Valor Resources : Drilling Identifies High Grade Copper and Silver Intercepts

ASX Release 18 August 2017 VALOR RESOURCES LIMITED ACN 076 390 451 22 Lindsay Street PERTH, WA Australia Tel: [phone]‌ Fax: [phone] Contact: Mr Mark Sumner E-mail: [e-mail] Directors Mr Mark Sumner Mr Brian McMaster Ms Paula Cowan Company Secretary Ms Kelly Moore Ms Paula Cowan ASX Code: VAL

DRILLING IDENTIFIES HIGH GRADE COPPER AND SILVER INTERCEPTS Valor Resources Limited ("VAL" or the "Company", ASX: VAL) is pleased to report the first assay results from the drilling program at the Berenguela Copper-Silver Project in Southern Peru. Highlights Drilling confirms consistent Zinc and Manganese mineralisation across the deposit; Best intercepts include 10 m @ 2.13 % Cu and 7 m @ 2.18% Cu + 1719 g/t Ag; and Updated resource estimate pending. Overview Drilling has confirmed the mineralisation within the Inferred Resource shell, as well as an extension of the Copper (Cu) and Silver (Ag) Resources previously reported, leading to the potential for an expansion of the current Resource estimates. The results confirm that the deposit remains open to the North, with the 15 holes reported in this release confirming mineralisation outside the current Resource shell. Drilling has also confirmed consistent Zinc (Zn) and Manganese (Mn) mineralisation across the deposit. Key Drilling Intercepts (refer to Tables 1 and 2 for complete drilling results): BEP6 - BER225:  63 m @ 1.08% Cu + 40.84 g/t Ag + 7.25% Mn + 0.66% Zn (from 5 m). 1.57% CuEq, including:  10 m @ 2.13 % Cu + 71.9 g/t Ag + + 5.70 % Mn + 0.506 Zn (from 12m); BEP7 - BER227:  57 m @ 0.96% Cu + 151.1 g/t Ag + 7.15% Mn + 0.97% Zn (from 3m). 2.14%CuEq, including:  13m @ 1.34% Cu + 319 g/t Ag + 15.5% Mn + 1.20% Zn (from 3m);

Key Drilling Intercepts continued (refer to Tables 1 and 2 for complete drilling results): BEP7 - BER230: (Outside current Inferred Resource Shell)

 36 m @ 1.18% Cu + 78.48 g/t Ag + 10.17% Mn + 0.83% Zn (from 0m). 1.93%CuEq, including:

 4m @ 2.9% Cu + 73.1 g/t Ag + 10.32% Mn + 0.69% Zn (From 29m)

BEP2 - BER235:

 27 m @ 0.98% Cu + 504 g/t Ag + 9.38% Mn + 0.44% Zn (from 39m). 3.73%CuEq, including:

 7 m @ 2.18% Cu + 1719 g/t Ag + 13.12% Mn + 0.34% Zn (from 59m)

BEP2 - BER236:

 24 m @ 1.26% Cu + 93.88g/t Ag + 8.82% Mn + 0.34% Zn (from 20m). 1.85%CuEq, including:

 11 m @ 1.48% Cu + 162.47 g/t Ag + 15.16% Mn +0.58% Zn

Management Commentary

Commenting on the first set of drill results, Valor Chairman, Mark Sumner said: "The intercepts delivered here are excellent and these assay results reinforce that the Berenguela deposit holds considerable unlocked value. As well as the high-grade copper and silver mineralisation that we have encountered, the discovery of zinc and manganese mineralisation across the deposit is very encouraging and clearly adds further value to this ore body.

"As well, these results confirm significant mineralisation outside of the Inferred Resources shell and we anticipate this leading to an increase in total JORC Resource tonnage. Further drilling results will be reported shortly which we expect to be consistent with the assay results reported today."

Drilling Program Overview

The drilling program commenced on 10 July 2017. The program includes 66 drill holes for a total of 9,570 meters, targeting depths between 100 and 200 meters focusing primarily on the Berenguela central deposit area, with select drill holes targeting mineralisation outside of the area current Inferred Resource shell. To date, 15 holes for a total of 2,120m have been completed. The drill holes are spaced on 35m x 35m grid and were performed from 5 platforms (BEP6, BEP7, BEP8, BEP2 & BEP023).

