Pioneer Resources : Lepidico to Farm-in to PEG009 (Pioneer Dome) Lepidolites

ABN: 44 103 423 981

Tel: +61 8 9322 6974

Fax: +61 8 9486 9393

email: dcrook@PIOresources.com.au

Address: 21 Ord Street West Perth Western Australia Postal: PO Box 1787

West Perth

Western Australia 6872

Perth, Western Australia: 23 February, 2017: Pioneer Resources Limited ("Company" or "Pioneer") (ASX: PIO) is pleased to announce that it has entered in to a Farm-in Agreement with Lepidico Ltd (ASX:LPD) ("Lepidico") at the Company's Pioneer Dome Lithium-Caesium-Tantalum (LCT) Pegmatite Project in the Eastern Goldfields of Western Australia.

• Farm-in agreement for Lepidico to earn a 75% interest in PEG009 Lepidolite. Lepidolite is a lithium-bearing platy mineral and is the subject of extractive metallurgical testing by Lepidico using the L-Max ® hydrometallurgical process
• Lepidico to drill outcropping PEG009 lepidolite targets until milestone met

• Milestone is delineation of at least 500,000t grading 1.2% Li2O in lepidolite within 2 years, sufficient to feed Lepidico's proposed Phase 1 L-Max® Plant for 5 years.

• Initial joint venture area is approximately 2% of the total Pioneer Dome LCT Project area of 338 km2.

  While restricted to lepidolite and minerals able to be treated by the L-Max ® process sourced initially from the PEG009 Prospect, the agreement provides for the addition of other lepidolite targets as the joint venture advances successfully.

  This allows Pioneer to focus on commercialising its Sinclair Caesium Prospect, advancing other lithium (in spodumene) and caesium (in pollucite) targets, including those at PEG004, PEG008 and PEG009, within the Pioneer Dome.

  Under the JV terms Pioneer specifically retains 100% of pollucite and spodumene mineralisation.

  "Pioneer congratulates Lepidico on the recently received Innovation Patent Certification for its L-Max® process, and its announcement that test work from the Phase 1 Plant pre-feasibility study continues to provide excellent results.

  "From Pioneer's perspective, it's exposure to the advancing L-Max® process that is the catalyst for today's transaction," Pioneer's Managing Director, David Crook, said.

  A sample of lepidolite from PEG009 is currently undergoing bench-scale test-work to confirm its suitability as a potential ore feed for the L-Max® process, which directly produces lithium carbonate and variouschemical by-products from platy/micaceous ores. Results are expected later this month.

  Summary of Key Farm-in Terms

  The farm-in is predicated on timely exploration at PEG009, to drill out a JORC Code (2012)-compliant Inferred-Indicated Resource of the order of 1 million tonnes of lepidolite-rich material grading in the vicinityof 1.5% Li2O, as perthe Terms and Conditions outlined below.

• PEG009 Area: The farm-in area over PEG009 will include all of Kalgoorlie Primary Block 3404, sub- blocks J and O ("PEG009 Area") as shown in Figure 1.

• Stage 1 Farm-in: Within 12 months of Commencement Date, Lepidico commits to undertake sufficient work to delineate a JORC Code (2012)-compliant Inferred Resource of at least 500,000 t gradingat least 1.2% Li2Obased on lepidolite content.

• Stage 2 farm-in: Within 24 months of Commencement Date, Lepidico is to delineate a lepidolite-rich JORC Code-compliant Indicated Resource of at least 500,000 t grading at least 1.2% Li2O based on lepidolite content to earn a 75% equity interest in the PEG009 Area.

• If Lepidico fails to meet either the Stage 1 or Stage 2 requirements the agreement will terminate and Lepidico will not retain any interest in the PEG009 Area.

• Pioneer Free-carried: On Lepidico earning a 75% interest by satisfying the Stage 2 requirements, Pioneer's 25% interest will be free-carried by Lepidico through to completion of a feasibility study resulting in a Decision to Mine.

