Market Announcements Office Australian Securities Exchange Level 4, Exchange Centre‌

20 Bridge Street Sydney NSW 2000

Aeon Metals Limited

ABN 91 121 964 725

Suite 32, 88 Pitt St, Sydney NSW 2000, Australia PO Box 8155, GCMC Qld 9726, Australia P: 61 7 5574 3830 F: 61 7 5574 3568

E: info@aeonmetals.com.au ASX Code - AML 29 July 2016

Quarterly Activities Report For the three months ending 30 June 2016

HIGHLIGHTS

New drilling intersects excellent high grade copper and zinc results

  • Walford Creek Project 2016 drill program was successfully completed on the 24 June.

    • A total of 20 diamond holes were completed for 3,452m (274m RC pre-collar and 3,178m DD).

      • Assays for 5 of the 20 holes recently received. Significant intercepts include:

        WFDD199: 12m @ 7.58% zinc & 0.11% cobalt from 64m WFDD200: 31m @ 2.77% copper & 0.25% cobalt from 34m

        including 18m @ 4.45% copper & 0.29% cobalt from 34m

    • Resource upgrade expected once all hole assays received and assessed.

Figure 1: Location of the Walford Project area

Walford Creek Project, North West Queensland

The Walford Creek drill program commenced on 5 May with the principle aim of the program to obtain further bulk sample for metallurgical work as well as upgrade the confidence of the JORC Resource. A total of 20 diamond holes were completed for 3,452m (274m RC pre-collar and 3,178m DD).

The first five holes have now been returned from the assay laboratory with excellent high grade copper and zinc results. The two high grade intersections already highlighted from hole WFDD199 and 200 are individually the most significant copper and zinc intersections thus far drilled at Walford Creek. Although no further Resource estimation work is possible until all results from this program of drilling have been received, there is clearly a higher grade component closer to the fault which remains open to the west for further closer spaced drilling.

Pre-collar RC drilling was utilised to drill down to the top of the mineralised lenses at which time a diamond rig was used to complete the tail section of each hole. Owing to the importance of drilling straight holes, diamond drilling was largely used after short RC pre-collars. This was also important as the mineralisation occurs at shallow levels of a little over 20m depth in this eastern area targeted for the metallurgical bulk sample.

Drilling, which was undertaken by the ASX listed Mitchell Drilling Services, was completed on time and below budget. The plan of the drilling is shown in figure below.

Figure 2: Walford 2016 Drilling

The results presented below are from the first 5 holes where all results have been returned, being holes WFPD197, WFDD198, WFDD199, WFDD200 and WFDD201.

Hole No.Intersect

m

From To

m m

Cu Co Pb

% % %

Zn Ag

% g/t

WFPD197

10

147

157

-

0.02

2.20

1.80

29

5

163

169

3.13

0.19

4.00

0.24

70

12

182

194

1.50

0.10

0.10

0.22

24

WFDD198

5

172

177

-

0.03

0.86

2.60

24

21

183

204

1.11

0.09

0.23

0.16

22

2

204

206

0.23

0.05

3.50

2.75

45

WFDD199

10

28

38

1.39

0.14

0.14

0.16

19

4

38

42

-

0.04

2.18

0.38

18

12

64

76

-

0.10

0.65

7.58

19

15

79

94

0.96

0.21

0.97

0.84

42

8

140

148

0.82

0.30

0.16

0.30

27

WFDD200

11

22

33

0.07

-

2.67

0.14

23

31

Incl. 18

34

34

65

52

2.77

4.45

0.25

0.29

0.63

1.20

0.82

0.26

31

30

11

52

63

0.44

0.22

0.27

1.30

25

WFDD201

26

187

213

1.28

0.08

0.36

0.42

26

During the quarter, the Walford Preliminary Economic Assessment for standalone Project options continued. In order to finalise this assessment, the Company is awaiting the upgraded Resource statement which will follow shortly after all the current drill program assay results are completed and inputted into the geological model.

Exploration Expenditure

During the quarter, the Company expended approximately $808k on exploration activities. As at 30 June 2016, the Company had available cash of approximately $6.674m.

Appendix 5B

The Company's Appendix 5B cash report is attached.

Hamish Collins Managing Director Aeon Metals Limited

Aeon Metals Limited published this content on 29 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 July 2016 00:16:10 UTC.

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