Red River Resources : Far West Reserve and Resource Update Extends Mine Life

ASX Release 21 November 2017

• Maiden Far West Ore Reserve of 1.5Mt @ 12.0% Zinc Equivalent
• Far West Mine design and scheduling work completed - targeting ore production in 2H CY2018
• Far West Mineral Resource increased to 1.7Mt @ 15.5% Zinc Equivalent with a material increase in the geological knowledge and confidence at Far West
  • 100% increase in Measured & Indicated (M&I) Mineral Resource from 0.8Mt to 1.5Mt
  • 137% increase in contained metal (M&I) from 101kt Zn Eq. to 240kt Zn Eq.
  • 18% increase in grade from 13.1% Zn Eq. to 15.6% Zn Eq.
• Early stage development activities and permitting have commenced for Thalanga Far West
• Exploration continuing across portfolio to target further resource inventory increases

Red River Resources Limited (ASX: RVR) ("Red River" or the "Company") is pleased to announce a Maiden Ore Reserve and Mineral Resource update for the Thalanga Far West polymetallic massive sulphide deposit ("Far West") at the Thalanga Zinc Operation in Central Queensland has been completed, produced in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

Far West is the second deposit planned to be mined at Thalanga, with Red River commencing underground mining at the West 45 deposit earlier this year.

Red River's Managing Director Mel Palancian commented: "Delivering a maiden Ore Reserve of 1.5Mt @ 12.0% Zn Eq. for Far West is an outstanding result, with the potential for further mine life extensions at depth where Far West is still open.

"The potential to mine Far West was identified in 2014, and the maiden Far West Mineral Resource was announced in early 2015. We are now targeting first ore production in 2H CY2018.

"This result gives greater certainty regarding the future operational life of our Thalanga operations. It represents the first stage in increasing utilisation of the Thalanga Mill and extending the overall operational life of Thalanga.

"With exploration across our landholding in the Mt Windsor Belt in Queensland continuing in tandem to our mining

operations, we hope to make new discoveries that can add further life to Thalanga."

Key highlights of the maiden Ore Reserve and Mineral Resource upgrade include:

• Maiden Far West Ore Reserve of 1.5Mt @ 12.0% Zinc Equivalent

• Far West Mine design and scheduling work has been completed - targeting ore production in 2H CY2018

• Far West Mineral Resource increased to 1.7Mt @ 15.5% Zinc Equivalent

• The recent Far West Infill and Resource Extension drilling program has delivered a material increase in the geological knowledge and confidence at Far West, with the Measured and Indicated Mineral Resource growing from 0.8Mt to 1.5Mt (100% increase). It demonstrated a 137% increase in contained metal in the Measured and Indicated Mineral Resource (101kt Zn Eq. to 204Kt Zn Eq.) and an 18% increase in grade of the Measured and Indicated Mineral Resource (13.1% Zn Eq. to 15.6% Zn Eq.)

• Early stage development activities and permitting have commenced for Far West in preparation for mining

  Table 1 Far West Ore Reserve (>6 % Zn Eq.)

  Reserve Class	Tonnage (kt)	Cu (%)	Pb (%)	Zn (%)	Au (g/t)	Ag (g/t)	Zn Eq. (%)
  Proved	48	1.3	1.0	4.4	0.0	27	10.1
  Probable	1,486	1.3	1.6	5.0	0.2	46	12.1
  Total	1,534	1.3	1.6	5.0	0.2	45	12.0
  JORC (2012) Table Checklist of Assessment and Reporting Criteria is attached in Appendix 1 of this release. The Competent Persons statement is provided under the Competent Persons section at the end of this release. Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. Zinc equivalent (Zn Eq.) has been calculated using the metal selling prices, recoveries and other assumptions contained in Appendices of this announcement. It is Red River's opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold. Proved and Probable Reserves are included within (and not in addition to) the Thalanga Far West Mineral Resource estimate

  Table 2 Far West Mineral Resource (>5% Zn Eq.)

