Ann: Challenger mineral resource continues to grow, page-2

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"WPG Resources Ltd (ASX: WPG) is pleased to advise that it has completed an update of the Challenger mineral resource estimate as at 31 March 2017. As with previous estimates prepared by WPG, the resource estimate has been prepared and reported in accordance with JORC (2012) guidelines. The 31 March 2017 mineral resource estimate, which is shown in detail in Table 1, is a total of 1,401,401 tonnes at an average grade of 7.62 g/t Au containing 343,299 ounces of gold. Table 1: Challenger Mineral Resource Estimate as at 31 March 2017 Category Tonnes (000 t) Gold (g/t) Gold (000 oz) Measured 226 6.2 45 Indicated 814 8.1 213 Inferred 363 7.4 86 TOTAL* 1,401 7.6 344 *totals may vary due to rounding The Mineral Resource estimate in the table above has been extracted from the detailed resource report that is attached to this abbreviated report. A summary of all material information used in the resource estimate is set out below. Detailed technical information with reference to JORC (2012) compliance for the mineral resource estimate is provided in JORC Table 1 Sections 1 to 3 in Appendix 1. The contained gold in the updated mineral resource estimate of 343,299 ounces is 27% higher than that shown in WPG’s 30 June 2016 resource estimate announced by the Company on 25 October 2016. The 31 March 2017 resource estimate ignores the exploration target for the SEZ and M3 shoots announced on 11 April, 17 May and 22 May 2017, and the results of the exploration drilling programs in the Challenger Deeps area announced on 29 May 2017. 1 June 2017 ASX and Media Release Gold content of Challenger mineral resource continues to grow ASX Announcement – 1 June 2017 The increase in gold contained in the 31 March 2017 resource estimate compared with that of the 30 June 2016 estimate is due to: • A change in the underground cut-off grade from 5.0g/t Au to 3.0g/t Au, resulting in the inclusion of the M1 generic in the resource. • Depletion of the previous resource estimate by way of production during the period July 2016 - March 2017. • Small increase in the M2 resource due to production from areas outside the resource (usually while accessing M3). • An increase in the M3 resource due to the effect of positive drilling returns around the 1020 Level. • An increase in the SEZ resource due to the effect of positive drilling returns around the 1060 Level. • An increase in the Challenger West resource is due to the generic being updated with positive production data from 710 and 450 levels in addition to an extension of the CW OD4 resource based on results in the 470 and 450 Levels. • An increase in the Aminus resource due to the effect of positive drilling returns around the 290 and 310 Levels. • Depletion of the surface low grade stocks due to processing. Graph 1: Changes in Challenger Resource Estimate from June 2016 to March 2017 The increase in the gold content of the mineral resource estimate from June 2016 to March 2017 continues the trend that has been in place since WPG acquired Challenger in February 2016. This trend is shown in the chart set out in Graph 2 below. WPG’s Chairman Bob Duffin said “The hockey stick or J-curve shown in Graph 2 gives us considerable encouragement that WPG’s intensive focus on underground exploration at Challenger has the potential to deliver further increases in the resource inventory, and also the life of the mine”