Red River Resources : DHEM Survey to Commence at Liontown East

ASX Release 30 August 2016

• Second drill hole at Liontown East (LTED02) completed at 570m depth - intersected target horizon from 510m down hole. LTED02 intersected package of intensely sericite altered rocks combined with barite and disseminated sulphide mineralisation from 510m to 540m down hole.
• Gap GeoPhysics mobilised to Thalanga to commence DHEM and DHMMR survey program. Program expected to take 3 to 4 weeks to complete.
• Survey will commence immediately at Liontown East (LTED01 and LTED02) and will cover all targets drilled by Red River to date.
• Program will be used to vector in on the location of potential VHMS mineralisation at targets where alteration and mineralisation indicative of the presence of VHMS mineralisation has been intercepted.
• RVR fully funded to aggressively continue Thalanga high impact exploration program.

Zinc developer Red River Resources Limited (ASX: RVR) ("Red River" or the "Company") advises that the second drill hole at Liontown East (LTED02), has been completed and intersected a package of intensely sericite altered rocks from 510m to 540m downhole, including locally barite rich zones with disseminated sulphides. The intense sericite alteration and barite enrichment intersected at the target horizon is evidence of a significant VHMS system having being developed at Liontown East.

Gap GeoPhysics have been mobilised to Thalanga to commence a Down Hole Electromagnetic (DHEM) and Down Hole MagnetoMetric Resistivity (DHMMR) survey program. The DHEM technique is ideally suited for detecting conductive massive sulphide mineralisation, in particular copper sulphide rich bodies. The DHMMR technique is ideally suited for detecting poorly conducting mineralisation such as sphalerite (zinc sulphide) rich bodies.

The DHEM/DHMMR survey will begin immediately at Liontown East (LTED01 and LTED02) and the survey results will be processed when they become available to optimise the design of further follow up holes at Liontown East.

Red River's Managing Director Mel Palancian commented: "We are pleased to be starting a program of DHEM/DHMRR surveying at Thalanga, as it is consistent with our strategy of using cutting edge exploration technology in the highly prospective Mt Windsor Belt where the last major exploration activity took place in the late 1990s.

The strategy has already delivered results at Liontown East, where reprocessing geophysical data dating from 1984 allowed us to see that the geophysical anomaly at Liontown East had not been tested by previous drilling.

We are looking forward to the results, particularly at targets which have all the ingredients present to support the presence of a system capable of producing VHMS mineralisation. We believe that the DHEM/DHMMR surveys will allow us to better vector in on location of potential VHMS mineralisation within these systems and to design holes to test the potential locations."

1. LTED02 Completion

   The second diamond drill hole (LTED02) has been completed at the Liontown East target. LTED02 intersected the target horizon 93m east of, and 52m down dip of LTED01 (or 110m down plunge of LTED01).

   LTED02 intersected a package of intensely sericite altered rocks from 510m to 540m downhole, including locally barite rich zones with disseminated sulphides. The core will shortly be sampled and sent for assay. No significant assay results are expected.

   Figure 1 Liontown East Long Section

   Table 1 Drill hole information summary, Thalanga Zinc Project (Liontown East)

   Hole ID	Depth	Dip	Azi (MGA)	East (MGA)	North (MGA)	RL (MGA)	Lease ID	Hole Status
   LTED01	576m	-65o	0o	403788	7742679	302m	EPM 14161	Completed
   LTED02	570m	-65 o	19.6 o	403789	7742678	302m	EPM 14161	Completed

2. Down Hole Electromagnetic (DHEM) and Down Hole MagnetoMetric Resistivity (DHMMR) Survey Program

Red River has engaged Gap Geophysics to commence a program of Down Hole Electromagnetic (DHEM) and Down Hole MagnetoMetric Resistivity (DHMMR) surveys at the Thalanga Zinc Project. The program will start immediately with surveys being undertaken at LTED01 and LTED02. The data gathered will be processed and used to optimise the design of follow up drill holes at Liontown East. This process is expected to take 6 days to complete.

The DHEM technique is ideally suited for detecting conductive massive sulphide mineralisation, in particular copper sulphide rich bodies. The DHMMR technique is ideally suited for detecting poorly conducting mineralisation such as sphalerite rich bodies.

The survey program will also include recent drilling carried out by Red River at the other prospects, including Far West, Wattle Tree, Jasper Flats and Truncheon. The survey program is expected to take 3 to 4 weeks to complete.

The survey results at Far West will be used to optimised the designed infill drilling program, which is scheduled to commence when the current drill hole (TH677) testing the Portal IP target at West 45 is completed.

The survey results will also be used to design follow up holes at Wattle Tree, Jasper Flats and Truncheon, where initial drilling intersected encouraging zones of intense hydrothermal alteration, plus significant zones of intensive pyrite alteration and veining indicative of feeder zones associated with volcanic-hosted massive sulphide (VHMS) mineralisation, allowing the follow up holes to be designed to intersect any off hole conductors identified by the DHEM and DHMMR surveys.

Red River released a Restart Study (the internal study prepared by Red River to assess the potential restart of the Thalanga Zinc Project) in November 2015, which demonstrated the highly attractive nature of the Project. The Project has a low operating cost, low pre-production capital cost ($17.2 million), and a short timeline to production (six months).

Annual average production is 21,400 tonnes of zinc, 3,600 tonnes of copper, 5,000 tonnes of lead, 2,000 ounces of gold and 370,000 ounces of silver in concentrate over an initial mine life of five years, and there is outstanding extension potential.

Please refer to ASX release dated 12 November 2015 for further details on the Thalanga Zinc Project Restart Study. Red River confirms that all material assumptions underpinning the production target in the ASX release dated 12 November 2015 continue to apply and have not materially changed.

The Thalanga Zinc Project Restart Study is based on production from three deposits - West 45, Far West and Waterloo. The Thalanga Zinc Project Restart Study is based on low level technical and economic assessments and there is insufficient data to support the estimation of Ore Reserves at Far West and Waterloo, provide assurance of an economic development case at this stage, or provide certainty that the results from the Thalanga Zinc Project Restart Study will be realised. Further, as the production target that forms the basis of the Thalanga Zinc Project Restart Study includes Mineral Resources that are in the Inferred Category and there is a low level of geological confidence associated with Inferred Mineral Resources, there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.

On behalf of the Board,

Red River Resources Limited

For further information please visit Red River's website or contact:

The information in this report that relates to Exploration Results is based on information compiled by Mr Tav Bates who is a member of the Australasian Institute of Mining and Metallurgy, and a full time employee of Red River Resources Ltd., and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Bates consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.