Energia Minerals : Gorno Zinc Project - Latest Drilling Update

ASX Announcement

20 January 2017

Gorno Zinc Project: Latest drilling delivers 20.2m intersection at 6.5% Zn+Pb including 4.7m at 20.0% Zn+Pb Assays awaited for two impressive intersections (GDD130 & GDD134) in the upper levels of Colonna Zorzone outside the current Resource

Figure 1: Part of GDD134 intersection located outside current resource

• Latest assays from ongoing resource drilling in the Colonna Zorzone Zinc Deposit include 20.2m grading 6.5% Zn+Pb and 21g/t Ag including 4.7m grading 20.0% Zn+Pb and 65g/t in GDD118 - between the 940m and 600m Levels.
• Two visually impressive intersections in GDD130 and GDD134 outside the current resource on the (upper) 940 Level, will mean that further drilling is required, delaying the completion of the Definitive Feasibility Study by one month to the end of April 2017.
• Plant design being undertaken by GBM Minerals Engineering Consultants is close to completion. Metallurgical testwork on zinc and lead oxides continues with very encouraging results to date.
• Discussions continuing with potential financiers and off-take partners.

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

Energia Minerals Ltd (ASX: EMX, "Energia" or Company) is pleased to provide an update on ongoing resource drilling and feasibility work at its flagship 100%-owned Gorno Zinc Project in northern Italy, where strong results are continuing to be achieved in both the upper and lower levels of the Colonna Zorzone Deposit.

Importantly, the latest drilling has demonstrated the potential for further growth in the upper levels of the deposit, where mining is expected to commence.

A new diamond drill hole located to the west of the currently defined Indicated Resource, GDD134, encountered significant widths of mineralised Metalifero limestone (see photograph in Figure 1 of abundant sphalerite within an overall 80m drilled length of mineralisation).

This is in an area that was previously thought to be largely barren based on a previous low- grade intersection in GDD013; however, with the success of GDD134, together with the mineralised intercepts in GDD128 and GDD130 reported in the Company's ASX Release of 21 December 2016 (for which assays are not yet available), at least four additional holes are now required to be drilled in this area, as shown in Figure 2.

GDD134 encountered zinc mineralisation at a very low intersection angle and, although the true width is likely to be no more than 5-10m, the result is significant in that it establishes the lateral continuity of the mineralisation over a considerable strike length in this area and passed within 10m of GDD013, minimising its impact.

It is important to note that GDD071, located to the north of GDD134, encountered a very high- grade intersection of 4.6m grading 25.6% Zn, 4.7% Pb and 71g/t Ag as previously reported.

This positive development, which will require additional modelling and a modification to the mine plan, will result in a slight delay to the completion of the Definitive Feasibility Study (DFS), which is now expected to be the end of April 2017.

It is important to accurately define the Colonna Zorzone ore body in the upper levels for scheduling purposes, as this is where production is planned to commence and where the DFS will focus on optimising cash-flows in the early stages of the mining operation.

At depth, drilling from the Exploration Decline is continuing with three rigs operating. The latest assay results from this area include an impressive intersection of 20.2m (true width estimated at 7m) grading 4.8% Zn, 1.7% Pb and 21g/t Ag achieved in GDD118, including an oxidised interval of 4.7m grading 14.6% Zn, 5.4% Pb and 65g/t Ag.

Drilling to date in the lower levels has demonstrated that, although there is a core of strongly mineralised Metalifero below the 800 level, the overall strike length of the mineralisation has reduced. This is consistent with historical results reported by the previous owner, ENI, on the 600 level.

Plant design work being carried out by GBM Minerals Engineering Consultants is also now close to completion and will be finalised as soon as the metallurgical testwork program is completed.

Testwork is continuing to focus on increasing the zinc and lead recoveries generated from earlier work on the anticipated 15% of oxidised ore present within the Colonna Zorzone orebody. The results to date from this work have been very encouraging, and will be incorporated in the DFS once completed.

Energia's Managing Director, Mr Kim Robinson, said the latest drilling was continuing to demonstrate the overall robustness of the Colonna Zorzone Deposit as the cornerstone of the Gorno Zinc Project development .

"Drilling from the Exploration Decline is continuing and has already returned some impressive intersections, although our early work in this zone has resulted in a slight reduction in the strike length of the mineralisation," he said.

"On the upside, the new intersections immediately to the west of the Indicated Resource in the upper levels were unexpected, and demonstrate the potential for the orebody to surprise us on the upside."

"Because the upper levels of the deposit will underpin the first 3-4 years of production, it is vital that we fully understand and optimise the resources in this area as the foundation for our DFS. Consequently, we have decided to delay the DFS by approximately one month to allow us to fully drill out this new zone to incorporate it within the resource inventory."

"All other elements of the DFS are proceeding on schedule, with pleasing results achieved from the metallurgical testwork programs. We expect to see a significant volume of assay results coming from the Project over the coming weeks, paving the way for the resource upgrade and DFS completion."

"It is also pleasing to note the continued improvement in the zinc price since the start of the year, with many analysts now predicting that zinc will again be one of the top-performing commodities of 2017. This is a great backdrop against which to be reporting a new zinc resource and finalising a Definitive Feasibility Study on a new zinc development project."

For and on behalf of Energia Minerals Limited.

Kim Robinson Managing Director [phone] [e-mail]

For media enquiries contact: Nicholas Read Read Corporate [phone] [e-mail]

Competent Person Statement

Information in this release that relates to Exploration Results is based on information prepared by Mr Kim Robinson, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Robinson is a full-time employee of Energia Minerals Limited. Mr Robinson has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken 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". Mr Robinson consents to the inclusion in this release of the matters based on their information in the form and context in which it appears.

Figure 2: Colonna Zorzone showing past and planned drilling in current campaign