Valor Resources : Quarterly Activities Report.pdf (2)

ASX Release

14 January 2019

VALOR RESOURCES LIMITED

ACN 076 390 451

DECEMBER 2018 QUARTERLY ACTIVITIES REPORT

22 Lindsay Street

PERTH, WA Australia

Valor Resources Limited (Valor) or (the Company) (ASX: VAL) is pleased to provide its report for the quarter ended 31 December 2018.

QUARTER HIGHLIGHTS

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• • Field activities completed, and samples collected for Pre-Feasibility Study metallurgical testwork.

  Contact: Nick Lindsay

• • PFS commenced with validation testwork in progress.

  E-mail:[e-mail]

• • Post-Quarter joint venture option agreement signed with Kennecott Exploration Company, part of the Rio Tinto group.

OPERATIONAL UPDATE

Berenguela Project ("the Project")

@valorresources

The basic concept for the Berenguela project is a shallow open pit mine with low strip ratio and treatment based on conventional reductive acid-leach processing technology, to generate a product mix of copper cathode, manganese metal and sulphate, and silver bullion. The Company remains focused on that outcome.

Directors Brian McMaster Nicholas Lindsay

During the quarter, several work-streams were undertaken concurrently.

Paula Smith

In Peru, re-logging of core has been completed together with mapping of the orebody at a scale of 1:2000. This increases the detail of the mineralisation for improvements in exploration planning.

Company Secretary

Paula Smith

Geotechnical studies on the mineralised zone confirmed mining assumptions in the scoping study.

ASX Code:

VAL

Core and bulk samples have been prepared and dispatched for Pre-Feasibility Study ("PFS") metallurgical testwork in Australia.

Ordinary Shares: 1,893,192,258

Options:

The PFS is in progress, with the immediate emphasis on validating and upscaling the process route to treat the Project's polymetallic ore. This is work-in-progress and to date has not revealed any anomalies in the process. Once validation is complete, a second stage of testwork will commence to generate the parameters for process engineering and project cost structure. The PFS remains on track for delivery in Q3 2019.

86,333,333 ($0.045 - 04/12/2019) 400,000,000 ($0.015 - 31/12/2021)

CORPORATE UPDATE

The Company announced on 24 October 2018 that SSR has waived the requirement for Valor to raise the balance of the minimum capital raising required under the terms of the Berenguela acquisition in exchange for a one-off payment of USD $50,000 to be paid on the 3rd anniversary of the Effective Date, being 11 February 2020. Accordingly, the Company confirmed that SSR's entitlement to the Top-Up Right has now ceased.

As announced on 26 October 2018, Dr Nicholas Lindsay's role as Technical Director has been expanded to CEO, Mr Mark Sumner resigned from the Board of Directors effective 30 November 2018 and Mr Brian McMaster assumed the role of Chairperson from that date.

The Company held its Annual General Meeting on 29 November 2018 and all resolutions as detailed in the Notice of Meeting lodged with the ASX on 25 October 2018 were passed.

POST QUARTER END EVENTS

The Company announced that it had signed a joint venture Option Agreement with Kennecott Exploration Company, part of the Rio Tinto group, in respect of the Berenguela Project. Full details are contained in the announcement "Option Agreement for Joint Venture Signed" lodged with the ASX on 14 January 2019.

Appendix 1 - Interests in Mining Tenements Held

Project	Concession Name	Tenement	Locatio	Ownershi p at nbeginning of quarter	Ownershi p at end of quarter	Acquire d During the Quarter	Disposed of During the Quarter
Berenguela Project	Berenguela Berenguela 01-09 Berenguela 02-09* Berenguela 03-09** Berenguela 04-09 Berenguela 05-09 Berenguela 06-09 Berenguela 07-09 Berenguela 08-09 Berenguela 97 Lagunillas 01-04 Lagunillas 02-04 Lagunillas 08-04 Lagunillas 10-04*	13-000001Y03 01-01116-09 01-01115-09* 01-01341-09** 01-01342-09 01-01344-09 01-01345-09 01-01340-09 01-01343-09 01-01289-97 01-01350-04 01-01351-04 01-01512-04 01-02710-04*	Peru	100%	100%	-	-
Picha Project	Picha 1 Picha 2 Picha 3 Picha 7 Leon 3	01-03852-05 01-03853-05 01-03854-05 01-00578-07 01-04638-08	Peru	100%	100%	-	-

* 01-02710-04 and 01-01115-09 overlap a pre-existing and current title known as Santa Lucia 14. ** 01-01341-09 overlaps a pre-existing and current title known as Lucia Josefina I.

Appendix 2 - Summary of Expenditure Incurred per Project

Project	Quarter Cash Spend $A'000
Berenguela Project	223
Picha Project	1
Total	224