Nexus Minerals : Extensive Gold Anomaly Identified on Pinnacles JV Tenement - 3 May 2016

54e34088-57ca-4122-a171-3f712c9028aa.pdf ASX ANNOUNCEMENT 3 May 2016 Extensive Gold Anomaly Identified on Pinnacles JV Tenement ASX: NXM Capital Structure

Shares on Issue 70.4 million Unlisted Options 3.5 million

Corporate Directory

Mr Paul Boyatzis

Non-Executive Chairman

Dr Mark Elliott

Non-Executive Director

Mr Bruce Maluish

Non-Executive Director

Mr Phillip Macleod

Non-Executive Director and Company Secretary

Mr Andy Tudor

Chief Executive Officer

Company Projects Eastern Goldfields WA Company and Farm-In JV tenements

Pinnacles JV Project (Gold) Pinnacles Project (Gold) Triumph Project (Gold)

Mt Celia Project (Gold)

• Extensive coincident gold / arsenic soil geochemical anomaly identified on Pinnacles JV tenement
• The 1.6km x 300m coincident Au (>15ppb) / As (>50ppm) anomaly strikes in a northerly direction and covers the central portion of the tenement
• The anomaly commences some 400m to the NW of the Pinnacles JV resource area
• Follow-up RAB drilling identified several mineralized intersections including 3m@1.13g/t Au / 1100ppm As from 35-38m (end of hole).
• Southern Geoscience Consultants engaged to undertake aeromagnetic data processing, imaging and interpretation
• Nexus developing a Ground IP geophysical program to better define anomaly characteristics

Eastern Goldfields gold explorer, Nexus Minerals Limited (ASX: NXM) (Nexus or the Company) is pleased to announce that it has identified a 1.6km x 300m geochemical coincident gold (>15ppb) arsenic (>50ppm) anomaly on the Pinnacles JV Gold Project (Fig. 1).

Research of Department of Mines and Petroleum database reveals work by previous operator (Troy Resources 1994 (Troy)) identified five coincident gold arsenic soil geochemical anomalies. Troy undertook a soil auger program on a 200m x 50m spaced grid using a truck mounted rig with all samples collected at a depth of 1m.

A total of 853 soil samples were collected in 1993 and analysed for gold and arsenic. Maximum values of 280ppb Au and 450ppm As were recorded.

The largest anomaly, Pinnacles North, covers an area of 1.6km x 300m.

Two of the anomalies were associated with exposed areas of mineralisation being Pinnacles East (covering the Resource area currently being assessed/drilled by Nexus, and Pinnacles West (drilled by previous operators).

Anomalies four and five are located in the very northern part of the tenement and are based on a limited number of anomalous data points.

Nexus Minerals Limited (ASX: NXM) ABN: 96 122 074 006

41-47 Colin Street, West Perth, Western Australia 6005 PO Box 2803, West Perth WA 6872

T:+61 8 9481 1749 F: +61 8 9481 1756 W: www.nexus-minerals.com

Page 1 of 7

Figure 1. Pinnacles JV tenement, Soil Geochem Anomaly. Soil Anomalies Tested to Date

A total of 70 shallow RAB holes were drilled in 1994 (Troy) and a further 30 shallow RAB holes by Aberfoyle Resources Limited (Aberfoyle) in 1998, testing the five soil anomalies.

Pinnacles East anomaly is located over the resource area currently being assessed by Nexus and is well documented in company releases.

Pinnacles West anomaly is the most dominant feature in the district and is exposed as a topographic high. The size of the soil anomaly is exaggerated because of "shedding" of the main ridge mineralized zone over the surrounding lower landform. The area has been drilled by previous operators with some forty RC drill holes drilled under the exposed ridge. This area will be fully assessed by Nexus in conjunction with its regional exploration program.

The two anomalies located in the very northern part of the tenement are based on a limited number of anomalous data points and are on the JV tenement boundary. Nexus' regional tenement abuts this tenement and the area will be fully assessed by Nexus in conjunction with its regional exploration program.

Pinnacles North

Troy undertook the drilling of 30 shallow RAB holes (in 1994) into the southern part of the Pinnacles North anomaly which resulted in several anomalous intersections. The northern part of this anomaly was tested by Aberfoyle (in 1998) with the drilling of 6 shallow RAB holes. This program also resulted in anomalous intersections (Table 1 and Fig. 2).

The anomalous intersections identified in these programs have never been followed up with further work.

Hole ID	From (m)	To (m)	Length (m)	Grade g/t Au	Grade ppm As
P23	20	27	7	0.57	115
P26	30	35	5	0.71	610
P33	15	19 (eoh)	4	0.10	820
P34	0	10	10	0.14	345
P46	25	38 (eoh)	13	0.53	590
incl	35	38 (eoh)	3	1.13	1100
P48	25	30 (eoh)	5	0.14	240
P49	40	42.5 (eoh)	2.5	0.10	370
P50	15	20	5	0.15	60
P52	35	40.2 (eoh)	5.2	0.28	230
R20	8	12	4	0.18	125
R23	0	4	4	0.11	0
R23	12	16	4	0.23	75

Table 1. Composite sampling RAB Drill Results (>0.1g/tAu) (P series after Troy 1994 / R series after Aberfoyle 1998). Figure 2. Pinnacles North Soil Anomaly with anomalous RAB Hole Locations.