Mod Resources : Mahumo Copper/Silver Project, Botswana - Update

The Board of MOD Resources Limited (ASX: MOD) is pleased to provide an update on the 100% owned Mahumo Project in Botswana. Details of the two >500m long high grade deposits ('West Zone' and 'East Zone') which are the focus of current work at Mahumo were announced on 16 June 2014 (Figure 1).

Previous drilling by MOD on 100m traverses along a 2.5km strike length at Mahumo confirmed the copper/silver mineralisation continues from near surface to approximately 200m down dip and remains open below that depth. A preliminary conceptual study is now underway to evaluate potential for developing the West and East Zones initially by shallow open pit mining. These pits could potentially provide access for underground mining, depending on future results below the current limit of drilling.

Figure 1: Preliminary interpretation of 2.5km long inclined long section at Mahumo showing West Zone and East Zone deposits

As part of the conceptual study, MOD has appointed mining consultants Orelogy to conduct an initial pit optimisation study for the West Zone and East Zone deposits using existing resource data which is based on widely spaced drill hole data on 100m sections. Orelogy has generated a series of conceptual pit shells to a maximum 50m depth assuming different ore processing recoveries and preliminary cost estimates.

The initial pit optimisation study delineated an average grade of 1.8% copper and 47g/t silver within the pit shells assuming 80% copper processing recovery. While further work (including metallurgical test work and infill drilling) is required to complete the study to a reportable standard and demonstrate the potential commerciality of the Mahumo Project, early results are encouraging.

As mineralogy is key to determining copper recoveries, MOD geologists have re-logged drill core from shallow intersections in the West Zone and East Zone deposits. This has confirmed copper/silver grades are mainly associated with disseminated and vein hosted chalcosite (transitional copper sulphides) within host sediments. Malachite and chrysocola (copper oxides) occur locally along fractures and veins. Sulphide mineralisation (chalcosite and bornite) is interpreted to occur at shallower depth at Mahumo compared with many other sediment hosted deposits in the Kalahari Copper Belt.

MOD Resources Limited ABN 78 003 103 544 | 34 Bagot Road, Subiaco WA 6008 | PO Box 8306, Subiaco East WA 6008 | ASX code: MOD T +61 (8) 9388 9449 | F +61 (8) 9388 9409 | E administrator@modresources.com.au | www.modresources.com.au

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Metallurgical test work of drill core samples is in progress to test the amenability of the mineralisation for conventional sulphide flotation processing. This work is being undertaken by metallurgical consultants IMO in Perth with first results expected in August.

The current test work represents the start of a proposed staged program at Mahumo, with the individual stages subject to ongoing results and funding:

Discussion

Managing Director Mr Julian Hanna said that if the results from the proposed three stage program are positive, they should provide confidence to fast track the Mahumo Project.

"We are fortunate to work in the relatively low cost, low risk, mining friendly jurisdiction of Botswana. As a bonus, MOD's projects are located in the Kalahari Copper Belt which already has substantial mining related infrastructure. This provides the potential to develop new mines with reduced capital exposure and reduced lead times to first production."

"While MOD's priority is clearly to advance the Mahumo Project as soon as possible, we are also keen to test other high priority exploration targets (Molelo Intrusion, Marthie Prospect and Boseto West Prospect) in the middle of what we consider to be a very prospective and underexplored metal province."

To assist funding ongoing drilling programs and related studies, MOD is seeking a suitable party to acquire an interest in the Botswana Project and join MOD in exploring and developing the Project.

For further information, please contact:

Julian Hanna Mark Clements

Managing Director Executive Chairman and Company Secretary

MOD Resources Limited MOD Resources Limited Ph: (61 8) 9388 9449 Ph: (61 8) 9388 9449 jhanna@modresources.com.au mclements@modresources.com.au

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The information in this announcement that relates to Geological Data and Exploration Results at the Botswana
Copper Project is reviewed and approved by Jacques Janse van Rensburg, BSc (Hons), General Manager Exploration (Africa) for MOD Resources Ltd. He is registered as a Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP) No. 400101/05 and has reviewed the technical information in this report. Mr Janse van Rensburg has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which it is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Janse van Rensburg consents to the inclusion in this announcement of the matters based on information in the form and context in which it appears.
Information in this announcement relates to previously released exploration data disclosed under the JORC Code
2004. It has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported and is based on and fairly represents information reviewed and approved by Jacques Janse van Rensburg, BSc (Hons), General Manager Exploration (Africa) for MOD Resources Ltd.
He is registered as a Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP) No. 400101/05 and has reviewed the technical information in this report. Mr Janse van Rensburg has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which it is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Janse van Rensburg consents to the inclusion in this announcement of the matters based on information in the form and context in which it appears.

This announcement refers to Exploration Targets as defined under Sections 18 and 19 of the 2012 JORC Code.
The Exploration Targets quantity and quality referred to in this announcement are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Exploration Targets being delineated as a mineral resource.
This announcement includes no reference to new Mineral Resources which haven't already been announced by
MOD Resources Ltd previously.

This announcement may include forward-looking statements that are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of MOD Resources Limited. Examples of forward- looking statements used in this announcement include: 'preliminary conceptual study is now underway to evaluate
potential for developing the West and East Zones initially by shallow open pit mining. These pits could potentially
provide access for underground mining, depending on future results below the current limit of drilling', and; 'While further work (including metallurgical test work and infill drilling) is required to complete the conceptual study to a reportable standard and demonstrate potential commerciality of the Mahumo Project, early results are encouraging', and: The initial pit optimisation study delineated an average grade of 1.8% copper and 47g/t silver within the pit shells assuming 80% copper recovery', and; 'confirmed copper/silver grades are mainly associated with disseminated and vein hosted chalcosite (transitional copper sulphides)', and; 'if the results from the proposed three stage program are positive, they should provide confidence to fast track the Mahumo Project', and: 'This provides the potential to develop new mines with reduced capital exposure and reduced lead times to first production'.
Actual values, results, interpretations or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements in the announcement as they speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing Rules, MOD Resources Limited does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based.
This announcement has been prepared by MOD Resources Limited. The document contains background Information about MOD Resources Limited current at the date of this announcement. The announcement is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this announcement.

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The announcement is for information purposes only. Neither this announcement nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. The announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply to their own jurisdiction as a failure to do so may result in a violation of securities laws in such jurisdiction.
This announcement does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
To the fullest extent of the law, MOD Resources Limited, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinion, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from the announcement arising out of negligence or otherwise is accepted.

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