Winmar Resources : Comparison of previous resource estimates for Lomero

ASX ANNOUNCEMENT

24 January 2016

Comparison of previous resource estimates for Lomero

Winmar Resources Ltd (Winmar) (ASX:WFE) herein provides a comparison table of all four previous independent resource estimates completed for the Lomero gold-silver-copper-zinc deposit in Spain (Lomero) and the substantial supporting information required for it under ASX Listing Rules 5.8 and 5.12.

Table A summarises and compares the main inputs to the resource estimations and the numerical outcomes and confidence category of each estimation. Table B presents assumptions, where known, underpinning the respective estimates ASX Listing Rule 5.8 requires companies to provide additional information to the market when reporting estimates of mineral resources in relation to a material mining project for the first time. ASX Listing Rule 5.12 requires companies to provide additional information to the market when discussing historic or foreign estimates in relation to a material mining project. Accordingly, this announcement also contains the following additional information and statements required under ASX Listing Rules 5.8 and 5.12:

• Listing Rule 5.8.1 requires an itemised technical summary that provides a fair and balanced representation of all information material to understanding the reported estimate. The itemised technical summary is presented here as Table C.
• Listing Rule 5.8.2 requres a separate report presented as an an appendix providing all information that is material to understanding the estimates of mineral resources, in relation to the relevent sections of the JORC Code Table 1. The separate report is presented here as JORC Code Table 1 (Appendix).
• Listing Rule 5.12 requires a series of 10 explanatory statements in relation to historic or foreign estimates. The statements are organised below under the headings used in 5.12.

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TABLE A: Comparison of previous independent resource estimates for the Lomero Au-Ag-Cu-Zn deposit

Year 2002 2007 2012 2015

Consultant SRK Consulting (UK) WardellArmstrong International (UK) Behre Dolbear International (UK) CRS Ingenieria (Spain) & Snowden (Brazil) Reporting Standard

JORC (Pre-2004 Edition) Historic Estimate

NI 43-101

Qualifying Foreign Estimate

NI 43-101

Qualifying Foreign Estimate JORC (2012Edition)

Mining style Open cut + underground Existing underground workings Underground Open cut + underground Sulphide Massive + semi-massive Massive sulphide only Massive + semi-massive Massive sulphide only Indicated 1.6 Mt @ 5.1 g/t Au 3.71 Mt @ 3.26 g/t Au - 2.1 Mt @ 3.0 g/t Au Inferred 19.0 Mt @ 2.9 g/t Au - 6.07 Mt @ 4.25 g/t Au 6.0 Mt @ 2.1 g/t Au Au ounces 2.1 million oz 390,000 oz 830,000 oz 610,000 oz Cut-off grade 50 €/t OC & 70 €/t UG 1.5 g/t Au 1.0 g/t Au 0.5 g/t Au OC, 1.5 g/t Au UG Datasets 1,325 UG rock chip samples

60 UG DDH SFPH 1984-86

9 DDH Outokumpu 1989

9 DDH CMR+NMC 2001

1,248 UG rock chip samples

-

9 DDH Outokumpu 1989

9 DDH CMR+NMC 2001

47 DDH CMR 2003-4

-

-

-

9 DDH Outokumpu 1989

9 DDH CMR+NMC 2001

47 DDH CMR 2003-4

-

-

-

9 DDH Outokumpu 1989

9 DDH CMR+NMC 2001

47 DDH CMR 2003-4

28 DDH PTQ/CRI 2013

• The Historic Estimates or Qualifying Foreign Estimates reported above are not reported in accordance with the JORC Code 2012 Edition.

• A Competent Person has not done sufficient work to classify them as Mineral Resources in accordance with the JORC Code 2012 Edition.

• It is uncertain that further evaluation will enable these estimates to be reported in accordance with the JORC Code 2012 Edition.

• This summary table forms part of the Winmar (ASX:WFE) announcement titled Comparison of Previous Resource Estimates at Lomero, released by the ASX on 24 January 2017.

