Tychean Resources : EIS Drilling Grant for the Yampi-Ni-Cu-Au Project

EIS Drilling Grant for the Yampi Ni-Cu-Au Project

ASX Announcement

11 January 2019

HIGHLIGHTS

•  Yampi Ni-Cu-Au project awarded WA Government Exploration Incentive Scheme ("EIS") grant of $120,000 via independent, competitive process involving 73 applicants of which only 40 were successful.

•  Funding to be applied in drilling four diamond holes for a total of 1,200m at Grant's Find, Wilson's Reward and CO1 Mag/EM/Ruins Dolerite target.

•  Drilling planned to commence at start of field season in April 2019.

Tychean Resources Ltd. ("Tychean") (ASX:TYK )has been advised by IronRinger Resources Pty. Ltd. ("IronRinger") of success in securing an EIS grant to co-fund the drilling of four diamond holes for ~1,200m at the Yampi Ni-Cu-Au project. The Yampi project is being acquired by Tychean via the acquisition of 100% of the shares in IronRinger, subject to satisfaction of a number of conditions.

The EIS grant of $120,000 is the full amount applied for by IronRinger and is a contribution towards 50% of direct drilling costs. The drilling program over three high priority targets is planned to commence in the 2019 field season around April 2019.

Tychean Chairman, Duncan Gordon said "This is an excellent result as the EIS grant process is highly competitive and is determined by an independent panel of experts. We are excited to commence drilling of the high priority nickel, copper and gold targets at Yampi.

This is a major milestone towards realising the potential of the area".

Image 1: IronRinger's Drew Money highlighting copper staining west of Grant's Find

Tychean Resources Limited (ASX:TYK)

Ground Floor, 70 Hindmarsh Square	DIRECTORS	CORPORATE STRUCTURE
Adelaide SA 5000	Duncan Gordon	Chairman	Shares on issue: 577,156,607
T | [phone]	Ian Gordon	Non-Executive Director	Market cap: A$1.7M
F | [phone]	Paul Payne	Non-Executive Director	(at $0.003 per share)
E |[e-mail]	Cash (at 30 Sep 2018): $0.18M
W |www.tycheanresources.com	12 Month trading range: $0.009-$0.003
ACN | 119 031 864

BACKGROUND

Yampi lies on, and adjacent to, major faults which are significant tectonic features and part of the southern margin of the Kimberley craton defined by the King Leopold Orogen. This Orogen is one of the fundamental tectonic building blocks of the modern Australian continent.

Major regional WNW-trending faults, which are significant long-life tectonic features, are located at the south of the project. These features define a significant basin margin and splays from these structures appear to be a classic position for major SEDEX-style mineralisation.

Copper mineralisation in the form of gossans and veins is exposed over a 13km strike length.

This context suggests structurally controlled orogenic Cu-Au shear-hosted mineralisation or the surface expression of SEDEX style base metal mineralisation.

Prospectivity is highlighted by the extensive number of targets in outcropping areas. Unusually for the Kimberley, areas of Yampi are also under cover which also provides the opportunity for a significant concealed discovery.

In addition, a large number of historic copper workings and mineral occurrences have been identified at Yampi (Figure 1). These were the target of exploration by Western Mining Corporation Ltd. ("WMC") in the 1950's. Since that time, minimal exploration has occurred due to the area becoming a military reserve which has only recently become accessible.

No exploration for nickel or gold was carried out by WMC and there was no assaying for those metals. The potential for discovery of those metals has now been demonstrated ~40kms to the south east where Buxton Resources (ASX:BUX) and Independence Group (ASX:IGO) are successfully drilling Cu-Ni sulphides at Double Magic (Figure 1).

Figure 1: Yampi Project geology, tenements and known mineralisation

GRANT'S FIND AND WILSON'S REWARD

Grant's Find and Wilson's Reward sit over ~13kms of gossans. Both areas were mined for copper pre-WW1. The area has seen minimal exploration since 1959 when WMC drilled 10 holes with encouraging copper results.

The copper and gold potential of the project has also been highlighted in several generations of rock chip sampling (Figure 2). Multiple zones of high grade copper and gold have been defined with selective rock chip sampling around workings and gossan outcrops.

Figure 2: Rock chip sample results for Grant's Find (GF), Wilson's Reward (WR), Tarraji (TJ) and

Monarch (MN)

CO1 Overlapping Mag/EM/Ruins Dolerite Target

In 2015, a VTEM "EM" geophysical survey at Yampi focussed on the regional Ruins Dolerite which was identified as the key control on nickel and copper mineralisation at Buxton Resources' Double Magic project. Seventeen high quality targets were identified. The targets were then ranked based on the following criteria (Figure 3):

• • intensity of EM conductor;

• • strength of magnetic anomaly;

• • strike length (discrete bodies are higher priority); and

• • correlation with Ruins Dolerite.

Figure 3: Target ranking criteria

CO1 is a top ranked target (Figure 4). Planning is underway to also drill CO2, BO1, BO2 and BO3 at the start of field season in April 2019. Historical stream sediment sampling has shown anomalous copper and nickel in the vicinity of the EM targets (Figure 4).

Figure 4: CO1 Mag/EM/Ruins Dolerite target with Ni stream sediment sampling shown left and

Cu shown right

ACQUISITION AGREEMENT

Tychean has the right to acquire all of the shares in IronRinger the holder of the Yampi project and the Rocky Dam project near Kalgoorlie (see ASX Release dated 7 November 2018).

The agreement is subject to a number of conditions including shareholder approvals, transfer of E04/2315 from the existing holder to IronRinger and approval to the change of control of IronRinger pursuant to military reserve access agreements that relate to the Yampi tenements.

JORC TABLE

Attached to this announcement is a comprehensive JORC Table in relation to the above information. In addition, the JORC Table covers all of the IronRinger projects and serves not only as a reference point for this announcement but also future announcements.

For further information, please contact:

Duncan Gordon

Chairman

Tychean Resources Ltd.

[phone]

COMPETENT PERSON'S STATEMENT

The information in this announcement that relates to geology and exploration results and planning was compiled by Mr Paul Payne, who is a Fellow of the AusIMM and a director and shareholder of the Company. Mr Payne has sufficient experience which 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 Payne consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.