Pioneer Resources : Shallow High-Grade Caesium and Lithium at the Sinclair Zone of the Pioneer Dome Pegmatite Discovery

ABN: 44 103 423 981

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Address: 21 Ord Street West Perth Western Australia

Postal: PO Box 1787

West Perth Western Australia 6872

SHALLOW HIGH-GRADE CAESIUM AND LITHIUM AT THE SINCLAIR ZONE OF THE PIONEER DOME PEGMATITE DISCOVERY. DRILLING TO COMMENCE NEXT WEEK Perth Western Australia, 13 January 2017: Pioneer Resources Limited ("Company" or "Pioneer", ASX: PIO) is pleased to provide a drilling update for its 100%-held Pioneer Dome Lithium-Caesium-Tantalum ("LCT") Pegmatite Project in the Eastern Goldfields of Western Australia.

On 13 December 2016, the Company advised that it has completed a programme of close-spaced drill holes, comprising 18 reverse circulation ("RC") and 6 pre-collared diamond core holes, totalling 24 holes for 1,785m, including 215.7m of HQ core.

Results include high-grade caesium assays (>10% Cs2O) with individual one-metre samples to 30.53% Cs2O and similarly one-metre lithium assays to 4.59% Li2O - importantly, in the latter case, frompetalite/spodumene.

HIGH-GRADE CAESIUM The high-value caesium mineral pollucite has been intersected in drilling over a strike length of 60m (Figure 1 below), now named the Sinclair Zone (Laurie Sinclair was a pioneering prospector who discovered gold at Norseman in 1894). The Sinclair Zone is one of a number of caesium and lithium targets being investigated. High-Grade Caesium Results include:

PDRCD068: 3.85m at 27.78% Cs2O from 44.35m2 (highest grade of 29.53% Cs2O from 46m) PDRCD071: 6.35m at 18.60% Cs2O from 41.4m2 (highest grade of 30.37% Cs2O from 42m) PDRC083: 12m at 15.77% Cs2O from 43m1 (highest grade of 26.84% Cs2O from 47m) PDRC084: 4m at 14.53% Cs2O from 50m1 (highest grade of 16.20% Cs2O from52m)

The results listed above are in addition to earlier reported intersections:

PDRC015: 6m at 29.37% Cs2O from 47m1,3 (highest grade of 32.46% Cs2O from 50m) PDRC074: 7m at 17.12% Cs2O from 49m1,4 (highest grade of 25.44% Cs2O from54m)

HIGH-GRADE LITHIUM In addition, significant lithium mineralisation was been intersected, including for the first time, lithium-bearing alumina-silicate minerals likely to include spodumene and/or petalite. CAESIUM EXPLORATION TARGET

Following the receipt of these drilling results, the Company has sufficient information to establish an initial Exploration Target for the Sinclair Caesium Zone, being between 10,000t and 25,000t of pollucite at a grade between 15% and 25%Cs2O*

This target is based on RC and Diamond Drilling, plus detailed geochemistry and geological mapping. Generally, drill holes have been completed on an approximate 10m x 10m grid to clarify mineralisation controls and to provide the data for a future Mineral Resource estimation.

• It is important to note that the quantity and grade of an Exploration Target is conceptual in nature, and that more work is required before an estimate of a Mineral Resource will be undertaken. It is therefore inherently uncertain that the additional work will result in the estimation of a Mineral Resource, as defined under the JORC Code 2012.

  Drilling to Resume at the Sinclair Caesium Zone and Commence at a Nearby Priority Lithium-Caesium Target

  A programme of approximately 1,500m of RC drilling is planned to be completed before the end of January. Holes are designed to test for extensions to the Sinclair Caesium Zone south of drill hole PDRC083 and north of PCRC074; and as an initial test of a high priority lithium-caesium target located 175m south of the Sinclair Zone.

  Photograph 1. Diamond core hole PDRCD071 intersected 6.35m at 18.60% Cs2O from 41.4m (highlighted in green). The predominant mineral is pollucite.

