Apollo Minerals : Review of regional exploration database highlights significant gold potential at the Couflens Project

ASX RELEASE | 3 OCTOBER 2017 | ASX:AON

• Substantial progress made with review of regional exploration database for the Couflens Project
• Regional exploration database includes surface geological mapping, geochemical surveys, geophysical surveys, rock chip sampling and limited diamond drilling
• Regional exploration potential considered significant with numerous tungsten- copper-gold and gold only targets identified within the project area
• Recent rock chip sampling programs confirm gold occurrences associated with fault structures, typically with tungsten mineralisation around the margins of the granodiorite at Salau
• High grade gold only occurrence (6.91 g/t gold) in quartz veining 500m west of the granodiorite highlights potential for shear hosted gold deposits
• Follow-up field campaign underway with results anticipated in the coming months

Apollo Minerals Limited is pleased to report on progress following an initial review of the regional exploration database for its 80% owned Couflens Project in France.

The Couflens Project combines the potential reactivation of the high grade Salau tungsten mine coupled with significant untapped regional exploration potential within the surrounding 42km² licence area.

Following the recent acquisition of the Project, the Company initially reported on its review of a significant historical database related to the Salau mine, which has rapidly advanced the Company's knowledge of the geology, mining and processing methods at Salau and de-risks the upcoming exploration and study programs.

The Company has subsequently undertaken a review of a database relating to the exploration potential of the wider licence area which reveals considerable exploration potential for tungsten-copper-gold and gold only deposits, particularly within a highly prospective corridor that extends for 5km along strike to the west of the Salau mine.

The available regional exploration datasets comprise a wealth of surface geological mapping, geochemical surveys, geophysical surveys, rock chip sampling and limited diamond drilling.

The review of the available exploration data has demonstrated that the gold potential of the region has been largely underestimated and that the nature of the gold mineralisation has previously not been fully understood.

The recent work has shown that this gold is associated with hydrothermal fluids focused by east-west trending fault structures recognised within the granodiorite at Salau. Numerous gold occurrences (up to 5.81 g/t gold) have been observed with tungsten where these fault structures intersect the granodiorite-carbonate bearing sediments contact.

Significantly, a high-grade gold only occurrence (6.91g/t gold) in quartz veining located approximately 500m to the west of the granodiorite highlights the potential for shear hosted gold mineralisation to be associated with regional fault structures.

Accordingly, the three main fault structures recognised within the granodiorite at Salau and their extensions, along strike and at depth, represent priority gold exploration targets

The Company will continue regional exploration activities, focusing initially on identifying extensions to the recently discovered high-grade gold only occurrence, as well as generating new targets. Surface exploration programs will be implemented to further assess identified tungsten-copper-gold prospects and advance them to the drill ready stage.

These regional exploration initiatives complement the Company's main focus which is on brownfields activities associated within, and immediately adjacent to, the historical Salau mine.

For further information contact:

Robert Behets Clint McGhie

Tel: +61 8 9322 6322 Tel: +61 8 9322 6322

Email: info@apollominerals.com.au

COUFLENS PROJECT OVERVIEW

The Couflens Project area is located 130km south of Toulouse, within the Pyrenees region (Figure 1). The Couflens Project comprises the Couflens exploration licence (permis exclusif de recherches - "PER") which covers an area of 42km2 centred on the Salau mine, formerly one of the world's highest-grade tungsten mines.

Regional Exploration Data

Regional exploration datasets available for the Couflens PER comprise surface geological mapping, geochemical surveys, geophysical surveys, rock chip sampling, and limited diamond drilling covering the majority of the 42km2 licence area.

The regional datasets have been obtained from historical exploration programs carried out from the early 1960's until 1985, and recent field campaigns completed during 2015 and 2016. The historical exploration programs were undertaken by the Bureau de Recherches Géologiques et Minières ("BRGM"), whilst the recent field campaigns have formed part of a PhD thesis focussed on the Salau deposit and supervised by the University of Orléans.

The historical exploration programs included an airborne (helicopter) electromagnetic survey and ground based magnetic, resistivity and gravity surveys. Geochemical surveys included stream sediment sampling (analysed for 24 elements).

Detailed geological mapping, structural analysis and tectono-metamorphic studies were also completed. Seventeen diamond drill holes for approximately 3,700m were drilled during this period. Geological logs are available for these drill holes but limited assay data.

The modern exploration programs undertaken during 2015 and 2016 have involved geological mapping at 1:10,000 scale, the measurement of 170 line kilometres of ground magnetics, and the collection of over 860 rock chip samples and 965 structural measurements. The majority of the rock chip samples (842 samples) have been analysed by X-ray fluorescence ("XRF") and 150 samples analysed for gold by fire assay method. All significant rock chip sample results, along with the details of the sample location and geological description, are summarised in Appendix A.

The majority of this historical regional exploration data has now been converted to digital format and input into an ArcGIS software package to facilitate data integration and interpretation.

Salau Deposit and Regional Geology

The Salau deposit is a tungsten-bearing (primarily scheelite) skarn developed at the contact between Devonian pelites and calcareous sediments of the Barregiennes Formation and a Hercynian-aged granodiorite stock ("Fourque") (Figure 2). The skarn formed within both the carbonate-bearing sediments and, to a much lesser degree, the host granodiorite. Mineralisation is directly related to the Fourque granodiorite which provided hot, tungsten- copper-gold bearing solutions that reacted with the host rocks to form the skarns and deposit metal-bearing minerals.

Contact metamorphism effects are clearly evident around the Fourque granodiorite, with the metamorphic aureole of variable width up to approximately 1km. The temperature increase caused by the intrusion of magma has resulted in mineralogical changes in the surrounding host rocks. The outer limit of the metamorphic aureole at Salau is marked by the appearance of minerals such as biotite, albite or tremolite. Within the inner alteration halo, the rocks are characterised by a hornfels appearance and mineral assemblages including diopside, idocrase, garnet and epidote.