Minotaur Exploration : Eloise JV drill results

MINOTAUR EXPLORATION LIMITED ACN 108 483 601 ASX: MEP

MINOTAUR

EXPLORATION

10 July 2017

Eloise JV drill results

Highlights

• Final assays received for Eloise JV drilling program with OZ Minerals

• Hole EL17D04 intersected 5m at 1.0% copper and 0.11g/t gold within a broader mineralised interval of 37m at 0.31% copper and 0.04g/t gold

• Hole EL17D03 intersected 27m at 0.26% copper and 0.09g/t gold

• Results reinforce Minotaur's targeting methodology of locating mineralisation under highly conductive cover

• Major ground EM campaign along 17km of Levuka Shear Zone due for completion mid-August

Minotaur Exploration Ltd (ASX: MEP, 'Minotaur') has received final assay results for the remaining three exploration holes drilled at the Iris and Electra targets, part of a continuing exploration program at the Eloise JV with OZ Minerals (ASX: OZL) in northwest Queensland. All holes reported low grade copper-gold mineralisation over the 2km strike length of structure tested, proving system fertility within 5km of the operating Eloise copper-gold mine.

Background

The Eloise project, centred 55km southeast of Cloncurry, is a joint venture between Minotaur and OZ Minerals. OZ Minerals may earn up to 70% beneficial interest in the tenements by spending up to A$10m with A$3.2m spent since formation of the JV in December 2015. The joint venture is seeking Eloise-style copper-gold and Cannington-style silver-lead-zinc mineralisation, with both styles evident in the well-endowed mineral camp around the Eloise and Altia deposits (refer to Figure 1).

The recent drilling campaign comprised 4 diamond drill holes at the Iris and Electra prospects, with assay results from the first hole, EL17D01, having been released previously (refer to ASX announcement dated 16 June 2017).

Assay results for the remaining 3 diamond drill holes are reported within this release (refer to Table 1and Table 2).

LEVEL 1, 8 BEULAH ROAD, NORWOOD SOUTH AUSTRALIA 5067 T+61 8 8132 3400 F+61 8 8132 3499 Eadmin@minotaurexploration.com.au

Figure 1: highlights the eastern portion of Minotaur's Eloise JV tenements with the Iris and Electra prospects over magnetics, referenced to the Eloise copper-gold mine (owned and operated by FMR Investments Pty Ltd) and the Cannington-style Altia (owned by the Minotaur-Sandfire JV) and

Maronan (owned by Red Metal Ltd) base metals deposits. The area shaded encompasses the new ground EM survey.

Drilling Results

Diamond drill hole EL17D02 was placed at the southern end of the 1.6km long Electra conductor (refer to Figure 2). Assays returned low-grade copper and gold in several thin zones including 7m at 0.23% copper and 0.08g/t gold from 836m, corresponding with the down-hole location of the modelled EM conductor.

One hole was drilled each side of the Iris South target to test for extensions of mineralisation away from the zone of maximum conductive response (refer to Figure 2).

Both drill holes reported copper-gold mineralisation: EL17D03 intersected 27m @ 0.26% copper and 0.09g/t gold from 536m; and hole EL17D04 intersected 5m @ 1.00% copper and 0.11g/t gold from 446m within a broader zone of 37m @ 0.31% copper and 0.04g/t gold from 438m.

These grades and thicknesses are consistent with results from inaugural 2016 holes intersecting the EM plates at Iris. The 2km long system remains open to the north and south and at depth (refer to Figure 2). The results reinforce the targeting methodology for locating mineralisation under highly conductive cover.

Figure 2: Long projection, looking west, of the EM plate models for Iris and Electra; 2016 completed drill hole collars in black, current drilling in white.

Next Steps

A significant A$250,000 ground EM survey covering the Levuka Shear Zone east and south of the Eloise copper-gold mine (refer to Figure 1) continues and is on schedule to conclude mid-August.

Geophysical techniques have clearly proven their value in generating prospective targets under highly conductive cover in close proximity to the Eloise mine. Drill assays reported here, while sub economic, build confidence that an extensively mineralised structural system exists beyond the known Eloise deposit and could conceivably host a repetition. The joint venture will soon assess the new EM data for evidence to further support that hypothesis.

Table 1: Drill collar details. Coordinates are GDA94, Zone 54. EOH denotes End of Hole depth.

Table 2: Significant intercepts, as per text in body of report, for drill holes EL17D02-EL17D04.

Note: depths listed are downhole depths and drill hole intercepts are not cut at a specific copper or gold grade.