Constellation Resources Limited ('the Company' or 'Constellation') is pleased to announce that the Company has completed both a detailed high-resolution airborne magnetic survey and a semi-regional gravity survey over tenements E28/2403 (70% Constellation, 30% Enterprise Metals Limited (ASX: ENT)) and E28/2738 in the Fraser Range.

The processing and interpretation of these surveys has led to the identification of ten high priority drill targets across the tenements, on which the Company intends to commence an air-core drilling program in the next quarter.

The completion of these initial geophysical programs represents the early stages of a systematic exploration approach to target nickel sulphides across the Company's northern landholdings. The datasets obtained from the surveys will assist in identifying the presence of potential mafic intrusions (host of nickel-copper-cobalt mineralisation in the Fraser Range) that may be concealed under cover.

Contact:

Peter Woodman

Tel: +61 8 9322 6322

HIGH PRIORITY TARGETS IDENTIFIED

Geophysical datasets from both the detailed high-resolution airborne magnetic survey and semi-regional gravity survey over tenements E28/2403 and E28/2738 have now been processed and interpreted by Peter Muccilli of Unearthed Geological Consulting and Russell Mortimer of Southern Geoscience Consultants. The processing and interpretation of the datasets has led to the identification of ten high priority drill targets across the two tenements.

Each target has been identified as a potential mafic intrusion that is concealed under cover and exhibits a circular or ellipsoidal morphology that appears to warp the older stratigraphy around it. In addition, there are correlating gravity highs that could indicate more mafic-ultramafic (denser) compositions.

FUTURE WORK PROGRAMS

The Company's exploration focus is now on progressively air-core drill testing the selected targets. The initial drilling program will test the targets located north of the Trans-line Railway. Drill hole positioning will be optimised by localised 3D inversion modelling of the magnetic/gravity data and joint compilation of the inversion outcomes.

The key aim of the drilling program is to confirm the presence of mafic intrusions, in particular, the intrusions with favourable litho-geochemical characteristics. If the drill program is successful in confirming a prospective intrusion, more detailed geophysical and drill programs will be undertaken, to determine if there are any economic concentrations of nickel sulphides hosted within the intrusion. The Company is in the process of selecting an appropriate drilling contractor and obtaining all necessary government approvals.

ABOUT THE FRASER RANGE TENEMENTS

In the Fraser Range, certain mafic intrusion suites are prospective to host nickel-copper sulphide mineralisation. The region is currently experiencing high levels of exploration activity for nickel following the Nova, Silver Knight and Mawson (formerly Area D) discoveries.

The Company's tenements are located on the eastern margin of the northern Fraser Range gravity high and sit in between Legend Mining Limited's (ASX: LEG) Mawson discovery and Galileo Mining Limited's (ASX: GAL) Lantern Prospect. The tenements form part of the Company's Orpheus Project which includes a 70% interest in E28/2403 by way of a joint venture with Enterprise Metals Limited ('Enterprise') (ASX: ENT) and a 100% interest in E28/2738. Pursuant to the joint venture agreement between the Company and Enterprise, the Company is responsible for sole funding all joint venture activities on the tenements, which form part of the joint venture, up to completion of a bankable feasibility study.

Based on the processing and interpretation of the recent geophysical survey results, the Company has a made an application to the Department of Mines, Industry Regulation and Safety to acquire a further 6km2 of prospective ground adjacent to E28/2403. As at the date of this announcement, the Company holds a 100% interest in application ELA28/2957.

FORWARD LOOKING STATEMENTS

Statements regarding plans with respect to Constellation's project are forward-looking statements. There can be no assurance that the Company's plans for development of its projects will proceed as currently expected. These forwardlooking statements are based on the Company's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements. The Company makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement. This ASX Announcement has been approved in accordance with the Company's published continuous disclosure policy and authorised for release by the Company's Managing Director, Peter Woodman.

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