Proto Resources & Investments Ltd : Encouraging Results at the Mooloogool Project

2/12/2013

Company Announcements Office

ASX Limited

Exchange Centre

20 Bridge Street

Sydney NSW 2000

ENCOURAGING RESULTS AT THE MOOLOOGOOL PROJECT

• First geological field reconnaissance and outcrop sampling completed over Mooloogool tenements.

• The different geological structures sampled (e.g. quartz veins, gossan breccia shears) returned a metallogeny of close affinity (i.e. Zn, Cu ± As, Mo, Au) with each other. This suggests that the spaced-out anomalies may relate to a single mineralisation event.

• Very high purity silica outcrops were identified. Proto is now examining the potential of a silica mineralisation as an avenue for revenue generation.

The Board of Proto Resources & Investments Ltd ("Proto", the "Company", ASX:PRW) is pleased to announce the very encouraging results of first outcrop sampling on the Mooloogool project in Western Australia. The Mooloogool Project is located approximately 85km North East of the regional centre of Meekatharra in Western Australia. The trip was intended to identify outcropping geological features and/or structures with potential to host copper gold mineralisation.
Proto has acquired a 51% interest in the Mooloogool Project, which is composed of eight exploration licenses (E51/1185, E51/1186, E51/1213, E51/1215, E51/1325, E51/1340, E51/1341 and E51/1342) covering 1,461 square kilometres. Mooloogool is a joint venture with Dourado Resources Limited ("Dourado", ASX:DUO). The licenses cover deformed Proterozoic metasediments arranged around the Goodin Dome, a large ellipsoidal granite that may have acted as a fluid source for mineralising solutions in the region (see Figure 1).

Figure 1: Joint Venture licenses and existing Proto licences in the Yerrida- Goodin Dome Region

Field Sampling Trip Completed

From the 22nd of September 2013 to the 3rd of October 2013, walking traverses were conducted across the tenements in areas of expected outcrop and geological features of interest as identified from previous auger/soil samples, geophysics and landsat data sets. Waypoints for the reconnaissance trip are shown in Figure 2.

A number of interesting prospects (industrial, base metal and precious metal) were located during many walking traverses. These included breccia shear structures (Cu-Zn +- Au), magnetite pisolith laterite layers (Fe-Mg) and silica quartz sedimentary beds (Silica). Rock chip samples from features of interest were taken and submitted for lab assaying at the Genalysis Intertek facility in Perth.

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Figure 2: Tenement map with waypoint (red dots) localities over GSWA

regional 1:500,000 scale geology map.
Follow up programs have been recommended for the prospects in tenements E51/1325, E51/1185, E51/1340. This would include detailed, systematic mapping and sampling over outcropping prospects and lag sampling surveys along projected geological trends to these prospects.

Prospects Identified

In the mid north of Tenement E51/1185 there are two features that have potential for anomalism in Cu ± Au and Fe-Mg. The interpreted Cu ± Au feature is associated with a quartz vein system (~1000m length) that has mixed textures (milky, breccia, fractured, vuggy) and varies in width from 0.5m to 2m (Figure
3). In the South-East of the same tenement, there are additional outcrops for
the potential of Cu ± Au and Fe-Mg anomalism.

The second feature of note on E51/1185 is a broad flat layer of magnetite pisolith laterite concretions, with an estimated 70% magnetite composition. The area is roughly 500m x 250m x 2m thick, with its true extant not yet determined. A mafic intrusive was observed in close proximity to this feature (both on surface

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and at bottom-of-hole in historical Air-core drill chips): this may be a possible source for the laterite magnetite layer.

Figure 3: Prospects (Cu ± Au in veins, Fe-Mg in laterite) in the north of tenement E51/1185. New rock chip results in balloons, with results from historical auger and soil samples marked.

In the mid-east of Tenement E51/1340 there are two features that have potential for anomalism in Cu-Zn ± Au (see Figure 4). Here breccia/shear structures with quartz vein and ferruginous/gossan infill (e.g., Figure 5) were observed in low relief hills within a few kilometres of a track that had previous Auger and soil samples taken along it. Samples returned anomalism in Cu, Zn and Au (263ppm Cu, 0.13% Zn and 10ppb Au). The breccia/shear systems extend approximately 800m to >1000m with portions of the trend being obscured by transported sediments and drainages. The structures are 0.2m to
1.5m wide and exist in high strain zones within carbonaceous fine grained

bedded sediments.

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Figure 4: Prospects (Cu-Zn ± Au in breccia shear) in the mid-East of tenement E51/1340. New rock chip results in balloons, with results from historical auger and soil samples written as numbers.

Figure 5: Field Photo of Cu-oxide minerals from the breccia/shear quartz/gossan structure in E51/1340 (co-ordinate at 734359mE, 7110841mN).

In the east of Tenement E51/1325 there are two parallel beds of coarse grain silica quartz rich sandstone that have potential for industrial quarrying of high purity silica product (i.e., as an exploration target for a quartz silica deposit). These beds are situated unconformable along the margin of the Archean Goodin Inlier. An example of this commodity is being exploited by Solar Silicon Resource Group's Lighthouse mine near Mt Surprise, North Queensland ($1.4 billion market value for 1.8 million tonnes of silica product). The observed outcrops at the

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prospect are estimated at 1500m length x 8m to 10m wide and may expand over an extensive depth.
Of particular interest is that the different geological structures sampled (e.g. quartz veins, gossan breccia shears) returned a metallogeny of close affinity (i.e. Zn, Cu ± As, Mo, Au) with each other. This suggests that the mineralisation event in the area may all be related to a single cause. These results also have a good correlation to surface geochemical anomalies reported by neighbouring prospects by Rubianna, Great Western and Ventnor Resources.

Conclusions and Next Steps

Proto will now move quickly to extend geochemical sampling and initiate detailed (1: 2,500) mapping of priority outcropping prospects. Work has already begun to design systematic lag sampling over areas of identified prospective trends to delineate additional anomalism, and define the system extent of current identified anomalies. This work will allow stronger targeting of structures for the first drill program, which is expected in early 2014.
Proto chairman Andrew Mortimer said, "Proto is very excited at the discovery of silica mineralisation on the Mooloogool project and work will commence immediately to bulk sample this material and assess its readiness for marketing. The copper gold zinc and iron mineralisation are also of very great interest and we will commence further ground mapping and sampling immediately."
Shareholders and interested parties should direct their enquiries to: Mr Andrew Mortimer
Chairman
Proto Resources & Investments Ltd
T: [phone]
E: [e-mail]
And consult the company's website: www.protoresources.com.au

Competent Persons Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Tony Treasure, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Treasure is a self-employed independent contractor providing geological services to exploration companies. Mr Treasure has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Treasure consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.'

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