White Rock Minerals : 20170130 Quarterly Activities & Cashflow Report

ASX Release: 30 January 2017 Quarterly Activities Report - for the period ended 31 December 2016 ASX Code: WRM Issued Securities Shares: 770.1 million Options: 100.5million Cash on hand (31 Dec 2016)

$3.8M

Market Cap (as at 27 January 2017)

$12.3M at $0.016 per share

Directors & Management

Brian Phillips

Non-Executive Chairman

Matthew Gill Managing Director & Chief Executive Officer

Peter Lester

Non-Executive Director

Geoff Lowe

Non-Executive Director

Rohan Worland Exploration Manager

Shane Turner

CFO & Company Secretary

For further information contact: Matthew Gill or Shane Turner Phone: [phone]

[e-mail] www.whiterockminerals.com.au

QUARTERLY ACTIVITY SUMMARY

Mt Carrington Gold-Silver Development Project

During the Quarter, White Rock announced the results from a review of the Mining section of the Mt Carrington gold silver Project Scoping Study1. As a result, a key element of the upcoming Feasibility Study will be to investigate a range of parameters associated with selecting the optimal plant size and mining rate to maximise the economic returns from the Project. The optimisation work will consider:

Plant throughputs between 800,000 to 1,200,000 tonnes per annum; Reduced mining and processing costs as a result of this increased throughput; An increased gold equivalent2 production profile up to and exceeding 40,000oz per annum initially, Whilst still retaining an initial 6 to 7-year mine life3.

Importantly, the initial pit designs have highlighted that Feasibility Study optimisation work could result in:

a 20% increase in in-pit Mineral Resource tonnes3; a 20 to 40% increase in gold equivalent production per annum.

White Rock successfully raised $4.9M before costs, to advance the Feasibility Study, Environmental Impact Statement and associated approvals.

Following the capital raising, White Rock announced that a highly skilled Study Team has been assembled to deliver its Mt Carrington gold silver Project Definitive Feasibility Study (DFS) and Environmental Impact Statement (EIS). This multi-disciplinary team of experts, from across six different consultancy groups, brings together the necessary expertise to advance the Mt Carrington Project Scoping Study through to DFS.

Red Mountain Zinc-Silver-Lead-Gold Exploration Project, Alaska

During the quarter, White Rock continued its analysis of the existing exploration data for its high priority VMS targets that have been identified at the Red Mountain project. These high priority VMS targets are conductors located within zones of anomalous surface geochemistry that are indicative of proximal VMS mineralisation.

Corporate

During the quarter, White Rock completed a Placement for $1.7M issuing 110M shares; a one for two Entitlement Offer for $0.7M issuing 48M shares and a Shortfall Placement for $2.5M issuing 168M shares; the total raised being $4.9M before costs.

In late January, non-executive director Geoff Lowe advised he would retire from the board, effective 31 January 2017.

Mt Carrington Gold-Silver Project Development

Subsequent to the Quarter end, White Rock announced that a highly skilled Study Team has been assembled to deliver its Mt Carrington gold silver Project Definitive Feasibility Study (DFS) and Environmental Impact Statement (EIS).

-disciplinary team of experts, from across six different consultancy groups, brings together the necessary expertise to advance our Mt Carrington gold silver Project Scoping Study1 through to DFS. The Team comprises the core disciplines necessary geology, mining, metallurgy, engineering, environmental permitting and community consultation.

Initial priorities will be on community consultation strategy and engagement, the preparation and

Environmental Assessment (PEA), a geological review of the Resource to JORC 2012 standard, and a detailed review and commencement of the metallurgical test work needed to lock down the preferred plant design.

We are very excited to be at this

some $4.9M before costs late last year to undertake this work.

At current commodity prices for gold and silver, and the even higher consensus commodity price forecasts4, the Scoping Study financial metrics remain robust with considerable upside potential for expanding the in- pit Mineral Resource3, which could then flow through to increased mine life and / or higher gold and silver production rates. This potential uplift would further enhance the strong financial metrics of the Project, where the current Scoping Study results already deliver an outstanding investment proposition a Project witha pre-tax NPV10 ofA$60.6M5 andan IRR of over 100%, with A$100M in free cash (undiscounted and before financing) delivered over its initial 7-year mine life.

Once the DFS and EIS are completed, and the necessary approvals obtained, White Rock is in the enviable position of already having secured a transformational financing package with Cartesian Royalty Holdings (CRH)6, whereby the future streaming financing component provides for the construction and commissioning of the Mt Carrington Project with repayments to be made from a percentage of future gold and silver production from Mt Carrington. Hence, these repayments would not require White Rock to undertake dilutive share issues to raise this construction financing. The funding proposal will directly provide for construction and commissioning through to commercial production, subject to the successful delivery of the Definitive Feasibility Study.

the Company

1 Refer release to the ASX of 20 October 2016 - WRM Upside Mining Potential at Mt Carrington Annexure A contained therein, which provides the material assumptions and modifying factors considered to form reasonable grounds for the stating of the production targets and forecast financial information related to the Mt Carrington Project Scoping Study. These material assumptions continue to apply and have not materially changed.

