VDM : CdB Copper Project--Assay confirm high grade mineralisation

ASX ANNOUNCEMENT

15 March 2019

Assay Results Confirm High Grade Copper Mineralisation at CdB Copper Project

Highlights:

• o Twenty (20) of the forty-one (41) holes returned assays grading better than 0.5% Cu.

• o Mineralisation generally intersected in zone that extends from surface to 50m beneath surface.

• o Better assays include:

  • ➢ 6.35m @ 3.66% Cu from 47.1m, including 2.95m @ 6.5% Cu from 49.5m in Hole 6 (located in Area 3);

  • ➢ 8.67m @ 2.94% Cu from 47.5m, including1m @ 4.6%Cu from 50.5m in Hole 7 (located in Area 3);

  • ➢ 8.2m @ 1.71% Cu from 50.9m in Hole 26 (located in Area 3); and

  • ➢ 4m @t 2.13% Cu from 34m in Hole 16 (located in Area 4).

• o Further assays with composites to be carried out for determining the contents of cobalt, gold and silver.

• o Planning for the second phase of drilling at CdB is underway and can be expected to build upon the success of the first phase

• o The second phase of drilling is expected to comprise a further 10,000m of diamond drilling, utilising four rigs. This second phase is expected to commence in early May 2019 weather permitting.

• o Second phase to target predominantly Areas 4 and 5.

VDM Group Limited (VDM or the Company) (ASX: VMG) is pleased to advise that it has received the chemical assay results from ALS for the first phase of drilling at the Company's 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 approximately 385 km south of the Angolan capital city of Luanda.

The CdB Project covers 3,854kms2 and is approximately 32kms from East to West and 129kms from North to South.

The CdB Project 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 MININGMr 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 One Drilling Program comprised a total of 41 diamond core holes for a cumulative total of 3,903 metres. Twenty (20) holes were drilled in Areas 1, 2 and 3 to verify historical information; whilst twelve (12) holes were drilled in Area 4 and nine (9) holes in Area 5 and were aimed at investigating targets generated from geological mapping, geochemical and geophysical information.

A map of the location of the drill-holes overlaid on the tenement blocks follows at Figure 3 in Appendix A.

The depths of the completed diamond core holes varied from 31 metres to 273 metres with an average depth of 95 metres. A list of the hole collars is included at Table 1 in Appendix A.

A total of 843 samples were collected from the half cores of the mineralised intervals and boundaries. The samples were crushed before being sent to ALS in Guangzhou, China for analysis.

Assays results returned reflect that twenty (20) of the forty-one (41) holes contained mineralisation grading better than 0.5% Cu. And that the mineralisation generally was intersected in zone that extends from surface to 50m beneath surface.

Better assays include:

• ➢ 6.35m @ 3.66% Cu from 47.1m, including 2.95m @ 6.5% Cu from 49.5m in Hole 6 (located in Area 3);

• ➢ 8.67m @ 2.94% Cu from 47.5m, including1m @ 4.6%Cu from 50.5m in Hole 7 (located in Area 3);

• ➢ 8.2m @ 1.71% Cu from 50.9m in Hole 26 (located in Area 3); and

• ➢ 4m @t 2.13% Cu from 34m in Hole 16 (located in Area 4).

All assays grading better than 0.5% Cu are shown at Table 2 of Appendix B.

A map illustrating the key asset results achieved is set out as Figure 2 below.

Figure 2: Map illustrating assay results

Further assays with composites to be carried out for determining the contents of cobalt, gold and silver.

Planning for the second phase of drilling at CdB is underway and can be expected to build upon the success of the first phase. The second phase of drilling is expected to comprise a further 10,000m of diamond drilling, utilising four rigs. This second phase is expected to commence in early May 2019 weather permitting.

The Executive Director of Mining - Dr Dongyi Hua comments:

"We have now confirmed significant copper mineralisation from area 1, 2, 3 in our first drilling program. The new identified spots in area 4 will enable us to review these positive results. The confirmation and new spots will enable us to plan our next phrase of drilling with the highest chance of making a significant copper discovery."

For further information please contact:

Michael Fry

Company Secretary VDM Group Limited [phone]

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.

Appendix A: Drill Hole Information

Figure 3: Phase One Drill Plan Overlaid on Tenement Blocks (Areas 1 to 5)