Energia Minerals : December 2016 Quarterly Report and Appendix 5B

ASX Announcement

30 January 2017

Quarterly Activities Report Period Ending 31 December 2016

Figure 1: Gorno Zinc Project office in Oltre Il Colle

ASX Code EMX

ABN 63 078 510 988

PO Box 1785

West Perth WA 6872

Level 2, 20 Kings Park Road West Perth WA 6005

T: [phone]

F: [phone]

E: [e-mail]

W: www.energiaminerals.com

Board of Directors Alexander Burns Executive Chairman

Kim Robinson Managing Director Marcello Cardaci

Non-Executive Director

Company Secretary

Jamie Armes

Gorno Zinc Project

Ke y Points

• Definitive Feasibility Study (DFS) on track for completion by end of April 2017.

• Confirmation received from Comune di Gorno that the historical Riso treatment plant site at Gorno is available for construction of a new plant.

• Exploration Decline completed at 585m.

• 24 diamond drill holes (GDD106-GDD123, GDD126-128, GDD130, GDD131 and GDD133) for 3,065 metres completed during the Quarter.

• Assays received from 24 diamond drill holes (GDD092 - GDD115) including

  • 24.9m grading 5.6% Zn+Pb and 18 g/t Ag in GDD102

  • 6.4m grading 11.5% Zn+Pb and 32 g/t Ag in GDD112

• Cash at 31 December 2016 was approximately $4.8M

Development Projects: Gorno Zinc Project - Italy (100% owned)

Figure 2: Gorno Zinc Project - Site Layout

Safety and Environment

No Lost Time Injuries were recorded during the period.

Environmental activities required for both a VIA (an Environmental Impact Assessment) and an AIA (an Integrated Environmental Authorisation) are ongoing as part of the approvals process.

Baseline water data collection, hydrological modelling, noise and air quality monitoring continues.

Definitive Feasibility Study (DFS)

During the period, work on the DFS, which is anticipated to be completed by the end of April 2017, remains focussed on completing the diamond drilling program in advance of a revised resource estimation, optimising the process flowsheet prior to finalisation of the treatment plant design, baseline environmental work, preliminarymine planningand discussions with local and regional government authorities.

During the Quarter also, the Companyreceived written confirmation from the Comune di Gorno that the historical treatment plant site at Riso near Gorno, which logisticallyis Energia's preferred site, is available for the construction of a treatment plant, subject to the negotiationof satisfactory terms and conditions.

This is a very significant and positive development for the Gorno Zinc Project which highlights the continuing support by the local communities and the strong relationships that Energia has developed generallywith the local and regional authorities over several years .

Exploration Decline and drilling program

During the period, the Exploration Decline was completed at a total advance of 585m. This Exploration Decline will continue to be used for resource definition drilling down to the 600 level and will also be maintained for initial grade control drilling in any future mining operation.

Diamond drilling continued utilising two rigs until the third week in November when a third rig commenced carrying out infill and extension drilling from the 940 level. A fourth rig (DiamecU6) was then brought to site to assist in accelerating the drilling program and commenced drilling on

15 December from the base of the Exploration Decline. The four rigs will now operate continuously until early in February at which time the Diamec U6 rig will be demobilised.

A total of 3,065 metres in 24 diamond drill holes (GDD106-GDD123, GDD126-128, GDD130, GDD131 and GDD133) was completed during the period bringing the total to date to 13,161 metres in 145 holes to the end of December.

Assays were received from 24 diamond drill holes (GDD092-GDD115) and include:

• 24.9m at 4.4% zinc, 1.2% lead, 15g/t silver, including 8.8m at 7.4% zinc, 2.0% lead and 18g/t silver in GDD102;

• 6.4m at 8.6% zinc, 2.9% lead and 32g/t silver in GDD112; and

• 3.7m at 5.6% zinc, 1.5% lead and 15g/t silver in GDD114.

Drilling of three holes (GDD128, GDD130 and GDD134 for which final assays are not yet available) from the 940 level and to the west of the currently announced Indicated Resource in an area previouslythought to be largely barren based on a low grade intercept in GDD013, has encountered a significant extension to the Colonna Zorzone ore body. This is a significant development as it would likely be mined in the early years of any future mining operation.

Figure 3: Resource Outlines and Drilling Program with holes completed, commenced or assayed highlighted in yellow

Process Flowsheet and Metallurgy

No significant changes have been made to the process flowsheet (see Figure 4) and work continued on fine tuning the reagent regime for the processing circuits and maximising the recoveries of both the zinc and lead oxides. As previously reported, locked cycle testwork to date on "sulphide" ore upgraded by ore sorting has achieved a 96% recovery of zinc to a concentrate grade of 63% Zn and 72% recovery of lead to a concentrate grade of 69% Pb. If a 6% loss of zinc is assumed for processing through the ore sorters, then the overall recovery from zinc in "sulphide" ore can be expected to be 90%.