Doray Minerals : Drilling Confirms Gnaweeda Mineralisation and Identifies New Mineralised Zones

ASX: DRM

ASX Announcement 27 January 2017 DRILLING CONFIRMS GNAWEEDA MINERALISATION AND IDENTIFIES NEW MINERALISED ZONES

• Major RC and Diamond Drilling campaign completed on the Turnberry prospect at Gnaweeda
• Drilling successfully confirms extent of mineralisation
• Potential new zones discovered at Turnberry Central West and Turnberry North
• Widespread, thick zones of mineralisation intersected
• High grade mineralisation confirmed to extend at depth
  • TBDD002 - 14m @ 4.8g/t Au from 72mdh and 11m @ 5.9g/t Au from 104mdh
  • TBDD004 - 4.1m @ 8.8g/t Au from 231mdh o TBRC092 - 18m @ 4.7g/t Au from 192mdh o TBRC104 - 3m @ 58.2g/t Au from 88mdh

Doray Minerals Limited (ASX:DRM, Doray) is pleased to announce the results of an extensive infill and extensional RC drilling programme at the Turnberry Prospect, located within its 100% owned Gnaweeda Project, approximately 15km east of the Andy Well Gold Operation (see Figure 1). Drilling was designed to follow-up on Dorays previous successful programmes and increase the confidence of the maiden Inferred Resource of 266,000ozs Au previously announced (see ASX Release dated 20 July 2016).

A total of 121 RC drillholes for 23,662m and 6 RC drillholes with diamond tails for 1,570.64m were drilled. Drilling was designed to nominally infill the data density to approximately 40m x 40m, as well as follow up on previously intersected mineralisation that wasn't included in the July 2016 Inferred Resource model due to a lack of data support, including TBRC043 which reported an intersection of 7m @ 41.3g/t Au from 153mdh (see ASX Release dated 17 June 2016).

The programme was highly successful in both increasing confidence in the existing Resource area, as well as extending known mineralisation. Drilling generally intersected wide zones of mineralisation with smaller internal zones of higher grade mineralisation. In addition, follow up drilling around TBRC043, which previously returned 7m @ 41.3g/t Au, appears to have outlined a new high grade zone of the mineralised area, known as the Turnberry Central West (see figure 3).

Significant assay results returned from within the Turnberry Resource area include:

• TBDD002 - 14m @ 4.8g/t Au from 72mdh and 11m @ 5.9g/t Au from 104mdh

• TBDD003 - 6m @ 3.1g/t Au from 275mdh

• TBDD004 - 4.1m @ 8.8g/t Au from 231mdh

• TBDD005 - 18m @ 2.8g/t Au from 41mdh

• TBRC074 - 12m @ 2.7g/t Au from 54mdh and 8m @ 3.4g/t Au from 162mdh

• TBRC076 - 17m @ 3.6g/t Au from 52mdh

• TBRC088 - 23m @ 1.1g/t Au from 44mdh

• TBRC092 - 18m @ 4.7g/t Au from 192mdh

• TBRC104 - 3m @ 58.2g/t Au from 88mdh

• TBRC118 - 10m @ 2.5g/t Au from 38mdh

• TBRC121 - 18m @ 1.2g/t Au from 50mdh

• TBRC125 - 2m @ 9.6g/t Au from 166mdh

• TBRC130 - 8m @ 4.1g/t Au from 28mdh

• TBRC131 - 13m @ 2.3g/t Au from 165mdh

• TBRC142 - 2m @ 22.2g/t Au from 111mdh

• TBRC143 - 2m @ 9.5g/t Au from 81mdh

• TBRC160 - 14m @ 2.3g/t Au from 61mdh

• TBRC171 - 25m @ 1.5g/t Au from 30mdh

Doray's Managing Director, Mr Leigh Junk, said that the recent drilling at Turnberry had been successful in increasing the confidence in the mineralisation at Gnaweeda.

"This is further evidence that Turnberry and the whole Gnaweeda prospect could have the potential to make a significant impact on the Andy Well operations going forward and we are currently accelerating this evaluation process." Mr Junk said.

RC and Diamond Drilling Programme

RC and Diamond drilling was carried out at Turnberry between late August and early December 2016. Drilling was designed to infill the existing RC drill pattern to a nominal 40m x 40m density, as well as to follow up previously reported intersections that had little supporting data. Drilling covered the previously described Turnberry South, Central and Northern zones, over a strike length of approximately 1.5km. In addition, several holes were drilled into a potential new zone, Turnberry Central West. Drill hole locations with respect to previous drilling is illustrated in Figure 2, with interpreted mineralisation trends highlighted in Figure 3.

Drilling tested the broadly north-south trending Turnberry shear zone, intersecting a sequence of mafic basalts, felsic volcaniclastics, minor sedimentary shales and an intrusive gabbroic sill (see Figure 4 and 5). Gold mineralisation appears to be associated with intense shearing, minor quartz carbonate veining/stockwork development and silica-pyrite±chlorite±sericite±hematite alteration. Results and observations from drilling, in conjunction with interpretation of the recently acquired detailed aero-magnetic survey, has highlighted the impact of a series of northeast trending faults through the mineralised sequence, which offset mineralisation and appear to localise the occurrence of higher grades.

This comprehensive drill pattern has largely confirmed the previous interpretation. However, mineralisation in the Turnberry Central zone was found to be more discontinuous than previously

thought. Within the Turnberry North zone, a new, parallel zone of mineralisation was delineated. In addition, the drilling at Turnberry Central West appears to have confirmed the continuity of high grade mineralisation within a tighter shear zone.

Drillhole details and a full table of significant intersections are contained in the appendix to this release, along with the relevant descriptions in the JORC (2012) Table 1.

Additional Work

In addition to this RC and diamond drilling programme, Doray has been progressing other development activities at Turnberry. As previously mentioned in the December 2016 quarterly report, a Mining Lease application (M51/881) has been lodged with the Department of Mines and Petroleum. In addition, a potential haulage route between Turnberry and the Andy Well Gold operation has been identified. Aboriginal heritage surveys, as well as native vegetation and fauna surveys have been carried out over both the Mining Lease area as well as the potential haulage route. An internal development team has been formed, with further work planned to gather hydrogeological, metallurgical and geotechnical data in the near term. Work is also commencing on the evaluation of various processing scenarios for treatment of any future Turnberry ore at the Andy Well processing facility.

Doray is also currently undertaking an extensive regional aircore drilling campaign at Gnaweeda. This programme aims to further test the shear zone structure that hosts mineralisation at Turnberry over a strike length of approximately 8km. Current work at Turnberry has highlighted the ineffectiveness of previous regional aircore drilling at the Gnaweeda Project. It is anticipated that this aircore programme will identify further zones of high grade mineralisation similar to Turnberry that will be followed up with RC and diamond drilling.

Figure 1. Location of Gnaweeda Gold Project in relation to Meekatharra and Andy Well.