FYI Resources : Significant Resource Upgrade Paves Way for HPA Testwork

FYI Resources Limited (ASX:FYI) is pleased to announce an updated Mineral Resource for the Cadoux kaolin deposit located in Western Australia.

• 53% tonnage increase in Mineral Resource estimate to 16.1Mt @ 11.76% Al

• 80% of Mineral Resource estimate now classified as 'Indicated'

• High grade zone of 7.2Mt at 13.1% Al contained within the Mineral Resource

• Resource remains open with the potential to be significantly increased

• Increased resource base provides sufficient feedstock for production of High Purity Alumina ('HPA') which is a critical component in the manufacture of high tech products used in lithium ion batteries, sapphire glass and LED's

• Initial metallurgical testwork well advanced to determine quality

Table 1: Cadoux Mineral Resource estimate July 2017

Notes:

% minus 45 micron was measured by wet screening based on previous testwork and assays were determined by ALS using ICP

The updated Mineral Resource estimate is based on the recent drilling of 58 aircore holes for 1,023 metres and has resulted in a significant increase from the previous Mineral Resource estimate of 10.5Mt at 11.25% Al.

The Resource remains open with significant potential to be increased to the northeast and east where the resource remains open. Higher grade kaolin of 7.2Mt at 13.10% Al at a cut-off greater than 12% Al occurs within the Mineral Resource area.

On reviewing the Resource results, FYI Managing Director, Mr Roland Hill said "The upgraded Resource estimate is consistent with the Company strategy to provide a world class feedstock for the looming boom in new technologies which include lithium ion batteries for the electric vehicle market. Recent announcement by the German automobile industry outlying a shift to electric cars will contribute to an increase demand for raw materials for these new technologies."

The Company is now focussed on completion of the metallurgical test work which is well advanced and anticipates positive results including confirming that commercial HPA can be generated from high grade kaolin product from the Cadoux Resource.

It is expected that higher classification can be achieved with the completion of further technical work which includes the metallurgical work underway.

The Mineral Resource estimate is based on the inclusion of the results from the recent drilling campaign (see FYI ASX announcement 22/5/2017) combined with previous drilling results.

The Resource is based on information from 98 air core drill holes for 1,840.5m, with hole depths ranged from 6 to 36m depending on the depth of kaolin and granite weathering. The drilling generated 27 bulk samples and 220 samples ranging intervals from 1 to 6 of which 207 were used in the Resource estimate. The average composite width for the Resource calculation was 2.3m. Hole spacing ranges from a 100x50m to 200x200m grid spacing.

All resources are within 4 to 14 metres of the surface. The kaolin profile ranged from 2m thickness to 24m and averaged 8.9m. The resource volumes were estimate by wire- framing the kaolin material and creating a geological model using Surpac software. The resource was estimated by visual classification of the kaolin. All material from drilling was considered as kaolin and logged and modelled as such if it appeared bright white.