Communicators

Spitfire Materials: Drilling Resumes at Aphrodite as Latest Assays Confirm Continuity of High-Grade Underground Resource

New high-grade intercepts include assays of up to 19.31g/t Au within the lower Alpha and Phi lodes, confirming the quality and consistency of the mineralisation

Key Points:

-          Further results received from recently completed 13-hole/6,149m resource in-fill and extensional diamond drilling program at the 100%-owned Aphrodite Gold Project near Kalgoorlie in WA.

-          Results from a further seven diamond holes have confirmed the continuity of the lower Alpha and Phi lodes, validating the Company’s updated geological model. Significant assays include:

-          18APD010 9.6m @ 6.28g/t Au from 139.4m including 1.9m @ 19.31g/t from 145.9m

-           2.1m @ 3.13g/t Au from 156.2m

-          18APD004 1m @ 4.57g/t Au from 44m

-            1m @ 3.01g/t Au from 55m

-          11m @ 1.66g/t Au from 68m including 2m @ 6.78g/t from 70m

-          1m @ 3.88g/t Au from 380m

-          3m @ 3.29g/t Au from 394m

-          6m @ 7.09g/t Au from 526m

-          18APD011 3.7m @ 7.90g/t Au from 413.73m

-          18APD009  1m @ 8.16g/t Au from 170m

-           10m @ 2.46g/t Au from 298m including 5m @ 3.64g/t from 298m

-          A new 6,000m diamond drill program has commenced which is designed to test the newly-defined Exploration Target between 150m and 500m depth within Alpha and Phi lodes (see ASX Release 16 May 2018).

-          The results confirm that Aphrodite is a significant emerging gold asset which will form the cornerstone of a long-term gold operation for Spitfire in the North Kalgoorlie region.

29 May 2018 - Spitfire Materials Limited (ASX: SPI) is pleased to advise that a new 6,000m extensional diamond drilling program is underway at its flagship 100%-owned 1.26Moz Aphrodite Gold Project, located 65km north of Kalgoorlie in the Eastern Goldfields of WA (see Figure 7), as the latest assay results confirm the quality and consistency of the two key high-grade underground lodes.

Further highly encouraging results have been received from the most recent round of drilling, confirming the quality and consistency of the mineralisation within the Underground Inferred Resource of 1.4Mt at 7.5g/t for 332,000oz (see ASX release dated 25 January 2018). The results further support the Company’s objective of upgrading this Inferred Resource as the cornerstone of its development studies.

Spitfire’s Managing Director, Mr John Young, said: “Since acquiring the Aphrodite Project last year through our merger with Aphrodite Gold, we have made substantial progress across many fronts. The work completed to date has confirmed that Aphrodite is a quality gold asset with the scale, grade and growth potential to become the cornerstone of a long-term gold operation for Spitfire in the Kalgoorlie region.

“The successful deep drilling program completed recently has confirmed the consistency and quality of the deposit, while helping to establish a new Exploration Target in the Phi and Alpha lodes which is now being tested by a new phase of drilling currently underway.”

The latest assay results received from the next seven holes have confirmed the continuity of the lower section of the Alpha lode over 300m, with highlights including 9.6m @ 6.28g/t Au from 139.4m including 1.9m @ 19.31g/t from 145.9m (18APD010), 6m @ 7.09g/t Au from 526m (18APD004) and 1m @ 8.16g/t Au from 170m (18APD009) (See Table 2 for full results). Assays from the remaining two holes are expected over the next few weeks.

To view entire news in English language, including tables and JORC-Code, please follow the link:

https://www.asx.com.au/asxpdf/20180529/pdf/43vckqnxqz73f0.pdf

Figure 1: Cross Section 6,659960mN

Figure 2: Cross Section 6,659560mN

Figure 3: Cross Section 6,659,720mN

Figure 4: Cross Section 6,660,000mN

Figure 5: Cross Section 6,659,920mN

Figure 6: Drill Hole Location Plan

APHRODITE GOLD PROJECT – BACKGROUND

The Aphrodite Gold Project is located 65km north of Kalgoorlie in the Eastern Goldfields of Western Australia and has a long history of exploration and resource estimation by several parties dating from its discovery in the mid-1990s.

The Aphrodite deposit is covered by five contiguous Mining Leases which are 100%-owned by Aphrodite. All five tenements have been granted for a 21-year life, with the earliest expiry date in 2028.

The Aphrodite mineralisation and current Mineral Resource estimate is situated in the Kalgoorlie Terrane of the Yilgarn Craton, and within the Bardon Tectonic Zone – a high-strain zone in supracrustal rocks extending about 120km north of Kalgoorlie. The Aphrodite prospect comprises a suite of intermediate to felsic porphyries that have intruded a sequence of basalts and dominantly volcanic-derived epiclastic rocks. The main zones of mineralisation defined so far (the near vertically-dipping Alpha and Phi lodes) lie within a regional N-S sericite-pyrite-arsenopyrite alteration system that extends for about 3km along strike.

Figure 7: Aphrodite Gold Project, Geology and Location Plan

DISCLAIMERS AND FORWARD-LOOKING STATEMENTS

This announcement contains forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", “target”, "anticipate", “forecast”, "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions.

The forward-looking statements in this announcement are based on current expectations, estimates, forecasts and projections about Spitfire and the industry in which they operate. They do, however, relate to future matters and are subject to various inherent risks and uncertainties. Actual events or results may differ materially from the events or results expressed or implied by any forward-looking statements. The past performance of Spitfire is no guarantee of future performance.

None of Spitfire’s directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy or likelihood of fulfilment of any forward-looking statement, or any events or results expressed or implied in any forward-looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

For further information contact:

INVESTORS:

John Young

Spitfire Materials Limited

Telephone: 0419 954 020

Email: admin@spitfirematerials.com.au

MEDIA:

Nicholas Read

Read Corporate

Telephone: 0419 929 046

Email: info@readcorporate.com.au

To view entire news in English language, including tables and JORC-Code, please follow the link:

https://www.asx.com.au/asxpdf/20180529/pdf/43vckqnxqz73f0.pdf