Renascor Resources : Elevated Lithium Identified at Munglinup Project

Microsoft Word - 2016_05_03_ASX Announcement - re Elevated Lithium Identified at Munglinup Project

ASX

ASX Announcement 3 May 2016

ELEVATED LITHIUM IDENTIFIED AT MUNGLINUP PROJECT

• Elevated lithium identified at Renascor's 100%-owned Munglinup Project, approximately 70km east of the Mt Cattlin lithium mine in Ravensthorpe, Western Australia

• Analysis of soil sampling data has revealed a 4km anomalous lithium zone at the Young River prospect adjacent to an interpreted remnant Archean greenstone belt

• Renascor considers the Young River prospect area to be prospective for lithium mineralisation associated with pegmatites of the type hosting the nearby Mt Cattlin lithium mine1

• Renascor is currently planning further geochemical sampling and field mapping over the Young River prospect and over additional project areas where prospective Archean greenstone remnants have been identified from aeromagnetic surveys

• Lithium exploration prospects at Munglinup Project complement Renascor's graphite development strategy by offering additional potential to secure raw materials required for the production of lithium-ion batteries

Renascor Resources (ASX: RNU) is pleased to announce that it has identified elevated lithium at its 100%- owned Munglinup Project, located approximately 70km east of the Mt Cattlin lithium mine in Ravensthorpe, Western Australia. The Young River lithium prospect, an anomalous lithium zone, sits over an approximately 4km trend adjacent to the interpreted continuation of the Lake Johnston Archean greenstone belt. Renascor considers this setting to be prospective for lithium-cesium-tantalum (LCT) pegmatites of the type associated with the nearby Mount Cattlin lithium mine. To further assess lithium prospectivity, Renascor is planning a program of multi-element geochemistry over the Young River prospect and over additional areas within the project tenements where prospective Archean greenstone remnants have been identified from aeromagnetic surveys.

Figure 1. Significant lithium mines and deposits in relation to Renascor's Munglinup Project

ACN 135 531 341

36 North Terrace, Kent Town, SA 5067

Phone: +61 8 8363 6989 • Fax: +61 8 8363 4989

ASX code: RNU

www.renascor.com.au 1

Renascor's Munglinup Project consists of seven tenements covering approximately 580km2 near Ravensthorpe, Western Australia. See Figures 1 and 2. The project area is located approximately 70km from the Mt Cattlin spodumene and tantalum mining operation and is considered prospective for LCT pegmatites of the type associated with the Mt Cattlin mine. The area is mapped as the Munglinup gneiss, with remnants of the Lake Johnston Archean greenstone interpreted through the area. Although LCT pegmatites are uncommon, they are typically hosted within Archean greenstones. Accordingly, Renascor considers portions of its Munglinup project area with mapped and interpreted Archean greenstone as potential targets for LCT pegmatite development.

Figure 2. Regional aeromagnetic image for Renascor's Munglinup Project with interpreted greenstone trends (Western Mining Services 20132)

Renascor recently initiated a review of the lithium potential within the Munglinup project tenements, focusing on areas within or adjacent to Archean greenstones. As part of this review, Renascor identified a zone of anomalous lithium geochemistry from a roadside auger soil-sampling program undertaken by Anglogold Ashanti (ASX: AGG) in connection with a

gold exploration program in 20103. The Anglogold program included

115 samples within Renascor's E74/538, an area that has been previously mapped to include Archean greenstones. The Anglogold samples underwent multi-element testing and included assaying for lithium. The lithium results include a set of elevated assays over the Young River lithium prospect, an approximately 4km trend, with peak value for lithium of 74.9 ppm, defined on a north-south oriented traverse near the eastern limit of the tenement. See Figure 3.

Figure 3. Young River lithium prospect - soil geochemical results

In addition to the Young River area, aeromagnetic data define large areas of enhanced magnetic response consistent with possible remanent Archean greenstones, in particular in areas to the area immediate west of the elevated lithium zone at Young River. A large area of subdued magnetic relief to the southwest of the lithium anomalous zone is also interpreted as a possible granitic intrusion that may represent a source for late stage pegmatitic intrusion along the strong north-easterly trending structural fabric. See Figure 4. Renascor considers these magnetic areas to offer additional potential for locating lithium mineralisation associated with pegmatites.

Figure 4. Young River prospect, showing elevated lithium geochemical samples on regional aeromagnetic image Next steps

To further assess the lithium prospectivity of the area, Renascor is planning a program of multi-element geochemistry that will include coverage of the interpreted greenstone target zones at Young River. In addition, Renascor intends to conduct sampling and geological mapping over additional areas within the project tenements where prospective Archean greenstone remnants have been identified from aeromagnetic surveys.

The results reported herein, insofar as they relate to exploration results, are based on information provided to and reviewed by Mr G.W. McConachy (Fellow of the Australasian Institute of Mining and Metallurgy) who is a director of the Company. Mr McConachy has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr McConachy consents to the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears. This report may contain forward- looking statements. Any forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, or expectations to differ materially from the results expressed or implied in the forward-looking statements.

Background information

Renascor Resources is an Australian-based company focused on the discovery and development of economically viable mineral deposits. Renascor has an extensive tenement portfolio, holding interests in projects in key mineral provinces of South Australia, the Northern Territory and Western Australia, including significant graphite projects near Arno Bay, South Australia and at Munglinup, Western Australia.

FOR FURTHER INFORMATION, PLEASE CONTACT:

David Christensen

Managing Director

Angelo Gaudio

Company Secretary

+61 8 8363 6989

info@renascor.com.au

1 Mt Cattlin, owned by Galaxy Resources Limited (ASX: GXY) and General Mining Corporation (ASX: GMM), has a reported Mineral Resource of 16.4Mt @ 1.08% Li20. Source: GXY Annual Report, 29 April 2016.

2 Western Mining Services, J. Hronsky, 2013. Report to Lithex Resources Ltd, Review of the NiS Potential of Lithex Resources Ltd Munglinup Exploration Project.

3 Fletcher, Damian and Howard, Brendan 2010, Anglogold Ashanti Australia Limited Annual Report Viking Project

- Viking Group 4 (WAMEX A088744).