Heron Resources Limited (ASX: HRR, 'Heron' or the 'Company') is pleased to announce that crushing and processing of the first underground ore from the high-grade G2 lens has commenced.

The ore from the G2 lens was mined 135m below surface and was discovered during Heron's on-mine exploration drilling programs during 2017.

Since the commencement of the underground campaign, approx. 10kt dmt (dry metric tonnes) of G2 stoped ore was delivered to the plant at 3.9% Zn, 1.3% Pb, 0.3% Cu, 31g/t Ag and 0.6g/t Au. This was in addition to 6kt dmt of G 'hanging wall' ore at 4.7% Zn, 2.6% Pb, 0.7% Cu, 268g/t Ag, 2.0g/t Au; plus 2kt dmt of high-grade development ore at 7.3% Zn, 3.7% Pb, 4.9% Cu, 30g/t Ag and 0.9g/t Au. The tonnes and grades quoted are estimates from grade control sampling for the run of mine feed and aligned with the current Mineral Resources and Ore Reserves as reported on the ASX on 30 October 2019.

The first stages of commissioning were completed utilising tailings reclaim feed material, with some preliminary commissioning of the crushing and ball mill plant during August and September.The plant is now receiving run of mine underground ore and will complete a campaign solely on this feed source. This will facilitate the next phase of commissioning for the crusher and ball mill and marks the start of the ramp-up phase for this part of the circuit. In steady state, the plant will alternate between campaigns of tailings reclaim feed and underground ore.

With stope ore now being mined and processed, paste fill activities have also been progressed, with the final commissioning of the paste plant and a number of placements underground of paste fill now complete

Commenting on processing the first high-grade ore from underground, Heron's Chairman, Stephen Dennis said 'The first ore mined and now processed from the G2 lens is a significant achievement for the operations at Woodlawn. The high-grade G2 lens was planned to be the first underground ore through the plant and will generate early revenue in these first stages of underground mining.'

The forecast development includes access to the G3 (north) area that contains stopes that are in an independent sequence from the current G2, G3 (south) and GH stoping area.

The Woodlawn Zinc-Copper mine is 100% owned by Heron and is located 250km southwest of Sydney, in New South Wales. Processing of reclaimed tailings is ongoing and underground ore campaigns are being scheduled in line with the current production plan. Ramp-up of the processing plant continues and the plant is scheduled to achieve rated capacity on a sustainable basis from mid-2020.

About Heron Resources Limited (ASX:HRR)

Heron Resources Limited is engaged in the exploration and development of base and precious metal deposits in Australia. Heron's primary focus is on its 100% owned, high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, Australia - one of the few new zinc projects that is fully-funded to production. Production of base metal concentrates has recently commenced placing the Company on track to participate in a strong pricing environment. In addition, the Company holds a number of significant high quality, base and precious metal tenements regional to the Woodlawn Project.

Contact:

Mr. Simon Smith

Tel: +61 2 9119 8111

Email: heron@heronresources.com.au

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