Meridian Mining UK. S provided an update on its successful geophysical exploration programs within the Cabaçal mine corridor. Recently completed surface electromagnetic ("EM") surveys have outlined multiple EM plates down dip from the high-grade Cu-Zn-Au-Ag massive sulphides of the Santa Helena deposit ("Santa Helena").

An Induced Polarization ("IP") survey has also been completed over the Santa Helena deposit and combined with the EM plates has generated a new geophysical model extending the mine's untested and unmined upside, generating multiple near-surface targets to follow up on. These near mine prospects have created further potential for the extension of open-pitable Cu-Zn-Au-Ag mineralization at Santa Helena. Follow up resource confirmation and delineation programs are being planned.

Prior to the New Year's recess, the Company undertook its first campaign of geophysics over the Santa Helena deposit ("Figure 1"), which represents a potential satellite open-pit development target for the Cabaçal project. The objective of the survey was to test the open high-grade Cu-Zn-Au-Ag massive sulphide mineralization for near-mine extensions. Significant widths of mineralization have been historically reported from surface and underground drilling, including: BPM surface drill hole JUCHD031: 27.6m @ 1.6% Cu, 1.5g/t Au, 4.4% Zn & 36.3g/t Ag from 24.9m; and PML underground drill hole FSS24: 17.5m @ 0.7% Cu, 1.0g/t Au, 7.2% Zn & 25.

5g/t Ag from 21.5m; Meridian has concluded two phases of surface geophysical surveys, using surface electromagnetic fixed loop techniques, and induced polarization techniques. The current campaign of work detected three shallow dipping plates interpreted to be bedrock conductors, with modelled extents of 500 x 300m, 250 x 300m, 350 x 300m. The EM plates have a typical conductivity thickness for Cu-Zn sulphides of 4 Siemens.

The leading edge of the two most eastern plates align with the position of the resource envelope and extend outwards a further ~200 - 250m to the north-northwest into sparely drilled areas. Nine historical BPM drill holes were drilled in this location for which assays have not been completely preserved. A third plate modelled to the west falls into an area untested by drilling.

Given the deformed character of the host sequence, it is encouraging to have geophysical anomalies extending beyond the main resource area, and future drill programs will test for additional Cu-Zn-Au-Ag sulphide mineralization and for the replications of the gold overprint. To supplement the EM survey, the Company has completed a gradient array IP survey. The peak response aligns well with the Cu-Zn-Au-Ag sulphide resource and remains open to the east ("Figure 2"), suggesting some sulphide presence in the shallower up-plunge sector of the deposit beyond the historical resource limit.

The peak chargeability response follows the strike of the deposit in the eastern sector, reaching ranges of 30 mV/V (millivolts per volt) - characterized as a moderate to strong response for VMS mineralization. The southern margin of the chargeability response is fairly sharp, but the northern margin shows a broader chargeability response projecting into the area of the conductivity plates. The western margin of the chargeability response becomes slightly divergent to the modelled mineralization envelope.

It will be important to verify if any local fold concentrations of sulphide mineralization are present. The peak chargeability response corridor in the western corridor has not been effectively drilled. The Company is awaiting environmental permits to extend the survey east and west of the current limits.

Santa Helena Deposit The Santa Helena deposit (historically also referred to as C2C, and Monte Cristo), is located 9km to the southeast of the Cabaçal Mine area, within the 11km Mine Corridor trend. The deposit was first discovered by BP Minerals ("BPM") in 1984. The deposit is associated with the same host geology as that of the Cabaçal Mine.

The former operator at Santa Helena, Prometálica ("PML"), commissioned the underground mine in 2006 with a historical measured and indicated resource of 1.12 Mt @ 6.2% Zn, 1.3% Cu, 1.3g/t Au, 41.7 g/t Ag[2]. Production commenced in 2006, but the mine closed well ahead of planning in 2008 with the collapse of the zinc price. Total production amounted to 439,813t @ 6.65% Zn, 1.62% Cu, 1.77g/t Au & 43.02g/t Ag, leaving over half of the historical underground resource unexploited.

The deposit plunges gently west-northwest. Shallow oxide gold mineralization is recognized in historical trenching to the east of the resource limit, which was not previously considered in SRK's historical 2007 estimate for the deposit nor was it extensively tested by angled drilling. Meridian is targeting Santa Helena as a potential satellite open pit prospect using typical open pit parameters.

Both BPM and PML focused on the underground development and on the higher-grade massive sulphide mineralization. Numerous historical holes have not been sampled to conclusively demonstrate the limit of mineralization (or analysed for the full suite of elements). In the oxide zone, similar to the Cabaçal deposit, the upper intervals of the drill holes have also not been systematically sampled.

Of the 39 PML holes, gold assays are not available for 12 of the holes, and in an additional 9 of the holes, the first recorded sample starts within the mineralized halo (grades of 0.1 - 1.0g/t Au). The sampling approach in the original BPM holes (for which data is available in the JUCHD series) is similar, with an average starting depth of 22.4m. Whilst some angled holes were drilled by BPM, historical drilling was overwhelmingly vertical unsuited to testing the late stage overprinting vertical gold structures now recognized in the belt.

The Company is conducting a search of historical collars to test whether any of the historical holes remain accessible for potential DHEM surveys. After finalizing its programs at Santa Helena, the Company will continue geophysical and geochemical programs in the "C2" corridor between Cabaçal and Santa Helena, and on the Álamo exploration licence to the southeast which has recently been renewed for a second three-year term and where reconnaissance mapping has defined a number of Cu-Zn gossans[4]. Drilling has now restarted at Cabaçal after the new year recess period.