Argonaut Resources NL (Argonaut or the Company) (ASX:ARE) is pleased to announce that it's 100% held subsidiary, Kelaray Pty Ltd, has entered into an agreement to acquire a 70% interest in the Torrens project exploration licence (EL6407) in return for a 2.5% net smelter royalty on future production.

The Tenement Sale and Purchase Agreement is with Straits Exploration (Australia) Pty Ltd, a subsidiary of Aeris Resources Ltd (ASX:AIS). The agreement is for the acquisition by Kelaray of an additional 70% interest in the Torrens project in South Australia to take its holding to 100%

The licence transfer is subject to Ministerial approval.

Torrens Anomaly The Torrens anomaly is a coincident magnetic and gravity anomaly with a footprint larger than that of Olympic Dam. The anomaly is located at the Torrens Hinge Zone, a continent-scale zone of crustal weakness that appears to have been a conduit for mineralising fluids from the Earth's mantle. Drilling at Torrens to date has confirmed the existence of a major IOCG mineralising system beneath several hundred metres of sedimentary cover. Further drilling is required to intercept the modelled copper-gold mineralisation. In the event of a discovery, the Torrens anomaly has the scale to host a worldclass copper-gold deposit.

Commanding Land Position

This agreement sees Argonaut take a commanding land position in the highly prospective Olympic Dam domain near the eastern margin of the Gawler Craton. The Olympic Domain hosts several internationally significant Iron Oxide Copper-Gold (IOCG) deposits including Olympic Dam, Carrapateena, Prominent Hill and Oak Dam West. Kelaray also holds two exploration licences covering the Murdie project (EL5937 and 5945), and a licence over the Red Dam IOCG target (EL6320).

Contact:

Tel: +61 8 8231 0381

Email: info@argonaut.com.au

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