Heron Resources Ltd. commenced commissioning at its Woodlawn Zinc-Copper Project. Heron holds a direct 100% ownership of the mineral rights at the Woodlawn Mine site situated 40km south of Goulburn and 250km south-west of Sydney, in southern NSW, Australia. It is Heron's aim to create a profitable, long-life, low- cost mining operation, producing base metal concentrates. Heron also holds a portfolio of advanced stage exploration tenements adjacent to, and contiguous with, the Woodlawn site covering the prospective felsic volcanic units that host the Volcanogenic Massive Sulphide (VMS) deposit at Woodlawn. The last four years have seen Heron directing its efforts to developing the Woodlawn Zinc-Copper Project with the successful completion of a Preliminary Economic Assessment (PEA) in 2015, followed by the Feasibility Study (FS) in June 2016 and the completion of project financing in September 2017. Construction activities commenced in September 2017. The Project is in the commissioning phase with first mineral production planned for next quarter. The price outlook for all metals produced at Woodlawn, while seeing some recent volatility, remains strong, particularly for zinc which continues to face a significant supply shortfall. Safety: Despite a concerted push during peak manning for construction, the project recorded a second lost time injury in November. The Company remains focused on the continuous improvement of its risk management systems and processes that target the wellbeing of employees and contractors and remains committed to achieving zero harm. Environment: There has been a significant increase in the resources applied to environmental management on site commensurate with the ramp-up in site activity. This includes trial works that will support the longer-term site rehabilitation including the planting of in-excess of 200 trees as an initial step in creating a vegetation offset to compensate for the area impacted by the project development. The native trees were sourced from a local Landcare group. Project Development Schedule: The EPC Contractor, Sedgman, is reporting the overall project schedule is running behind plan, however commissioning commenced in the December quarter as planned. At the end of December, the overall project progress was 95% complete and commissioning at 24%. The Company continues to prepare for production activities with ore processing planned to commence in the current quarter. Project EPC Works: Remaining construction work is focused on piping and electrical works and handover documentation. Site activity and workforce numbers have peaked, and commissioning personnel were mobilised to site during the quarter. Planned completion of all construction is expected in the current quarter as commissioning activities ramp up. Water Treatment: The supply and installation of the water treatment plant is complete and commissioning underway.