Montezuma Mining : Assays Extend Strike at Jatz

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14 JANUARY 2016

SECOND TRANCHE OF ASSAYS EXTENDS STRIKE AT JATZ AEROMAGNETIC SURVEY GENERATES MULTIPLE NEW TARGETS

➤ Second tranche of assays from maiden RC drilling at Jatz yields basement hosted ore grade gold 400m north of discovery hole (Figure 1).

➤ Results augment recently released RC drilling results which returned

basement hosted gold values up to 19.1 g/t1.

➤ Results to date confirm the Jatz structural corridor as a high priority target zone for immediate follow up work.

➤ Assays released to date relate to the first 16 drillholes, with results for

the remaining 21 holes pending.

Montezuma Mining Company Ltd ("Montezuma" or "Company") is pleased to announce complete assay results for the first 16 RC drillholes drilled at the Company's 100% owned Yamarna Project which have returned multiple ore grade intercepts including high grades up to 19.1 g/t Au. The remaining 21 holes of the 37 hole programme remain pending.

The results are from two reconnaissance drill traverses across a regional scale soil and aircore geochemical anomaly at the Jatz Prospect. The two traverses represent the first ever RC drilling completed within the Jatz gold corridor which extends over a strike length of approximately 5 km.

The gold occurs in zones of altered greenstones with variable silica, carbonate, pyrite, sericite alteration with quartz veining. The mineralisation has all the hallmarks of a mesothermal shear hosted gold system with potential for significant scale.

The Company has also completed a close spaced aeromagnetic survey at the Yamarna Project which has been instrumental in highlighting a number of additional structural targets with potential to host large scale gold deposits. These target areas will be further explored as part of the activity pipeline planned for 2016.

ABOUT MONTEZUMA MINING

Listed in 2006, Montezuma Mining Company Ltd (ASX: MZM) is a diversified explorer primarily focused on manganese, copper and gold. The Company's primary objective is to achieve returns for shareholders through selected strategic acquisitions and targeted exploration.

Montezuma Mining has 100% interests in the Yamarna Gold Project in the Yamarna Geenstone Belt, Western Australia and the Butcherbird Manganese/Copper Project in the Murchison region of Western Australia

MARKET DATA

ASX code: MZM

Share price: $0.24

Shares on issue: 70,464,350

Market capitalisation: $16.9M Cash (30 September 2015): $6.22M

BOARD AND MANAGEMENT

Chairman Seamus Cornelius Executive Director Justin Brown NonaExecutive Director John Ribbons Exploration Manager Brad Drabsch

Executive Director Justin Brown said "To intersect ore grades in both maiden reconnaissance drill traverses at Jatz has exceeded all expectations. Whilst still early days, the fact that every phase of work to date has yielded further success bodes well for the future of the Yamarna Project. The Company looks forward to accelerating the work programmes at Yamarna throughout 2016. "

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Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company's projects can be viewed at www.montezuma.com.au

Figure 1: Collar locations over aeromagnetics. Assays from RC drilling are for the first 16 holes of a 37 hole programme.

Figure 2: Multiple new targets identified by recently flown close spaced aeromagnetics. Targets shown over 1vD RTP data.

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip (0)	Az. (mag 0)	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (g/t)
Previously reported aircore results at the Jatz Prospect
YAAC027	594100	6889153	411	a90	000	14	13	14	1	2.7
YAAC084	593447	6890204	398	a90	000	55	40	55	15	0.4
New RC assay results
YARC001	593496	6890206	398	a60	270	138	46	56	10	0.9*
Including	52	54	2	3.5*
64	71	7	5.4*
Including	65	67	2	17.5*
YARC002	593532	6890201	398	a60	270	132	119	123	4	1.9*
Including	120	122	2	3.2*
YARC003	593404	6890204	397	a60	090	120	46	47	1	0.2
51	52	1	0.1
79	81	2	0.2
YARC004	593457	6890205	398	a60	270	90	42	47	5	0.2
YARC005	593421	6890213	397	a60	270	96	45	47	2	0.3
YARC006	593387	6890207	397	a60	270	132	70	71	1	0.2
95	96	1	0.3
122	123	1	0.2
YARC007	594107	594107	411	a60	180	72	No Significant Assays
YARC008	594110	594110	411	a60	180	78	No Significant Assays
YARC009	594107	594107	411	a60	000	60	No Significant Assays
YARC010	594110	594110	412	a60	000	78	No Significant Assays
YARC011	593265	6890530	396	a60	250	150	59	65	6	0.1
74	75	1	0.1
103	104	1	0.3
136	138	2	0.2
YARC012	593306	6890539	396	a60	250	120	77	79	2	0.1
YARC013	593344	6890553	395	a60	250	126	73	74	1	0.1
107	111	4	0.3
Including	110	111	1	1.1
YARC014	593376	6890567	395	a60	250	120	58	66	8	0.4
Including	58	60	2	1.1
71	72	1	0.1
YARC015	593414	6890581	395	a60	250	120	45	46	1	0.1
YARC016	593456	6890590	395	a60	250	192	80	84	4	1.2
Including	81	83	2	1.8
110	112	2	0.1
126	133	7	0.3
156	165	9	0.3
YARC017	593495	6890604	396	a60	250	215	Assays Pending
YARC018	593530	6890617	397	a60	250	120	Assays Pending
YARC019	593557	6890657	398	a60	250	168	Assays Pending
YARC020	593605	6890639	397	a60	270	210	Assays Pending
YARC021	593588	6890200	399	a60	270	201	Assays Pending
YARC022	593203	6889794	399	a60	270	120	Assays Pending
YARC023	593137	6889820	398	a60	270	126	Assays Pending
YARC024	594113	6889163	412	a60	270	60	Assays Pending
YARC025	594109	6888976	414	a60	180	138	Assays Pending

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip (0)	Az. (mag 0)	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (g/t)
YARC026	594106	6888937	416	a60	180	78	Assays Pending
YARC027	594094	6888935	416	a60	000	54	Assays Pending
YARC028	594308	6888771	421	a60	270	120	Assays Pending
YARC029	594311	6888743	419	a60	270	126	Assays Pending
YARC030	596094	6889606	411	a60	270	120	Assays Pending
YARC031	596164	6889599	410	a60	270	120	Assays Pending
YARC032	596408	6889602	408	a60	270	120	Assays Pending
YARC033	596452	6889603	408	a60	270	120	Assays Pending
YARC034	596291	6888801	420	a60	270	120	Assays Pending
YARC035	596351.4	6888800	420	a60	270	120	Assays Pending
YARC036	596898	6888011	425	a60	270	120	Assays Pending
YARC037	596948	6888010	425	a60	270	120	Assays Pending

Table 1: Significant gold assays >0.1 g/t (max. 2m internal dilution) from recently completed RC drilling at the Yamarna Project. All intersections are quoted as downhole widths. Assays have now been received for the first 16 holes of a 37 hole programme. Assays completed by Aqua Regia digest except where * denotes fire assays.