  LITHIUM PROSPECTIVITY ENHANCED - HIGHEST LITHIUM GRADES IN ALUMINA-SILICATE MINERALS Significant lithium mineralisation was also intersected during the drilling programme. At least two forms of lithium mineralisation are evident in RC chips and core, including lithium-bearing alumina-silicates, likely to include spodumene and/or petalite, in PDRC059, PDRC067 PDRC076 and PDRC085.

  A selection of samples of the lithium alumina-silicate mineralisation are being categorised using X-ray diffraction analysis, and on receipt, further information will be provided to the market. Drilling specifically targeting spodumene/petalite mineralisation will be planned on receipt of the XRD information.

  Predominantly Lithium Alumina-Silicates (likely to include spodumene and/or petalite) PDRC059:3m at 2.85% Li2O from38m (highest grade of 3.18% Li2O from38m) PDRC067: 11m at 2.63% Li2O from44m (highest grade of 4.59% Li2O from46m) PDRC076: 5m at 2.22% Li2O from47m (highest grade of 3.01% Li2O from51m) PDRC085: 6m at 3.66% Li2O from47m (highest grade of 4.42% Li2O from51m)

  Predominantly Lithium-bearing Sheet Silicates (lithium-muscovite and lepidolite) PDRCD069: 13m at 1.57% Li2O m45.25m

  PDRC070: 12m at 2.2% Li2O from44m

  PDRCD071: 12.95m at 1.81% Li2O from 43.4m PDRCD072: 8.65m at 3.01% Li2O from40m

  PDRC073: 13m at 2.13% Li2O from 39m PDRCD075: 13m at 1.49% Li2O from 46m PDRC077: 13m at 1.89% Li2O from 52m PDRC079: 14m at 2.32% Li2O from 46m PDRC082: 11m at 1.86% Li2O from53m

  ABOUT POLLUCITE - THE PRINCIPAL ORE MINERAL OF CAESIUM

  Pollucite is a rare mineral of caesium that forms only in extremely differentiated zones of rare-metal lithium- caesium-tantalum pegmatite systems. It is found in commercial quantities at the Tanco Mine in Canada and Bikita Mine in Zimbabwe, where it is mined principally for use in the manufacture of Caesium Formate, a high density fluid used in high temperature/high pressure oil and gas drilling. The principal Caesium Formate manufacturer and dealer is Cabot Corporation (NYSE: CBT), through its Cabot Speciality Fluids division. Caesium Formate provides a number of well documented benefits including, minimal damage to the hydrocarbon-bearing formation resulting in higher production rates, where it acts as a lubricant, is non-corrosive and is considered an environmentally-friendly benign chemical when compared to alternatives. Caesium in principal commercial usage is the non-radioactive isotope. (Refer to Downs, J., et al)

  DEVELOPMENT-FOCUSED OUTLOOK

  • The Company intends to continue exploration within the Pioneer Dome for additional deposits of caesium-bearing pollucite and lithium-bearing spodumene with drilling planned for the first quarter of 2017.

  • Regulatory requirements are being reviewed to permit the extraction of a bulk sample of pollucite for metallurgical test work, and to further test sub-surface mineralisation for continuity;

  • Development options are being investigated for the pollucite discovery, as more information becomes available. A Mineral Resource Estimate, which is a component of the development plan, has commenced;

  • In addition, final soil geochemistry results have been received for approximately 1500 selected samples. While results are still being interpreted, mapping has commenced at the first of a number of additional lithium and caesium targets, which include PEG003, PEG004, PEG008B and PEG009. Drilling will follow during 2017 in a sequence reflecting the rank of the subsequent targets.

Figure 1. Drill Hole Collar Locations at the Sinclair Caesium Zone. Pollucite has been intersected in marked holes. The lens of mineralisation is open to extension in both a northerly and southerly direction.

Section 1: 6,468680mN. Sinclair Caesium Zone, hosted within a zoned LCT pegmatite. The red core, representing the lens of pollucite, is the most extreme differentiated phase generated during the emplacement of the pegmatite. The purple lens is an outer lithium (predominantly lithium mica) zone.

Section 2: 6,468660mN. Sinclair Caesium Zone. This is the southern-most Sinclair section to date. The red core represents the lens of pollucite, and the purple lens is the outer lithium (predominantly lithium mica) zone.