TABLE B: Assumptions in the independent resource estimates for the LOMERO Au-Ag-Cu-Zn deposit

Year 2002 2007 2012 2015

Consultant SRK Consulting (UK) WardellArmstrong International (UK) Behre Dolbear International (UK) CRS Ingenieria (Spain) & Snowden (Brazil) Gold price US$ 450 / oz US$ 650 / oz US$ 1300 / oz US$ 1400 / oz Silver price US$ 4.90 / oz Unknown US$ 30 / oz US$ 31.1 / oz Copper price US$ 1,650 / t Unknown US$ 10,000 / t US$ 3.40 / lb Zinc price US$ 800 / t Unknown US$ 2500 / t US$ 0.97 / lb Gold recovery 80.0% Unknown 80% 85% Silver recovery 38.7% Unknown 70% 80% Coppern recovery 50.0% Unknown 55% 50% Zinc recovery 78% Unknown 80% 80% Density of Massive Sulphide

Derived from data:

SG = e (0.95 + (S%/82.4))

Probably the CMR formula:

SG = 2.55+((S%/53.4)*2.5 Assumed value of4.5

Validated with new data

SG = e (0.95 + (S%/82.4))

TABLE C: Technical summary for the 2015 Lomero Mineral Resource Estimate Drilling

Techniques The 2015 resource estimate is based 100% on the logging and analysis of HQ and NQ drill-core samples collected via diamond drilling campaigns between 1989 and 2013.

Sampling Drilling was conducted on a nominal 50m x 50m to 100m x 50m grid spacing with some minor infill drilling to 25m x 25m. The drill-holes were angled between -700 and -800 to optimally intersect the mineralized sulphide lens which dips northwards at approximately 35-400.

Geological Interpretation

The database used for the 2015 Resource estimate included a log of the major lithologies, and in many cases mine development, intersected by the drill holes. The mineralised lens consist of massive sulphide (MS) mineralisation in the hangingwall which is in contact with semi-massive and disseminated sulphide (SMS) mineralization, usually found in the footwall. The three dimensional extent of the modelled mineralised body was based on a combination of the logged occurrence of MS and SMS and the distribution of +0.15 g/t Au assay results

Sample Analysis

At the time of the 2015 Resource Estimate, QA/QC of assay data was available only for the most recent holes drilled in 2013. Samples from these holes were crushed (70%,

Estimation Methodology

The distribution of grade throughout the Resource was estimated using Ordinary Kriging supported by standard geostatistical and model validation methods. Correlation between the sulphur content of sample and density was used to calculate density of blocks within the model.

Classification The deposit model is subdivided into Indicated and Inferred categories. The Indicated category of the model falls within a geostatistical envelope defined around drill core samples and assay results obtained in 2013 drill campaign for which QA/QC data was available at the time of estimation. All remaining mineralisation within the deposit model was classified as an Inferred Resource. When determining the distribution of mineralisation within the deposit model, the maximum interpolation from the drill holes data is no greater than 120m. This is considered appropriate for an Inferred Resource. Mining & Metallurgical Assumptions

Part of the Resource is considered to have reasonable prospects of being economically mined by open pit. An optimal pit was defined to constrain the Resource, using mining and economic parameters from similar deposits in the region and around the world and metal prices as average of the last 5 years metal exchange prices.

A further part of the Resource is considered to have reasonable prospects of being mined from underground using sublevel stoping with after paste fill, a method used in others mines located in the Iberian Pyrite Belt (i.e. Aguas Teñidas, Mina Magdalena, Los Frailes Project)

Preliminary metallurgical test work demonstrated that the Lomero ores can be processed by flotation to give copper, lead and zinc concentrates. The gold in the mineralisation is refractory, thus maximum gold recovery requires roasting and cyanidation. These preliminary test works suggest metallurgical recoveries up to 85% for Au, 50% for Pb and Cu and 80% for Ag and Zn. These recoveries were used as recovery parameters for the pit optimisation.

Cut-Off Grades

The 2015 Resource estimate was reported at a 0.5 ppm grade cut-off for the open pit portion of the resource and 1.5 ppm for the underground part. The election of these cut-offs is supported on the cut-offs used for similar deposits in the region.