• Contributing Joint Venture: Consequent upon a Decision to Mine a JV Management Committee will be formed, with pro-rata voting rights, and subsequent expenditure would be on a contributing joint venture basis, with Lepidico contributing 75%, and Pioneer 25%. Each of Lepidico and Pioneer have the option to dilute. If Pioneer dilutes to an interest of less than 10% then its interest would convert to a 2% net L-Max® refinery royalty. If Lepidico dilutes to an interest of less than 10% then it will be deemed to have withdrawn from the joint venture and all rights in the PEG009 Area will revert to Pioneer.

• Buy-out: At any stage after it has earned a 75% interest, Lepidico may offer to buy out Pioneer's interest on terms agreed by the parties.

• Other minerals: Lepidico will earn rights to minerals conducive to treatment by the L-Max® process, including lepidolite and other Li-bearing mica minerals as well as lithium phosphate minerals such as amblygonite and montebrasite. Lithium silicate minerals such as spodumene and petalite would be handed to Pioneer. All other products, excluding pollucite, would be shared on a pro-rata basis. Pollucite (a caesium mineral) is explicitly reserved by Pioneer for its sole benefit.

• Pre-emptive rights: Lepidico and Pioneer are to have a first right of refusal on the other party's interest in case of an offer from a third party.

• Withdrawal: If Lepidico withdraws prior to earning its 75% interest it will not hold any beneficial interest in the PEG009 Area.

About the PEG009 Prospect

PWG009 is located 3km south of Pioneer's recently discovered high grade Sinclair Caesium Deposit within the Pioneer Dome Project, and covers a strike length of approximately 2.5km in exploration licence E63/1669 (Figure 1). It is one cluster of 13 pegmatite clusters identified by Pioneer along a 20km trend along the eastern edge of the Pioneer Dome.

The PEG009 prospect is located approximately 35km north of the town of Norseman adjacent to the Coolgardie-Esperance Highway and rail line.

Mapping at PEG009 has identified two lepidolite-mineralized pegmatites, and rock chips have returned: at PEG009A - values up to 3.94% Li2O; and at PEG009B - values up to 3.84% Li2O. Rock chips are also anomalous with caesium.

Photo 1: PEG009 is an example of a complex LCT pegmatite. Lepidolite, a lithium mica, and tourmaline is evident in two parallel outcropping pegmatite dykes over a 200m strike length.

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Image 1: Soil geochemistry image for PEG009, showing 3 lithium anomalies, and locations of rock chip samples, with high grade assays annotated.

About Pioneer Resources Limited

The Company's strategy is to actively explore for key, global demand-driven commodities in highly prospective geological domains, in areas with low geopolitical risk and with established infrastructure. The Company's portfolio includes high quality lithium assets in Canada and WA, plus strategically located gold and nickel projects in mining regions of Western Australia.

The Company is presently drilling at the Mavis Lake spodumene project in Ontario and is also earning an interest in the nearby Raleigh Lithium Project. The Company is also advancing its 100%-owned Pioneer Dome Lithium Caesium Tantalum Project where, during 2016 the Company discovered a lens of the high value, high-grade caesium mineral pollucite, which it is advancing towards a commercial decision point.

The Company recently announced a joint venture for its Acra Gold Project by which Northern Star Resources Limited may earn a 75% interest.

The Company also owns a portfolio of nickel, gold and base metal prospects.

About Lepidico Ltd and the L-Max® Process

Lepidico owns the technology to a hydrometallurgical process, referred to as L-Max® that has successfully produced lithium carbonate from non-conventional sources, specifically lithium-rich mica minerals including lepidolite and zinnwaldite.

Lepidico is currently conducting a pre-feasibility study for a Phase 1 L-Max® plant, targeting production for 2019. Testing includes the operation of a continuous flow mini-plant (see Miningnews 9 February 2017).

Yours faithfully

Managing Director

For further information please contact:

David Crook James Moses

Managing Director Media and Investor Relations

Pioneer Resources Mandate Corporate

T: +61 8 9322 6974 M: +61 420 991 574

E: dcrook@pioresources.com.au E: james@mandatecorporate.com.au