AusQuest Limited announced that exploration will continue at the Cerro de Fierro Copper-Gold Project in southern Peru under its Strategic Alliance (SAA) with South32, following encouraging assay results from the initial reconnaissance phase of drilling completed in December 2018. A detailed assessment of the Cerro de Fierro drill results is currently underway to determine the controls on copper mineralisation intersected by the initial drilling and outline areas for follow-up in-fill drilling. Exploration during first quarter of 2019 will include additional mapping and sampling south of the main target zone to help outline areas for future drilling. It is anticipated that a Phase 2 drilling program could commence in second quarter of 2019. Preliminary assessment of data suggests that the copper mineralisation occurs close to the outer contact zones of the magnetite body, which has had limited drill testing to date. Based on the initial encouragement at Cerro de Fierro, the Company plans to shift its exploration focus in Peru to the Cerro de Fierro ­ Parcoy region in order to advance these prospects more rapidly, as a priority over the next 12 months. The Parcoy IOCG Project is now under development. An IP geophysical survey is planned to commence late in first quarter of 2019 following community agreement, in order to identify targets for additional drilling. The company has also established a strong land position in this region based on its proprietary aeromagnetic data, with an extra 23 mineral concessions (approximately 220km²) now under application. The company is also pleased to advise that two new projects in Australia (Yallum Hill and Hamilton) have been accepted for drill testing under the SAA. Drill preparations have been initiated for both projects and it is expected that these programs will be completed around mid-2019. At Yallum Hill, initial drilling (two holes for 900m) will test magnetic and EM targets identified by surveys completed in 2018. Modelling of EM and magnetic data at Yallum Hill has identified similarities with copper-gold deposits found in the Eastern Succession of north-west Queensland (Ernest Henry). At the Hamilton Prospect, initial drilling will test an IP/magnetic/gravity target for Iron-Oxide Copper-Gold (IOCG) mineralisation. Chololo Project Update: AusQuest also advises that further drilling at the Chololo Porphyry Copper Project in Peru will not be funded under the SAA. The Company remains committed to advancing the Chololo Project and will in due course seek alternate avenues of funding to complete a second round of drilling which it believes could locate a preserved porphyry copper resource buried beneath the cover sediments.