Black Mountain Resources Limited provided an update on its resource and exploration drilling program that it has completed on its 100% owned Namekara Vermiculite Mine, located in located in Eastern Uganda. In November 2016, the Company engaged SuperCore Drilling Company Limited and ADT Africa Explorational Drilling Services to complete a planned 65 hole, 2,250 m drill program. Drilling commenced on 26 November 2016 and was completed on 22 December 2016. A total of 2,415 min 68 holes was drilled in and around the Namekara Vermiculite Mine. Of these, 2,039m (60 holes) were Aircore ("AC") and 375 m (8holes) were Diamond Core ("DC"). Drill spacing in the open pit was 10m by 10m while around the pit it was 25 by 25m. Twinning of historical reverse circulation ("RC") and DC drill holes by both AC and DC drilling was also completed in 11 holes. AC was also used to twin a historical hole as part of a drill sterilization program for the location of a new waste dump closer to the open pit. Logging and analysis of the samples commenced on 26 December 2016 after verification of sample procedures by the Company's independent consultants. The drilling program which was completed over a 3 to 4 week program is the first to be undertaken by the Company at the Namekara Vermiculite Mine. The purpose of the AC drilling was an in-fill and exploration drilling program, whose results are proposed be used to both upgrade the current resource classification and to provide the basis to develop a more detailed grade control block model for mine planning and scheduling. The Company is targeting completion of the updated resource modelling in first quarter of 2017 with the new mine plan expected to be operational in early second quarter, 2017. The DC drilling program was undertaken to verify data relating to vermiculite flake size, bulk density and vermiculite grade with flake size being one of the key attribute for the Namekara Vermiculite Mine and the marketing of its vermiculite products. The drilling program undertaken by the Company is in addition to the historical RC and DC drilling programs completed at the Namaker a Vermiculite Mine by Rio Tinto Miningand Exploration Limited ("Rio") who drilled 3,490m of RC in 72 vertical hole (of which 66 were for resource estimation with in the current mining lease and 6 were to test mineralization outside the mining lease), and Gulf Industrials Limited ("Gulf") who completed 3,408m of DC in 54 NQ3 holes. AC drilling commenced in P1 on 26 November 2016 on a 10m by 10m spacing. Around the current open pit area, P2 and P3, drilling was completed on a larger grid of 25m by 25m. The DC Rig was mobilized on the 4 December 2016 and started drilling on the 5 December 2016. All drilling was completed by 22 December 2016. Bits of 86.65mm internal diameter were used for the AC holes. The outer diameters were 112.70mm and 113.70mm, see fig 3 below. Holes were drilled to the base of the mineralization slightly into the phlogopite/biotite zone or until bit refusal. The DC drilling utilized HQ triple tube ("HQ3") with split inner tube. HQ3 was chosen to maximize recovery of the core, while a split inner tube was forease of removing weathered core with minimal. A total of 60 holes for 2,039.19 m of AC were drilled. These include 5 twin holes, of which 2 holes (85.0m) twinned DC drilling completed by Gulf and 1 hole twinned RC drilling completed by Rio in P3. The other 2 holes for med part of a sterilization drilling program to determine a new location for the waste dump. In P1, 624.61m of grade control drilling in 29 holes was completed as part of the in-pit in-fill drilling program. In P2 a total of 275.76m of drilling in 7 holes was completed. In P3, 19 infill holes were drilled for 914.82m. This has reduced the 80m by 120m section line spacing to an approximate 25m by 25 m grid. Visual inspection of the drilling completed has confirmed the high grade and large flake size which is consistent with the historical drilling completed in this area. In addition, in P3, a further 5 holes for 224m was completed. These holes twinned RC hole NAM-009 completed by Rio and DC holes ND45 and ND46 completed by Gulf to verify data relating to vermiculite flake size, bulk density and vermiculite grade. Two further holes were drilled to twin the RC hole NAM-64 completed by Rio and RC hole Nam-64 and ND03 AC twinned Gulf D Dhole ND03. Both holes returned poor visual mineralization effectively sterilizing the area and confirming its suitability for the new waste dump.