GWR : Quarterly Report - March 2017 and Appendix 5B

March Quarter Highlights‌

• Exceptional results from 1,739m Reverse Circulation (RC) drilling program at Hatches Creek;
• 4,700m RC drilling program planned for Hatches Creek to follow up on recent results and to test an additional 5 targets;
• Memorandum of Understanding (MoU) executed with Blackham Resources ("BLK") (ASX:BLK) for mining and milling Wiluna West gold deposits;
• Dual focus program implemented at the Wiluna West gold project:
  • exploration targeting potential "company making" gold deposits; and
  • exploration targeted at defining deposits for mining and milling at the nearby Wiluna gold mill.
• A trial parcel of approximately 800 tonnes of Golden Monarch ore was run through BLK's Wiluna mill and the results indicate that blending the more competent Golden Monarch ore with BLK's Matilda ore should improve plant performance;
• Extensive fieldwork undertaken including detailed geological mapping, rock chip sampling and geochemical soil sampling at Wiluna West Gold Project;
• 3,500m of RC drilling planned at the Eagle, Emu and Golden Monarch targets at Wiluna West Gold Project;
• Field visit undertaken to the Lake MacLeod gypsum deposit; confirming presence of previously identified significant high grade gypsum
• Strong balance sheet with $6.7m cash, no debt and $5.1m in listed securities & other material financial assets. Hatches Creek Polymetallic Tungsten Project

• Exceptional results received from Pioneer, Copper Show, Hit or Miss and Treasure drilling in late 2016.

• Intersections included:

   HCRC013, 44m at 0.21% WO3 and 0.12% Cu, from 55m

   HCRC014, 53m at 0.26% WO3 and 0.13% Cu, from 63m

   HCRC016, 7m @ 0.73% WO3, and 0.01% Cu, from 81m

   HCRC010, 2m @ 3.05% WO3 and 0.02% Cu, from 3m

   HCRC004, 1m @ 2.85% WO3, 1.76g/t Au and 0.29% Cu, from 43m

   HCRC004, 1m @ 1.96% WO3, 1.58g/t Au and 0.28% Cu, from 80m

• A 4,700m RC drilling program following up on the recent results and testing an additional 5 targets has been planned and approvals from the NT government and Traditional Owners have been sought.

• Metallurgical test work undertaken as part of the original dumps project in 2015 produced a concentrate of 66% WO3. In addition, a sulphide pre-float produced a concentrate assaying 16.4% Cu and 7.9g/t Au, demonstrating the ability to recover both tungsten and other valuable by-products.

GWR Group Limited ("GWR") is an independent, Australian resource house, focused on creating shareholder wealth through the development of high quality mineral exploration and development projects.

The Company has a portfolio of mineral commodity projects that includes projects held in its own right, in joint venture and indirectly through investment in other listed entities. We aim to create value through operational excellence and innovation in exploration and project development. We will collaborate with our stakeholders to build a sustainable mining business and the respect of our peers.

ASX code: GWR

Issued Capital: 245.6 million

Issued Options: 27.7 million

Cash on hand: $6.7 million

Non-executive Chairman

Executive Director

Non-executive Director

Non-executive Director

Non-executive Director

Chief Executive Officer

Joint Company Secretary

Joint Company Secretary

• Recent test work undertaken on dump samples from Pioneer showed that 97% of the WO3 could be recovered, with 34% mass reduction by simply crushing. At Hit or Miss, a combination of screening and X-ray ore sorting test work has resulted in a 98% WO3 yield and a mass rejection of 24%.

  Wiluna Gold Project

• In late January 2017, GWR and Blackham Resources (ASX: BLK) executed an MoU for the potential mining and milling of the Wiluna West deposits. GWR is working with Blackham to prioritise economic viability studies.

• Ongoing review which has clearly identified the Golden Monarch, Eagle and Emu deposits as high priority targets for early cash flow via the MOU executed with BLK.

