Terrain Minerals Limited (ASX: TMX) is pleased to announce that it has received official notification from RED5 Limited (ASX: RED) that it has exercised its option to purchase Great Western gold project, which expires on the 8th April 2020.

The option agreement, which was announced on the 11th November 2019, required RED to make payments totalling $2,500,000 which include a $300,000 cash payment to purchase the option (already received) and a further payment of $2,200,000 to exercise the option and whereby the exercise price will be paid in tradable shares in RED calculated on a 5 day VWAP for the 5 trading days prior to the completion date as set out in the formal sale and purchase agreement.

The Board is pleased with the outcome and funds will be used to advance works at both Wild-viper and Smokebush Gold project here in WA as well as being used for new project generation.

Wild-viper Gold Project; which encompasses all the land area around Great Western. As announced on the ASX on the 30 March 2020 Terrain intends to shortly commence a large soil sampling program over three highly prospective areas (Refer to Diagram 1 & 2).

Smoke Bush Gold Project; Funds will also be used to expediate exploration and drilling over five advanced targets at the Company's new Smokebush gold project (refer Diagram 3 & 4).

The three key target areas have been identified from past studies and field obviations conducted during the last two work programs (drilling and trenching program's) at Wild-viper. The soil sample program will be taken over grid lines of 200m by 50m over each area and subject to the geologist discretion according to local ground conditions. The aim of the program is to identify possible in-soil gold anomalies, what highlight potential drill targets. If successful Terrain intends to fast track the works over these targets, with an aim of conducting a first pass drill campaign later this year (Refer to Diagrams 1).

Smokebush Exceptional Historic Drilling Results Identified During Project Due Diligence

The data review has identified extensive untested surface gold geochemical anomalies as well as highlighting significant RC and RAB gold drilling intersections from sparse first pass drilling.

The best historical results include: Monza: 2m @ 11.3g/t Au from 70m (MMRC162 - RC) 2m @ 9.2g/t Au from 24m (MMRC154 - RC)

Hurley & T17: 10m @ 1.4g/t Au from 15m (MM084 - RAB) 2m @ 2.5g/t Au from 51m (MMRC074 - RC)

Wildflower: 15m @ 1.4g/t Au from 10m (MM110 - RAB)

The historic drilling is considered sparse and requires follow up exploration activities to property test these significant results. Terrain is now planning a site visit to gain a better understanding of the possible controls of mineralisation before designing the next stage of exploration activities.

Location & Access

The Smokebush Project Area is located approximately 85 kilometres east northeast of the Perenjori township and 65 kilometres west of Paynes Find within the Yalgoo Mineral Field. The project is contained within four contiguous Prospecting Licenses (P59/2125, P59/2126, P59/2127 & P59/2128) and one Exploration Licence (E59/2234) enclosing a total area of approximately 1,254 hectares .

Contact:

Tel: +61 8 9381 5558

ABOUT TERRAIN MINERALS LIMITED:

Terrain Minerals Limited (ASX:TMX) is a minerals exploration company with a Western Australian based asset portfolio consisting of:

Great Western - Option Agreement executed with Red5 Limited (ASX:RED) (includes a $300,000 nonrefundable option fee). Refer to the first page of this announcement for further details.

Wild-Viper Exploration continues to increase Terrain knowledge of this highly prospective gold exploration property. Terrain will shortly commence a large soil sampling program over three key areas with the aim of identifying further drill targets, if successful Terrain intends to drill test them later this year.

Red Mulga Project has areas have been relinquished after rehabilitation was completed.

Project Review: Terrain Minerals is currently searching and has been assessing potential projects: Gold, Copper, Nickle and industrial minerals in Australia, Africa, North & South America and Asia, other regions are also being considered. Several jurisdictions of interest have now been identified. All economic commodities are being considered as indicated in previous Quarterly reports.

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