2 Gold equivalent production target calculations are based on the gold production plus silver production estimated from the Scoping Study using the assumptions (gold price, silver price and metal recovery) provided in Annexure A of the 20 October 2016 ASX Release. The price assumptions are A$1,600/oz for gold and A$22/oz for silver.

3 The in-pit Mineral Resource is made up of a combination of Indicated (70%) and Inferred (30%) JORC Resource blocks. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The material assumptions and modifying factors considered to form reasonable grounds for stating the production targets and forecast financial information related to the Mt Carrington Project Scoping Study are contained in Annexure A of the 20 October 2016 ASX Release.

4 Source:- PCF Capital Group, as at 5th January 2017, using Bloomberg Consensus Estimates.

5 The Mt Carrington Scoping Study considers an NPV accuracy of +/-30%, ranging between $42M and A$78M.

6 Refer to release to the ASX of 27 June 2016 WRM Signs Transformational Financing Package with Cartesian Royalty Holdings The Transactions contemplated by the Term Sheet are subject to various conditions including the completion of due diligence to the satisfaction of CRH, certain White Rock shareholder approvals, and the entry into definitive documentation for Phase 2 (streaming financing), as set out in more detail in the ASX announcement of 27 June 2016.

The scoping study referred to in this report is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. All material assumptions underpinning the production targets and forecast financial information derived from the production targets, contained in Annexure A of the ASX release dated 20 October 2016, continue to apply and have not materially changed.

requires an assessment (albeit preliminary) in respect of all matters likely to influence the prospect of economic extraction including the approximate mining parameters by the Competent Person. While a Scoping Study may provide the basis for that assessment, the Code does not require a Scoping Study to have been completed to report a Mineral Resource.

Scoping Studies are commonly the first economic evaluation of a project undertaken and may be based on a combination of directly gathered project data together with assumptions borrowed from similar deposits or operations to the case envisaged. They are also commonly used internally by companies for comparative and planning purposes. Reporting the results of a Scoping Study needs to be undertaken with care to ensure there is no implication that Ore Reserves have been established or that economic development is assured. In this regard it may be appropriate to indicate the Mineral Resource inputs to the Scoping Study and the process applied, but it is not appropriate to report the diluted tonnes and grade as if they were Ore Reserves. While initial mining and processing cases may have been developed during the Scoping Study, it must not be used to allow an Ore Reserve to be developed.

Mt Carrington Site Activities

White Rock is continually carrying out routine monitoring and maintenance work at the Mt Carrington site to ensure that the infrastructure and facilities in place remain compliant and safe, and ready for use once the Feasibility Study is completed and the necessary permits to commence construction and operation are obtained.

During the Quarter, White Rock engaged local earthmoving contractors to complete work on the Tailings Storage Facility (TSF), and on erosion control. At the TSF, stability earthworks were completed at the toe of the dam wall following recommendations from an engineering assessment (Plate 1). The stability works completed will ensure that the TSF remains ready to use once a Decision to Mine has been made.

Elsewhere monitoring of the site identified an erosion channel requiring maintenance. Earthworks involved reinforcing the gully with rock material that protects the local soil profile from erosion during high rainfall events over time (Plate 2).

The continuing environmental safety of the Mt Carrington site during the exploration and development assessment phase of work is important to White Rock to ensure the community is

Plate 1: Stability works completed at the toe of the TSF. Plate 2: Ongoing erosion control works completed.

Red Mountain Zinc-Silver-Lead-Gold VMS Project

Red Mountain is a quality advanced exploration project centred on an established volcanogenic massive in central Alaska. There is significant potential to discover several new large zinc-

silver-lead-gold-copper deposits in addition to extending the known zinc-silver-lead-gold deposits at Dry Creek and West Tundra Flats (ASX Announcement 15 February 2016).

White Rock is preparing for the Alaskan field season ahead by planning a number of programs that it is hoped will culminate in drilling for extensions to the existing deposits at Dry Creek and West Tundra Flats, as well as drill testing of the new targets identified in the previous September Quarter.

The new VMS targets are conductors located within zones of anomalous surface geochemistry that are indicative of proximal VMS mineralisation. The highest priority conductivity anomalies will be advanced through field programs of surface geochemical sampling and ground geophysics to define drill targets for the coming field season.