Spectrum Metals : New zone of high grade gold beneath Penny West pit

(ASX: SPX)

ASX ANNOUNCEMENT 3 April 2019

ASX CODE: SPX

New zone of high grade in southern-most hole

below Penny West Pit

CAPITAL STRUCTURE

Share Price	$0.027
Shares On Issue	1053.7m
Market Cap	$28.3m
Options Unlisted	75.0m

MAJOR SHAREHOLDERS

Patina Resources PL	11.9%
A. Barton & Assocs	8.6%
Moutier Hldgs	3.6%
Rock the Polo Pty Ltd	3.1%
Plateaux Resources	2.8%

DIRECTORS / MANAGEMENT

Alexander Hewlett

Executive Chairman

Paul Adams

Managing Director

James Croser

Technical Director

Nader El Sayed

Non-Executive Director

Mark Pitts

Company Secretary

Spectrum Metals Limited ("SPX" or "the Company") is pleased to announce that it has received the first assay results from its drilling below the open pit at Penny West, located 25kms south of the Youanmi mining center in WA.

Key Points

•Assay results received from eight holes beneath the open pit. Significant intercepts include:

SPWRC006 - 5m at 28.9 g/t goldfrom 203m, including 1m at 103 g/tgold from 203m, within 31m at 5.50 g/tgold from 203m.

•The intersection in hole SPWRC006 occurs in the deepest and southern most hole yet received from the SPX drilling program underneath of Penny West Open Pit (see Figure 1).

•This unusually thick intersection may represent a new zone of structural thickening to the south and at depth and has generated a large new target for further drilling.

•SPX is therefore currently designing a program of RC and diamond holes to follow up the intersection in hole SPWRC006 down dip and to the south in addition to the holes that are still to be drilled under the northern end of the pit.

•SPWRC006 was drilled 500m south of the recent Penny North discovery and demonstrates the growth potential within this system.

•Assays are pending for Magenta (3 holes), Penny West (3 holes) and Penny North (12 holes).

CONTACT:

Paul Adams Managing Director T: [phone]

E: [e-mail]

Spectrums Managing Director, Paul Adams said "This is another incredible intersection for Spectrum and once again clearly demonstrates the capacity of the Penny West gold system to deliver significant gold mineralisation.

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

Hole SPWRC006 is the deepest hole on the southern-most line drilled into the Penny West lode in our program and was designed to discover depth extensions to the known mineralisation. This intersection could open up a new exploration front under and south of the Penny West Pit".

Figure 1. Long Section through the Penny West lode with new wide, high-grade intercept in

SPWRC006 and open to the south and down-dip

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Figure 2. Cross Section through 6806740mE below the Penny West Pit

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							DRILL			MAX			EAST			NORTH						COLLAR			COLLAR
	PROSPECT			COLLAR ID															RL						AZIMUTH
							TYPE			DEPTH (m)			(GDA94_Z50)			(GDA94_Z50)						DIP
																									(GDA)
	Penny North			SPWRC001			RC		143			676558			6807170			503			-60			269
	Penny North			SPWRC002			RC		167			676593			6807213			488			-60			269
	Penny North			SPWRC003			RC		113			676533			6807248			487			-60			270
	Penny West			SPWRC004			RC		161			676689			6806736			495			-55			270
	Penny West			SPWRC005			RC		192			676718			6806736			507			-60			271
	Penny West			SPWRC006			RC		269			676779			6806742			479			-60			270
	Penny West			SPWRC007			RC		268			676774			6806775			490			-62			272
	Magenta			SPWRC008			RC		113			676433			6808667			499			-60			242
	Magenta			SPWRC009			RC		113			676425			6808753			489			-60			242
	Magenta			SPWRC010			RC		83			676401			6808707			493			-60			242
	Penny West			SPWRC011			RC		118			676698			6806765			491			-60			270
	Penny West			SPWRC012			RC		238			676738			6806766			492			-62			270
	Penny West			SPWRC013			RC		176			676701			6806781			505			-50			270
	Penny West			SPWRC014			RC		209			676727			6806779			489			-60			270
	Penny West			SPWRC015			RC		173			676702			6806810			493			-50			270
	Penny North			SPWRC016			RC		179			676612			6807214			488			-61			272
	Penny North			SPWRC017			RC		149			676590			6807236			488			-59			272
	Penny North			SPWRC018			RC		167			676594			6807196			488			-61			273
	Penny West			SPWRC019			RC		197			676716			6806808			493			-59			273
	Penny West			SPWRC020			RC		215			676734			6806808			488			-59			271
	Penny North			SPWRC021			RC		191			676632			6807212			488			-61			273
	Penny North			SPWRC022			RC		175			676612			6807192			488			-61			272
	Penny North			SPWRC023			RC		185			676612			6807232			488			-61			273
	Penny North			SPWRC024			RC		209			676632			6807232			488			-61			274
	Penny North			SPWRC025			RC		203			676632			6807192			488			-61			271
	Penny North			SPWRC026			RC		167			676592			6807172			488			-59			272
	Penny North			SPWRC027			RC		179			676612			6807172			488			-61			273
	Penny North			SPWRC028			RC		191			676632			6807172			488			-61			274
	Penny North			SPWRC029			RC		149			676582			6807212			492			-61			270
	Penny North			SPWRC030			RC		203			676632			6807252			492			-61			272
	Penny North			SPWRC031			RC		185			676612			6807252			492			-61			272
	Penny North			SPWRC032			RC		233			676632			6807292			492			-61			272
	Penny North			SPWRC033			RC		197			676632			6807132			496			-61			273
	Penny North			SPWRC034			RC		203			676632			6807092			496			-61			273

Table 1. Drill hole collar table

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For further information please contact:

Mr Paul Adams

Managing Director

Telephone: [phone]

Email:[e-mail]

About Spectrum Metals Ltd

Spectrum Metals Limited (ASX: SPX) is a domestic West Australian focused gold exploration and development company. Concentrating on high-grade, brown fields assets, that can leverage off existing infrastructure and add value through exploration and development. Spectrum will continue to identify and explore under explored terrain and brown fields assets through the use of modern techniques and technology to maximise success.

Competent Person Statement

The information in this report that relates to Data and Exploration Results is based on information compiled and reviewed by Mr John Downing, a Competent Person who is a Member of the Australian Institute of Geoscientists (MAIG) and a consultant to Spectrum. Mr Downing has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves'. John Downing consents to the inclusion in the report of the matters based on his 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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