Figure 1 - 2017 Drilling Platform Map Mineralisation Outside Current Resource Shell

Approximately 156 meters of mineralisation has been confirmed outside the previously confirmed Mineral Resources as announced on 10 March 2017 in an announcement titled "Mineral Resource Confirmation - Additional Information for ASX LR 5.8.1".

Expansion Drill Holes: BEP7 - BER230: (Outside current Inferred Resource Shell)

 36 m @ 1.18% Cu + 78.48 g/t Ag + 10.17% Mn + 0.83% Zn (from 4m) - 1.94%CuEq

 5 m @ 2.46% Cu + 82.04 g/t Ag + 10.13% Mn +0.69% Zn (from 29m)

BEP6 - BER226: (Outside current Inferred Resource Shell)

 34 m @ 0.73% Cu + 94.5 g/t Ag + 8.47% Mn + 0.97% Zn (from 6m) - 1.63%CuEq

 23 m @ 0.531% Cu + 100.87 g/t Ag + 16.71% Mn +1.85% Zn (from 6m)

BEP8 - BER234: (Outside current Inferred Resource Shell)

 23 m @ 0.73% Cu + 40.87 g/t Ag + 3.55% Mn + 0.78% Zn (from 0m) - 1.27%CuEq

 5 m @ 1.02% Cu + 38.36g/t Ag + 9.97% Mn +0.89% Zn (from 6m)

BEP8 - BER232: (Outside current Inferred Resource Shell)

 14 m @ 0.71% Cu + 62.31 g/t Ag + 4.63% Mn + 0.88% Zn (from 1m) - 1.40%CuEq

 5 m @ 1.02% Cu + 38.36g/t Ag + 9.97% Mn +0.89% Zn (from 1m)

Figure 2 - Drilling at Platform 8 (BEP8) Outside Resource Shell Zinc Mineralisation

The results illustrate consistent Zinc (Zn) mineralisation across the deposit.Several validation checks were carried out to certify noninterference of external agents, like contamination in the laboratory. Intervals with high grade Zn were detailed re-logged searching for macroscopic zinc minerals (Figure 3). A Quality Assurance

- Quality Control (QAQC) analysis was conducted to confirm mineralisation, which showed positive intervals. The Company's metallurgists were consulted regarding the potential for Zn recovery based on

historical metallurgical work in order to confirm Reasonable Prospects for Eventual Economic Extraction of Zn. Zn is common in silver-enriched base metal deposits in the northern half of Peru and its presence could indicate the potential for additional resources.The presence of Zn is currently under review for the purposes of adding Zn values to the Mineral Resource Estimate. The Company will update the market once the necessary work has been completed.

Figure 3 - Boxes of Chips of BER223-17 RC Drilling. Intervals of Zn > 3% Table 1: Drillhole Results at the Berenguela Project*