  Resource Class	Tonnage (kt)	Cu (%)	Pb (%)	Zn (%)	Au (g/t)	Ag (g/t)	Zn Eq. (%)
  Measured	52	1.4	1.3	5.3	0.0	32	12.0
  Indicated	1,491	1.7	2.2	6.6	0.2	61	15.7
  Measured + Indicated	1,543	1.7	2.1	6.6	0.2	60	15.6
  Inferred	150	1.4	2.3	6.5	0.1	53	14.6
  Total	1,693	1.6	2.1	6.5	0.2	59	15.5
  Source: Updated Resource Estimation of the Thalanga Far West Deposit (Mining One Consultants, 9 November 2017). Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. Zinc equivalent (Zn Eq.) has been calculated using the metal selling prices, recoveries and other assumptions contained in Appendices of this announcement. It is Red River's opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold.
• Thalanga Far West

  The Thalanga Far West polymetallic deposit is located at Thalanga Operations, 65km SW of Charters Towers in Central Queensland.

  Figure 1 Thalanga Far West Location

  Thalanga Far West is classified as a volcanogenic hosted massive sulphide (VHMS) style of deposit where copper, zinc, lead and silver mineralisation is found associated with a suite of sulphide minerals including sphalerite, galena, chalcopyrite, pyrite and other minor sulphide assemblages. Mineralised zones are typically represented by fault controlled lenses located within a blue quartz eye volcanic unit. Stratabound massive to semi-massive sulphide lenses and bands can occur throughout the quartz eye unit and consist of three textural and mineralogical main types:

• Sphalerite-galena dominant with sub-ordinate chalcopyrite, pyrite and barite; typically poorly banded, coarse grained and recrystallised, massive to semi-massive, lensoidal, and with anastomosing and gradational contacts;

• Pyrite with minor chalcopyrite and lesser barite and base-metals, commonly finely banded to massive and granular, and lie at the base the quartz eye unit and the strike extremities of the base-metal sulphide lenses; and

• Anastomosing stringer zones of pyrite-sphalerite-galena-chalcopyrite in varying proportions, frequently adjacent to the more massive sulphide lenses.

1. Thalanga Far West Ore Reserve

   A maiden Ore Reserve estimate for the Thalanga Far West deposit has been completed (refer to Table 3). The Reserve estimate was determined using the mining, geotechnical, metallurgical and economic factors provided in Appendix 1 of this release.

   Table 3 Thalanga Far West Ore Reserve (>6% Zn Eq.)

   Reserve Class	Tonnage (kt)	Cu (%)	Pb (%)	Zn (%)	Au (g/t)	Ag (g/t)	Zn Eq. (%)
   Proved	48	1.3	1.0	4.4	0.0	27	10.1
   Probable	1,486	1.3	1.6	5.0	0.2	46	12.1
   Total	1,534	1.3	1.6	5.0	0.2	45	12.0
   JORC (2012) Table Checklist of Assessment and Reporting Criteria is attached in Appendix 1 of this release. The Competent Persons statement is provided under the Competent Persons section at the end of this release. Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. Zinc equivalent (Zn Eq.) has been calculated using the metal selling prices, recoveries and other assumptions contained in Appendices of this announcement. It is Red River's opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold. Proved and Probable Reserves are included within (and not in addition to) the Thalanga Far West Mineral Resource estimate
2. Mining Method Selected and Other Mining Assumptions

   The selected mining method is bench stoping based on 20m sublevels and stope strike lengths of 20m. The average stope width is approximately 5m with a minimum stope mining width of 2m. Stope backfill will be a combination of cemented rock fill (CRF) and unconsolidated waste rock fill, which enables a high recovery of ore, removing the need to leave pillars within the orebody, and also utilising the waste rock

   Hanging wall and footwall dilution of 0.5m wide each (1m in total) was included and an additional 10% tonnage at 0% grade was applied to all stopes. A recovery factor of 95% was applied to all diluted stope tonnages. No unplanned dilution and a recovery factor of 100% were applied to development inventory.

   The proposed Far West mine will use infrastructure and facilities used for West 45 given that they are only about 1km apart, and both within 2km of the ROM pad at the Plant.

3. Processing Method and Other Assumptions

Ore produced from Far West will be processed through Red River's Thalanga Mill (refer to Figure 2), which is processing polymetallic massive sulphide ore from Red River's West 45 underground mine. The Thalanga Mill is designed for a nominal throughput of 650kpta and is running at an annualised throughput of 325ktpa. The mill uses standard industry technology to produce separate saleable copper, lead and zinc concentrates. The plant flowsheet is summarised as:

• Three stage crushing circuit;

• Primary (x1) and secondary ball mill (x2) circuit;

• Regrind plant;

• Differential copper, lead and zinc flotation circuits;

• Concentrate thickening and filtration;

• Concentrate storage, blending and transport and

• Sub aqueous disposal of tailings to Tailings Storage Facility (TSF)