Northern Manganese : NTM0009 ASX Release Kelly

ASX RELEASE 27th October 2016

www.northernmanganese.com.au ASX:NTM ABN24 119 494 772

NORTHERN MANGANESE LIMITED

Higher Grade Gold Zone at Kelly

The Company is pleased to announce the results from the recently completed RC drilling programme at the Kelly Deposit within the Redcliffe Gold Project near Leonora in Western Australia.

A total of 16 shallow inclined RC holes for 1312m were completed as infill to the existing drilling at Kelly North, with the aim being to provide better definition to the mineralised zone(s) and facilitate upgrading of the current Inferred Resource to JORC2012 compliance.

The Company is encouraged by these results, which confirm that coherent higher grade zones occur within the broad, +2 km Kelly mineralised trend identified to date.

Higher grade gold intersections include:

6m @ 6.40 g/t From 48m to 54m in GTRC402

(Inc. 2m @ 14.48 g/t)

2m @ 10.46 g/t From 20m to 22m in GTRC401 20m @ 2.92 g/t From 56m to 76m in GTRC394

(Inc. 8m @ 5.29 g/t from 62m)

15m @ 2.00 g/t From 51m to 66m in GTRC400

(Inc. 3m @ 4.30g/t)

7m @ 2.80 g/t From 9m to 16m in GTRC396 15m @ 1.72 g/t From 53m to 68m in GTRC397

Note- All drilling orientated -60o/270o. Intervals are down hole widths

Previous work has delineated a large anomalous gold trend of over 2km at the Kelly Deposit, which has a current Inferred Resource of 2.41 Mt @ 1.04 g/t for 80,400 oz at a +0.5 g/t Au, and is open in all directions (Kelly Deposit Resource Estimation; BGMS, Kalgoorlie, 2012).

At a +0.2 g/t Au cut, the Inferred Resource at Kelly is currently estimated at 7,878,000t @ 0.63g/t for 159,320oz which demonstrates the large lower grade mineralisation that is characteristic of the Kelly Deposit (Kelly Deposit Resource Estimation; BGMS, Kalgoorlie, 2012).

It is noted, however, higher grade zones also comprise portions of the Kelly mineralisation. The recently completed drilling focussed on one such zone at Kelly North. Mineralisation at Kelly within the oxide profile is hosted in highly sheared felsic saprolite and clays, with fresher material displaying limonite-ankerite-silica-chlorite-pyrite alteration and quartz veining. Depth of complete oxidation is generally >90m downhole. The results from the drilling outline a northerly striking mineralised higher grade zone over some 150 metres, open along strike and at depth. It is inferred that late NE striking faulting may slightly offset the zone.

The Company is encouraged by these results, which confirm that coherent higher grade zones occur within the broad,

+2 km Kelly mineralised trend identified to date. Further drilling including RC and diamond drilling to provide detailed geological/resource information and initial material for preliminary metallurgical testing is planned at Kelly.

357800mE

358000mE

11

358200mE

11

111

7m @ 2.20 g/t

1

? 7m @ 1.31 g/t

1

1

1

? 7m @ 1.39 g/t

68542400mN

KELLY NORTH

2m @ 9.8 g/t 6m @ 6.40 g/t

inc. 2m @ 14.48 g/t 2m @ 10.46 g/t

13m @ 1.56 g/t inc. 3m @ 2.90 g/t

7m @ 2.80 g/t 14m @ 1.56 g/t

9m @ 6.35 g/t inc. 2m @ 26.12 g/t

?

OPEN ?