Platform	HoleId	From (m)	To (m)	Interval (m)	% eCu Excl Mn	Summary	%eCu Cutoff
BEP-006	BER223-17	4	11	7	0.851	7 m @ 0.69 Cu% + 17.44 Ag g/t + 1.16 Mn% + 0.17 Zn%	0.50
		26	49	23	0.963	23 m @ 0.54 Cu% + 41.17 Ag g/t + 4.31 Mn% + 0.5 Zn%	0.50
		66	69	3	0.624	3 m @ 0.26 Cu% + 40.47 Ag g/t + 3.43 Mn% + 0.37 Zn%	0.50
		79	90	11	0.735	11 m @ 0.43 Cu% + 28.11 Ag g/t + 4.36 Mn% + 0.38 Zn%	0.50
		113	175	62	1.574	62 m @ 0.6 Cu% + 109.92 Ag g/t + 8.98 Mn% + 0.97 Zn%	0.50
	BER224-17	4	47	43	0.582	43 m @ 0.42 Cu% + 16.69 Ag g/t + 2.26 Mn% + 0.18 Zn%	0.50
		65	92	27	0.531	27 m @ 0.35 Cu% + 19.7 Ag g/t + 2.1 Mn% + 0.19 Zn%	0.50
	BER225-17	5	68	63	1.570	63 m @ 1.08 Cu% + 40.84 Ag g/t + 7.62 Mn% + 0.66 Zn%	0.50
	BER226-17	10	45	35	1.640	35 m @ 0.62 Cu% + 90.35 Ag g/t + 12.6 Mn% + 1.31 Zn%	0.50
		52	61	9	0.886	9 m @ 0.63 Cu% + 25.03 Ag g/t + 4.38 Mn% + 0.3 Zn%	0.50
BEP-007	BER227-17	2	73	71	1.650	71 m @ 0.82 Cu% + 111.09 Ag g/t + 6.81 Mn% + 0.62 Zn%	0.50
		100	112	12	0.586	12 m @ 0.35 Cu% + 23.73 Ag g/t + 2.96 Mn% + 0.27 Zn%	0.50
	BER228-17	7	92	85	0.952	85 m @ 0.55 Cu% + 38.66 Ag g/t + 5.4 Mn% + 0.48 Zn%	0.50
	BER229-17	11	42	31	1.047	31 m @ 0.59 Cu% + 28.43 Ag g/t + 10.58 Mn% + 0.73 Zn%	0.50
		50	54	4	0.572	4 m @ 0.3 Cu% + 19.93 Ag g/t + 3.99 Mn% + 0.4 Zn%	0.50
	BER230-17	0	42	42	1.591	42 m @ 0.93 Cu% + 70.35 Ag g/t + 11.13 Mn% + 0.71 Zn%	0.50
BEP-008	BER231-17	0	5	5	1.009	5 m @ 0.47 Cu% + 31.94 Ag g/t + 7.93 Mn% + 0.88 Zn%	0.50
		25	65	40	0.733	40 m @ 0.43 Cu% + 19.17 Ag g/t + 5.82 Mn% + 0.48 Zn%	0.50
	BER232-17	1	6	5	2.063	5 m @ 1.19 Cu% + 71.58 Ag g/t + 15.74 Mn% + 1.19 Zn%	0.50
		30	37	7	0.819	7 m @ 0.45 Cu% + 20.44 Ag g/t + 8.65 Mn% + 0.62 Zn%	0.50
		96	102	6	0.849	6 m @ 0.57 Cu% + 27.93 Ag g/t + 3.07 Mn% + 0.32 Zn%	0.50
	BER233-17	0	17	17	0.719	17 m @ 0.46 Cu% + 19.82 Ag g/t + 3.9 Mn% + 0.37 Zn%	0.50
	BER234-17	0	23	23	1.101	23 m @ 0.73 Cu% + 33.39 Ag g/t + 5.12 Mn% + 0.47 Zn%	0.50
BEP-002	BER235-17	0	28	28	1.127	28 m @ 0.65 Cu% + 30.71 Ag g/t + 9.32 Mn% + 0.75 Zn%	0.50
		39	59	20	1.163	20 m @ 0.57 Cu% + 78.73 Ag g/t + 8.05 Mn% + 0.45 Zn%	0.50
		59	66	7	11.104	7 m @ 2.18 Cu% + 1719.83 Ag g/t + 13.21 Mn% + 0.41 Zn%	0.50
	BER236-17	0	44	44	1.498	44 m @ 0.9 Cu% + 85.63 Ag g/t + 8.42 Mn% + 0.38 Zn%	0.50
BEP-023	BER237-17	21	32	11	0.600	11 m @ 0.31 Cu% + 47.8 Ag g/t + 1.27 Mn% + 0.11 Zn%	0.50
		35	46	11	1.464	11 m @ 0.86 Cu% + 94.43 Ag g/t + 10.49 Mn% + 0.29 Zn%	0.50
		67	71	4	1.638	4 m @ 0.68 Cu% + 139.62 Ag g/t + 9.02 Mn% + 0.58 Zn%	0.50
		81	85	4	0.654	4 m @ 0.45 Cu% + 22.43 Ag g/t + 3.74 Mn% + 0.21 Zn%	0.50
*Intercepts are calculated using: True width intervals of the mineralisation are interpreted as being between 50-80% true widths from oriented RC drilling core and sectional interpretation