Apollo Minerals : Priority Targets Identified From Review of Salau Database

ASX RELEASE | 21 AUGUST 2017 | ASX:AON

PRIORITY TARGETS IDENTIFIED FROM REVIEW OF EXTENSIVE SALAU MINE EXPLORATION AND PRODUCTION DATABASE Highlights:

• Initial review of exploration and production database for the Salau mine completed
• Database includes assays and logs from over 650 holes and mine level plans and geological mapping for 24 kilometres of underground development
• Priority tungsten-copper-gold exploration targets identified within, and immediately adjacent, to the Salau mine
• Substantial news flow expected over the coming months as implementation of the planned work program continues

  Apollo Minerals Limited is pleased to report on progress following an initial review of the extensive database for the Couflens Tungsten-Copper-Gold Project.

  The Company recently completed the acquisition of an 80% interest in the Couflens Project and immediately commenced a review of the available data, focusing initially on data from the historical Salau mine which was one of the world's highest-grade tungsten mines when it operated until the mid-1980's.

  The database is extensive and comprises a combination of high quality geological and drilling data, as well as underground mining and processing data, covering all exploration and production during the mine's 15 years in operation.

  The database, which has now largely been converted to digital format and integrated into a 3D model, includes:

  • Assay data and geological logs for more than 650 holes covering more than 45,000 metres of underground and surface drilling

  • Mine level plans and cross sections incorporating geological mapping of the existing 24 kilometres of underground mine development, geological logging of drill holes, and related assay data

  • Production records and information on the principal mining and processing methods, including the flowsheet used to produce tungsten concentrate from the historical processing facilities housed underground.

The database has rapidly advanced the Company's understanding of the geology, mining and processing of the Salau deposit which represents a significant saving in cost and time and de- risks the upcoming exploration and study programs.

The database is enabling the Company to readily define high priority exploration targets and has the potential to accelerate the definition of a maiden mineral resource estimate.

Apollo Minerals Limited | ASX code: AON | ABN: 96 125 222 924 | www.apollominerals.com.au

PERTH Level 9, BGC Centre, 28 The Esplanade Perth, WA 6000 | [phone] | [phone]

LONDON Unit 3C, Princes House, 38 Jermyn Street London, SW1Y 6DN | [phone] | [phone]

The Company will now finalise the data review process including digitisation and 3D modelling of all available data.

Once initial access and assessment of the existing mine development has been completed, the Company will commence mapping and sampling of mineralisation to verify the historical data and will conduct underground drilling to confirm known zones of mineralisation and test for extensions of these zones.

The initial phase of work is focused on the definition of sufficient high grade tungsten resources to commence mine feasibility studies.

The work program will also test the gold potential within and adjacent to the Salau mine area.

In parallel with the review of historical data for the Salau mine area, the Company is also assessing the regional exploration datasets for the wider 42km² Couflens Project area where additional tungsten-copper-gold prospects have been identified. The available database for the wider project area includes exploration and limited drilling data that will be the subject of future review and announcements by the Company.

For further information contact:

Robert Behets Clint McGhie

Tel: [phone] Tel: [phone]

Email: [e-mail]

COUFLENS PROJECT OVERVIEW

The Couflens Project area is located 130km south of Toulouse, within the Pyrenees region near the border with Spain (Figures 1 and 2). The Couflens Project comprises the Couflens exploration licence (permis exclusif de recherches - "PER") which covers an area of 42km2 centred on the Salau mine, formerly one of the world's highest grade tungsten mines.

Figure 1 - Couflens Project / Salau Mine Location Figure 2 - Couflens ProjectLicence

Salau Mine Production History

The Salau tungsten deposit was discovered in the early 1960's by the Bureau de Recherches Géologiques et Minières ("BRGM"). Les Mines d'Anglade ("LMA") operated the mine from 1971 to 1986, with reported production ~930,000 tonnes of ore at an average grade of 1.5% WO3 to yield ~11,500tonnes of WO3 in concentrate(Figure 3).

Figure 3 - Tonnage and grade from historic tungsten (WO3) production at the Salau Mine

Notwithstanding the existence of remaining resources, the discovery of promising mineralised zones elsewhere (Fonteilles et al., 1989) and the higher grade production from the latter years ofproduction (up to 2.48% WO3),the precipitous fall in the tungsten price caused by Chinese dumping in 1986 led to mine closure.

Underground Mine Development and Infrastructure

The existing UG development and infrastructure includes approximately 24km of adit and decline development providing access to six main mining levels, ore passes, ventilation raises and an UG chamber housing the historical processing facilities (Figures 4 and 5).

Figure 4 - Salau Mine Long Section Figure 5 - Salau Mine 3D Model of UG Development

An initial review of production records for the Salau mine has revealed the principal mining and processing methods utilised during its 15-year operating history from the early 1970's to the mid 1980's.