Heron Resources : Results for Heron's Regional Exploration rotary airblast RAB Drilling

Heron Resources Limited

ASX/TSX Release

20 June 2017

Level 7, 191 Clarence Street, Sydney NSW 2000

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ABN: 30 068 263 098

Heron's Regional Exploration Drilling Returns 42m at 0.20g/t Au and 0.26% Cu from 4m to End of Hole Results for first pass rotary airblast (RAB) drilling at the Crosby Prospect have returned:

• 42m @ 0.20 g/t Au and 0.26% Cu from 4m to end of hole (CRRB027)
• 3m 0.77 g/t Au from 33m depth to end of hole (CRRB008)
• Several supporting anomalous results indicative of a broad mineralised system, strong sericite and pyrite alteration logged
• Hosted within Silurian dacitic rocks - intrusive-related copper/gold mineralising model.

Heron Resources Limited (ASX:HRR TSX:HER, "Heron" or the "Company") is pleased to report the results of a reconnaissance RAB drilling program at the Crosby prospect within its wholly-owned Kangiara Project (EL8400), located 200km south-west of Sydney, New South Wales, Australia. Kangiara (EL8400) RAB Program

The Kangiara Project is located 90km NW of Woodlawn and 26km NNW of the town of Yass, and is a historical copper mine where previous explorers (to 2014) have delineated a small, low-grade, gold, silver, copper, lead, zinc deposit (non JORC). The geology comprises felsic volcanic and related sedimentary rocks of the Silurian Douro Group (Figure1).

At the Crosby Prospect (named after the nearby survey point) 5km to the NE of the Kangiara mine, previous explorers outlined a strong gold anomaly (up to 2.3g/t Au in rock chips and 0.17g/t Au in soils) within a 2.5km NW-trending zone of anomalous geochemistry (Au, As, Zn, Pb, Cu; Bi, Mo, Sb). Heron conducted check sampling which confirmed the soil geochemistry, with levels above 150ppb Au being returned and rock-chips up to 4g/t from an area northwest of the soil anomaly. The geological setting is similar to the McPhillamys gold deposit (approximately 2.2Moz Au as reported by Regis Resources Ltd http://www.regisresources.com.au/ ) located 130km to the NNE.

A program of 33 rotary air-blast (RAB) holes for 743m was completed in May 2017 providing a first pass test of the soil geochemical anomalies (Figure 2). The majority of the drilling was focused on the Crosby Main target plus 2 lines to the north providing coverage of the northern geochemical anomalies, and was conducted with the RAB hammer which provided dry and relatively contamination free penetration into the weathered and altered rocks.

The drill holes encountered a thin residual regolith cover before penetrating the Silurian sequence of dacitic intrusive rocks with lesser intercalated breccias and shales. Pervasive sericite alteration and fine grained disseminated pyrite (phyllic alteration) was observed in many of the holes, with lesser biotite and some fine-grained base metal sulphides. Where alteration was strong, the rig was able to penetrate deeper; the deepest intercept was in strong alteration from surface to a depth of 64m (CRRB024) which was close to the capacity of the rig (Figure 3).

Samples were collected on 4m, 2m or 1m intervals depending on the degree of alteration, and assayed using an aqua- regia digest and ICP finish for gold and other elements. Some check fire assays are being conducted to check the gold results as it may be reporting slightly low if the mineralisation is of a refractory nature. The drill logs and assays confirmed a broad zone of phyllic alteration within the Silurian sequence at both the Crosby Main and Central areas.

Better results include:

10m @ 0.11g/t Au, from 30m to end of hole (CRRB007) 3m @ 0.77 g/t Au, from 33m depth to end of hole (CRRB008) 4m @ 0.96% Zn, 0.36% Pb and 0.07g/t Au, from 54m (CRRB024) 42m @ 0.20 g/t Au and 0.26% Cu from 4m to end of hole (CRRB027) 4m @ 0.25% Cu from 24m to end of hole (CRRB029)

The results from the Crosby Main area (CRRB007, -008 and -024) are associated with strong sericite and fine grained disseminated pyrite alteration and elevated zinc and lead similar to the McPhillamys style of mineralisation.

The results from the very limited drilling in the Crosby Central area (CRRB027 and 029) is consistent with an intrusive- related or porphyry style of mineralisation, and the thick intercept in CRRB0027 suggests the potential for the presence of a significant mineralising system. Of note in the drill assays for the central area is depletion in both Cu and Au in the top 4 metres indicating the broad and relatively weak soil geochemical anomaly in this area may be more significant than first thought. Strongly anomalous silver (Ag), molybdenum (Mo), arsenic (As) levels associated with these copper/gold results (see Appendix 1) is encouraging and supports an intrusive-related model for the mineralisation.

Forward Program

This first-pass reconnaissance drilling program has successfully identified the potential for a significant, intrusive-related copper/gold mineralised system. The fine disseminated nature of the sulphides in the dacitic rocks can most likely be mapped with IP geophysical methods to help target future drilling programs.

About Heron Resources Limited:

Heron's primary focus is the development of its 100% owned, high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, Australia. In addition, the Company holds a significant high quality, gold and base metal tenement holding in central and eastern New South Wales.

Figure 1: Location of the Kangiara Project and Crosby Prospect in relation to Woodlawn and other major deposits.