1

11

15m @ 2.00 g/t

11

1111

8m @ 2.56 g/t inc. 1m @ 12.35 g/t

111

11

1

15m @ 1.72 g/t inc. 4m @ 3.00 g/t 5m @ 2.08 g/t

1

1

1

1

5m @ 4.61 g/t 2m @ 112.6 g/t

1

1

15m @ 8.04 g/t

111

1

20m @ 2.92 g/t inc. 8m @ 5.29 g/t

19m @ 1.13 g/t 6m @ 2.77 g/t

inc. 3m @ 3.98 g/t

1

7m @ 1.32 g/t 9m @ 1.66 g/t

11

111

111

Section 6842327mN

5m @ 7.42 g/t inc. 1m @ 14.08 g/t 1m @ 18.49 g/t

6m @ 2.29 g/t inc. 1m @ 6.56 g/t

11

11m @ 1.01 g/t

1111

6842200mN

1

20m @ 1.37 g/t inc. 6m @ 2.60 g/t

1

1

1

1

1

4m @ 16.2 g/t

11111

24m @ 1.64 g/t inc. 10m @ 2.62 g/t

1111

11

Mertondale Fault

39m @ 1.35 g/t

11

6842000mN

1

33m @ 1.23 g/t

1 1

1m @ 39.31 g/t 6m @ 2.69 g/t

inc. 1m @ 12.72 g/t

KELLY MID

11111111111111

1111111

9m @ 5.06 g/t inc. 1m @ 39.72 g/t

3m @ 4.42 g/t

MERTONDALE SHEAR ZONE

0 50

200m

1

REDCLIFFE GOLD PROJECT

Kelly Prospect

Collar Plan

October 2016 GDA 94 Zone 51

Previous RC Drilling Previous reported highlight NTM 2016 Drilling

New result highlight

Mineralised Kelly Trend (+0.1g/t) (Projected to surface)

Kelly North

11 Mertondale Shear Zone Quartz-mica schist (Felsic)

Basalt, minor felsic volcanic (Mixed Sequence)

358030mE

APPROX. SURFACE

Soil Cover / Indurated Felsic

Clay

GTRC392

358060mE

GTRC393

GTRC394

358090mE

480mRL

?

?

5m @ 1.48 g/t from 29m

Saprolite/Saprock ?

(Felsic precursor)

?

3m @ 2.69 g/t from 39m

3m @ 1.25 g/t from 63m

430mRL

66

20m @ 2.92 g/t from 56m inc. 8m @ 5.29 g/t from 62m

80

10m @ 1.26 g/t from 66m

?

A

?

100

p

o

p

r

f

o

o

x. se

ba

OPEN

n

o

i

t

a

d

i

x

?

?

?

380mRL

0 5 20m

Kelly North

Schematic Section 6842327mN

Drill hole intercept, metres at g/t gold)

October 2016 GDA 94 Zone 51

>0.5 g/t Au interval Kelly Mineralised Trend (+0.1g/t)

Kelly North - Drill Hole Summary

HOLE	GDA_E	GDA_N	DEPTH (m)	AZ/DIP	FROM	TO	RESULT (Au)
GTRC388	358108	6842279	100	270/-60	47	48	1m @ 1.38
66	67	1m @ 2.29
81	86	5m@ 1.38
91	92	1m @ 1.08
GTRC389	358070	6842299	80	270/-60	16	18	2m @ 1.48
33	38	5m @ 0.7
62	67	5m @ 0.9
69	70	1m @ 1.14 EOH
GTRC390	358085	6842299	90	270/-60	25	29	4m @ 1.20
47	54	7m @ 1.32
57	66	9m @ 1.66
GTRC391	358100	6842299	100	270/-60	44	45	1m @ 1.02
61	65	4m @ 1.37
67	78	11m @ 1.01
GTRC392	358060	6842327	66	270/-60	6	9	3m @ 1.03
29	34	5m @ 1.48
58	60	2m @ 0.95
63	66	3m @ 1.28 EOH
GTRC393	358075	6842327	80	270/-60	14	15	1m @ 3.05
20	21	1m @ 1.17
27	28	1m @ 1.09
39	44	5m @ 0.9
59	61	2m @ 2.25
66	76	10m @ 1.26
GTRC394	358090	6842327	100	270/-60	39	42	3m @ 2.69
Inc.	40	41	1m @ 7.13
56	76	20m @ 2.92
Inc.	62	70	8m @ 5.29
98	100	2m @ 1.13 EOH
GTRC395	358060	6842352	70	270/-60	33	34	1m @ 1.54
56	70	14m @ 1.56 EOH
Inc.	57	58	1m @ 8.12
GTRC396	358075	6842352	80	270/-60	9	16	7m @ 2.80
Inc.	10	11	1m @ 7.14
13	14	1m @ 7.85
21	23	2m @ 1.26
41	43	2m @ 0.95
51	52	1m @ 2.18
56	60	4m @ 1.80
66	67	1m @ 1.99
GTRC397	358090	6842352	100	270/-60	53	68	15m @ 1.72
Inc.	63	67	4m @ 3.00
88	93	5m @ 2.08
GTRC398	358060	6842377	66	270/-60	8	10	2m @ 1.60
29	34	5m @ 2.00
41	42	1m @ 1.52
47	50	3m @ 1.65
54	58	4m @ 1.07
61	62	1m @ 1.23