Segue Resources : High Priority Targets at Gascoyne Lithium Project

19 December 2016

Market Announcements Platform ASX Limited

Exchange Centre, 20 Bridge Street

Sydney NSW 2000

ASX Code: SEG

HIGH PRIORITY TARGETS IDENTIFIED AT GASCOYNE LITHIUM PROJECT

Segue Resources Limited (Segue or the Company) is pleased to announce that the recently completed stream sediment survey at the Gascoyne Lithium Project (Figures 1 & 2) has identified several LCT (lithium- caesium-tantalum) pegmatite prospects warranting detailed follow-up exploration.

Figure 1: Project location map Figure 2: Gascoyne Lithium Project tenement map

In November 2016, Segue completed a stream sediment survey over the 1,100 km2 Gascoyne Lithium Project to identify areas prospective for LCT pegmatites. Previous work undertaken by Segue has successfully identified highly fertile and fractionated granites (Thirty Three Supersuite) which have the potential to produce LCT pegmatites.

The Project area has a well-developed drainage system and the stream sediment programme was designed to identify lithological packages with anomalous LCT pegmatite pathfinder elements (Li, Cs, Ta, Nb, Be, Rb) which may indicate the erosion of an outcropping or sub-cropping mineralised LCT pegmatite. The survey consisted of ~1,300 samples collected at a density of 1-3 samples per square kilometre. The results have been reviewed by Segue's consulting geochemist, Dr Nigel Brand.

Segue has identified five prospects with LCT pathfinder element anomalism in the correct geological setting proximal to fertile granite intrusions of the Thirty Three Supersuite (Figure 3).

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Figure 3: Simplified geology with lithium prospects

A high priority prospect has been identified at Reid Well where a 10 square kilometre, multipoint anomaly has been defined in sediments within 3 kilometres of a fertile and fractionated granite of the Thirty Three Supersuite. This anomaly shows zonation from a caesium outer halo to an inner core of Li-Cs-Ta + Nb, Be and Rb (Figure 4). The geological setting of this anomaly within 3 kilometres of the source intrusion is highly significant and consistent with major lithium deposits, such as Pilgangoora in Western Australia and Tanco, Mavis Lake and Raleigh Lake in Canada.

In addition to Reid Well, four other prospects have been identified at Tree Well, Dunlop Well, Morrissey Hill and Camel Hill, where Li, Cs +/- Ta, Nb and Be anomalies were identified within sediments in close proximity to fertile granite intrusions.

Commenting on the soil sampling results, Segue's Managing Director, Mr Steven Michael, said:

The Gascoyne Lithium Project sits within a previously unidentified lithium province of Western Australia. Within six months of acquiring the Project, Segue has confirmed a fertile and fractionated granite suite (Thirty Three Supersuite) and has now identified several areas of lithium anomalism, including the Reid Well prospect which has several anomalies over 10km2.

Segue will undertake a gridded soil sampling and rock chipping programme at each of the prospect areas in 1Q 2017 with the aim of identifying drill targets (mineralised pegmatites) for initial drill testing once the exploration licences are granted. The Camel Hill prospect lies within granted exploration licence E09/1618, where Segue is earning up to a 50% interest through the Mortimer Hills JV.

Figure 4: Reid Well LCT element zonation patterns Table 1: Significant stream sediment sample assays from the Reid Well prospect

SampleID	Prospect	Northing	Easting	Be (ppm)	Cs (ppm)	Li (ppm)	Nb (ppm)	Rb (ppm)	Ta (ppm)
SEG01080	Reid Well	7289369	424512	1.5	8.0	19.4	19.0	124.5	3.1
SEG01081	Reid Well	7289931	424829	1.6	7.6	18.7	17.9	77.1	3.6
SEG01083	Reid Well	7288811	424809	2.1	12.8	27.0	20.2	153.5	3.6
SEG01087	Reid Well	7288927	425844	1.4	9.3	21.7	16.0	132.0	3.2
SEG01088	Reid Well	7289387	425445	2.9	11.7	23.1	34.3	76.9	23.5
SEG01089	Reid Well	7289427	425787	2.0	11.1	25.6	15.4	95.9	4.1
SEG01090	Reid Well	7289888	425906	6.1	50.5	96.5	66.0	189.0	63.1
SEG01091	Reid Well	7289666	426239	2.0	28.8	31.8	27.2	74.4	26.3
SEG01092	Reid Well	7289168	426185	1.9	11.8	32.1	28.0	69.3	20.6
SEG01093	Reid Well	7289015	426762	17.7	24.7	228.0	122.5	176.0	102.5
SEG01094	Reid Well	7288374	426876	3.7	12.9	49.2	47.6	76.8	26.2
SEG01095	Reid Well	7288178	426702	1.8	10.2	22.3	16.4	112.5	2.2
SEG01096	Reid Well	7288080	427493	2.0	6.3	23.1	19.5	94.7	5.7
SEG01097	Reid Well	7288589	427409	1.7	6.4	18.7	17.1	100.5	2.3
SEG01098	Reid Well	7288907	427346	1.8	6.2	17.1	16.3	66.8	1.7
SEG01099	Reid Well	7289363	427442	2.1	12.6	29.3	15.5	76.9	4.4
SEG01101	Reid Well	7289176	427964	1.7	8.8	26.7	15.6	87.5	1.9
SEG01103	Reid Well	7289317	428297	1.8	12.7	29.1	13.9	89.9	1.6
SEG01104	Reid Well	7289864	428150	2.1	15.6	20.2	16.7	72.1	5.7

For further information visit www.segueresources.com or contact:

Segue Resources Limited Mr Steven Michael Managing Director

E: [e-mail]

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Dean Tuck who is a Member of the Australian Institute of Geoscientists. Mr Tuck has more than five years' experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves". Mr Tuck consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.