Millennium Minerals provides the following operations, funding and guidance update for its 100%-owned Nullagine Gold Project in the Pilbara region of Western Australia. As foreshadowed in its March 2019 Quarterly Report, the Company has undertaken a re-optimisation of its mine schedule at Nullagine in conjunction with a detailed review of the recent operational performance of both its existing open pit mines and the new Bartons Underground Mine, following the receipt of results from the March Quarter. This review has now been completed and has identified two key factors behind the shortfall in ounces produced in the March quarter comparedwith original budgets, namely: Delays in the commencement and ramp-up of commercial stoping activities at Bartons andhigher-than-planned dilution due to low underground productivity and a sub-optimal initial mining sequence; and A delay of ~6 weeks in the construction and commissioning of the Stage 1 sulphide expansion project, which has deferred the delivery of first saleable gold doré from sulphide ore sources until the end of June. Both of these factors are discussed in more detail below, including the measures that have been implemented to improve the performance of the underground mine at Bartons. This, together with the delivery of first gold from the Stage 1 sulphide plant towards the end of June, is expected to put the operation on a stronger footing moving forward. Importantly, the operational review concluded that the higher-than-planned dilution reported in the March Quarter results was due predominantly to unplanned dilution at Bartons Underground, which has now been addressed. Grade and Ore Reserve reconciliations within the open pits currently being mined remains well within expected ranges and the overall performance of the Bartons Underground has shown significant improvement in the past two weeks. Bartons Underground Ramp-up The delay in the commencement of stoping at Bartons Underground was due to the completion ofadditional lateral development, outside of the Ore Reserve envelope. Ore drives on the top two levels were extended by 600m, at an additional cost of $2.7 million, resulting in the introduction of longer stope panels to expedite production. While this decision was driven by the success of the underground diamond drilling program, which extended the deposit along strike by 150m, the adoption of this initial mining sequence increased dilution in the initial stopes - resulting in a mined head grade of 2.4g/t against a planned grade of 4.0g/t during the March Quarter. Following the commencement of stoping, the ramp-up of underground production was also impacted by reduced availability of underground equipment and personnel from the underground mining contractor. This is an issue which is being experienced across the industry and reflects atightening market for labour and equipment supplies in the WA mining sector. The Bartons mine has since returned to the original schedule of rapid-turnover short strike panels, reducing the volume of cemented rock-fill required and significantly reducing unplanned mining dilution. The Company is now also positioned to reap the benefits of the additional development in place, with ore now being simultaneously sourced from four stoping fronts across two levels. The revised mining sequence and shorter strike panels have had an immediately positive impact. The underground mining contractor has sourced new underground mining equipment and is expected to arrive on site by early June, allowing the ramp-up of underground production to accelerate and reduce unplanned downtime. The Company has also reached agreement with the underground mining contractor to equip thenew loader coming to site with tele-remote capabilities, continue to increase manning resources and utilise a `cage' to create a void to fire into allowing rapid turnover of the 5m panels. As a result of these measures, the overall performance of the Bartons Underground Mine is showing a pleasing trend. Stage 1 Sulphide Plant Update Following the construction-related delays outlined above, commissioning of the Stage 1 sulphide plant expansion at Nullagine is now progressing well, with concentrate production ramping up and first gold production on-track for late June. The spirals have been commissioned using lower-grade, pyrite-dominant refractory ore, withinitial gold concentrate grades averaging 13-times the average feed grade to the spiral circuit during the commissioning period. These concentrate grades are in line with, or exceed, results from feasibility studies, relative to the ore types and grade being processed. The upgrade ratio will vary depending on the grade of the material being fed to the plant. In addition, the ultra-fine grind mills have been installed, with all major mechanical items on site and structural steel work installation underway. Commissioning of the mills is expected to commence in late June, enabling gold to be extracted from the concentrate. The sulphide expansion project is broken into three distinct phases: Stage 1a: Concentrator and fine grinding circuit (commissioning underway) Stage 1b: Installation of the in-mill oxidation (INOX) process as the concentrate transitions from a pyrite-dominant to a blended pyrite /arsenopyrite ore (commissioning Quarter 4) Stage 2: Pressurised in-mill oxidation (PINOX) to facilitate processing of arsenopyrite- dominant ore (expected early 2020, subject to mine schedule) The results of the commissioning process of the Stage 1 sulphide plant to date have been veryencouraging, reinforcing the validity of the Company's sulphide expansion strategy. The Company is on track to deliver first gold production from sulphide concentrates by the end of next month once final commissioning of the mills is complete, allowing it to deliver production from a wider variety of ore sources over the coming years The ability to cost-effectively process sulphide ore sources represents a key element of the Company's longer-term growth and development strategy at Nullagine, opening up a large portion of the Reserve base as well as delivering a range of new, high-grade exploration targets.