White Cliff Minerals : New Gold Zones Identified in Road Cuttings

FACSIMILE TRANSMISSION

26 May 2016	ASX Code: WCN
New Gold Zones Identified in Road Cuttings

Highlights

• Three new mineralised zones identified in road cuttings
• Visible gold panned from one location within a 17 metre wide mineralised zone
• Drilling contract finalised and diamond drill rig mobilised to site

White Cliff Minerals Limited ("White Cliff" or the "Company") is pleased to report that three new mineralised zones have been identified in the first two bull dozer road cuttings completed to provide drill access to the upper gold zone eastern extension.

The new gold zones are approximately four, seven, and seventeen metres wide respectively and consist of brecciated and highly altered goethite rich sandstone adjacent to granodiorite (granitic) dykes typical of the previous high grade zones encountered.

Visible gold has been panned from a 1 kg sample taken from a 17 metre wide shear zone which is immediately above the high grade intersections of 4 metres at 59.9 g/t and 1 metre at 10.3 g/t identified in drill hole UGZ15-33. 3 metres at 41 g/t gold 1 metre at 58 g/t gold

6 metres at 3.2 g/t gold

Mineralised zone

4 metres wide

Mineralised zone

7 metres wide

Mineralised zone 17 metres wide Visible gold 4 metres at 59.9 g/t gold 1 metre at 10.3 g/t gold 8 metres at 55.2 g/t gold Figure 1 Interpreted and known mineralised zones (red hatch and dashed lines) at the highly mineralised upper gold zone where previous drilling identified mineralisation over 500 metres of strike and where intersections averaged a grade of 45 g/t. Blue lines are bull dozer tracks.

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

The three mineralised zones identified in the second bull dozer cut correspond to the mineralised zones 120 metres to the West where drilling in 2015 identified multiple high grade gold intersections including 3 metres at 41 g/t and 1 metre at 58 g/t. The mineralised zones outcrop at surface in both road cuttings and can be traced along strike a further 300 metres to the East.

The bull dozer will continue to cut access tracks along an 800 metre section of the mineralised system in preparation for drilling. It is anticipated that additional surface mineralised zones will be exposed from these activities.

To date 257 samples collected from the newly exposed mineralised zones have been submitted for laboratory analysis of gold and multi-elements

Figure 1 New mineralised shear zone (yellowish area) approximately 4 metres wide identified in bulldozer cutting 2 in contact with a granodiorite (granitic) dyke.

Figure 2 New mineralised shear zone (yellowish area) identified in bulldozer cutting 1.

Proposed Drilling program

The diamond drill rig has arrived at site and will commence drilling within the next 7 days upon the arrival of the necessary drill rods and ancillary equipment. A bull dozer is preparing drilling locations in conjunction with cutting access tracks and at present the first 7 drill pads have been completed. Further details will be released when drilling commences.

Drilling will initially target the upper gold zone eastern extension where the average grade of mineralisation intersected in the 2015 drill program was 45 g/t gold1.

The 2016 exploration program is focussed on drilling out an 800 metre long section of the eastern upper gold zone (UGZE) to a maximum vertical depth of 200 metres. Drilling will initially be conducted in 100 metre spaced sections followed by 50 metre infill sections designed to generate an indicated and inferred JORC compliant gold resource. The

exploration target2 for the UGZE in 2016 is 1-2 million tonnes at 15-30 g/t for 500,000 to 1.2 million ounces of gold. This exploration target is based on the average grade of previous drill intersections completed in the UGZE in 2015. These previous holes covered 500 metres of strike and were drilled to a maximum depth of 150 metres, with the true widths of each mineralised lode between 1 and 4 metres.

1 See ASX announcement "Fourth Hole with Bonanza Gold Grades of +1 Oz/t at Aucu Deposit" dated 7th December 2015

2The reader is cautioned that exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Aucu Gold Deposit Summary

The Company has previously announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 Million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold

In 2015, drilling identified exceptional gold mineralisation to the east of the UGZ over a strike length of at least 500 metres. Results include:

• 8 metres at 55.2 g/t gold from 66 metres including 1 metre at 89.9 g/t gold

• 4 metres at 59.9 g/t gold from 66 metres including 1 metre at 189 g/t gold

• 2 metres at 43.5 g/t gold from 86 metres

• 1 metre at 103.4 g/t gold from 74 metres

• 3 metres at 41.4 g/t gold including 1 metre at 71 g/t gold

• 4 metres at 23.8 g/t gold from 85 metres

• 2 metres at 22 g/t gold from 102 metres

• 1 metre at 58 g/t gold

  The average grade of the 2015 drill program gold intersections across the eastern UGZ is 45 g/t gold from several lodes. In addition:

• Mineralisation outcrops at surface

• Remains open in both directions and at depth

• Overall metallurgical recovery of all mineralised zones is 99%

• Gravity recoverable gold averages 88.6% (gold that reports to the gravity concentrate)

Figure 2 Sub-aerial view of the Aucu gold system showing the four mineralised zones and high grade drilling intersections. Location Map: Northwest Kyrgyz Republic, Central Asia Project Map: showing Chanach license outline and location of the Aucu gold discovery 2.5 km to the NNW of the original Chanach copper deposit.

For further information please contact:

www.wcminerals.com.au