"Developing the +1.0Moz Pilbara Gold Project"

ASX Announcement

23 August 2017

ASX Code DEG

ABN 65 094 206 292

DIRECTORS

Simon Lill

Executive Chairman

Davide Bosio

Non-executive Director

Steve Morris

Non-executive Director

MANAGEMENT

Craig Nelmes

Company Secretary/CFO

Andy Beckwith

Operations Manager

Phil Tornatora

Exploration Manager

CONTACT DETAILS

Principal & Registered Office Level 2, Suite 9

389 Oxford Street

Mt Hawthorn WA 6016

PO Box 281

Mt Hawthorn WA 6016 www.degreymining.com.au admin@degreymining.com.au

T +61 8 9381 4108

F +61 8 9381 6761

12kms of "Witswatersrand" conglomerate target identified Highlights
  • 12km target zone of prospective Fortescue Group rocks, including the basal Mt Roe Basalt, identified within the Pilbara Gold Project.
  • Stratigraphy is the same as recent discoveries by Novo Resources and Artemis Resources in Karratha, being described as "Witswatersrand like"
  • No known sampling for gold along the 12km long target
  • Mapping and sampling commencing to assess the area for conglomerate hosted gold mineralisation.

As a result of recent surface gold discoveries made near Karratha by Novo Resources Corporation and Artemis Resources, together with a significant "land grab" in the region, De Grey has undertaken a project wide review. This review has identified a large target area of prospective Fortescue Group rocks in the same stratigraphic position that hosts the Novo/Artemis discoveries.

Exploration Manager, Mr. Phil Tornatora, said: "The potential for Witswatersrand style gold deposits in the Pilbara is very exciting. The Witswatersrand gold deposits of South Africa are the largest in the world.

The Karratha discoveries of numerous gold nuggets at surface are rare. Novo and Artemis have now confirmed high grade gold in the underlying host Mt Roe Basalt conglomerates.

We are excited about the immediate commencement of evaluating this encouraging new target."

Pilbara Gold Project - Unlocking Shareholder Value

De Grey Mining Ltd (ASX: DEG, "De Grey" "Company") is pleased to announce that a geological review has been undertaken of the Pilbara Gold Project for conglomerate hosted gold potential ("Witswatersrand Style"). This review is a result of recent and exciting new discoveries made by Novo Resources Limited (TSX-V: NVO) and Artemis Resources Limited (ASX: ARV) in the Karratha region.

The new Novo/Artemis gold discoveries have been made on the back of a significant quantity of gold nuggets being found at surface. Subsequent bedrock testing has confirmed high grade gold is hosted in the underlying conglomerates, at the base of the Mt Roe Basalt within the Fortescue Group.

De Grey's assessment of available geological information has highlighted a 12km long target zone of prospective Fortescue Group rocks, along the base of the outcropping Mt Roe Basalt within the Pilbara Gold Project (Figure 1). The Company has no records of this target having been sampled. Figure 2 highlights De Grey's Pilbara Gold Project relative to Novo/Artemis tenement landholdings.

Earlier surface soil sampling has targeted the Mallina Shear (Figure 1), which hosts most of the gold resources in the project area. Significant portions of the Mallina Shear Zone remain untested by drilling and provide excellent potential for further shallow gold discoveries along this well-endowed gold structure.

Significantly, the Mallina Shear intersects a portion of the Conglomerate Gold Target at the southern margin of the target. Previous soil sampling in this general area has defined a large albeit "diffuse" gold and multi-element anomaly. Further assessment of this area will be a priority.

Proposed Programs

De Grey is commencing mapping and sampling in the area of this anomaly and will expand this work to include the larger Fortescue Group stratigraphy with the aim of defining conglomerates at the base of the Mt Roe Basalt unit.

For further information:

Simon Lill (Executive Chairman) or Andy Beckwith (Operations Manager)

De Grey Mining Ltd Phone +61 8 9381 4108

admin@degreymining.com.au

The information in this report that relates to Exploration Results is based on, and fairly represents information and supporting documentation prepared by Mr. Philip Tornatora, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr. Tornatora is a consultant to De Grey Mining Limited. Mr. Tornatora has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves". Mr. Tornatora consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Figure 1 12 km long Conglomerate Gold Target.

Whim Creek

Conglomerate Gold Target

Steel Star

Mallina

Mirdawari

Peawah

Charity Well

Gold and Multi- Element Anomaly Existing Resources

Withnell-Camel

-Dromedary-Roe

Geemas

Toweranna

T7 North

Prospect location

10km

Geochemical anomaly

Figure 2 Tenement plan showing De Grey's Pilbara Gold Project (including Joint Venture ground) and Novo/Artemis landholding. Port Hedland Karratha De Grey's Conglomerate Target

Purdy's Reward

Comet Well

50km

Tenement Holders Novo/Artemis

De Grey

De Grey Mining Limited published this content on 23 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 August 2017 00:12:09 UTC.

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