz vein with abundant cavities after sphalerite and carbonate.