Renascor Resources : Drilling Confirms and Extends High-grade Graphite Zone at Siviour

ASX Announcement 23 December 2016

Drilling confirms and extends near-surface, high-grade graphite zone at Siviour

• Initial assays from diamond core drilling return multiple near-surface intersections of high-grade graphite in samples from first three available holes in eleven-hole program

• Available assay results confirm the existence of a shallow, +10% total graphitic carbon (TGC) graphite zone along the southern boundary of the Siviour Indicated Resource. Newly available assays from SIV067 and SIV068 indicate that this higher- grade zone extends to the southeast of the current Indicated Resource and remains open along-strike

• This higher-grade zone occurs beneath approximately eight metres of unconsolidated sediments, suggesting favourable strip-ratio characteristics and low-cost, free dig mining

• Renascor considers this higher-grade zone to offer the potential to support a large- scale, commercially competitive mining operation. The in-progress scoping study has accordingly been expanded to consider a large-scale production case

• Core samples collected from the drill program have been integrated into Renascor's mineral processing test program, with results expected next quarter; remaining assays from recent program will also be available next quarter

Figure 1. Siviour graphite deposit - average TGC% within the mineralised horizon of the Indicated Resource, showing new and previous drill holes in relation to high-grade graphite zone

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36 North Terrace, Kent Town, SA 5067

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ASX code: RNU

www.renascor.com.au 1

Renascor Resources (ASX: RNU) is pleased to announce that initial assay results from its recently completed diamond core drill program at its Siviour Graphite Deposit in South Australia's Eyre Peninsula have confirmed the existence of, and extended, a shallow, +10% total graphitic carbon (TGC) graphite zone along the southern boundary of the Siviour Indicated Resource.

Drill results

Renascor completed eleven holes totalling approximately 500 metres across this area. The program was primarily designed to obtain additional sample material for metallurgical test purposes over areas considered reasonably representative of what would be mined in Siviour's first ten years of mine life (subject to completion of bankable feasibility studies, access to the requisite development finance and regulatory approvals).

Renascor focused on the southern boundary of the Siviour Indicated Resource due to the high concentration of near-surface higher-grade, +10% TGC material indicated from previous drilling in this area. See Figure 1.

To date, Renascor has received assays from three of the eleven diamond holes in the recently completed drill program, with results confirming near-surface intersections of high-grade graphite. See Table 1.

Hole	Prospect	Collar (MGAE)	Collar (MGAN)	From (metres)	To (metres)	Interval (metres)	TGC%*
16SIVRC067	Siviour	632195.4	6245601.2	13	45	32	9.6
				21	43	22	12.6**
16SIVRC068	Siviour	632395.5	6245597.4	17	21	4	6.97
				23	37	14	8.36**
16SIVRC069	Siviour	632101.7	6245659.4	13	36	23	11.34
				18	36	18	12.26**

* Unless otherwise indicated, TGC based on a 3% cut-off, with maximum 1m internal waste

** TGC based on a 5% cut-off, with maximum 1m of internal waste

*** Reported results for Siv069 include only assays through 38.4, which finished in mineralisation; assays are pending for remainder of hole.

Table 1. Drill results - (see Appendix 1 for drill hole parameters)

Complete drill details for all assays received to date in the current drill program are provided in Table 1.

Visual logs from the remaining holes in the current program suggest that ten of the eleven holes drilled included significant graphite intersections at shallow depths. Renascor expects to report the assay results from the remaining holes next month.

Shallow, high-grade graphite zone

The available results from the recent drill program, together with previous drilling, confirms the existence of a shallow +10% total TGC graphite zone along the southern boundary of the Siviour Indicated Resource. This higher-grade zone occurs beneath approximately eight metres of unconsolidated sediments, suggesting favourable strip-ratio characteristics and low- cost, free dig mining.

Renascor's modeling suggests that this area contains a large portion of the higher-grade (8.5% cut-off) graphite estimate of 22.2 million tonnes @ 10.0% TGC for 2.2 million tonnes of contained graphite, as reported in Renascor's recent mineral resource upgrade. See RNU ASX release dated 26 October 2016.

The recent drill results also suggest this higher-grade area may increase in size. Holes SIV067 and SIV068 are both located to the southeast of the current Indicated Resource, and the mineralised zone remains open along-strike further to the east. Ground electromagnetic data suggest potential to extend this shallow, higher-grade zone at least a further 600 metres to SIV063, which intersected 23 metres @ 9.2% TGC (from 16m). See Figure 1.

Siviour scoping study

This higher-grade zone offers the potential for Renascor to access a significant portion of Siviour's higher-grade graphite inventory, while taking advantage of the zone's favourable strip- ratio characteristics and low-cost, free dig mining. This, in turn, suggests Siviour could support a large-scale, commercially competitive mining operation within the higher-grade graphite zone.

The current metallurgical test work and scoping study parameters have accordingly been expanded to consider the commercial advantages of this possibility.

Next steps

Core samples collected from the drill program have been integrated into Renascor's mineral processing test program, with results expected next quarter.

Pending completion of the mineral processing test program, Renascor intends to continue to advance the in-progress Siviour scoping study, which will now include an expanded production option. Results from the scoping study, which will include product parameters to be defined by the current mineral processing testing, are expected to be available shortly after completion of the mineral processing tests.

Background information

The Siviour Graphite Deposit, located in South Australia's Eyre Peninsula (see Figure 2), is currently Australia's largest reported graphite deposit, with a Mineral Resource estimate of 60.8 million tonnes @ 7.8% TGC for 4.7 million tonnes of contained graphite, including higher-grade mineralisation of 22.2 million tonnes @ 10.0% TGC for 2.2 million tonnes of contained graphite.

Category	Tonnes of mineralisation (millions)	TGC	Tonnes of contained graphite (millions)
Indicated	33.4	8.2%	2.7
Inferred	27.4	7.3%	2.0
Total	60.8	7.8%	4.7

Note: Cut-off grade of 3% TGC

Table 1. Siviour Mineral Resource estimate as of 25 October 2016

Siviour is part of Renascor's Arno Graphite Project. Renascor has the right to acquire the project through an option agreement between its wholly-owned subsidiary Eyre Peninsula Minerals Pty Ltd (EPM) and Ausmin Development Pty Ltd (Ausmin). EPM's option to acquire the project is exercisable upon completing a bankable feasibility study in relation to the commercial development of graphite by issuing to the owners of Ausmin a 22% equity interest in a listed vehicle holding the project.

Figure 2. Siviour Graphite Deposit, showing location and significant nearby graphite deposits