Helix Resources : Drilling Continues to Expand Gold Camp at Cobar Gold Project

ASX Announcement 23 August 2017

• Reverse Circulation (RC) drilling at the Cobar Gold Project has continued to expand near-surface gold mineralisation in this emerging gold camp.
• New gold intercepts have expanded the known prospects (both along strike and at depth), identified further gold structures and highlighted additional gold systems at the regional prospects.
• Results from prospects tested in the program include:

Battery Tank: 23m @ 2.0g/t Au from 26m, incl. 5m @ 3.1g/t Au.

Good Friday: 4m @ 5.0g/t Au within 38m @ 0.8g/t Au from surface & 15m @ 1.0g/t Au from 12m Sunrise: 2m @ 5.6g/t Au & 9m @ 1.9g/t Au within 32m @ 1.0g/t Au from 8m; 7m @ 2.5g/t Au from 95m Boundary: 5m @ 2.6g/t Au within 20m @ 0.9g/t Au from 7m; 11m @ 1.1g/t Au from 108m to EOH Reward: 4m @ 2.5g/t Au within 20m @ 1.1g/t Au from 16m

Key Points

• Drilling continues to demonstrate broad zones of gold mineralisation, including multiple stacked gold- bearing structures.
• Gold mineralisation has been intersected in fresh rock (approx. 80-120m from surface) in depth extensions of known gold-bearing structures.
• A new gold-bearing structure has been identified at the Reward Prospect with 20m @ 1.1g/t Au from 16m, incl. 4m @ 2.5g/t Au, intersected 70m southeast of the historic workings. This new target is located on a major regional lineament and remains open in all directions.
• Potentially economic, near surface gold intercepts have been returned at five prospects and all have potential to continue at depth.
• The Cobar Gold Project is located 35km southeast of the Peak Gold mining operation, and is very well positioned within the infrastructure rich district.
• Helix's Cobar Gold Project is one of the most significant recent greenfield gold discoveries in the district, a region renowned for long-life and depth extensive gold and base metal deposits.

Helix Resources Limited (ASX:HLX) (Helix or the Company) is pleased to advise that the recent RC drilling program at the Cobar Gold Project has continued to expand the footprint of near-surface gold mineralisation.

The drilling program consisted of a total of 30 holes for 3,600m using two RC drill rigs across six prospects.

New gold intercepts identified during recent drilling have expanded the known prospects both along strike and at depth. The drilling has also identified further gold structures and highlighted the potential for additional gold systems at regional prospects.

Highlights from drilling at the prospects include:

Battery Tank Prospect: 23m @ 2.0g/t Au from 26m, incl. 5m @ 3.1g/t Au (continues to demonstrate the broad gold-bearing systems at this emerging prospect).

Good Friday Prospect: 4m @ 5.0g/t Au within 38m @ 0.8g/t Au from surface & 15m @ 1.0g/t Au from 12m. (confirms presence of northeast trending structures at Good Friday).

Sunrise Prospect: 2m @ 5.6g/t Au & 9m @ 1.9/t Au within 32m @ 1.0g/t Au from 8m; 7m @ 2.5g/t Au from 95m (fresh). (confirmation of perpendicular structures and depth extensions into fresh rock).

Boundary Prospect: 5m @ 2.6g/t Au within 20m @ 0.9g/t Au from 7m; 11m @ 1.1g/t Au from 108m (mineralised to EOH).

Reward Prospect: 4m @ 2.5g/t Au within 20m @ 1.1g/t Au from 16m (a gold-bearing structure at a new prospect).

Managing Director Mick Wilson commented: "The Cobar Gold Project continues to be one of the most encouraging greenfield gold discoveries in the Cobar District. We continue to enhance our understanding of the nature and geometry of these gold systems. The results from this year's exploration programs, our proximity to operating mines and the fact that all our discoveries start from, or near to surface, collectively have boosted our confidence in the potential of this emerging gold project".

Figure 1: Goldfield Prospect Plan, showing gold in soil anomalies and current program RC drill collar locations.

A program of 23 RC drill holes was undertaken to test the strike and dip extents of gold bearing structures at the four Central Gold Prospects (Boundary, Sunrise, Good Friday and Battery Tank).

The drilling was designed to expand the knowledge and understanding surrounding the previous near surface gold results.

Boundary Prospect

Drilling has expanded the known strike of the main structure at Boundary to over 200m. The Boundary Prospect was a greenfield discovery by Helix, defined at surface by a gold in soil anomaly. This main gold-bearing structure remains open along strike in both directions as well as at depth.

Scissor holes HRRC105 & HRRC106 were drilled south to north and north to south respectively targeting the main structure and confirming the dip and strike of the system.

Significantly, both holes intersected new gold zones at shallow intervals before entering the main structure at depth. HRRC105 & HRRC106 both ended in mineralisation and are suitable candidates for future diamond tails to drill through the entire main structure in fresh rock.

The presence of possible northern and southern sub-parallel structures approximately 30m each side of the main structure at Boundary is a highly encouraging development. All gold-bearing structures at Boundary remain open along strike and at depth (refer to Figures 2 & 3).

Figure 2¹: Schematic Boundary Prospect Plan: Strike of gold mineralisation in three gold bearing structures identified in drilling.

Table 1: RC Drilling intersections from the Boundary Prospect

Intervals reported are based on a 0.1g/t Au Cut-off grade with a maximum of 4m of internal dilution. RC samples were riffle split from the rig at 1m intervals. Samples were dried, pulverised and assayed for gold using a lead collection fire assay method.