FYI Resources : Cadoux Maiden Ore Reserve Underpins FYI's HPA Development

ASX RELEASE (ASX: FYI)

24 October 2018

Cadoux Maiden Ore Reserve underpins +50-year life for FYI's HPA

development

Highlights:

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Cadoux's Maiden Probable Ore Reserve Estimation (ORE) of 2.89Mt grading 24.4% Al2O3 demonstrates project quality

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•

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The ORE supports a mine life of +50 years at an 8,000tpa high purity alumina (HPA) production rate ORE focuses on a sub-set of the larger Cadoux kaolin deposit for optimal HPA feedstock characteristics FYI has customised the Ore Reserve to its HPA flowsheet to maximise processing efficiencies and product quality, providing greater operating confidence and management of kaolin feedstock Highlights include additional potential revenue stream opportunities

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Cadoux kaolin deposit remains open for further tonnage increases / mine life expansion.

FYI Resources Limited (ASX: FYI) is pleased to announce a maiden Ore Reserve Estimation (ORE) for its 100% owned Cadoux kaolin project (E70/4673) situated approximately ~220km northeast of Perth, Western Australia. The maiden ORE follows an updated Mineral Resource Estimation (MRE), calculated by CSA Global for the recently published Cadoux pre-feasibility study (PFS) (see ASX announcement 25 September 2018).

FYI Resources Managing Director Roland Hill commented, "Cadoux's Maiden Ore Reserve, estimated by

Orelogy Consulting, has a Probable Ore Reserve estimated at 2.89Mt grading 24.4% Al2O3 (see Table 1 below) and is a significant step forward in the development of our HPA strategy and provides an excellent quality benchmark for our future operations. The ORE affords FYI confidence in the quality and characteristics of the in-ground kaolin at Cadoux and how that translates into a superior and consistent quality feedstock for the HPA processing and refining.

"The Cadoux kaolin ORE should be capable of supporting HPA production for more than 50 years and potential additional project revenue opportunities have been identified from byproducts derived from processing the kaolin. We are very pleased with the source and also in the upgraded confidence in the estimation due to its importance to our overall HPA strategy."

Table 1: Cadoux maiden Probable Ore Reserve Estimation, October 2018

Waste	Total Mining	Strip
Stage
	Al₂O₃ %	Ratio
kT			kT	kT
1	172	24.8	317	489	1.8
2	175	25.1	225	400	1.3
3	175	24.5	255	430	1.5
4	165	22.7	376	541	2.3
5	165	23.4	396	561	2.4
6	192	25.9	290	482	1.5
7	247	26.1	159	406	0.6
8	130	25.5	125	254	1.0
9	92	23.5	167	258	1.8
10	169	25.6	364	533	2.1
11	275	23.0	481	756	1.8
12	347	24.4	535	882	1.5
13	225	24.8	499	724	2.2
14	363	23.5	774	1,137	2.1
All Stages	2,891	24.4	4,961	7,852	1.7

Probable Ore

Note: The Ore Reserve was based on a staged basis using Indicated ore only. Differences may occur due to rounding

53 Canning Highway, VICTORIA PARK, WA 6100www.fyiresources.com.au ACN 061 289 218

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ASX RELEASE (ASX: FYI)

24 October 2018

Ore Reserve Estimate

The Ore Reserve includes the information provided in the previous MRE (see ASX announcement 26 July 2017) and includes data from FYI's reverse circulation (RC) drilling program concluded in May 2018 (see ASX announcement 7 May 2018). The ORE focuses on the Indicated material of the Cadoux resource highlighted in the plan below.

The Ore Reserve was estimated in accordance with the JORC 2012 Code for the Cadoux HPA Project. The Reserve estimate is based on the Mineral Resource, metallurgical test work, processing and engineering designs, the Kwinana processing plant and associated infrastructure, cost estimation, planning inputs, variables and assumptions, marketing and pricing research, all of which is detailed in the mining section of Company's recently published PFS report.

Whilst the ORE estimates a mine life of more than 50 years, financial modelling for the project was completed on the basis of a 25-year life with various operational and financial sensitivities analysed to confirm that the project generates positive economical returns and has a reasonable likelihood of success.

