Devex Resources : Commencement of diamond drilling at Junee Project, NSW

23 January 2020

Project-scale drill programme begins with maiden diamond hole

at the Junee Porphyry Copper-Gold Project, NSW

Initial drilling to test buried Riversdale magnetic target, adjacent to historical copper mineralisation

Highlights

• Diamond drilling has commenced to test for porphyry copper-gold mineralisation associated with a large buried magnetic anomaly identified within the Riversdale Prospect, part of the Junee Copper-Gold Project in NSW.
• This marks the beginning of a project-scale drilling campaign which is planned to continue over the coming months.
• No exploration drilling has been conducted on Junee for over 25 years, despite the project's strategic location in the Lachlan Fold Belt - a major geological province hosting several of Australia's largest porphyry deposits.
• This magnetic anomaly combined with data from previous exploration is suggestive of a large-scale porphyry copper-gold system like that seen at Newcrest Mining Limited's (ASX: NCM) major Cadia-Rideway Mine.

DevEx Resources (ASX: DEV or "the Company") is pleased to advise that it has commenced diamond drilling at the Company's 100%-ownedJunee Copper-GoldProject in New South Wales.

Drilling will test for porphyry copper-gold mineralisation associated with a large buried magnetic anomaly within the Riversdale Prospect area. This anomaly lies beneath and adjacent to porphyry- hosted copper sulphide veins encountered in historical drilling.

DevEx plans to test the Riversdale magnetic anomaly with one diamond drill hole to a depth of approximately 600m (Figure 1).

Planning of an extensive air-core (AC) drilling campaign designed to test several other nearby high- priority targets over the coming months is also well advanced.

The Target

The western portion of the Riversdale Prospect (Riversdale West) was first explored by Jododex (in 1981), resulting in the identification of a copper-bearing porphyry intrusion adjacent to a silicified fault zone south-west of the Murrumbidgee River. Copper carbonate was observed in several localities within the porphyry and two rock chip samples returned assays of 1.2% and 2.0% copper.

North Limited followed up on these results with four drill holes targeting the elongated magnetic anomaly (see Figure 1and 3).

All four drill holes intersected monzonite with Hole RP2, drilled to 100m, encountering minor veins of chalcopyrite (copper sulphide) and epidote vein alteration. The peak assay result from this drilling was 2m @ 0.15% copper and 80ppm molybdenum from 86m.

Recent magnetic inversion modelling of the regional airborne magnetics undertaken by DevEx suggests that the main magnetic source generally lies about 200m below surface and has not been tested by the previous drilling (see Figure 1). There is no mention of magnetic minerals within the North drill logs. This is the same for Riversdale East, which is interpreted to represent a complex series of magnetic anomalies associated with the same monzonite porphyry complex.

Mineralisation in porphyry copper-gold deposits is commonly associated with magnetite that can produce strong magnetic anomalies proximal to the main area of copper-gold mineralisation. At Newcrest Mining Limited's Cadia Valley Operations (Cadia-Rideway), the Ridgeway Deposit shows close spatial association between copper-gold mineralisation and magnetite enrichment.

With the exception of the small porphyry outcrop near hole RP2, the majority of the target areas are masked by recent transported sediments, and drilling is now warranted.

Figure 1: Riversdale Prospect - Magnetic Inversion Model Slice showing modelled depth to magnetic source. Including porphyry outcrop (with malachite) adjacent to hole RP2, all drill holes encountered monzonite. Magnetic Inversion modelling indicates drilling did not test the main source of the magnetic anomalies at Riversdale. See Figure 2 for location.

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Figure 2: Diamond drill rig mobilised on site at the Junee Copper-Gold Project, NSW.

Future Drilling

In addition to the Riversdale diamond drilling, the Company is currently advancing several other prospects within the granted Junee Tenure, including:

1. Nangus Road

The Nangus Road Prospect represents a broad buried magnetic anomaly of similar size and amplitude to the magnetic anomaly which maps the copper-gold bearing monzonite intrusion at Cooba (see Company ASX announcement on 5th March 2019). At Cooba, located off the Company's tenement, previous exploration identified surface copper and gold mineralisation within scattered monzonite float. Age dating and chemistry by the GSNSW in 2017 identifies the quartz monzonite at Cooba as high-potassium in nature and contemporaneous with the mineralised intrusions at Cadia-Ridgeway and Goonumbla (Northparkes).

