New Age Exploration : Redmoor 2017 Phase 1 Drilling Update

Redmoor 2017 Phase 1 Drilling Update‌‌‌‌‌‌‌‌‌‌

ASX Release | 7 September 2017

New Age Exploration ("NAE" or "the Company") is pleased to announce the results from the first 10 holes of the Phase 1 diamond drilling programme at its Redmoor Tin-Tungsten Project, undertaken through its joint venture vehicle Cornwall Resources Limited ("CRL").

• Encouraging results from discrete high-grade zones within the Sheeted Vein System (SVS) with thicknesses and grades exceeding expectations of NAE's Directors. Significant SVS high-grade zone intercepts include:

  ◦ CRD007: 14.8 m @ 1.00 % SnEq from 245.7 m, including 2.5 m @ 3.39 % SnEq from 257.9 m

  ◦ CRD009: 17.5 m @ 0.68 % SnEq from 265.9 m, including 3.1 m @1.97 % SnEq from 280.3 m

  ◦ CRD009: 28.2 m @ 0.81 % SnEq from 298.8 m, including 7.0 m @1.89 % SnEq from 317.5 m

  ◦ CRD010: 11.1 m @ 0.57 % SnEq from 113.3 m, including 3.1 m @1.19 % SnEq from 121.3 m

• A review of historical (1980s) South West Minerals (SWM) drilling results has identified 31 significant high- grade intercepts within the SVS, some of which were previously interpreted to represent high-grade lodes. These intercepts provide confidence in the continuity of high-grade zones in the SVS

• Successful high-grade intersection in Johnson's Lode and in Kelly Bray Lode:

  • CRD002: 2.7 m @ 1.11% SnEq from 297.1 m; intercept in Johnson's Lode

  • CRD004: 0.6 m @ 0.95 % SnEq from 212.3 m; intercept in Kelly Bray Lode

• Great South Lode re-interpreted as a high-grade part of the SVS

• Phase 2 exploration now re-focused on further definition of the high-grade zones identified within the SVS as these have greater potential for a more economically attractive underground mining target than the high- grade lodes

• CRL's joint venture partners NAE and SML have committed to evenly fund the first 3 holes of Phase 2 (£150,000) and will fund up to a further 3 Phase 2 holes if required

• Remaining Phase 1 and Phase 2 results (18-21 holes in total) are expected during Q4 2017 and a resource update is expected Q1 2018‌‌

• Ongoing positive community support with Cornwall Council extending drilling consent to 31 October 2017

NAE Managing Director Gary Fietz commented; "The initial 10 holes drilled at Redmoor this year include a number of encouraging intercepts with excellent thicknesses and grades from high-grade zones within the SVS. We have re-focused Phase 2 of the drilling program on further definition of high-grade zones within the SVS which we believe are a superior underground mining target than the high-grade lodes targeted by the earlier Phase 1 holes. We look forward to updating the market on the remaining Phase 1 and Phase 2 drilling results in quarter 4 this year and on the resource update in the first quarter of 2018".

Introduction

The SVS is a zone containing numerous closely-spaced sub-parallel narrow quartz veins carrying high-grade tin, tungsten and copper mineralisation. The SVS system strikes at approximately 070° and dips at approximately 70° to the north. The SVS has previously been demonstrated to be continuous along strike for over 650 m with a width of approximately 100 m and a down dip extent of approximately 300 m.

The drilling completed during 2017 has indicated that the mineralisation within the SVS is preferentially confined within discrete high-grade zones that have been interpreted to dip steeply to the north, sub-parallel with the overall SVS envelope, and with a plunge of approximately 25˚ to the west. It is this higher grade mineralisation that has now become the focus of the ongoing drilling.

Johnson's Lode is a narrow high-grade lode which outcrops to the north of the SVS and which dips to the south and has been historically mined over a length of more than 200 m and to a depth of approximately 250 m.

Great South Lode is a narrow high-grade lode which outcrops south of the SVS and which dips to the north and is believed to have been historically mined to a limited extent. Great South Lode has been re-interpreted as a high-grade part of the SVS based on the results obtained during 2017.

Kelly Bray Lode is a narrow high-grade lode which outcrops to the north of Johnson's Lode and dips to the south. It has been historically mined intermittently over a length of more than 200 m and to a depth of approximately 210 m.

Figure 1 - Redmoor Project Geology - 3D View Looking East

On 21 March 2017, CRL began a 13-hole Phase 1 diamond drilling programme aimed at increasing the tin- tungsten-copper resource at its Redmoor Project. The Phase 1 programme was funded by the farm-in payment made by Strategic Minerals Plc (SML) in February 2017. As a result of this payment SML and NAE became equal 50% joint venture partners in CRL and therefore the Redmoor Project.

