Montezuma Mining : 17-Oct-2017 Butcherbird Project Upgraded Mineral Resource Estimate Butcherbird Project Upgraded Mineral Resource Estimate

17 OCTOBER 2017

BUTCHERBIRD MANGANESE PROJECT UPGRADED MINERAL RESOURCE ESTIMATE

• Butcherbird Manganese Project global resource upgraded to JORC 2012 from JORC 2004.

• Global resource including all deposits drilled to date now stands at 180 million tonnes at 10.8% Mn.

• Includes a Maiden Indicated Resource at Yanneri Ridge of

  22.4 million tonnes at 12.0% Mn.

• Indicated Resources at Yanneri Ridge to be the focus of initial scoping studies on completion of metallurgical flowsheet design programme being conducted by CSIRO.

• Represents an 2.7% increase in total contained manganese as against the previous estimate1.

Montezuma Mining Company Ltd ("Montezuma" or "Company") is pleased to provide further information regarding its completed Mineral Resource Estimate upgradefor the manganese mineralisation at the Company's 100% owned Butcherbird Project as announced on 12 October 2017.

Importantly the conversion of Inferred Resources to the Indicated classification over more densely drilled portions of the Yanneri Ridge deposit will form the basis for commercial studies to commence on completion of the hydrometallurgical flowsheet design work that is currently being undertaken by the CSIRO.

Executive Director Justin Brown commented;

"Upgrading the Butcherbird manganese resource to JORC 2012 and the conversion of parts of Yanneri Ridge from Inferred to Indicated categories adds to our confidence that this is a technically robust mineral desposit with simple geology, low strip ratios and significant potential to underpin the Company's transition from explorer to developer in the medium term."

Listed in 2006, Montezuma Mining Company Ltd (ASX: MZM) is a diversified explorer primarily focused on manganese, cobalt and gold. The Company's primary objective is to achieve returns for shareholders through selected strategic acquisitions and targeted exploration.

Montezuma has 100% interests in the Butcherbird Manganese Project which hosts Australia's largest onshore manganese deposit, in addition to the Pinnacles Cobalt Project and the Holleton Gold Project, all located in Western Australia.

ASX code: MZM

Share price: $0.195

Shares on issue: 83.5M

Market capitalisation: $16.3M

Cash (at 30 June): ~$4.2M Listed Investments (at 30 June): ~$7.1M

Chairman Seamus Cornelius

Executive Director Justin Brown Non-Executive Director John Ribbons Exploration Manager Dave O'Neill

1 See Company ASX Release dated 7 December 2011.

Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company's projects can be viewed at www.montezuma.com.au

Figure 1: Butcherbird Manganese Project location

The Butcherbird Manganese Project is located approximately 120km south of Newman, 40km north of Kumarina Roadhouse, and accessed via the Great Northern Highway. The project is situated on exploration lease E52/2350, and on portions of Bulloo Down and Kumarina Pastoral Leases.

Manganese mineralisation is hosted within the supergene weathered portions of the Ilgarari Formation, which consist of grey/whitish shales (red/brownish weathered), manganiferous shales, mudrocks and minor siltstone layers and dolerite sills. Its stratigraphic thickness is considered to be in excess of 650 metres. The Ilgarari Formation is part of the Collier Subgroup which was deposited on a platform domain in the eastern part of the Bangemall Basin (Bullen Platform).

Table 1. Butcherbird Manganese project Mineral Resource Classification

Figure 2: Butcherbird Manganese Project Resource outlines and location

The existing Snowden December 2011 JORC 2004 Butcherbird Manganese Deposit Resource was reviewed and re-reported updating the existing resource to JORC 2012 as the resource confidence category. The 2011 Resource reported a total inferred resource of 70.2 Mt @ 11.4 % Mn at a cut off of 10% Mn and 110.3 Mt @ 10.6 % Mn at a cut off of 8 % Mn.

Drill samples used in the resource are from Reverse Circulation (RC) Drilling with Drill-Rig mounted riffle splitters and collected at one-meter intervals. All drilling is vertical with the average depth of 30m. The manganese ore zones are close to flat lying and therefore drillhole intersections approximate true width. All drilling is dry and above the water table. Diamond holes are drilled primarily for metallurgy and have been used to aid interpretation.

All data is captured electronically and has to pass extensive quality assurance and quality control (QAQC) procedures to be used. QAQC processes include validation of hole coordinates, field standards, lab standards, field duplicates. This estimation incorporates all of the validated RC holes drilled at Butcherbird Manganese Deposit by Montezuma from 2010 to 2011. All data is stored in the company's GBIS database, now GEOBANK.

Density has been calculated from down hole gamma gamma geophysical density. Average densities have been applied globally to the model. No account has been made for moisture and reported tonnes are wet tonnes.

The main mineralised units, cut to the regolith boundaries the base of hard capping and the base of oxidisation, were modelled in 3D by Montezuma. These were passed on to Snowden and validated for the resources.

KNA, variography and detailed statistics was performed on the mineralised domains. This KNA and variography was used to determine the block size and estimation parameters for grade modelling.

Block models were constructed for use in grade estimation with block dimensions based on the KNA. Blocks ranged from 10 to 100 metres in x and y, and 2 to 4 metres in z, with sub blocking down to 12.5m by 12.5m by 0.625m x y z.

The deposit was estimated using ordinary kriging ("OK") grade interpolation of 1m composited data within domained boundaries. Grades were estimated for Mn, Fe, SiO2, Al2O3 and P2O5.

Interpolation parameters were based on the geometry of geology and geostatistical parameters determined by variography and KNA.

A detailed validation of the block models was completed, which included both visual and statistical reviews. The models are considered to be globally robust.

The resource has been categorised Inferred in accordance with JORC requirements (2012). The resource has been classified as inferred and has been drilled at nominal spacing of 400 x 100 metres, with some areas drilled down to 20 x 40m, and up to 800 x 100m. Good geological and statistical continuity is seen at all drill spacing's.