Ann: 8500N Paleochannel drilling commences, page-2

This Paleochannel could be a game changer for MXR!

As stated in the announcement;

- It has a strike of approximately 450 m however this will hopefully be extended to the south by drill traverses in this program

- The depth of the deposit sits at 5 to 20m, averaging 15 m below surface.

- Legacy drilling has shown the deposit to be from 1- 4m in thickness but this should be expanded as legacy drilling did not test the Saprolite zone due to the use of AC drilling. Recent drilling by MXR using RC showed that the mineralisation extends into the Saprolite zone.

- The deposit is a low risk, low cost production opportunity for MXR due to its shallow depth, high grade, being located on a mining lease with base line flora and fauna studies completed and the free digging nature of the paleo gravels.

- A seismic survey will also be completed to better delineate the lateral extent of the paleochannel boundaries.

This looks like a great opportunity for MXR to produce gold from this type of deposit due to the points listed above. Looking at the other mined paleo channels in the Eastern Goldfields, listed in the announcement, this provides significant production economics for Maximus due to the ease of mining and the shallow high grade nature of these deposits. Do we have any other deposits like this on our ground, maybe??