Hampton Hill Mining NL : Quarterly Activities and Cash Flow Report for the Quarter Ended 31 December 2016

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31 January 2017

Company Announcements Office ASX Limited

Level 4, 20 Bridge Street

SYDNEY NSW 2000

ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2016

Hampton Hill Mining NL (Hampton Hill) exploration activity continued to be focused on the Millennium Zinc Project (Millennium) held in joint venture with Encounter Resources Limited (Encounter), the project manager and majority owner. The Company's other key assets are a holding of 10 million fully paid shares in Peel Mining Limited (Peel) and a 5% gross overriding royalty over all gold production in excess of 1 million ounces from the Apollo Hill Gold Project.

During the quarter, the Company began a process of seeking new resource investment opportunities and this work will continue.

Two diamond drill holes were completed at Millennium during the quarter for a total of 1,516.6 metres, at the conclusion of which Hampton Hill had almost completed the requirement to earn a 25% interest. The holes were designed to test for zinc sulphide mineralization associated with the basin margin Tabletop Fault in the southern portion of the Millennium target. Although the presence of zinc sulphides was noted in the logging of core in several intervals, no mineralization of economic significance was encountered. The joint venture is now planning a drilling program to test the northern portion of the target where previous drilling recorded a best intersection of 0.7 metres grading 36.7% zinc (Encounter ASX release 13 December 2013).

No work was carried out at the Apollo Hill Gold Project during the quarter.

Shareholders are referred to the most recent Peel ASX report on drilling (PEX ASX release 24 January 2017) for details on the progress that the company is making with its substantial exploration activities centred in the Cobar district of NSW.

The Millennium Zinc Project

Hampton Hill is in the process of earning a 25% interest in this project by meeting $2 million of the first $3 million of joint venture expenditure (HHM ASX release 23 April 2015 details the joint venture agreement). Total project contributions stood at $1,866,599 at the end of the quarter.

The Millennium Project area incorporates Exploration Licences E45/2501, E45/2561 and the four eastern sub-blocks of E45/2500 which are a portion of the Encounter Yeneena Project (Figure 1).

The joint venture manager, Encounter, has provided the following project quarterly report:

The drill program completed in the December 2016 quarter at Millennium was primarily designed to test for high grade zinc mineralization at the base of a thickened mineralized shale package, proximal to the shale-carbonate contact.

The first hole, EPT2290, targeted an area down dip of RC hole EPT2264 (which ended in a weathered gossanous ironstone that assayed 1.1% zinc over 18 metres from 148 metres to end of hole (refer Encounter ASX announcement 28 January 2016)). The hole was drilled to the south through the carbonate-shale contact and into the shale unit south of the contact. The hole intersected zones of anomalous zinc mineralization in the shale that weakened towards the bottom of the hole.

The second hole, EPT2294, targeted the base of the shale unit approximately one kilometre north- west of the EPT2290. This hole was designed to test the base of the mineralised shale unit proximal to drill hole EPT1174 (refer Encounter ASX announcement 31 July 2012). EPT1174 intersected a broad zone of carbonate alteration and veining in a shale unit that contained visible zinc and lead sulphides. This drill hole intersected 201 metres of weak sulphide mineralization grading 0.6% zinc from 233 metres to end of hole (including 29 metres grading 1.0% zinc from 400 metres).

Drill hole EPT2294 intersected zones of anomalous zinc in line with, or weaker than, prior intersections in the shale. This weakening mineralization and the lack of a clear footwall to the mineralised shale indicates that the priority of the shale hosted mineralization in this area has been downgraded (Figures 2 & 3).

The diamond drill program completed at Millennium in late 2016 was co-funded under the WA Government Exploration Incentive Scheme (up to A$150,000).

Next Steps

The next phase of drilling at Millennium will target along strike of 0.7 metres intersection grading 36.7% zinc encountered from 430 metres in EPT1854, the most north-western drill hole at the project. The area directly down dip and down plunge to the north-west remains open and potential exists in this area for additional high grade zinc sulphide mineralization.

Figure 1: Encounter Resources Limited project map identifying the location of the Millennium Zinc Project Figure 2: Drill hole collar location - Millennium Figure 3: Drill hole long section - Millennium Shale-Carbonate contact intersection only.

JORC Compliance

The information in this report that relates to Exploration Results is based on information compiled by Mr. Peter Bewick who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Bewick holds shares and options in and is a full time employee of Encounter Resources Ltd and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Bewick consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information in the relevant ASX releases and the form and context of the announcement has not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

Joshua Pitt Chairman