Thundelarra : Primary Gold Mineralisation at Battery Prospect

ASX/Media Announcement 19 January 2017

PRIMARY GOLD MINERALISATION AT BATTERY PROSPECT, GARDEN GULLY

Thundelarra is pleased to announce that results of drilling at the Battery Prospect at Garden Gully have confirmed the existence of primary gold mineralisation. The presence of gold mineralised porphyry within a package of mafic schists, high magnesium basalts and black shales is significant as similar associations in WA have formed the basis of new mine developments. Such potential enhances the prospectivity of the project - especially when considered in conjunction with the spectacular results previously announced from the Lydia Prospect (ASX 03 November 2016) that included 80m at 1.9 gpt Au and 45m at 1.3 gpt Au..

Highlights:

• Primary gold mineralisation intersected at Battery
• New mineralisation style not previously reported at Garden Gully
• Shows similar geological characteristics to known and established large scale gold systems in the Eastern Goldfields of WA
• Large off-hole conductor identified at depth will require testing
• Significant targets identified for follow-up programmes
• 23m at 0.4 gpt Au from 77m in mineralised quartz porphyry
• 5m at 2.0 gpt Au from 115m
• 9m at 1.5 gpt Au from 163m
  • inc 4m at 2.4 gpt Au
• 8m at 2.0 gpt Au from 164m
  • inc 4m at 3.3 gpt Au

The results show that gold mineralisation is present at depth below the previous arsenic anomalism trend which coincides with the chargeable feature recently delineated by an Induced Polarisation survey. Mineralisation is hosted by quartz veins and felsic intrusives (confirmed by petrographic analysis to be quartz porphyry), containing pyrite and arsenopyrite emplaced within strongly folded and tectonised mafic schists and black shales.

Exploration reported by Gascoyne Resources Ltd (ASX.GCY) on its Gilbeys and Gilbeys South mineralisation at Dalgaranga describe a package of rocks including porphyry, black shale, chlorite- sericite mafic schist, high magnesium basalts and gabbros / dolerites. The geological similarities observed at Garden Gully warrant detailed follow-up so we can establish if Garden Gully is hosting similar mineralisation. Gascoyne's defined Gilbeys resource exceeds 1 million ounces so far.

We are still awaiting results from a further 16 follow-up holes testing the nine Garden Gully targets. When results are received we will interpret them and advise the market accordingly. This is still very early stages of what is becoming a very exciting project for Thundelarra. We are focusing all possible exploration attention on this promising new area.

Thundelarra Limited | ABN: 74 950 465 654 | Level 1, 186 Hampden Rd, Nedlands WA 6009 | PO Box 7363, Cloisters Square, WA, 6850

www.thundelarra.com.au | [e-mail] | Tel: [phone] | Fax: [phone]

Garden Gully, wholly-owned by Thundelarra, comprises 14 granted Prospecting Licences, 1 granted Exploration Licence, and 1 Exploration Licence application covering about 65.5 km2 located in Western Australia's Doolgunna region (Figure 2), about 20km north-west of Meekatharra.

Figure 1. Location showing proximity to local plant and infrastructure. Scale: grid spacing is 25 km.

The five reverse circulation ("RC") holes drilled at Battery for a total advance of 1,154m were designed to follow up the shallow gold intersection from TGGRC020 (5m @ 0.72 gpt Au from 60m) and to test two strong parallel chargeable features about 200m apart over a strike extent of about 800m. These targets were identified from the results of the initial scout drilling programme and ground geophysical surveys. Strong gold and arsenic anomalism had been identified, with gold values noted at the contact of black shales to the east and what was logged as felsic volcaniclastics to the west.

Details of all holes drilled at Battery in this follow-up programme are tabulated below:

Hole ID	Easting	Northing	RL	Depth	Azimuth	Dip	Targets
TGGRC039	645620	7071536	480m	251m	107 o	-60 o	IP anomaly and high arsenic trend
TGGRC041	645877	7071496	480m	267m	110 o	-60 o	IP anomaly and high arsenic trend
TGGRC042	645766	7071144	480m	202m	110 o	-60 o	Arsenic anomaly and several QV
TGGRC052	645825	7071360	480m	232m	110 o	-60 o	Arsenic/gold trend within black shale
TGGRC053	645765	7071143	480m	202m	110 o	-70 o	Arsenic/gold trend within black shale

Table 1. Details of the holes drilled at the Battery Prospect, Garden Gully. All locations on Australian Geodetic Grid GDA94-50. The azimuth shown is the magnetic azimuth of the drilling direction.

Drilling to date confirms a strike length of mineralisation of at least 400m which remains open at depth and towards the north and south. An "Optical Televiewer" survey programme is underway on selected holes to collect structural data to assist in planning further follow-up RC infill and diamond drilling. The Optical Televiewer system essentially photographs the internal wall of the drill holes:

examination of the images allows an interpretation of structural features and orientations that are vital to an understanding of the geological controls but not otherwise available in RC holes.

TGGRC039 targeted a week arsenic anomaly and a high chargeable / high resistive feature under the old gold workings (Figure 2). The hole intersected a pyritic black shale sequence between 200m and 214m, which explains the chargeable anomaly. Highly anomalous zinc and copper values are present within this shaley package (14m @ 0.43% Zn). Elevated arsenic values are also present close to the black shale, which is considered to be in a tectonic contact with the dominant mafic schist lithology from the area. Numerous quartz veins are present, but only elevated arsenic values have been encountered with no significant gold anomalism.

Figure 2. Drill hole locations and IP lines on TMI image over the Battery Prospect

TGGRC041 was drilled west of the previous shallow holes TGGRC020 and TGGRC021, both of which were abandoned due to difficult ground conditions (swelling clays and strong water flow). TGGRC020 was abandoned at 72m within a mineralised zone which included 5m @ 0.72 gpt Au from 60m. TGGRC041 was drilled to a depth of 267m and intersected the chargeable anomaly, represented by a sulphidic black shale package from 190-200m down hole, which also returned significantly anomalous gold values (9m @ 0.34 gpt Au from 190m).

TGGRC042 was collared approximately 370m south-west to follow up the continuity of the same chargeable feature. This hole has intersected a reverse fault system containing mafic rocks, quartz veins and silicified black shales pierced by narrow dykes of felsic intrusive rocks which have been confirmed by petrological analyses to be quartz-porphyries.

Scanning Electron Microscopy (SEM) and laser ablation analysis is being undertaken to confirm the exact composition of these rocks and to identify the associated sulphides. Low grade gold values

have returned from 54m to the end of the hole, which was terminated at 202m. Assays >0.05 gpt Au are recorded in Appendix 1.

Figure 3. Cross section showing the strong DHTEM conductor off-hole from TGGRC053.

It was subsequently discovered that TGGRC042 had collapsed at approximately 50m, thus preventing the insertion of PVC casing. This in turn prevented a DHTEM survey from being carried