Spectrum Metals : Completion of Penny West acquisition

(ASX: SPX)

ASX ANNOUNCEMENT 11 December 2018

Completion of Acquisition of high-grade Penny West Project

Acquisition of an adjacent Exploration Licence

Spectrum Metals Limited ("SPX" or "the Company) is pleased to announce completion of the acquisition of the high-grade Penny West Gold Project, near Youanmi, WA. In addition, SPX has expanded its footprint at Penny West with the acquisition of Exploration License 57/1087, located immediately east of the Penny West Licenses, and which contains sections of the prospective Youanmi Shear Zone.

HIGHLIGHTS

• • SPX completes the acquisition of the high-grade Penny West Gold Project, south of Youanmi in WA. The acquisition gives SPX 100% of the project for a total consideration of $50,000 in cash and $950,000 in SPX shares.

• • SPX has finalized the acquisition of Exploration License 57/1087, directly to the east of the Penny West Gold Project licenses.

• • An RC/Diamond drilling program is planned to commence in the first quarter of 2019.

• • Assay results from an auger geochemistry program completed over the entire Penny West Gold Project are expected imminently.

Paul Adams, Spectrum Metals' Managing Director said "We are very pleased to have concluded this acquisition over what is an iconic high-grade gold asset in WA. Penny West gives Spectrum immediate high-grade drill targets beneath a shallow open pit, famously known for its high-grade gold production. With little work performed at the project since the cessation of mining in 1992, we believe Penny West offers plenty of potential for the discovery of additional high-grade ounces. In addition to the imminent receipt of assay results from a 1,000-hole auger geochemistry program and planning for drilling to commence in the new year, the Company has acquired an additional Exploration License immediately to the east of Penny West covering parts of the prospective Youanmi Shear Zone."

Registered Office: Suite 1/827 Beaufort Street Mt Lawley WA 6052 | T: 08 6369 1195

ABN: 94 115 770 226 |[e-mail] | www.spectrummetals.com.au

Penny West Acquisition Completed

Spectrum Metals Limited has completed the acquisition of the high-grade Penny West Gold Project, located 25km south of the mining centre at Youanmi, WA. The consideration for 100% of the project, covering M57/180 and M57/196, totaled $1.0m which included $50,000 in cash and 172.7m shares in SPX at a price of $0.0055 per share. (Refer ASX release 16 October 2018 for full details)

Acquisition of Exploration License E57/1087

SPX has acquired Exploration License E57/1087. The license is considered prospective as sections of the Youanmi Shear Zone appear to lie within the lease at its western boundary. A number of alluvial gold targets have also been identified by local prospectors, indicating that gold could be shedding from the shear system. Consideration comprised cash ($7,500) and 1.3m shares in SPX at a price of $0.0055.

Figure 1. Map of Penny West Project and newly acquired E57/1087

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Auger Geochemistry Program

A 1,000 hole auger geochemistry program has been completed over the Penny West Gold Project tenements (leases M57/180 and M57/196). SPX expects the assay results of this program to be received over the next few days.

ENDS

For further information please contact:

Paul Adams

Managing Director Spectrum Metals Ltd T: 0419 931 942

E:[e-mail]

About Spectrum Metals Ltd

Spectrum Metals Limited (ASX: SPX) is a mineral resource exploration and development company. Focussed on identifying, exploring and developing advanced stage assets and leverage existing high grade intercepts and infrastructure to generate cashflow and value to stakeholders.

Competent Person Statement

The information in this announcement as it relates to exploration results and/or geology was compiled by Mr Alex Hewlett, who is a Member of the Australasian Institute of Mining and Metallurgy ('AusIMM') and a consultant to the Company. Mr. Hewlett has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ('JORC Code 2012'). Mr. Hewlett consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears.

Forward Looking Statements

Statements regarding Spectrum's plans with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that Spectrum's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Spectrum will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Spectrum's mineral properties. The performance of Spectrum may be influenced by a number of factors which are outside the control of the Company and its Directors, staff and contractors.

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