VDM : Brief Exploration Update--Cbd Copper Project

ASX ANNOUNCEMENT

24 July 2019

Brief Exploration Update - CdB Copper Project

Highlights:

1. Phase 2 drilling to date has comprised forty-seven (47) holes for 2,751.66 metres.

1. Holes are largely to a depth of about 60 metres and are targeting near to surface mineralisation.

o Phase 2 drilling to date has focussed on Areas 3 and 4, with thirty-two (32) holes drilled in Area 4 for 1,881.21 metres and fifteen (15) holes drilled in Area 5 for 870.45 metres.

o Drilling is ongoing and is expected to continue to November 2019 or until weather restricts access.

1. 395 samples have been collected for assay

VDM Group Limited (VDM or the Company) (ASX: VMG) is pleased to advise that it Phase 2 drilling is progressing well at its Cachoeiras do Binga (CdB) Copper Project in Angola (65% owned in VDM).

The CdB Project is located east of the regional capital and coastal city of Sumbe (airport and port) and ~385km south of the Angolan capital city of Luanda.

The CdB Project covers 3,854kms2 and is ~32kms from East to West and ~129kms from North to South, and shows characteristics of a typical central African sediment-hosted copper deposit.

BOARD & MANAGEMENT

Mr Luk Hiuming

NON-EXECUTIVE CHAIRMAN

Dr Dongyi Hua

EXECUTIVE DIRECTOR OF MINING

Mr Michael Fry

DIRECTOR

COMPANY SECRETARY

REGISTERED OFFICE

Suite 2, Level 2, 123 Adelaide Terrace, East Perth, WA 6004

POSTAL ADDRESS

PO Box 3347

East Perth, WA 6892

CONTACT DETAILS

Tel: [phone]

WEBSITE

vdmgroup.com.au

SHARE REGISTRY

Computershare Investor

Services Pty Limited

GPO Box 2975

Melbourne, VIC 3001

Tel: [phone]

ASX CODE

VMG

Figure 1: Location Map - CdB Project

The Phase Two Drilling Program commenced on 6 May 2019 and to date a total of forty- seven (47) diamond core holes have been drilled for a cumulative total of 2,751.66 metres.

The drilling to date has focused on Areas 3 and 4, with thirty-two (32 holes having been drilled in Area 4 and fifteen (15) holes were drilled in Area 5.

A map of the location of the drill-holes overlaid on the tenement blocks follows at Figure 2 in Appendix A.

The depths of the completed Phase Two diamond core holes have varied from 32 metres to 87 metres with an average depth of ~60 metres. A list of the hole collars is included at Table 1 in Appendix A.

A total of 395 samples have been collected from the half cores of the mineralised intervals and boundaries.

Drilling is ongoing and expected to continue to the onset of the rainy season, or until weather restricts access.

The Executive Director of Mining - Dr Dongyi Hua comments:

"Drilling is progressing well. The drilling crew is running 24 hours a day, 7 days a week with three rigs operating, good progress is being made."

For further information please contact:

Michael Fry

Company Secretary VDM Group Limited [phone]

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Competent Person Statement

The information in this release that relates to sampling techniques and data, exploration results, geological interpretation and Exploration Targets, Mineral Resources or Ore Reserves has been compiled by Mr Pengfei Xiao from SRK Consulting China Ltd, a Member of the Australian Institute of Mining and Metallurgy (MAusIMM). SRK is engaged by VDM Group Limited providing independent consulting services and Mr Xiao has twice visited the CdB Project, respectively in May and November 2018.

Mr Xiao has sufficient experience of relevance to the styles of mineralisation and 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 Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Xiao consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Forward looking statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

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Figure 2: Drill Plan Overlaid on Tenement Blocks (Areas 1 to 5)

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3

4

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DH_2019_phase 2	1

DH_2018_Phase 1

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Table 1: Information about the drilled hole locations

1. Diamond Drilling in 2018: Phase 1- drilled holes

		Depth	Northing	Easting
No	Hole_ID	(m)	(m)	(m)	RL (m)	Area	Type
1	B50001	236.39	8,789,351	399,799	80	5	DD
2	B50002	241.59	8,790,150	399,793	83	5	DD
3	B5W0801	264.61	8,789,348	398,991	93	5	DD
4	JS3_C5	124.75	8,787,515	400,233	116.67	5	DD
5	JM_C5	121.51	8,787,206	400,290	118.52	5	DD
6	JS33_C3	81.64	8,783,412	399,865	166.76	3	DD
7	JS29_C3	160.27	8,783,892	399,491	144.65	3	DD
8	JS21_C3	101.65	8,784,038	398,868	108.44	3	DD
9	B4W1701	121.2	8,783,739	398,095	12.72	3	DD
10	B4W1901	161.38	8,781,431	397,913	19.17	4	DD
11	B4W2401	113.63	8,784,981	397,416	55.84	4	DD
12	B4W2402	74.47	8,784,806	397,421	99.2	4	DD
13	B4W2801	273.14	8,784,995	397,012	84.72	4	DD
14	B4W2802	31.42	8,785,174	397,036	74.26	4	DD
15	B4W2803	39.04	8,785,349	397,007	61.7	4	DD
16	B4W2403	71.22	8,780,803	397,330	90	4	DD
17	B4W2404	64.23	8,780,622	397,423	101	4	DD
18	JS18_C2	78.14	8,782,603	398,715	76.85	2	DD
19	B4W2301	63.21	8,780,430	397,511	104	4	DD
20	JS4B_C1	36.21	8,781,245	398,919	149	1	DD
21	JS3_C2	72.3	8,781,966	398,981	140	2	DD
22	B4W2405	66.97	8,780,238	397,410	122.43	4	DD
23	B3W1201	47.24	8,783,445	398,712	130.48	3	DD
24	B3W0702	50.68	8,783,481	399,087	148.44	3	DD
25	B3W0701	82.08	8,783,888	399,091	130	3	DD
26	B3W0301	69.15	8,783,493	399,483	168	3	DD
27	B3W1202	40.49	8,783,141	398,570	107	3	DD
28	B3W0703	47.25	8,784,239	399,084	145.14	3	DD
29	B3W0401	81.13	8,783,139	399,368	129.94	3	DD
30	B3W0801	71.29	8,783,091	398,926	123.45	3	DD
31	B3E0101	43.8	8,783,882	399,920	161.04	3	DD
32	B3W0302	69.94	8,784,281	399,498	159	3	DD
33	B3E0102	58.56	8,784,296	399,837	147.54	3	DD
34	B3E0103	83.48	8,783,093	399,880	170.56	3	DD
35	B3E0104	44.13	8,784,663	399,953	133.24	3	DD
36	B3E0401	81.13	8,784,284	400,192	176	3	DD
37	B5E0801	61.48	8,789,550	400,614	140	5	DD
38	B5E0201	71.29	8,790,669	400,021	82.14	5	DD
39	B4W6001	65.3	8,785,376	393,867	5.04	4	DD
40	B5W5601	98.48	8,786,270	394,187	7.84	5	DD
41	B5E0901	137.44	8,799,396	400,700	41.54	5	DD

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