Following Sandfire Resources Ltd's discovery of the DeGrussa Cu-Au deposit in 2009, Enterprise Metals Ltd (Enterprise) commenced a major surface sampling and aircore (AC) drilling program over its adjacent and wholly owned Exploration Licence 52/2049.

This led to the discovery of the Vulcan gold prospect on E52/2049 in 2012, and the subsequent Farm - In JV by Sandfire in October 2016.

Sandfire was focused on discovery of another DeGrussa and utilised Moving Loop Electromagnetic (MLEM) surveys followed by air core and reverse circulation (RC) drilling to test the Karalundi Fm. which hosted DeGrussa. Enterprise considers that the Vulcan gold prospect has not yet been adequately explored, as the majority of the drilling consisted of vertical AC holes in the regolith, and it is likely this drilling has missed the steeply dipping and narrow high grade quartz veins that permeate the Vulcan area.

BACKGROUND

Between 2010 and 2011 Enterprise collected 782 soil samples on E52/2049 which identified a discrete and co-incident silver (max 350ppb), arsenic (max 57ppm), tin (max 4.6ppm), gold (max 30ppb) and tellurium (max 510ppb) anomaly (later named 'Vulcan') over an area of approximately 2km2 within the Narracoota Formation volcanics adjacent to the Goodin Fault. [Ref.1 & 2] In 2012 a surface rock chip sample with visible gold in the general vicinity of the Vulcan soil anomaly returned 810g/t Au, 0.1% Cu, 18.3g/t Ag, 1.0% Bi, 132ppm Mo and 2.7ppm Sb, which supported the gold and base metal prospectivity of the area. [Ref. 5] [Location: 727,772E, 7162,054N] In May 2012 a major aircore drilling program (DNAC series) commenced to test the extensive Vulcan soil anomaly and its surrounds. This Stage One AC program consisted of 128 vertical holes on 200m spacing on north-south lines 1,000m apart, and 6 'infill' holes and 4 holes (DNAC 132 - 136) dipping SW at -60-degree under an iron rich breccia shedding gold nuggets

A small ironstone outcrop shedding gold nuggets was also discovered within the area and a 1.5m deep pit was excavated by prospector Keith Scudds in June 2012 to examine the nature of the ironstone. Coarse visible gold was identified in a number of samples. An estimated 500t of material was excavated from this pit and a second pit, with approximately 47 ounces of fine gold recovered. [Ref. 3] Later in 2012, additional soil sample results from Vulcan East extended the zone of anomalous copper to over 3km in length, displaying a north-east to easterly trend. The soil sampling also identified a coherent multi-element association comprising copper, bismuth, cobalt, arsenic, gold, lead, and zinc in the north-eastern portion of the Vulcan prospect. [Ref. 6] In October 2012 a Stage Two program of AC holes was completed with hole spacing between 100m x 200m and 50m x 50m. Six of these holes (DNAC379 - DNAC385) were drilled in the immediate vicinity of the Vulcan area

This ASX Announcement has no new exploration results. Historical exploration results in this release are available on Enterprise Metals Ltd website and on the ASX platform.

This ASX Announcement has been approved in accordance with the Company's published continuous disclosure policy and authorised for release by the Company's Board of Directors.

Contact:

Tel: +61 8 6381 0392

Email: admin@enterprisemetals.com.au

Forward Looking Statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'continue', and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future.

Competent Person Statement

The information in this report that relates to Exploration Activities and Results is based on information compiled by Mr Dermot Ryan, who is an employee of Montana Exploration Services Pty Ltd and a Director and security holder of the Company. Mr Ryan is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ryan consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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