Ann: Exploration Update-CAD.AX, page-5

ASX Announcement 20 September 2016
Exploration Update - Accelerated Geophysical Work Program to Commence at Scottys South Caeneus Minerals Ltd (Caeneus or the Company) is pleased to announce the following update in relation to its upcoming exploration plans at its lithium projects in Nevada, USA.
The Company notes the recent announcement from Iconic Minerals (TSXV: ICM) Iconic Announces Geochemical Results of Drill Cuttings at Bonnie Claire Contain Highly Anomalous Lithium, 15th September 2016. The Bonnie Claire Property is located immediately to the North of Caeneus Scottys South Project. Iconic Minerals has indicated they have discovered lithium in drill cuttings of up to 1410 ppm lithium at Bonnie Claire.
Caeneus believes this recent news from Iconic Minerals is a significant step forward in enhancing the prospectivity of the Scottys South Project. The highly anomalous results verify that lithium is abundant in the sediments within Bonnie Claire in the Sarcobatus Flats region. This news proves the existence of lithium rich horizons outside of the Clayton Valley. The Sarcobatus Flats area is approximately 1.5 times larger than the nearby Clayton Valleys basin, enhancing the potential value of the site and the volume of production resource. The Company cautions that the news, although highly positive, will still need to prove the existence of lithium contained within brines from leaching into fluids over time by the confirmation of a porous, enriched aquifer near this lithium rich clay layer to allow the formation to flow.
The upcoming plan at Scottys South will focus on a more detailed local gravity survey of the project area to confirm the presence of a sedimentary basin with potential to host lithium bearing brines. A minimum of 10 to 15 line-kilometres on Scotty South is considered appropriate. Also to commence is a program of soil geochemistry to be completed at Muddy Mountain. This program will involve the collection of soil samples from various traverses across the lithium prospective Horse Spring Formation. Previous samples from the area have assayed as high as 5,000 ppm lithium and it is hoped to be able to define a district scale multi-million tonne resource grading in the range 0.3% to 0.5% lithium. It is hoped that the soil geochemistry will provide targets for follow up drill evaluation for both lithium and borate (The Muddy Mountain area has previously been a producer of borate). The Company notes a significant increase in activity in the area which may be contributing to small delays in the issue of exploration permits for the Lida Valley Project. A more detailed announcement relating to the drill program at Lida Valley will follow the issuing of the permits from the BLM. For and on behalf of the Board
Steve Elliott Managing Director