Exterra Resources : Follow-up Drilling Commenced at Golden Orb Prospect Linden

cb1879d6-8ba4-4270-a179-ae0e61fb1a76.pdf FOLLOW-UP DRILLING COMMENCES AT THE GOLDEN ORB GOLD PROSPECT AT LINDEN Exterra Resources Limited

ACN 138 222 705

ASX Code: EXC www.exterraresources.com.auIssued Capital: 30 May 2016

Exterra Resources Limited (ASX:EXC) ("Exterra") is pleased to advise that follow-up Air Core (AC) and Reverse Circulation (RC) drilling has commenced at the Golden Orb, Hill North and Hill East prospects at Exterra's 100% owned Linden Gold Project.

Ordinary Shares:

Options:

237.5m

23.9m

The total programme will comprise approximately 4,000 metres of AC/RC drilling in 76 holes following up previous Exterra drilling at the Golden Orb prospects and numerous historic economic grade intercepts at Hill East and Hill North.

Directors and Management:

John Davis

Managing Director

Justin Brown

Non-Executive Director

Peter Cole

Non-Executive Director

Dennis Wilkins

CompanySecretary

The Golden Orb Prospect represents a potential new discovery and a new priority target amongst a growing regional portfolio of targets within this poorly explored tenement package. Results reported in a Company ASX release on 20 October 2015 include:*

• EXAC078: 2 metres at 8.02 g/t Au from 3 metres, including;
  • 1 metre at 13.50 g/t Au from 3m
• EXAC079: 13 metres at 1.29 g/t Au from 0 metres, including;
  • 5 metres at 2.15 g/t Au from 6 metres
• EXAC069: 2 metres at 3.80 g/t Au from 3 metres including;
  • 1m at 6.87 g/t Au from 4m
• EXAC080: 4 metres at 3.80 g/t Au from 8 metres including;
  • 2m at 5.6 g/t Au from 11m
• EXAC074: 2 metres at 2.27 g/t Au from 7 metres
• EXAC068: 4 metres at 1.67 g/t Au from 16 metres (4 metre comp)

*Note: All intercepts are dow nhole widths.

Drilling will focus on down dip and along strike extensions with 36 AC/RC drill holes planned for 1700m.

Figure 1: Golden Orb Prospect, Collar Locations and Selected Assays over Aeromagnetics.

The programme will also target the Hill East and Hill North prospects where historic drilling has reported economic grade intersections in Rotary Air Blast (RAB), AC/RC drilling and trenching prior to 1995.

The Hill East Group is divided into 4 areas: Hill East Lode 1, Hill East Lode 1 West, Hill East Lode 2 and Hill East Lode 4 and with historic RC drilling reporting encouraging results over all areas including at Hill East Lode 1 and Lode 1 West:

HLP033 - 20m @ 3.99 g/t Au from 0m HLP034 - 6m @ 2.37 g/t Au from 38m (EOH) HLP046 - 6m @ 3.10 g/t Au from 16m HLP050 - 20m @ 1.11 g/t Au from 2m HLP051 - 6m @ 2.13 g/t Au from 22m HLP053 - 8m @ 3.83 g/t Au from 28m

The Hill East Prospect area is covered by lake sediments, soils and calcrete. Mineralisation appears to be related to NE trending quartz veins cross-cutting layering in a sequence of mafic volcanics and sediments. A major quartz blow to the west and extensive felsic porphyry dykes indicate a major N-S trending fault zone.

A review of historic data indicated mapping and costeaning had identified significant Au and As anomalies including zones up to 100m wide >0.1 g/t Au associated with a profusion of quartz veins and shears.

The initial phase 1 programme comprises 21 AC/RC drill holes for 1500m to a maximum depth of 100m downhole at Hill East Lode 1 and Lode 1 West to confirm the above intercepts, drill down dip and along strike. A second phase comprising a further 6 holes is planned subject to results from phase 1.

The Hill North prospect is located 500m north of the Gold Orb group within a poorly exposed area underlain by chloritic mafic to intermediate volcanics and sediments intruded by felsic porphyry dykes.

A historical 1997 report from a previous holder of the Prospect identified that drilling in the area consisted of one RAB hole drilled to 27m and 8 RC holes to an average depth of 33m. Results for RC drilling include:

HLP036 6m @ 4.67 g/t Au from 21m HLP038 2m @ 3.54 g/t Au from 19m HLP043 2m @ 3.30 g/t Au from 12m LP001 11m @ 3.15 g/t Au from 16m

Costeans in the area reported wide, ore-grade intersection including 25m @1.57 g/t Au.

The initial programme proposes 19 AC/RC holes for 770m to a max depth of 40m to test down dip and along strike of the intercepts reported above.

Figure 2: Linden North Prospects Location Plan over Aeromagnetics