Ann: Testwork Confirms Transition Ores Amenable to CIL Processing, page-2

METALLURGICAL TESTWORK CONFIRMS WILUNA TRANSITIONAL RESERVES AMENABLE TO PROCESSING THROUGH THE EXISTING WILUNA CIL PLANT Highlights  Expansion PFS published in Aug’17 includes a significant proportion of oxide and transitional probable reserves  Expansion PFS conservatively assumed the transitional ores would be processed through the sulphide plant  Further metallurgical testwork on the Wiluna transitional ores has averaged 84.3% Carbon In Leach (CIL) metallurgical recovery  Testwork results from the Wiluna transitional ores are consistent with these ores mined and processed prior to 1993 when the Sulphide circuit was commissioned  Testwork confirms the transitional ores can be processed in the Wiluna CIL plant at a lower cost and improved recoveries in comparison to the sulphide plant  The Wiluna transitional ores tested have an expected average CIL recovered grade of 1.77g/t. Blackham Resources Limited (ASX: BLK) (Blackham or the Company) is pleased to present an update on its successful results from metallurgical testwork on its Wiluna oxide and transitional ores. Independent Metallurgical Operations Pty Ltd (IMO) were engaged by Blackham to perform and review the testwork under the supervision of Blackham. During March’18, Blackham’s exploration team drilled 84 RC holes (6,491m) focused on delineating further free milling open pit reserves over the 4km’s of strike at the Wiluna Mine. Initial results from this drilling are due to be released shortly. This was a follow up programme on the 77,000m of drilling completed during 2017, which successfully delivered probable reserves of 669,000oz (7.7Mt @ 2.7g/t Au), and included oxide, transitional and fresh reserves. The current drilling is focused on free milling ores above the top of fresh rock (generally top 60m) which metallurgical testwork has confirmed are best processed through the current Wiluna CIL plant rather than the sulphide circuit. Wiluna mining and metallurgical studies are well advanced in this area following the successful Wiluna Expansion Preliminary Feasibility Study (Expansion PFS) published in August’17. The latest testwork confirms the Wiluna oxide and transitional ores are an attractive feed stock for the current operating Wiluna CIL plant. All of the historic open pits were processed through the Wiluna CIL plant with the exception of the 2007 East pit cut back. Blackham is currently re-estimating the open pit free milling reserves within the Wiluna Mine footprint. BOARD OF DIRECTORS Milan Jerkovic - Executive Chairman Bryan Dixon - Managing Director Greg Miles - Non-Executive Director Greg Fitzgerald – Non-Executive Director ASX CODE BLK ABN: 18 119 887 606 CORPORATE INFORMATION 1,265M Ordinary Shares 492M Quoted Options 4.2M Unquoted Options PRINCIPAL AND REGISTERED OFFICE L2, 38 Richardson Street West Perth WA 6005 POSTAL ADDRESS PO Box 1412 West Perth WA 6872 www.blackhamresources.com.au E: [email protected] P: +61 8 9322 6418 F: +61 8 9322 6398 1
Figure 1. All of the Wiluna historical open pits above (black outline) were processed through the Wiluna CIL plant. The Brown (A$1,400/oz) and Green (A$1,800/oz) oxide and transitional only pit optimisations show the potential for destinct free milling open pits prior to the current drill programme.