MOD Resources Ltd. to provide the following update on activities planned for the March quarter 2017 at the company's copper/silver projects in Botswana. The company's T3 Project Area, part of a joint venture with AIM-listed Metal Tiger Plc (30%), will be the focus of MOD's exploration and T3 development campaign during 2017. T3 is a new discovery which may potentially form part of a much larger sediment hosted copper footprint in the Kalahari Copper Belt. The 2017 drilling program commenced on 7 January, initially using two diamond core and one RC drill rigs, with three additional rigs available on site as needed. Eleven exploration targets have been identified for drilling within the 983km2 T3 Project Area during the Quarter. A substantial soil geochemical program covering the T3 Project Area is also underway and a 3D IP survey commences present to `map' the T3 host sequence and identify deeper structural targets. As part of the T3 PFS, a program of geotechnical and metallurgical drilling for the planned T3 pit has commenced. Pump testing of existing and planned water bores is also expected to start mid-February to identify potential sources of process water for the planned treatment plant. Exploration priorities include: Resource extension drilling directly east and west of planned T3 pit; Diamond drilling to follow up base metal (Pb/Zn) sulphides intersected up to 2km west of T3; RC drilling to target the T3 host sequence at shallow depth in five areas along T3 Dome; 11,000 sample soil geochemical program to cover entire 60km long T3 Dome; 3D IP trial survey across T3 Dome to map host sequence and define new targets; 3D inversion modelling of low altitude, close spaced magnetic data underway; and Diamond drilling to test existing and new magnetic, IP and Cu soil anomalies at depth. T3 PFS priorities include: HQ diamond drilling to provide geotechnical information to assist pit design; Resource infill drilling to test extent of high grade bornite vein zone within planned pit; Metallurgical drilling for further test work on the three sulphide ore domains; Drilling and pump testing of proposed process water bores in area of T3 pit; and Baseline environmental studies and preparation of environmental management plan. The first RC drilling for 2017 is testing three separate soil anomalies which occur over 5km along the northern flank of a distinctive magnetic feature, approximately 3km northwest of T3. RC drilling will then test a 4km long zone of folding of the host sequence interpreted from magnetics approximately 6km west along strike from T3. There is no drilling in either of these areas. Three additional RC drilling targets have been identified based on existing untested Cu soil anomalies along the T3 Dome. Further RC targets are expected to be generated from the soil sampling program which is planned to comprise approximately 11,000 samples covering T3 Dome. Diamond drilling will initially test down dip from disseminated base metal sulphides (galena, sphalerite, pyrite and chalcopyrite) intersected within the interpreted T3 host sequence in widely spaced RC drill holes extending up to 2km west of T3, and separately 1km southeast of T3. Most of these RC holes were drilled in late 2016. By analogy with the T3 deposit, although the base metals are unlikely to represent economic grades, they may be a pathfinder for deeper copper mineralisation. Further diamond drilling is then planned to test the large IP anomaly interpreted approximately 1km down dip from T3 (at approximately 500m depth). Assay results received recently for the second diamond drill hole MO-3R-02D (previously MO-T3U-02D) to test this target were very positive. MO-3R-02D intersected disseminated and narrow vein hosted chalcocite and bornite mineralization which produced an intersection of 8m @ 0.74% Cu and 10g/t Ag from 491m downhole depth, including 1.0m @ 1.1% Cu and 15g/t Ag from 498m. This intersection is considered encouraging given the size of this as-yet poorly defined anomaly and the occurrence of veining and bornite within the host sequence. Drilling is expected to resume when results from the 3D IP survey are available. Five diamond drill holes will be drilled to infill the high grade bornite vein zone in the western part of the T3 pit which remains widely drilled. Six additional holes will be drilled to test extensions 100m east and west of the current resource which remains open. Depending on the success of this infill and extension drilling, further drilling may be carried out on adjacent sections. Diamond drilling is also planned to commence later in the March Quarter to test for potential depth extensions to MOD's 100% owned high grade T1 (Mahumo) resource. The objective is to scope out the potential for a substantial increase in the size of the resource below current drilling. MOD's strategy is to progress development and exploration simultaneously to drive shareholder value. Following the placement announced on 19 December 2016, MOD now has sufficient funds to conduct a very active exploration and PFS campaign. The MOD/Metal Tiger JV has also strengthened its position by gaining two year extensions over the majority of its substantial licence holdings and by expanding the two experienced and committed teams to develop T3 and explore for the next significant discovery in the Kalahari Copper Belt.