The Company is currently preparing a plan for AC drilling to test the north-south fault corridor south of the Cooba Monzonite from Nangus Road to the Riversdale East Prospect, where shallow sands and deep soils mask the underlying prospective stratigraphy.

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2. Riversdale North and Billabong Creek

Recent exploration (2019) has identified several areas of surface copper, gold and base metal mineralisation interpreted to be associated with porphyry copper-gold alteration. Assays and mapping identified oxidised chalcopyrite associated with epidote veins and alteration, including a small gold + base metal gossan assaying 2.81g/t Au, 0.4% Cu and 1.3% Pb (see Company ASX announcement on 11th September 2019).

The Company is currently carrying out broad-spaced IP geophysics over these areas to map any potential underlying sulphide targets for drilling.

Junee Project Background

The Company's 100%-ownedJunee Copper-GoldProject is located within the Macquarie Arc of NSW, a major geological belt which hosts the world-class porphyry copper-gold deposits Cadia- Ridgeway (Newcrest Mining) and Northparkes (China Molybdenum Co Ltd).

In the past 24 months, the Company has embarked on an exploration strategy aimed at identifying porphyry copper-gold opportunities within the Junee Project Area following a recent assessment by the Geological Survey of New South Wales1 ('GSNSW') that rocks within the Junee Project, the Junawara Volcanics, are considered to be the southern extension of the Junee-NarromineVolcanic Belt and therefore prospective for Cadia-Ridgway and Northparkes-type deposits.

Age dating and chemistry by the GSNSW found that these volcanics contain monzonitic intrusions that are high-potassium in nature and contemporaneous with the mineralised intrusions at Cadia and Goonumbla (Northparkes).

Since the discovery of the Northparkes (copper, gold) and Cowal (gold) deposits in NSW, the Junee- Narromine Volcanic Belt in NSW continues to see extensive exploration activity by companies including China Molybdenum Co Ltd, Newmont Exploration Pty Ltd, Freeport-McMoran Exploration Australia Pty Ltd, Evolution Mining Limited, Sandfire Resources NL and St Barbara Limited.

At Junee, the majority of the prospective rocks are masked by transported cover (1 to 20m thick) which limits effective surface exploration to isolated areas of outcrop and shallow cover. In contrast to the intense exploration drilling activity within the main Junee-Narromine Volcanic Belt to the north, the Junee Project has had very little systematic exploration with previous cursory drilling within the Project dating back 25 years ago.

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Figure 3: Junee Project, NSW, location of planned diamond drill hole and prospects, where several porphyry copper-gold targets have been identified based on mapping, historical exploration and interpretation of airborne magnetics (underlay) and gravity.

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Figure 4: Location of the Junee Project, NSW, within the Lachlan Fold Belt of New South Wales. The Junee Project lies adjacent to the Gilmore Suture and contains rocks of the Macquarie Arc (including the Junawarra Volcanics), which hosts several of Australia's largest porphyry copper-gold deposits.

3. Source: Alkane Resource Ltd ASX Announcement 9-Sept-19

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This announcement has been authorised for release by the Board.

Brendan Bradley

Managing Director

For further information, please contact: Brendan Bradley, Managing Director DevEx Resources Limited Telephone [phone]

For media inquiries, please contact: Nicholas Read

Read Corporate Investor Relations Telephone: [phone]

Examples of Bornite

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REFERENCES

1East Riverina Mapping Project - Some Highlights and Implications, Eastlake and Trigg

COMPETENT PERSON STATEMENT

The information in this report that relates to geophysical Exploration results is based on information compiled by DevEx Resources Limited and reviewed by Mr Brendan Bradley who is the Managing Director of the Company and a member of the Australian Institute of Geoscientists. Mr Bradley is a shareholder of DevEx Resources Limited. Mr Bradley has sufficient experience that is relevant to the styles of mineralisation, the types of deposits under consideration and to the activities 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 Bradley consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The Information in this report that relates to previous exploration activities within the Junee Project is extracted from the ASX announcements titled:

• "DevEx Further Expands Potential of Junee Copper-Gold Project, NSW with Identification of Additional Porphyry Targets" released on 5th March 2019 and;
• "New copper and gold mineralisation supports potential for large-scale porphyry system at Junee, NSW" released on 11th September 2019.

Both of which are available on www.devexresources.com.au.

The company confirms that it is not aware of any new information or data that materially affects the information included in the above original market announcements. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

FORWARD-LOOKING STATEMENT

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

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