• A trial parcel of 805 dry tonnes at an estimated grade of 1.9 g/t Au of Golden Monarch ore was put through the BLK Wiluna mill as a trial parcel and the results indicate that blending the more competent Golden Monarch ore with BLK's Matilda ore should improve plant performance.

• New wireframe created for Golden Monarch deposit.

• 3,500m RC drilling program planned for the Golden Monarch, Eagle and Emu deposits, with a POW lodged with DMP and Aboriginal Heritage surveys having been completed subsequent to the end of the Quarter.

• Interpretation of an orientation geochemical soil sampling program clearly showed that the -2.8mm to +0.5mm sized soil fraction yielded the best results.

• Completion of a 100m by 25m soil sampling program for a total of 1602 soil samples over a strike length of 4.5km upon the Joyners Find shear zone. Assays for 529 samples are presently outstanding.

• Completion of detailed 1:1000 scale geological mapping over a strike length of 4.5km along the Joyners Find shear zone.

• Collection of 253 rock chip samples, assay results for 74 samples are currently outstanding.

• Survey of historical drill hole collars, where 300 historical collars were located from an approximately 1000 collars.

• Ongoing validation of the gold drilling database.

  Investment in Tungsten Mining NL (ASX: TGN)

• Mt Mulgine Strategic Development Plan remains on track with completion of metallurgical test work and mining study along with environmental referral submissions to State and Commonwealth regulatory authorities.

  Corporate

  • GWR remains well funded with cash reserves of $6.7 million and no debt. In addition, GWR has listed securities with a market value of $2.90m as at 31 March 2017 and other material financial assets of $2.25m at cost.

Hatches Creek Tungsten Project

Exceptional results were achieved in the maiden RC drilling program undertaken at the Hatches Creek project located in the Northern Territory (see ASX announcement 15 March 2017). The 18 hole 1,739 metre RC drill program, focused on the Pioneer, Copper Show, Hit or Miss and Treasure prospects , while an additional 11 prospects remain to be drilled. The RC holes were targeted based on previous dump sampling results, mapping and accessibility.

The drilling has intersected significant tungsten and copper mineralisation in all four areas targeted and at Treasure and Hit or Miss over much larger widths than expected. At Pioneer, the tungsten and copper mineralisation is also accompanied by gold mineralisation confirming the polymetallic nature of the mineralised structures.

A follow up 4,700m RC drilling program has been planned to follow up on the recent significant results and to test an additional 5 targets. Statutory approvals from the NT government and Traditional Owners are being sought.

At Treasure, broad zones of tungsten and copper mineralisation were intersected. Where the initial target was narrow high grade zones, the drilling returned 53m at 0.26% WO3 and 0.13% Cu, from 63m in HCRC014 and 44m at 0.21% WO3 and 0.12% Cu, from 55m in HCRC013.

Intersections at Hit or Miss included wide zones such as 36m at 0.18% WO3 and 0.24% Cu in HCRC011 from 52m and narrow high grade intersections including 2m at 3.05% WO3 from 3m in HCRC010.

At Pioneer, the Company intersected multiple stacked zones of mineralisation that correspond with historical mining zones. Several of the holes intersected at least three stacked mineralised zones. Better results included 2m at 1.60% WO3, 0.96g/t Au and 0.36% Cu from 43m in HCRC004, also in HCRC004, 1m @ 1.96% WO3, 1.58g/t Au and 0.28% Cu, from 80m and 3m at 0.63% WO3 from 81m in HCRC002. Eight of the mineralised tungsten zones also had coincident gold grades of greater than 0.8g/t Au.

At Copper Show, tungsten and copper mineralisation were of a similar tenor in the intersected holes. Results included 1m at 0.58% WO3 and 0.54% Cu from 3m and 1m at 0.49% WO3 and 0.12% Cu, both in HCRC006.

Figure 1: Hatches Creek Project Location

Figure 2: Hatches Creek Prospect Location