Walkabout Resources : High Grade Extensions Proven at Lindi Jumbo

Executive Chairman of Walkabout Trevor Benson commented; "These results easily demonstrate that Lindi Jumbo remains the highest grade, lowest risk graphite project around.

The high-grade nature of the deposit gives the mine a huge advantage in mitigating start-up risks that face new mine operations.

The upcoming upgrade of the Mineral Resource should have a positive knock-on effect on the initial mine plan and LOM economics of the project further supporting the Lindi Jumbo Graphite Project as the most significant graphite Project ready for development".

Northern Block Program

A modest resource upgrade drilling and trenching program of 7 RC holes for 490m and 7 trenches for 654m was completed over the northern portion of the Inferred Mineral Resource area (ASX announcement 26 September 2018). This area was targeted due to evidence of the extension of the high-grade zones at or near surface to the north with the aim of upgrading the Inferred Resource to Indicated and/or Measured. The upgraded categories will allow for the updating of the mining studies and inclusion into the Ore Reserve as well as an update/amendment to the Definitive Feasibility Study.

Figure 1: Northern resource upgrade RC drilling and trenching area in relation to the current life-of-mine pit shell.

Trenches

Seven trenches for 654m were excavated on lines between 100 and 130m apart. The trenching program complimented the drilling program perfectly as it delivered invaluable information on the mining conditions (topsoil cover, weathering profile i.e. "free-dig" or saprolitic portion of the resource area) within the start-up years, as well as providing the proof of concept of the continuation of the very high-grade portions of the deposit along strike and to at, or near surface.

The planned addition of this area to the upgraded Mineral Resource and possible Ore Reserve could have positive knock-on effects to the upfront capital expenditure and early operational expenditure. The closer proximity to the plant could lead to possible improvements to the operating costs of the operation within the initial years of production.

Trenches were excavated down to bedrock and the majority were extended to expose the hanging and foot-walls of the proposed and possible extension of the LOM open-pit. Topsoil cover over the northern portion of the deposit is typically less than 1.5m with large portions covered by a thin veneer of sediment less than 0.3m in thickness. This bodes well for the initial years of mining with very little topsoil stripping necessary with wide, high-grade mineralisation at or very close to surface.

Figure 2: Plan view of the seven trenches completed over the northern part of the Mineral Resource Area.

Assay results for three trenches are still outstanding. *True thickness intersects indicated.

The assay results coincide very well with the Company's current 3D mineralisation model with grades and thicknesses fairly predictable and constant in their geometry.

Two trenches (LJTR004 and LJTR010) were excavated within the current Indicated Resource area and LOM pit-shell. Trench LJTR004 exposed a spectacular surface mineralisation intersect of 36.1m @ 23.5% TGC from 3m including 7.1m @ 32.9% TGC from 28m. Other significant intersects include:

• • LJTR005: 14.1m @ 13.0% TGC from 53m including 2.8m @ 29.0% TGC from 53m

• • LJTR006: 27.6m @ 16.9% TGC from 12.5m including 5.9m @ 18.7% TGC from 13.5m

  • o 12.4m @ 22.3% TGC from 34m.

  • o 7.4m @ 14.7% TGC from 57m including 3.4m @ 21.8% TGC from 57m

  • o 27.1m @ 14.0% TGC from 99.2m including 7.2m @ 26.9% TGC from 115.3m.

• • LJTR008: 30.4m @ 11.7% TGC from 9m including 11.3m @ 20.3% TGC from 36m

Drilling

Spacing between drillholes was 50m on lines 100m apart to the north of the current Indicated Resource boundary. Assay results now confirm that the visually distinct high-grade domains continue for 300m to the northeast, are predictable in their nature within the larger mineral resource envelopes and remain open towards the north. The high-grade mineralisation domains (see ASX announcement of 06 December 2016) can now be modelled for approximately 1km along strike and remain open along strike and at depth.

Significant results from drilling include 7m @ 11.9 % TGC from 1m including 2m @ 21.5 % TGC from 3m and 27m @ 10.6 % TGC from 17m in LJRC049 Including 6m @ 21.5 % TGC from 17m which is the updip extension of the discovery hole LJRC001 (ASX announcement 4 November 2015). These high-grade zones further extend to surface and were intersected in trench LJTR009 (results pending).

Other significant results include:

• • 23m @ 15.6% TGC from 7m including 14m @ 19.7% TGC from 16m in LJRC046

• • 26m @ 10.3 % TGC from 22m including 9m @ 14.7 % TGC from 22m and 7m @ 13.2 % TGC from 36m in LJRC047

• • 32m @ 10.4 % TGC from 1m including 17m @ 13.1 % TGC from 1m in LJRC048

• • 4m @ 16.9 % TGC from 3m in LJRC050

• • 3m @ 22.1 % TGC from 19m in LJRC051

• • 12m @ 12.8% TGC from 2m including 4m @ 14.4 % TGC from 2m and 4m @ 22.6 % TGC from 10m in LJRC052

Figure 3: Selected significant drillhole intersects within the resource upgrade area. Section A-B indicated.

Figure 4: Section A-B looking north through RC drillholes LJRC046 to LJRC048 indicating the continuation of the high-grade mineralised zones to surface and at least to 80 m beneath the current surface, and remain open down dip towards the west.

No further drilling was conducted on the low-grade Domain 4 to the east of the current LOM pit (4.1 Mt @ 4% TGC) as this area has been set aside for infrastructure development such as water-supply

wells, stockpiles and waste dumps (ASX announcement 06 December 2016 for details on Domain 4).

A short wide spaced RC drilling program was also completed over an EM conductive anomaly directly to the south of the Mineral Resource area, and the results of this program will be announced once the assay results have been received and analysed.

Tables 1 and 2 summarise the collar and mineralisation intersects of the drilling and trenching programs. Results for LJTR007, LJTR009 and LJTR010 are pending and will be released as soon as they become available.

Table 1: Resource upgrade drillhole detail and trench detail.