Alloy Resources : Large New Gold Anomalies at Horse Well

HORSE WELL GOLD PROJECT (AYR 40%) Large New Gold Anomalies at the Horse Well Gold Project

ABN 20 109 361 195

ASX Release

16 January 2017

Alloy Resources Ltd Suite 6, 7 The Esplanade Mount Pleasant WA 6153 Tel: [phone] Fax: [phone] Email:

[e-mail]

Website:

www.alloyres.com

Directors

Executive Chairman:

Andy Viner

Non‐Exec Director

Andre Marschke

Non‐Exec Director/Co Sec:

Kevin Hart

Issued Capital Shares: 966,993,360

Unlisted Options:

29,000,000

ASX Symbol: AYR

Alloy Resources Limited (ASX: AYR, Alloy or the Company) is pleased to report the final results from the major program of air‐ core exploration drilling completed at the Horse Well Gold Project in the North‐Eastern Goldfields of Western Australia in late 2016.

Joint Venture Manager Doray Minerals Limited (ASX:DRM, Doray) has advised that;

• Results from the final 390 holes totalling 23,637 metres of a major air‐core drilling programme have been received, compiled and interpreted.

• The Company can report on this second phase of the drilling which saw holes allocated to 800 metre x 160 metre regional first pass drilling of an untested 7.5‐kilometre section of the greenstone belt south of the Django prospect.

• The drilling has outlined three large anomalous gold trends extending south from the Django and Crack of Dawn South prospects;
  • 7‐kilometre‐long eastern anomaly
  • 6‐kilometre‐long central anomaly
  • 3‐kilometre‐long western anomaly
  • The eastern and central anomalies are associated with a newly defined extensive granite intrusive that appears to intrude the Celia Shear at the contact between western sedimentary units and eastern mafic units.
• Better results were;

  • HWAC874, 20m @ 0.27 g/t Au from 56 mdh

  • HWAC915, 8m @ 0.84 g/t Au from 64 mdh

  • HWAC995, 4m @ 1.49 g/t Au from 72 mdh

  • HWAC1039, 8m @ 0.35 g/t Au from 56 mdh

  • HWAC1053, 4m @ 0.84 g/t Au from 48 mdh

  • HWAC1144, 28m @ 0.33 g/t Au from 52 mdh

  • HWAC1153, 4m @ 0.90 g/t Au from 76 mdh

• The Joint Venture is currently planning programmes and budgets for follow‐up air‐core exploration drilling to test these first pass widely spaced anomalies.

The Horse Well Joint Venture comprises Doray Minerals Limited (60%) and Alloy Resources Limited (40%) and has completed a $2 million exploration program during 2016.

The 1,000 km2 Project covers 60 strike kilometres of greenstone belt located 50 kilometres north of the large 240 koz p.a Jundee Mine operated by Northern Star Limited (Figure 1)

Exploration during the September and December quarters of 2016 has been focussed on first and second pass geochemical drilling to define new gold anomalies beneath the sand covered northern 'Dawn' prospects area.

Figure 1 Horse Well Project location on regional geology

The planned geochemical drilling which has been completed is shown in Figure 2 below. Phase 1 infill holes which were reported on in October 2016 are shown in blue and Phase 2 first pass holes which are reported on today are shown in red.

The second phase of the drilling saw holes allocated to 800 metre x 160 metre regional first pass drilling of an untested 7.5‐kilometre section of the greenstone belt south of the Django prospect.

Figure 2 September‐December Quarter air‐core drilling locations on aeromagnetics.

The completed drill programme, colour coded for maximum gold down hole, is shown on Figure 3 below. This diagram also shows the newly interpreted sub‐surface geology based on the dominant end‐of‐hole lithology's logged from the new drilling.

Figure 3 Infill drilling and anomalous trends at Big Kahuna and Crack of Dawn South on geology