Thomson Resources : Awarded Drilling Grants

Web: www.thomsonresources.com.au

ASX Release

29 August, 2016

• Two new drilling grants awarded - combined value $170,000

• Drilling at the Mt Jacob Project to test a 1500m x 400m surface gold anomaly

• Previous shallow drilling was mineralised from surface to end of hole e.g. 88m at

  0.4 g/t Au

• Better mineralisation is expected in roof zone of underlying granite - not seen in any drilling to date

• Drilling at Cuttaburra to test a mineralised hydrothermal system below shallow cover

• A large magnetic anomaly has just 3 drill holes to date and has recorded up to 0.5 g/t gold, 113 g/t silver, 4.2% zinc, 0.5% copper, 1.8% lead, 0.8% tin and 0.6% tungsten over 1m

• Trace element zoning indicates a gold target to the south west

Thomson Resources (ASX: TMZ) is pleased to announce it has been awarded two drilling grants under the NSW Government's New Frontiers Cooperative Drilling Scheme. The grants fund direct drilling costs and total $170,000. The grants are for drilling at Mt Jacob and Cuttaburra. Exploration at both of these prospects targets Intrusion-Related Gold (IRG) type mineralisation.

At Mt Jacob, 40km west of Kempsey NSW, previous work has identified a stratabound occurrence of gold confined to a circular area ringed by a magnetic anomaly. This gold occurrence is hosted in gritty conglomerates and features intersections of up to 88 metres at 0.4 g/t Au from surface to end of hole (all drilling details were released in Thomson's quarterly of December 2013). The gold-bearing conglomerate is thought to overly a gold deposit hosted by the intrusion itself, typically a sheeted vein system in the roof zone..

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Figure 1: Mt Jacob plan view of intrusion-related anomalies. The gold anomaly is from soil samples (0.1 to 0.7 g/t Au). The image is heliborne magnetics, showing a low (blue tones) over the inferred intrusion with a magnetic high halo (pink to yellow tones) to the east and south.

Figure 2: Schematic section showing a postulated shallow intrusion below the Mt Jacob gold-soil anomaly.

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The Cuttaburra B anomaly lies in the Thomson Fold Belt and has had three previous holes drilled. The results indicate a large mineralised hydrothermal system lies under shallow cover (90m). A clear vector is seen from North to South (barren; to silver anomalous; to Au, Ag, Zn, Pb, Cu, Sn and W mineralised). The geochemical trend indicates better mineralisation towards the margins of the magnetic anomaly. The polymetallic nature of the areas drill tested, and the lack of any intrusive bodies in the drilling so far, suggests the previous drilling may be peripheral to a zone of gold mineralisation. A stronger magnetic high within the overall anomaly remains untested, lying on the outer west side (Figure 3), and is the target for this drilling phase.

Figure 3: Cuttaburra B drill proposal. Previous drill details were reported by the Company in ASX releases of 22 September, 2011.

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Under the terms of the grant the funding will be for 100% of the direct costs of drill metre- rates. Successful drilling programs must be completed and the results, drill samples and reports sent back to The Division of Resources and Energy before payment. The project must be completed by 30th June 2017.

These grants recognise and highlight the most outstanding exploration opportunities in the state for new mineral discoveries. Thomson Resources welcomes NSW Government support in its continued efforts to discover significant new deposits.

Chief Executive Officer

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Eoin Rothery, (MSc), who is a member of the Australian Institute of Geoscientists. Mr Rothery is a full time employee of Thomson Resources Ltd. Mr Rothery has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Rothery consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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