Minotaur Exploration : First assays for Iris copper prospect, Cloncurry

MINOTAUR EXPLORATION LIMITED ACN 108 483 601 ASX: MEP

MINOTAUR

EXPLORATION

19 October 2016

HIGHLIGHTS

• Inaugural holes Iris North EL16D04 and Iris South EL16D05 each returned promising copper-gold

  intersections

• EL16D05 returned 38m @ 0.47%Cu and 0.08 g/t Au including 4m @ 1.65% Cu and 0.2g/t Au

• Results confirm Iris as a new Iron Sulphide Copper Gold discovery

• Geology suggestive of a large, structurally controlled, copper-gold bearing hydrothermal system

• Additional drilling underway

• Ground EM survey about to commence to refine undrilled Electra EM anomalies 1-2km north of Iris

Drill Results; initial 2 diamond holes

The Iris Copper Prospect lies under shallow cover

approximately 5km north-east of the Eloise Copper- Gold Mine (Figure 1). The prospect sits along the Levuka Shear Zone within Mt Norna Quartzite, a regionally significant rock unit that hosts the Eloise and Osborne copper-gold mines and the Cannington silver-lead-zinc mine. Minotaur's geological

model for Iris is Iron Sulphide Copper Gold (ISCG) mineralisation similar in style to the Eloise copper- gold deposit.

Assays from the first two holes of the inaugural drill program at Iris returned anomalous copper and gold values associated with pyrrhotite over broad intercepts, confirming Iris as a significant new ISCG discovery.

Drill hole EL16D04, testing the Iris North EM conductor (Figure 2), reported 42.1m @ 0.2% Cu and 0.03g/t Au from 199m (Table 2). Mineralisation is typically hosted in veinlets, both bedding/foliation parallel and in coexisting high-angle tension veins.

Drill hole EL16D05, testing the Iris South EM conductor (Figure 2), reported 38m @ 0.47% Cu and 0.08g/t Au from 166m (Table 2). Mineralisation is hosted in veinlets, like hole EL16D04, but one zone in particular exhibits much stronger breccia-

hosted mineralisation, representing a more favorable structural setting. This zone contains 4m @ 1.65% Cu and 0.2g/t Aufrom 195m.

The tenor of copper and gold in these two holes is consistent with Minotaur's recently published1visual estimates and substantiates our view of similarities to several early stage exploration holes drilled by BHP proximal to the Eloise deposit, leading up to its discovery in 1987.

Drilling continues

The Minotaur - OZ Minerals joint venture committed to an additional 4 diamond holes to test for extensions to the breccia zones2. These holes

(EL16D07 to 10) are underway (Figures 2 and 3, Table 1), with the aim of mapping the sulphide system to aid drill vectoring toward higher-grade mineralisation in more structurally complex areas and provide platforms for down-hole EM surveys.

1. Drilling Progress; Cloncurry & Prominent Hill, MEP report to ASX dated 27 September 2016

2. Follow-up work underway at Iris Prospect, Cloncurry, MEP report to ASX dated 29 September 2016

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

www.minotaurexploration.com.au

Interpretation and next steps

Minotaur considers these early drilling results to be very encouraging; the geology suggestive of a large, structurally controlled, copper-gold bearing hydrothermal system at play. Iris has subdued magnetic responses associated with the mineralisation and the prospect is under cover, meaning there are limited options for tracing out the system other than through EM and drilling. To this end, additional ground EM, drill probing and downhole EM surveying will be required to guide the next stage of exploration. Follow-up infill ground EM will commence in one week, along strike north and south of Iris, with particular focus across the Electra anomalies (Figure 4).

The Electra conductive zones are presently modelled from widely spaced data to sit at >250m below surface; these parameters are preliminary and the new ground EM survey will refine the conductive response over 2.5 km of strike and provide drill orientation.

Figure 1: Minotaur's 'Eloise' tenements and the 'Iris' ground EM targets over magnetics, referenced to the Eloise copper-gold mine, owned and operated by FMR Investments Pty Ltd. Locations of Altia and Maronan base metals deposits shown.

Figure 2: Late time Z-component EM image (plan view) of Iris conductors with reported drill holes EL16D04 - 05 and planned drill holes EL16D07 - 10.

Figure 3: Iris Long section (looking east) with modeled EM conductors, drill holes traces (actual and planned) and pierce points for centre of main mineralised zone in each hole completed, or where predicted in planned holes.

Figure 4: a) left image shows gridded conductivity (red and white zones are conductive) of the X-component EM data of channel 35. Yellow polygons are the modelled conductive plates; b) right image shows conductive plates over RTP1VD magnetics.

About the Eloise Joint Venture

OZ Minerals Ltd (ASX: OZL) has, through calendar 2016, funded $1.5 million of exploration expenditure on Minotaur's 100% owned 'Eloise' tenements, 65km south-east of Cloncurry, Queensland. OZ Minerals may sole fund up to $10 million over six years for which it will earn 70% beneficial interest in the tenement package. Minotaur is manager and operator of the joint venture, with both parties collaborating so as to maximise the probability of discovery success.

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