Mithril Resources : • Chesser Resources Kurnalpi Exploration Update

ASX Announcement & Media Release

31 January 2017

Kurnalpi JV Exploration Update

DIRECTORS Simon O'Loughlin Non-Executive Chairman Simon Taylor‌ Non-Executive Director Stephen Kelly Executive Director and Company Secretary SHARE INFORMATION ASX Code: CHZ‌ Issued Capital: 119,333,598 Fully Paid Shares 1,100,000 Unlisted Options CONTACT INFORMATION‌‌ Registered Office: 96 Stephens Road‌ South Brisbane QLD 4101 T: + 61 7 3844 0613 F: + 61 7 3844 0154 E: [e-mail] Chesser Resources Limited: ACN: 118 619 042‌

Auger geochemical and rock chip sampling has defined a new 300-metre long gold target with no previous drill testing Chesser earning up to an 80% interest in Kurnalpi from Mithril Resources Priority for follow-up with geological mapping planned for the current Quarter. Chesser Resources Ltd (ASX: CHZ) is pleased to advise that recently completed auger geochemical and rockchip sampling has defined a new gold target at its Kurnalpi Project (located approximately 60 kilometres north-northeast of Kalgoorlie Western Australia - Figure 1). Chesser can earn up to an 80% interest in the Kurnalpi Project which is wholly owned by Mithril Resources Limited (ASX: MTH). With an area of approximately 55km², the Kurnalpi Project covers a package of gold and nickel prospective Archaen ultramafic / mafic sequences and adjoins Pioneer Resources' (ASX:PIO) Acra Gold Project (Figure 1). At Acra, Northern Star Resources (ASX:NST) has paid Pioneer $500,000 cash to acquire an initial 20% interest in the Project and has the right to earn a further 55% interest (total 75% interest) by sole funding $3 million of exploration expenditure within 3 years (Pioneer Resources' ASX Announcement dated 21 October 2016).

The new target is characterised by four discrete coherent auger geochemical anomalies (defined by the +14ppb Au contour, maximum value: 17ppb Au, average background value: 3

- 7ppb Au) present over a combined strike length of approximately 200 metres that overlay and lie adjacent to, an east - west mafic / metasedimentary contact. A rockchip sample of sub-cropping ironstone material also returned 0.23g/t gold (Sample ID - 0629_01 - Figure 2).

The prospectivity of the target (which has not been previously drilled) is strengthened by the presence of numerous prospecting pits and dry-blowing scrapes immediately south of the target (and the E28/2506 tenement boundary) within the same east west sequence of mafic and metasedimentary unit.

Chesser plans to carry out a program of geological mapping during the March 2017 Quarter to better understand the significance of the target and determine next steps. The new auger anomalies are potentially indicative of bedrock gold mineralisation and will be followed-up as a matter of priority. The Company looks forward to updating the market on the progress of this work.

Figure 1 : Kurnalpi Project Location showing location of the new gold target

Figure 2: Gold target showing gold auger geochemical anomalies, samples locations (colour coded by gold - ppb), rockchip sample location and simplified geology (green - mafics and grey - sediments) Table 1: Rockchip Sampling Details and Results

SampleI D	Easting	Northing	Description	Au_ppm	As_ppm	Ni_ppm	Cu_ppm
0629_01	412,58 1	6,623,90 9	Ironstone float - gossanous?	0.230	32	75	151
0629_02	413,33 4	6,624,04 1	laterite outcrop	0.029	21	23	85
0629_03	413,43 3	6,624,14 2	carbonate sample	0.069	5	28	46
0629_04	413,91 5	6,623,74 8	UM	0.007	8	1425	12
0629_05	413,02 2	6,624,56 4	ferruginous material	0.031	5	67	69
0629_06	413,02 2	6,624,56 4	Calcrete	0.061	-5	26	24
0629_07	412,10 3	6,624,75 1	UM?	0.014	6	429	24
0629_08	412,09 4	6,624,72 7	silica cap after UM	0.063	11	1210	13
0629_09	412,15 7	6,624,71 1	silica cap after UM	0.049	6	263	9
0629_10	412,15 7	6,624,71 1	talc rich UM	0.008	-5	2380	8

Table 2: Auger Sampling Details and Results

Sample ID	Easting	Northing	Colour	Au_ppb
LDA0581	412,377	6,623,998	Cream	2
LDA0582	412,374	6,623,972	Cream	3
LDA0583	412,374	6,623,950	Grey Brown	4
LDA0584	412,375	6,623,920	Grey Brown	10
LDA0585	412,374	6,623,896	Grey Brown	3
LDA0586	412,375	6,623,871	Tan Brown	8
LDA0587	412,377	6,623,848	Tan Brown	9
LDA0588	412,395	6,623,846	Tan Brown	14
LDA0589	412,400	6,623,871	Cream Brown	7
LDA0590	412,403	6,623,895	Cream Brown	7
LDA0591	412,406	6,623,921	Cream	7
LDA0592	412,407	6,623,947	Cream Brown	6
LDA0593	412,405	6,623,972	Cream Brown	3
LDA0594	412,401	6,623,993	Cream Brown	5
LDA0595	412,425	6,623,999	Cream Brown	3
LDA0596	412,429	6,623,975	Cream Brown	3
LDA0597	412,425	6,623,954	Tan Brown	9
LDA0598	412,426	6,623,925	Purple	10
LDA0599	412,426	6,623,896	Grey Brown	6
LDA0601	412,425	6,623,872	Grey Brown	2
LDA0602	412,430	6,623,853	Tan Brown	15
LDA0603	412,449	6,623,849	Tan Brown	7
LDA0604	412,444	6,623,872	Cream Brown	10
LDA0605	412,444	6,623,895	Cream Brown	7
LDA0606	412,453	6,623,921	Cream Brown	7