Figure 1: Cadoux maiden Ore Reserve Estimate - mining area of focus

53 Canning Highway, VICTORIA PARK, WA 6100www.fyiresources.com.au ACN 061 289 218

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ASX RELEASE (ASX: FYI)

24 October 2018

Mine Development

The Company's maiden ORE is designed to support the recently released PFS, and provides greater confidence in the mining schedules and economic assumptions of the Cadoux project.

Figure 2: Cadoux kaolin project - potential open pit outline and mine infrastructure layout

Robust Financials

The publication of the Cadoux ORE provides further financial assurance to the project to that outlined under the PFS and the associated production and cashflow models. The ORE supports the robust potential returns and results in leading project metrics for HPA production (please refer to Summary PFS project table)

JORC Code Compliance Statement

The modifying factors considered for the project are detailed in JORC 2012 Table 1, Section 4 (appended to this announcement) regarding Estimation and Reporting of Ore Reserves. These pertain to factors or assumptions regarding to mining, metallurgy, environmental, social, infrastructure, costs, revenue, marketing, project economics, risks and legal matters.

Issue of Shares to Kokardine Kaolin Vendors

Following the release of the positive results of the PFS and now the release of a Probable Ore Reserve supporting a +50 year mining life, the Directors have agreed, with the approval of shareholders, to issue the final 10 million shares to the vendors of Kokardine Kaolin Pty Ltd and the Cadoux kaolin project. Details for the approval of the proposed issue will be set out in the notice of annual general meeting.

53 Canning Highway, VICTORIA PARK, WA 6100www.fyiresources.com.au ACN 061 289 218

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ASX RELEASE (ASX: FYI)

24 October 2018

For more information please contact:
Roland Hill	Simon Hinsley
Managing Director	Investor & Media Relations
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[e-mail]	[e-mail]
JORC Code Compliance Statement

The information in this report that relates to Ore Reserves is based on information compiled by Mr. Steve Craig, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Steve Craig is a full-time employee of Orelogy Consulting Pty Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a

Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves". Steve Craig gives his consent to the inclusion in the statement of the matters based on their information in the form and context in which it appears.

About FYI Resources Limited

FYI is positioning itself to be a significant producer of high purity alumina (4N or HPA) in a rapidly developing: LED, electric vehicle (EV), smartphone and television screen as well as other associated high-tech product markets.

The foundation of FYI's HPA strategy is the superior quality aluminous clay (kaolin) deposit at Cadoux and exceptional positive response that the feedstock has to the Company's moderate temperature, atmospheric

pressure HCl flowsheet. The strategy's superior quality attributes combine resulting in world class HPA project potential.

53 Canning Highway, VICTORIA PARK, WA 6100www.fyiresources.com.au ACN 061 289 218

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ASX RELEASE (ASX: FYI)

24 October 2018

JORC TABLE 1 Section 4

Estimation and Reporting of Ore Reserves - Cadoux Kaolin Project

Estimation and Reporting of Ore Reserves
Criteria	Explanation	Commentary
Mineral Resource estimate for conversion to Ore Reserves	Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.	The Mineral Resource Estimate used as a basis for the conversion to the Ore Reserve was provided on 27th August 2018 with Mr Grant Louw, employee of CSA Global, as the Competent Person. At a zero percent cut-off grade, this total Mineral Resource includes 9.6Mt of Indicated and Inferred materials with an average grade of 23.0% Al₂O₃. The Mineral Resources are reported inclusive of the Ore Reserves.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	The Competent Person (Mr Steve Craig) has visited the proposed mining site of the project in September 2018. The following observations were incorporated: • The mining area is located in the Wheatbelt region approximately 220km North East of Perth, accessible from Perth by well-maintained bitumen roads. • The mining area is located approximately 10 km north-northeast of the township of Cadoux, Western Australia. Cadoux is a small township in the north-eastern Wheatbelt region, within the Shire of Wongan-Ballidu • The population density in the region is low with the population of Cadoux estimated (2016) at 67. • The mining area is located on private, freehold, cleared, farmland currently used for growing crops. • There are no buildings or structures within the mining area. • Differences in elevation are moderate without steep slopes. Hence no difficulties are expected in developing site access or site establishment. • There are no power or water access points within the mining area, there is a power line immediately to the west of the mining area and a water pipeline is within 1km of the site.

53 Canning Highway, VICTORIA PARK, WA 6100www.fyiresources.com.au ACN 061 289 218

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