Valor Resources : REZ - Acquisition of Radio Gold Project Farm-In.pdf

04/09/2019

ASX Release

Valor Resources Limited (ASX:VAL) to acquire Radio Farm in partner Bullfinch One - $4 million Farm-in for High Grade Mine

Radio Gold Mine

Bullfinch, WA

The Radio Gold Mine site is located 8km north west of Bull- finch, Western Australia, 400km east of Perth and 40km north of Southern Cross, and within the

Southern Cross Greenstone Belt in the Yilgarn Craton. The Southern Cross province is estimated to have produced +15m oz of gold. Underground samples of up to 0.5m @ 522 g/t*

Current high grade 28,000oz JORC 2012 resource. The Radio Gold Mine achieved historical ore production of 72,000oz averaging 38.5g/t.

Radio Gold Mine in 7km north of the +1 moz Copperhead Mine.

• Radio gold positive sampling results, development ore 6.2g/t - ASX: REZ 4th June 2018

Resources & Energy Group Limited (ASX: REZ) (Company or REZ), developing a portfolio of gold mining tenements through to production, advises that Valor Resources Limited (ASX: VAL) (Valor) has entered into a conditional agreement to acquire Bullfinch One with whom REZ has entered into a Farm-in Agreement with respect to the Radio Gold Mine.

Valor, today advised that, conditional on the satisfaction of certain conditions precedent, including the parties completing due diligence, Bullfinch confirming that is has $700,000 in cash and obtaining all necessary regulatory and third- party approvals it will acquire Bullfinch One.

Radio Gold Mine has historical production of over 72,000oz

• 38.5g/t Au with recent bulk sampling mining areas, in- cluding current mining area 2.7m wide @ 50.6 g/t Au1.

Through the Radio Agreement-, Valor will earn a 50% interest in the project, by undertaking $4,000,000 expenditure over a 2-yearfarm-in period. Full details of the Radio Gold Mine Farm-in Agreement can be found in REZ ASX Announcement dated 1 August 2019 entitled "Radio Gold $4m Farm-inPartnership".

Christian Price, CEO Resources and Energy Group: "We are pleased that Valor has recognised the potential of the Radio Gold Mine. With samples grades underground of up to 0.5m at 522g/t, Radio represents a high grade mining opportunity and a cornerstone for their Australian portfolio. We see the benefit of Valour being our Radio farm in partner given Valour's access to public company capital markets and determination to progress the development of Radio. REZ will now continue to focus on our large Menzies holdings and progress our Mount Mackenzie gold project in Queensland with an updated scoping study to be released shortly."

1 Quarterly Activities Report September 2018 (ASX: REZ) - 21st May 2015

Resources & Energy Group Limited	Head Office: Level 33,	52 Martin Place, Sydney, NSW, 2000
ACN 162 869 276 ABN 68 162 869 276	Postal: Level 33,	52 Martin Place, Sydney, NSW,	2000
	T: [phone] | F: +61 2 9227	8901
Twitter: @REZ_GOLD | LinkedIn: REZGROUP | W: www.rezgroup.com.au	E: [e-mail]

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Overview

Resources and Energy Group limited currently owns 100% of the Radio Gold Project, the site of the Radio Gold Mine. Radio Gold Mine has been rehabilitated and approved for mine production bulk sampling undertaken over the last 18 months to test and prove a 28,000oz of Au JORC 2012 compliant resource.

Existing infrastructure includes, generators, dewatering facilities, offices, accommodation, workshops and a gravity processing facility in construction. The Radio Gold Mine has a historical un-

derground operation where grades averages 38.5 g/t Au.

About Resources and Energy

Resources and Energy Group Limited (ASX: REZ) is an independent, ASX-listed mineral resources explorer, developer and producer, holding mining leases in Western Australia and Queensland. REZ aims to develop a portfolio of mining tenements through to production. REZ is currently focuses on the development of the Flagship Menzies Project 130km north of Kalgoorlie in Western Australia.

Competent Persons Statement and Consent

The information in this report that relates to Exploration Results is based on information compiled by Mr Stephen Pearson REZ Senior Resource Geologist and Mr. Michael Johnstone, Principal Consultant for Minerva Geological Services (MGS). Both Mr Pearson and Mr Johnston are members of the Aus- tralasian Institute of Mining and Metallurgy. MGS has been contracted by Resources and Energy Group to provide Exploration Management and technical advice to the Company. MGS is a shareholder in REZ. Mr Johnstone has sufficient experience that is relevant to the reporting of Exploration Results to quantify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Johnstone consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

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For further information and media enquiries please contact:

Mr Christian Price	Level 2, 131 Macquarie Street
Chief Executive Officer	Sydney, NSW 2000 Australia
M: [phone]	P: [phone]
E: [e-mail]	E: [e-mail]