KRUCIBLE METALS LIMITED 
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Following the sale of twelve of our tenements to Australia New Agribusiness & Chemical Group Ltd (ANB), Krucible Metals Ltd (Krucible, Company) retains fifteen tenements consisting of ten granted and five EPM applications clustered in four groups: the "Cannington Region" southeast of Mt Isa, "Phosphate Hill" south of Mt Isa, the "Diamantina Region" towards the Northern Territory border south west of Mt Isa and "Isa West" (Figure 1). As well as applying for new ground like EPMA
25126 "Valroy" adjacent to our existing EPMA 19286 "Coorabulka" we have several applications now approved.
Krucible wishes to announce its plans for exploration of EPM 19095 "Big Toby Creek" and EPM 19099 "Flemington Fault" in early 2014. These two Greenfield tenements are in the Mt Isa West region adjacent to a set of tenements (EPM's 19090, 19091,
19092, 19093 and 19094) sold to ANB (ASX Announcement 28 November
2013) as potentially phosphate bearing
tenements. The Flemington Fault and Big Toby Creek EPMs are prospective for base metal mineralisation in the Proterozoic units beneath shallow cover.
Krucible's exploration program for 2013 as announced on 25 January 2013 was reduced because shortly after the announcement the Company had to deal with the changed circumstances of its 2013 funding initiatives. With those matters now resulting in a significant financial boost to the exploration budget, the program has been revisited. The original budget proposed for 2013 of almost $1m has been doubled to
$2m in 2014, much or most of it for proposed drilling programs.
In addition to drilling programs which will be announced in detail soon, Krucible's Senior Geologist has decided that Big Toby Creek and Flemington Fault, applied for in 2011 and which have both recently been approved (as predicted in our 2013 Annual Report released to the market on 16
0ctober 2013), will now be early exploration targets. Strategically it is critical that Krucible
determines their potential as soon as the wet season allows.
These tenements lie approximately 50km west of the Mt Isa copper/lead/zinc operations and the Hilton lead/zinc mine where there has been surprisingly little previous exploration over the areas. They are in a region of shallow Proterozoic basement and mapped paleo Proterozoic outcropping units consisting of felsic granitoids at Big Toby. Our exploration program on these two tenements will consist of initial regional scale reconnaissance exploration to assess the potential for mineralisation and determine broad target areas for more localised programs.
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The geology of the Flemington Fault EPM is interpreted to consist of the Eastern Creek Volcanics separating the Surprise Creek beds in the west and the Myally Subgroup in the east. The Eastern Creek Volcanics are interpreted due to the presence of a strong magnetic/gravity anomaly (Figure 2 above) however this may also be interpreted as an intrusive complex.
Depth to Proterozoic basement has been interpreted by SRK consulting to be less than 100m. However previous drilling in the area would suggest deeper basement. Proterozoic units are not expected to exceed 250m with basement highs predicted at shallower depths.
The area is structurally diverse with a number of cross-cutting faults and lineaments (Figure 2). There is a major structure trending NW labelled as the Flemington Fault. The size and the continuity of this structure may indicate a major stratigraphic boundary with a significant thrust component which would be the ideal setting for movement and deposition of economically rich hydrothermal fluids.
The Big Toby Creek area focuses on the boundaries and aureoles of the Big Toby and Little Toby granites. These granites are dated at about 1800 million years and are interpreted to be of similar age and composition to other granites forming rich gold deposits in the Tanami Desert of the Northern Territory (e.g. Callie and The Granites), adding to this are the known gold workings to the north of this EPM including the May Downs gold mine. The magnetics image shows typical signatures of a granitic complex which is situated in a large interpreted structural corridor extending from the Mt Isa mine. It is the edges of these anomalies that are of interest to Krucible.
This part of our 2014 exploration program is consistent with our proposal to persist with drilling activities on established projects and ground work on new projects. It also highlights our interest in base metals and precious metals in addition to ongoing activities in strategic metals such as strontium, rare earths and phosphate.
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About Krucible Metals Limited:
Listed on Australia's main stock exchange since 2007, Krucible is an Australian-based resources company with an enviable history of discovery in phosphorus and rare earths as well as other elements. Krucible continues to explore for precious metals, base metals and strategic metals, and is transitioning to a combined exploration and mining company. Krucible has plans and expectations to ultimately enter joint ventures to develop mines on its tenements in the mineral rich Mount Isa area of Northwestern Queensland. Krucible has a strong industry-based board and management, who promote aggressive value-added mining projects.
COMPETENT PERSON STATEMENT
"The information in this report that relates to Mineral resources and Exploration Results is based on information compiled by Mr Andrew J Vigar who is a Fellow of The Australasian Institute of Mining and Metallurgy and is employed by Mining Associates Limited, Hong Kong. Mr Vigar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Vigar consents to the inclusion in this report of the matters based on his information in the form and context in which it appears".
This report contains forward-looking statements. These forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, or expectations to differ materially from the results expressed or implied in the forward looking statements.
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