Heron’s Drilling Delivers Massive Sulphide Intercepts at G2 and Lisa Lenses

Highlights:

• Diamond drilling program recently commenced targeting the G2 and Lisa Lens positions, 5 holes for 1,125m completed to date
• G2 Lens (awaiting assays)
• 6.0m from 120.4m of high-grade (up to 30% Zn from handheld XRF1 readings) massive and stringer sphalerite+galena (high-grade G2 hanging wall zone) WNDD0138
• 5.0m from 138.3m of Zn stringer mineralisation (typical G2 main zone) WNDD0138
• 7.4m from 129.0m of Zn stringer mineralisation (typical G2 main zone) WNDD0139
• Lisa Lens (awaiting assays)
• 11.0m of Cu-rich massive sulphide from 202.0m in upper centre of lens (approx. 4 to 5% Cu from averaged handheld XRF readings) providing further scope to extend Lisa up-dip WNDD0135
• The drilling extends both the G2 and Lisa lenses. In particular, the intercepts at G2 extend the mineralised zone closer towards the mine portal providing potentially an additional shallow production source for the early stages of the mine. Further drilling will be undertaken over the next few weeks in this area to better define mineralisation limits

Heron Resources Limited (ASX:HRR “Heron” or the “Company”) is pleased to advise that it has intersected significant base-metal sulphide mineralisation at its wholly-owned Woodlawn Zinc-Copper Project, located 250km south-west of Sydney, New South Wales, Australia. The intercepts at both the G2 and Lisa Lens positions extend the limits of the mineralisation in these areas and will provide additional early stage production for the operation.

Commenting on the intercepts, Heron Resources Managing Director and CEO, Mr Wayne Taylor, said:

“the results of the drilling program to date continue to build off the 2017 drilling and are very encouraging, providing extensions to both these lenses. The high grade G2 hanging-wall (G2HW) intercept in WNDD0138 appears to be one of the better intercepts into G2 hanging-wall position we have seen and has the potential to boost the early mine cash flow. The southern end of G2 Lens remains open and further drilling is being planned to better delineate this position. In addition, encouraging metallurgical test

results have now been received for the G2 and G2HW Lenses. The program represents an important component of the early stages of the Woodlawn mine development schedule”

G2 Lens Drilling

The G2 Lens is located adjacent to the planned route of the decline at 120m to 150m below the surface and represents the first underground ore that would be processed through the plant. Initial metallurgical test work results on 3 composite samples

(G2 Main, G2 Hanging Wall and G2 Copper) have been received and show encouraging recoveries and concentrate grades and will be the subject of a later market release following the receipt of the full test work program results. Two diamond holes for 341m have been completed recently on the southern extent of the G2 Lens to better delineate this position which is open to the south of WNDD0133 (see Figures 1-3). Both holes intersected significant sulphide mineralisation:

• 6.0m from 120.4m of high-grade (up to 30% Zn from hand-held XRF readings) massive and stringer sphalerite/galena (high-grade G2HW), WNDD0138
• 5.0m from 138.3m of Zn stringer mineralisation (typical G2 main zone), WNDD0138
• 7.4m from 129.0m of Zn stringer mineralisation (typical G2 main zone), WNDD0139

These results are highly encouraging and extend the G2 Lens some 20m to the south and down-dip in this area. Importantly, the very high-grade G2 Hanging Wall (G2HW) position has been extending to the south beyond WNDD0116, although its continuity is expected to be variable. Assays are currently pending, and follow-up drilling is planned. With the expanding footprint, it is clear that G2 Lens is proving-up to be an important addition to the early mine inventory. The drill rig is currently drilling a geotechnical hole before recommencing at the G2 Lens.

Lisa Lens Drilling

The Lisa Lens is located adjacent to the I Lens in the upper-most horizon within the Woodlawn mineral system (Figure 4) approximately 80 meters from the planned decline route at 200-250m below the surface. The current program is designed to better delineate the lens position with a significant Cu-dominated intercept being received to date, located approximately 40m up dip from previous drilling:

• 11.0m of Cu rich massive sulphide from 202.0m in upper centre of lens (approx. 4 to 5% Cu from averaged handheld XRF readings), WNDD0135

This intercept combined with results of an electromagnetic survey suggests the lens has a strike length of about 35-40m and extends down dip approximately 120m. The copper-rich intercept aligns with the Cu-dominated intercept in historic hole W145 (8.0m @ 1.9% Cu). Such copper zones typically occur on the southern edge of the Woodlawn lenses and it is likely polymetallic mineralisation occurs along strike to the north as noted in WNDD0104 (12.4m @ 20% ZnEq)2 and WNDD0015 (4.2m @ 28.5% ZnEq)2.