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Barra Resources begins RC drilling at Burbanks Gold Project in Western Australia

Published 10 April 2018

Barra Resources has begun RC drilling at its wholly owned Burbanks Gold Project, located 9km southeast of Coolgardie, Western Australia.

Barra recently completed a geological assessment and strategic review of its gold portfolio which resulted in a comprehensive update to the Company’s Gold Strategy. The updated Gold Strategy is based on an initial Exploration Target of 223 ,000 to 564,000oz of gold for Burbanks alone.

The potential quantity and grade of the Exploration Target is conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource beyond Birthday Gift. It is uncertain if further exploration will result in an estimation of a Mineral Resource i . The Company is now able to implement the drilling phase of the updated S trategy, commencing with 4,000m of RC drilling at the high priority Main Lode Gold Mine.

Main Lode Background The Main Lode Underground Mine produced 146,000t at 18.3g/t for 85,900oz of gold to a depth of 240m below surface level ( b.s.l ) (Level 7) between 1885 and 1914. This is a subset of the 420,000oz of gold that has been mined from the entire 5km strike length of the Burbanks corridor over the last 1 33 years.

Underground mining was abandon ed prematurely at Level 7 due to the outbreak of World War One . Level 8, a t 275m b.s.l, was developed but never mined. The men swapped picks for rifles and went off to war. Mining has never resumed. Between 1946 and 1951, Western Mining Corporation accessed Level 8 at Main Lode and undertook extensive strike drive sampling, yiel ding a pay - run of 160m at 16.1g/t gold at an average width of 0.4m. Main Lode was then revisited with 3,249 m of RC drilling in 2017.

Exceptional results were encountered, including:

11.0m @ 5.70g/t Au from 44m

5.0m @ 9.62g/t Au from 33m

5.0m @ 8.65g/t Au from 37m

5.0m @ 3.70g/t Au from 44m

5.0m @ 3.29g/t Au from 82m including 2.0m @ 6.77g/t Au from 82m

4.0m @ 4.26g/t Au from 27m

3.0m @ 11.66g/t Au from 66m, and

3.0m @ 6.48g/t Au from 47m.

The 2017 program at Main Lode successfully defined a 400m long strongly mineralised zone along the Burbanks Shear to a depth of 70m b.s.l, immediately adjacent to the historical mine workings. This demonstrat ed the potential for significant resources to be delineated along strike and below the historic underground mining areas. Based on this history and results, Main Lode has been deservingly selected as the highest priority drilling target.

Main Lode Drilling Program

Drilling is set to start with approvals in place from the WA Mines Department (DMIRS). A drilling contractor has been selected and is scheduled to mobilise to site this Friday with drilling to commence next Monday. The drilling program will run for 4 - 6 weeks with assays expected to be announced later during the current quarter. Drilling will focus on extending the strike of the existing mineralised zone from 400m to 800m by initially testing an additional 200m of strike extent to the north and south. The 4,000m program also aims to increase the depth extent to 250m b.s.l by testing the next 180m vertically below the 2017 program.

Background of Burbanks Project

The Burbanks Project is located 9km southeast of Coolgardie, Western Australia.The Project comprises 3 tenements including M15/161 and covers the Burbanks Mining Centre and over 5km of the highly prospective Burbanks Shear Zone, the most significant gold producing structure within the Coolgardie Goldfield. The Burbanks Mining Centre comprises the Birthday Gift Gold Mine (encompassing Lady Robinson, Christmas, Far East and Tom’s Pits) and the Main Lode Gold Mine 800m to the north.

Here, the recorded historic underground mine p roduction (1885 - 1961) totaled 444,600t at 22.7g/t gold for 324,479oz predominantly from above 140m below the surface. Intermittent open pit and underground mining campaigns between the early 1980’s to present day has seen total production from the Burbanks M ining Centre now exceed s 420,000oz . The Birthday Gift Underground Mine produced 204,000t at 27.4g/t gold for ~180,000oz with peak production between 1897 and 1903. At 27.4 g/t Au, Birthday Gift represents one of the richest goldmines in the Eastern Goldfield s of Western Australia.

The Main Lode Underground Mine produced 146,000t at 18.3g/t gold for ~ 85,900oz to a depth of 240m b.s.l (Level 7) between 1885 and 1914. Underground mining stopped at Level 7 due to the outbreak of World War One ; Level 8, at 275m b.s.l, was developed but never mined. Between 1946 and 1951, Western Mining Corporation accessed Level 8 at Main Lode and undertook extensive strike drive sampling, yielding a pay - run of 160m at 16.1g/t gold at an average width of 0.4m . Barra originally acquired M15/161 in 2000 and established a maiden JORC 2004 I ndicated and I nferred Mineral R esource at Birthday Gift of 517,000t at 4.45g/t gold for 74,000oz. Underground mining ensued at Birthday Gift where Barra produced 33,483oz in its o wn capacity and via tribute mining agreements with third parties.

Underground drilling at Birthday Gift (Barra, 2008) to extend resources between Level 4 (current extent of recent mine activity) and Level 7 (around 170m below Level 4 ) yielded excellent r esults including a stunning 4.69m @ 462.10g/t Au (incl. 0.21m @ 10,300g/t Au) iv and 5.97m @ 39.75g/t (incl. 0.5m @ 468.6g/t Au), 6.05m @ 27.07g/t Au, 3.45m @ 16.50g/t Au, 4.00m @ 9.56g/t Au and 9.11m @ 5.20g/t Au v . Like Main Lode, Level 7 at Birthday Gift was developed but never mined and strike drive sampling by Western Mining Corporation between 1946 and 1951 produced two pay runs of 30m length at 1.5m true width at 17.2g/t Au and 90m length at 1.2m true width at 13.0g/t Au . No historical mining has ever taken place at these depths.

In 2013, following an extensive economic downturn, Barra sold the Burbanks mining lease to Blue Tiger Mining Pty Ltd (BTM) for $2M and a gold royalty with Barra retaining sole and exclusive rights to all the area outside of a restricted zone around the Bir thday Gift M ine A rea. Between 2014 and 2017, BTM and later Kidman Resources Limited (ASX:KDR), produced a combined 14,322oz of gold from Birthday Gift. Barra re - acquired the Burbanks mining lease in December 2017 for $121,000 and a $20 per ounce royalty li mited to the first 55,000 ounces mined.

In March 2018, Barra updated its Gold Strategy based on a newly defined Exploration Target. The Exploration Target for Burbanks is now identified as 223,000 to 564,000 oz of gold, inclusive of the Birthday Gift Mineral Resource.

The potential quantity and grade of the Exploration Target is conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource beyond Birthday Gift. It is uncertain if further exploration will result in an estimation of a Mineral Resource.

It is also important to note the Exploration Target stated does not include the outstanding greenfields targets at Barra’s Phillips Find Gold Project that will be the subject of separate future announcements and drilling programs.

Nor does it include any potential below an economic search window limited to within 500m of surface or targets to the south of Birthday Gift. The Exploration Target is inclusive of the previously announced JORC 2012 compliant Mineral Resource Estimate of 95,400 oz Au at Birthday Gift.

Next Steps

The initial drilling program at Main Lode will run for 4 - 6 weeks. Assays are expected to be announced to the market later during the current quarter. Barra intends to then test other key target areas at Burbanks and Phillips find in a systematic manner du ring 2018. This is of course in parallel with the progression of the Mt Thirsty Cobalt - Nickel Pre - Feasibility Study in line with Barra’s dual commodity strategy.