White Cliff Minerals : Commences 2016 Drilling Program at Merolia, Western Australia

FACSIMILE TRANSMISSION

21 January 2016	ASX Code: WCN
White Cliff Commences 2016 Drilling Program at Merolia, Western Australia

Key Points:

• 2,100 metre reverse circulation (RC) drill program has commenced at the Merolia project

  
  

• Drilling previously untested Merolia-McKenna conductive nickel sulphide targets

  
  

• Multiple nickel sulphide and gold targets to be drilled

DISCOVERY FOCUSED DRILLING COMMENCES AT THE MEROLIA PROJECT

White Cliff Minerals Limited ("White Cliff" or "the Company") is pleased to announce that drilling has commenced near Laverton in Western Australia targeting nickel sulphide and gold mineralisation. The drilling campaign at Merolia will test multiple nickel sulphide and gold targets at the McKenna, Coglia and Ironstone prospects. Further details on targets provided in Table 1.

Managing Director, Todd Hibberd commented that, "It is pleasing to start 2016 with a substantial drilling campaign focused on Western Australian nickel and gold targets. The Coglia and McKenna prospects contain several compelling EM conductors that are outstanding targets for massive nickel sulphide mineralisation. The Ironstone gold prospect is also very exciting as we are following up historical drill results that contained high grade gold mineralisation in a sparsely tested area."

Table 1 Planned Merolia RC Drill hole details

Hole ID	Northing	Easting	Azimuth	Dip	Depth	Description of Target
MERC001	458650	6842110	90	-60	250	McKenna: Conductive plate on intrusion contact
MERC002	458300	6843200	90	-60	250	McKenna: Conductive plate on basal contact
MERC003	458120	6843600	90	-70	300	McKenna: Conductive plate on contact of granitoid/ultramafic
MERC004	498875	6790800	270	-60	250	Coglia: Ni-Cu-Pt-Pd regolith geochemical anomaly
MERC005	498600	6787300	270	-60	250	Coglia: Conductive plate on basal contact
IRRC001	486580	6810330	270	-60	250	Ironstone: Test conductive TFMMR anomaly at depth
IRRC002	486530	6810130	62	-60	220	Ironstone: Scissor hole through main gold lode
IRRC003	486590	6810105	242	-60	200	Ironstone: Western extent of main gold lode
IRRC004	487150	6809500	242	-60	90	Ironstone: Testing underneath 1m at 5.7g/t gold 800m from main lode
IRRC005	486700	6810160	242	-60	150	Ironstone: Eastern extent of main lode

White Cliff Minerals Limited ABN 22 126 299 125 Suite 2, 47 Havelock Street, West Perth WA 6005, PO Box 368 West Perth WA 6872. Telephone +61 8 9321 2233 Facsimile +61 8 9324 2977 www.wcminerals.com.au

Figure 1 Map of the tenements at the Merolia Project near Laverton WA, with target areas highlighted.

MCKENNA NICKEL SULPHIDE PROSPECT (100% owned)

Approximately 800 metres of RC drilling will be conducted targeting three compelling massive nickel sulphide targets that have been identified by consultants Newexco based on a moving-loop electromagnetic (MLEM) survey completed at the McKenna and Coglia nickel prospects East of Laverton, Western Australia (Figure 2).

The position of the McKenna bedrock conductors and geological setting is strikingly similar to the setting at the Nova-Bollinger nickel-copper deposit. The conductors occur on the boundary (basal contact) of the Diorite Hill layered mafic intrusions adjacent to an ultramafic (komatiite) unit and within the interpreted feeder conduit.

The margins of a layered mafic Intrusion and the feeder conduit are considered highly favourable positions for the concentration of massive nickel sulphides. The conductors are also associated with the margins of highly magnetic units and are coincident with very strong nickel-copper soil anomalies where the conductor is projected to surface (Figure 2).

The cost of the McKenna drilling will be partially offset by a $150,000 grant from the Western Australian government to drill several nickel sulphide targets at the Company's Merolia project. The grant is part of the Royalties for Regions Exploration Incentive Scheme (EIS) administered by the Department of Mines and Petroleum (DMP). The DMP will fund 50% of the total direct drilling costs up to a maximum of $150,000.

MERC0 03

MERC 00 2

Nickel Sulphide Targets (Conductive plates)

MERC 00 1

Diorite Hill Intrusive Contact

Figure 2 EM conductors identified at the McKenna prospect adjacent to basal contact of layered mafic intrusion (purple)

Conductor MC01 occurs on the basal contact of the Diorite Hill layered mafic-ultramafic intrusion in a position favourable to nickel sulphide accumulation. MC01 has a conductivity of 500 Siemens band an anomalous decay constant of 40-100 milliseconds. The conductivity level is considered moderate and is typical of conductors identified at depths of 300 metres. MC01 extends over 700 metres by 600 metres, starts 300 metres below surface and dips 70 degrees to the west. The interpreted geology and proposed drilling is shown in Figure 2.

Conductors MC02S and MS02N aligns with a moderately magnetic unit between strongly magnetic units within the feeder conduit to the Diorite Hill layered mafic-ultramafic intrusion. MC02S dips steeply (70 degrees) to the south west and as the ultramafic unit curves to the north the dip of the conductor flattens to 41 degrees. In essence MC02 appears to be a single conductor that rotates with the change in orientation along the ultramafic to the north (Figure 2). Typically this can represent the slightly magnetic sulphide, pyrrhotite which is associated with pentlandite in most nickel occurrences.

COGLIA NICKEL SULPHIDE PROSPECT (100% owned)

A geophysical survey conducted in January 2015, identified two conductors which geophysical consultants Newexco identified as having anomalous time decay constants of 40-100 milliseconds and mid-range conductivities of 500 -1110 Siemens.

The conductive plates occur either on the contact of the main mafic-ultramafic intrusion or within the feeder conduit immediately adjacent to the intrusion. The top of the conductors occur at depths of 125 to 250 metres below surface and the conductors (CC01N-CC01S) occur under quaternary sediments masking any significant surface geochemical expression.

Approximately 500 metres of RC drilling will be conducted to test conductor CC01N and the LUU target.

LUU

Showing copper

anomalies (red) MERC004

MERC005

Figure 3 Conductor CC01N (red) on interpreted geology with proposed drilling

The LUU target occurs as a strong nickel-copper-platinum-palladium geochemical anomaly within the Coglia intrusion. Historical drilling encountered 20 metres at 0.84% nickel and 400ppm Copper. In particular the copper anomaly is discrete and occurs immediately above a contact within the ultramafic unit with holes either side being devoid of copper.

IRONSTONE GOLD PROSPECT (100% owned)

The Ironstone Gold prospect contains sparsely defined mineralised shear zones where historical drilling encountered 8 metres at 24 g/t consisting of sheared basalts and quartz veining. Adjacent holes also encountered significant mineralisation including 4 metres at 5 g/t and 4m at 2 g/t.

The Company has compiled all historical exploration information and developed a 3D model of the mineralised system at the Ironstone prospect. The new exploration model indicates that the mineralisation is plunging to the south-east and trending parallel with the regional shear zone and may represent a series of tensional quartz veins.

Approximately 1000 metres of drilling will target the historical high grade gold mineralisation encountered within fractured basalt unit adjacent to a regional shear zone.

Drilling (IRRC001) will also test a discrete but intense conductor immediately north-west of the known mineralisation. The conductor was defined using a Sub Audio Magnetic geophysical survey and may represent