ASX Release ASX code: MAU

24 August 2017

HAWKS NEST 500M GOLD PORPHYRY TARGETS

Level 1 44A Kings Park Road

PO Box 1388

West Perth WA 6872

Telephone 08 9226 1777 www.magres.com.au

ABN 34 121 370 232

Soil sampling has identified a 500m-long gold and multi-element geochemical anomaly at the HN5 area at Hawks Nest (E38/3127) approximately 15km SW of Laverton. The anomaly occurs over part of an extensive felsic porphyry outcrop/scree area west of the Emerald gold diggings (Figure 1) and lies on the western flank of a pronounced linear magnetic low identified in a ground magnetic survey (refer to MAU ASX release of 26 July 2017). The multi-element anomaly also coincides with a 300m-long zone of quartz veining in the porphyry. The anomaly remains open to the west and to the south (Figure 2). The northern extension of the porphyry is obscured by soil and alluvium cover.

Figure 1 HN5 Area, Geology

Figure 2 HN5 Area, Soil Geochemistry

The geochemical anomaly is characterised by an Au-Te-Mo-Bi-W-Pb association somewhat similar as that reported to occur at Ramelius Resources' Mt Magnet gold project in the Murchison region (Genesis Minerals, ASX: GRD, ASX release 20 July 2017), where felsic porphyries are being explored for large, low strip ratio gold deposits. Drill holes MHNRC03 and 04 testing a magnetic target zone at HN5, intersected anomalous gold in the range 0.1 to 0.2g/t, mainly in porphyry, in the northern part of the multi-element anomaly (refer to MAU ASX release 26 July 2017). In addition, an Au-Te- Bi-Pb association is also evident in the soil geochemistry just east and north of the Emerald gold diggings at HN5. Further sampling is being planned to assess the significance of this anomaly.

The Hawks Nest area is extensively intruded by felsic porphyries which are normally unmineralised yet another similar Au-Te-Mo-Bi-W-Pb association has been observed in soil sampling over a quartz veined porphyry at Wheel of Fortune, about 2km SSE of HN5. The Hawks Nest area is a well-known prospecting area where eluvial and alluvial gold has been recovered over many years, however the source of these extensive gold occurrences is not clear and may be related to the extensive porphyries as well as to numerous scattered narrow lode gold diggings. Further work, including shallow RAB drilling over selected targets, is being planned to examine the bulk tonnage gold potential of the Hawks Nest porphyries.

Magnetic has also received the results of preliminary soil sampling around the area where prospectors recently reported the discovery of large gold nuggets on the company's Mertondale tenement (E37/1258) only 5km west of Kin Mining's Mertondale Deposit (395,000oz) and 20km NW of Kin Mining's Cardinia Deposit (193,000oz) (refer to MAU ASX release 7 August 2017). The sampling has identified a 300m-long +5ppb gold anomaly (peak 17ppb compared to a background of 2ppb), extending south from the nugget occurrences, open to the south, in an area of extensive laterite cover. Magnetic plans to carry out further soil sampling to define the extent of the anomaly followed by RAB drilling to test for the bedrock source of the nuggets and a Tribute agreement has been signed with the local pastoralist (MAU ASX release 7 August 2017).

For more information on the company visit www.magres.com.au

George Sakalidis Managing Director Phone (08) 9226 1777

Mobile 0411 640 337

Email george@magres.com.au

The information in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a Director of Magnetic Resources NL. George Sakalidis 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'. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Soils samples of approximately 1-2kg were taken at a depth of 25cm using hand held tools. In total 156 samples were taken on a 100m x 25m spacing at HN5 and 150 samples on a 25m x 25m spacing at Wheel of Fortune. No duplicate samples were taken from HN5.

Drilling techniques

  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Not applicable.

Drillsample Method of recording and assessing core and chip sample recoveries

recovery and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Not Applicable.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate

  • The soil samples were not logged.

Magnetic Resources NL published this content on 24 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 August 2017 07:42:04 UTC.

Original documenthttp://www.magres.com.au/announcements/20170824%20Hawks%20Nest%20500m%20Gold%20Porphyry%20Targets.pdf

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