Walkabout Resources : Lindi Jumbo Graphite Mineral Resource Increased by 41%

ASX ANNOUNCEMENT

19 December 2018

WALKABOUT RESOURCES LTD ACN 119 670 370

ASX Code: WKT

[e-mail]

Level 3, 681 Murray St, West Perth, WA 6872

P.O. Box 263,

West Perth WA 6005

T: [phone]

DIRECTORSChairman: Exec: Tech: Non Exec:Trevor Benson

Allan Mulligan Andrew Cunningham

Tom MurrellORDINARY SHARES 304,249,748

LISTED OPTIONS 40,664,321

UNLISTED OPTIONS 7,000,000

PROJECTS

Lindi Jumbo Graphite Project Tanzania (70% - 100%)

Northern Ireland Gold and Base Metals (50% -100%)

Eureka Lithium Project Namibia (100%)

Takatokwane Coal Project Botswana (60%)

Lindi Jumbo Graphite Mineral Resource Increased by 41%

Walkabout Resources Ltd (ASX:WKT) is pleased to announce an upgraded JORC 2012 Measured, Indicated and Inferred Mineral Resource at the Lindi Jumbo Graphite Project in south eastern Tanzania. The Resource was calculated by independent geological consultancy, Trepanier Pty Ltd.

Highlights

• • Global resource tonnage increased from 29.6 million tonnes to 41.8 million tonnes (an increase of 41.3%).

• • 51% of the resource that will form part of the initial mining area in the Measured (6.5 million tonnes at 12.1% TGC) and Indicated (8.4 million tonnes @ 10.5% TGC) categories for 1.67 million tonnes of contained flake graphite.

• • Northern area of the resource is now upgraded to the Indicated category and will form part of new mining studies.

• • Resource includes 5.0 million tonnes of high grade material @ 22.5% TGC.

• • Trench results include LJTR04 - 54m @ 22.4% TGC from surface including 10m @ 32.9% TGC from 28m and LJTR06 - 55 @ 14.9% TGC from 12.5m including 17.5m @ 22.3% TGC from 34m.

• • Amended Definitive Feasibility Study (DFS) expected to be announced early in 2019.

Table 1: Resource category breakdown of the Gilbert Arc.

Resource Category	Tonnes (millions)	TGC %	Contained Graphite (tonnes)
Measured (Including High Grade)	6.5 1.7	12.1 23.4	781,800 393,200
Indicated (Including High Grade)	8.4 1.5	10.5 21.2	887,300 325,300
Inferred (Including High Grade)	26.9 1.8	10.5 22.7	2,837,600 411,900
Grand Total High Grade Domains	41.8 5.0	10.8 22.5	4,506,811 1,127,800

Note: Appropriate rounding applied

Technical Director of Walkabout Resources, Andrew Cunningham commented,

"The Gilbert Arc Deposit at Lindi Jumbo continues to deliver value for our shareholders and the unique, very high-grade domains from surface are one of the factors that makes this deposit the stand out project amongst its graphite peers in East Africa. We look forward to the upcoming mining studies and amended DFS which will include the extended high-grade zones from surface."

Mineral Resource Upgrade

A drilling and trenching program was conducted over the northern Inferred Mineral Resource area as well as a new mineralised zone directly to the south of the Gilberts Arc Graphite Deposit. The upgrade and extension program included 17 drillholes for 1,354m and 7 trenches for 654m. The global Mineral Resource increased by 41.3% to 41.8 million tonnes at 10.8% TGC containing 4.5 million tonnes of graphite (Table 1). Fifty one percent (51%) of the mineral resource that will form part of the initial mining and economic studies is now classified as Measured (6.5 Mt @ 12.1% TGC) and Indicated (8.4 Mt @ 10.5% TGC) containing 1.67 million tonnes of graphite. The global mineral resource now includes a new Inferred Resource area which lies directly to the south of the current planned open-pit area and is made up of 6 distinct mineralised domains (Figure 1). This area will not form part of the upcoming mining studies, amended DFS and Reserve upgrade as further work within the area will only be done post-production.

Figure 1: Mineralised domains at Gilbert Arc and the new southern area.

The very high-grade Domains 7, 8 and 9 (5.0 million tonnes at 22.5% TGC) have been extended towards the north, were intersected in all of the trenches and drillholes and remain open towards the north and down-dip. These high-grade domains in the Indicated category form the core of the current mine plan, and the newly updated resource will now be incorporated into the mining studies and an amended DFS to be completed in early 2019.

The seven (7) additional trenches in the north of the deposit intersected spectacular high grade mineralisation at surface with individual metre samples of up to 44% TGC (LJTR07). As previously reported, the visually distinct nature of these high grade zones lend themselves to further high-grading once in operation. Selected trench intersects are:

• • LJTR04 - 54m @ 22.4% TGC from surface including 10m @ 32.9% TGC from 28m.

• • LJTR06 - 55 @ 14.9% TGC from 12.5m including 17.5m @ 22.3% TGC from 34m.

• • LJTR07 - 17.3m @ 25.8% TGC from 3.2m including 4.5m @ 37.8% TGC from 5m and 8m @ 28.7% TGC

  from 12.5m.

• • LJTR010 - 23m @ 21.7% TGC from 15m.

• • Trench cut-offs but defined by the margins of the different domains.

  Figure 2: Section A-B looking north highlighting the continuation of the high-grade mineralised zones to surface, at least to 80 m beneath the current surface, and down dip towards the west.

Figure 3: Block model indicating zones of Measured, Indicated and Inferred Resources. Section A-B highlighted.

Table 2: Mineral Resource (Gilbert Arc ONLY) by cut-off grade.

Cut-off TGC	Million Tonnes	TGC %
0	34.5	10.3
1	34.5	10.3
2	34.5	10.3
3	34.1	10.4
4	31.7	10.9
5	29.1	11.5
6	24.6	12.6
7	19.7	14.1
8	16.4	15.4
9	14.3	16.5
10	13.0	17.2
11	11.5	18.1
12	10.2	18.8
13	9.3	19.5
14	8.4	20.1
15	7.8	20.6
16	6.6	21.4
17	5.3	22.7
18	4.7	23.4
19	4.1	24.0
20	3.5	24.8

Figure 4: The Gilbert Arc TGC % grade-tonnage curve.

Table 3: Lindi global Mineral Resource by cut-off grade.

Cut-off TGC	Million Tonnes	TGC %
0	48.7	9.8
1	48.7	9.8
2	48.7	9.8
3	48.3	9.9
4	45.5	10.3
5	41.8	10.8
6	35.6	11.7
7	29.0	12.9
8	24.1	14.0
9	20.4	15.0
10	17.6	15.9
11	15.0	16.8
12	12.6	17.8
13	10.5	18.9
14	9.0	19.8
15	8.2	20.4
16	6.9	21.3
17	5.3	22.7
18	4.7	23.4
19	4.2	24.0
20	3.5	24.8

Figure 5: The Lindi combined Mineral Resource TGC % grade-tonnage curve.