Terrain Minerals : 11/01/2017 - Exceptional Drill Results at Great Western Gold Project

ASX RELEASE 11 January 2017

ABN: 45 116 153 514

ASX: TMX

Exceptional Drill Results at Great Western Gold Project

Terrain Minerals Limited (ASX: TMX) is very pleased to announce these exceptional drilling results from the December 2016 Great Western - Stage 1 drilling campaign comprising of 18 RC holes for 1,308 metres. Refer to Diagram 1 and Table 1. This program has achieved both desired outcomes and returned wider intersections and higher grade than expected in many holes. Firstly; Infill drilling at the eastern end aimed at lifting the majority of the 42% of the JORC 2012 resource in this location (see ASX release dated 24/08/2015) from Inferred to Indicated status. All holes intersected mineralisation. Some of the better intersections include:

• GWRC0120 - 6m @ 1.56g/t Au from 37m down hole

• GWRC0121 - 5m @ 6.98g/t Au from 88m down hole

• GWRC0123 - 2m @ 12.1g/t Au from 82m down hole

  & 2m @ 24.4g/t Au from 99m down hole

• GWRC0124 - 2m @ 3.12g/t Au from 26m down hole

  Secondly; The remaining holes targeted the previously poorly tested shallow mineralised zones in and around historical workings. Some of the better intersections include:

• GWRC0126 - 7m @ 4.43g/t Au from 18m down hole

• GWRC0129 - 3m @ 3.92g/t Au from 27m down hole

• GWRC0130 - 8m @ 3.20g/t Au from 25m down hole

• GWRC0131 - 3m @ 26.6g/t Au from 8m down hole

• GWRC0132 - 3m @ 3.76g/t Au from 14m down hole

• GWRC0135 - 5m @ 1.97g/t Au from 13m down hole

The above shallower intersections have the potential to improve the grade response in the mineral resource model (when updated) in this location and have a major effect to Great Western's required start-up capital, with the possibility of bringing forward positive cash flow in the current mining studies.

These successful results will now be incorporated into an updated JORC resource model. The updated model will then be incorporated into current ongoing scoping studies. The market will be updated accordingly.

A total of 18 RC holes for 1,308m were drilled in December 2016 (for drill hole details see Table 1 and Diagram 1). The aim of the programme was twofold;

• 7 holes for 654m targeted mineralisation on the eastern portion of the currently defined resource to increase confidence in continuity of the lodes and lift 42% of the resources from inferred to indicated status so they can be incorporated into the current scoping studies.

• 11 holes for 354m were completed to test previously inadequately defined shallow oxide zones in and around the historical workings.

All drilling intersected the targeted zones in the expected positions. Significant mineralised intersections (see Table 1) were associated with quartz veining and sulphides (or their weathered equivalents). Host lithologies comprised granite or dolerite as expected.

The above results were all generated from standard 1m intervals. A series of composite samples that returned low grade mineralisation will be resampled for a total of 142 (1m samples) and, if significant results emerge, these will be released in due course.

The high grade intersections within the oxide zone are considered very encouraging. It is anticipated that results from the shallow oxide drilling has the potential to enhance the modelled grade in the mineral resource when updated in this location and potentially have a significant effect to Great Western's required start-up capital due to a possible increase in grade within these upper zones. These results have the potential to challenge all past assumptions.

These successful results will now be incorporated into an updated JORC resource model. The updated model will then be incorporated into current ongoing scoping studies. The market will be updated as this work progresses accordingly.

Other:

In addition, several grab samples were also taken over the two historic heap leach pads containing historic battery sands. Results indicate additional follow up work is warranted. A more detailed sample program is being designed and will be executed in due course.

The drilling has also captured sufficient sample material across all ore types to be used for metallurgical analysis and ensuring robust QA/QC protocols and analysis occur. These samples are being stored at a secure location. All efforts are now focussed around advancing the Great Western Gold project towards production.

Diagram 1. Drill Collar Locations

Hole_ID	GSDA94_East	GDA94_North	Orig_RL	Depth	Dip	Azi	From	To	Interval	Intersections >1.0g/t Au
GWRC0119	321787	6866249	513	54	-60	360	45	46	1	1m at 1.2g/t Au from 45m
GWRC0120	321763	6866259	514	72	-55	360	31	37	6	6m at 1.56g/t Au from 31m
GWRC0121	321762	6866222	514	138	-64	360	88	93	5	5m at 6.98g/t Au from 88m,
including	91	93	2	2m at 15.3g/t Au from 91m
98	100	2	2m at 1.70g/t Au from 98m
GWRC0122	321737	6866254	514	102	-60	360	45	47	2	2m at 1.13g/t Au from 45m
55	56	1	1m at 1.73g/t Au from 55m
GWRC0123	321737	6866234	514	138	-60	360	62	63	1	1m at 3.09g/t Au from 62m
66	67	1	1m at 4.85g/t Au from 66m
82	84	2	2m at 12.1g/t Au from 82m
including	83	84	1	1m at 17.7g/t Au
99	101	2	2m at 24.4g/t Au from 99m
including	100	101	1	1m at 39g/t Au from 100m
112	113	1	1m at 2.07g/t Au from 112m
GWRC0124	321712	6866273	514	60	-55	360	6	7	1	1m at 1.58g/t Au from 6m
28	29	1	1m at 1.36g/t Au from 28m
GWRC0125	321712	6866265	514	90	-60	360	19	21	2	2m at 1.95g/t Au from 19m
26	28	2	2m at 3.12g/t Au from 26m
GWRC0126	321637	6866301	514	30	-60	360	4	5	1	1m at 1.32g/t Au from 4m
8	9	1	1m at 1.24g/t Au from 8m
18	25	7	7m at 4.34g/t Au from 18m,
including	23	24	1	1m at 15.6g/t Au from 23m
GWRC0127	321610	6866298	515	30	-55	330	14	18	4	4m at 1.15g/t Au from 14m
21	24	3	3m at 1.49g/t Au from 21m
GWRC0128	321578	6866290	515	36	-58	360	19	20	1	1m at 1.01g/t Au from 19m
22	26	4	4m at 1.41g/t Au from 22m
GWRC0129	321558	6866288	516	48	-60	360	27	30	3	3m at 3.92g/t Au from 27m
GWRC0130	321537	6866292	516	48	-58	15	25	33	8	8m at 3.20g/t Au from 25m
including	30	32	2	2m at 6.51g/t Au from 30m
GWRC0131	321515	6866308	517	18	-60	360	8	11	3	3m at 26.6g/t Au from 8m
including	8	9	1	1m at 65.2g/t Au from 8m
14	15	1	1m at 2.25g/t Au from 14m
17	18	1	1m at 1.69g/t Au from 17m
GWRC0132	321514	6866299	516	30	-60	10	14	17	3	3m at 3.76g/t Au from 14m
including	19	20	1	1m at 7.21g/t Au from 19m
GWRC0133	321497	6866312	517	36	-60	360	8	9	1	1m at 5.34g/t Au from 8m
GWRC0134	321497	6866303	517	30	-60	360	17	18	1	1m at 1.64g/t Au from 17m