Encouraging results in high-grade zones within the SVS mineralisation led CRL's joint venture partners in August 2017, to extend the Phase 1 programme through the addition of two holes by evenly funding a further £60,000.

Currently 14 of the 15 Phase 1 holes have been completed, with laboratory results available to-date for the first 10 holes.

Based on the results to date, CRL's joint venture partners have now agreed to evenly fund a further £150,000 for the first 3 holes of the Phase 2 drilling programme. The first of these Phase 2 holes commenced recently. Additionally, up to 3 further Phase 2 holes may need to be evenly funded by CRL's shareholders should they be required.

The Phase 2 drilling programme will be focused on further definition of the SVS high-grade zones, which are now considered to have potential to be the most economically attractive mining target within CRL's Mineral Rights.

Phase 2 drilling is expected to be completed by the end of October 2017. The remaining Phase 1 and Phase 2 results (18-21 holes in total, including the first 10 Phase 1 holes reported here) are expected during Q4 2017.

Figure 2 - Drillhole Collar Location Plan with surface representation of the SVS and high-grade lodes

Drilling Results

The results from the first 10 holes of the 2017 drilling programme have led to a thorough re-assessment of the Redmoor mineralisation. The new interpretation has focused on defining high-grade zones within the overall SVS envelope. While these will comprise a considerably smaller tonnage than the current overall SVS resource of 11Mt, they have a superior thickness to the high-grade lode targets and considerably higher grades than the SVS as a whole and potentially represent more attractive underground mining targets.

The early holes of the 2017 programme targeted the high-grade lodes (Johnson's Lode, Great South Lode and Kelly Bray Lode). While drilling confirmed the existence of Johnson's Lode in some areas, these holes also constrained the strike extent to the east, limiting it compared to the extent assumed in the existing Mineral Resource and in the current Exploration Target. The Phase 1 drilling has also led CRL to believe that Great South Lode may be more appropriately interpreted as a high-grade zone within the SVS and not as a discrete high-grade lode. Kelly Bray lode was intersected during Phase 1 drilling and remains, subject to further exploration, a viable high-grade lode exploration target.

To date, CRL's 2017 drilling results from within the SVS have been encouraging and have yielded more high grade intersections than expected, albeit over shorter intersection thicknesses (see Appendix 1 - Table (a) - Significant Intercepts and Appendix 3 - Sections). A summary of the significant intercepts includes:

 CRD007: 14.8 m @ 1.00 % SnEq from 245.7 m, including 2.5 m @ 3.39 % SnEq from 257.9 m

 CRD009: 17.5 m @ 0.68 % SnEq from 265.9 m, including 3.1 m @1.97 % SnEq from 280.3 m

 CRD009: 28.2 m @ 0.81 % SnEq from 298.8 m, including 7.0 m @1.89 % SnEq from 317.5 m

 CRD010: 11.1 m @ 0.57 % SnEq from 113.3 m, including 3.1 m @1.19 % SnEq from 121.3 m

The thicknesses quoted above, and all other thicknesses in this report are, unless otherwise stated, apparent thicknesses. Estimated true thicknesses are shown in Appendix 1. For convenience, significant intercepts are also expressed in terms of a calculated tin equivalent value1(SnEq). While the ideal orientation to drill the SVS is perpendicular to the dominant vein orientation, one hole (CRD007) was drilled to investigate the dip-extent of the high-grade zone, and returned comparable thickness and grade to that of nearby holes drilled perpendicular to the dominant vein orientation.

These results have identified multiple high-grade zones within the SVS, which are understood to plunge to the west at around 25˚. This has been further confirmed by a review of SWM historical drill data.

Holes CRD008 and CRD006 tested for a western extension of Great South Lode and the SVS. Low grade but anomalous SVS style mineralisation was intersected, which is interpreted as evidence of continuity of the SVS mineralising system in this area. CRL believes that, due to a combination of 25˚ westward plunge and possible movements on cross-cutting NNW-SSE faults, the high-grade zones of the SVS are deeper at this distance along strike to the west; it is possible that a deeper hole beneath the profile containing CRD008 and CRD006 may identify additional higher-grade SVS mineralisation further to the west of that currently defined.

1 Equivalent metal calculation notes; Sn(Eq)% = Sn%*1 + WO3%*1.43 + Cu%*0.40. Commodity price assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery assumptions: total WO3 recovery 72%, total Sn recovery 68% & total Cu recovery 85% and payability assumptions of 81%, 90% and 90% respectively.