Mustang Resources Ltd.: High-Grade Graphite and Vanadium Intersected South of Caula Project in Mozambique

Sydney - Mustang Resources Ltd. (ASX:MUS) (OTCMKTS:GGPLF) is pleased to provide an update on the recently completed diamond drilling program at the Company's graphite Licence 5873L, to the south of the main part of the high-grade Caula Graphite & Vanadium Project in the world-class mineral province in Northern Mozambique.

Key Points

- Further high-grade results over extensive widths from diamond drilling on Licence 5873L, 7.5km south of previous drilling on Mustang's Caula Graphite & Vanadium Project in Mozambique

- Southern extension drillhole shows further size potential of Caula Project

- Assays show grades of up to 23.7% Total Graphitic Carbon (TGC) and 0.68% Vanadium (V2O5)

- Results from 1m composite samples include:

o 99m (from 16m downhole) at 12.56% TGC average including 53m at 15.06% TGC from 16m to 69m; and

-- 62m downhole at 23.7% TGC

-- 106m downhole at 23.4% TGC

o 99m at (from 16m downhole) at 0.34% V2O5 average including 15m at 0.46% V2O5 from 16m to 31m; and

-- 96m and 108m downhole at 0.68% V2O5

-- 58m downhole at 0.64% V2O5

- Southern extension clearly supports Caula being established as a world-class graphite and vanadium project

- New strategy focused on fast-tracking a dual graphite and vanadium development to deliver first cashflow in H1 2019

Using diamond core drilling, Mustang drilled MODD010 and extended the mineralisation of the Caula Graphite Project (see Figure 1 in link below). MODD010 is located approximately 7.5km south of the recently announced MODD014 which returned 125m at 14.1% TGC & 0.42% V2O5 average grades. Assay results from MODD010 include outstanding intersections up to 23.70% TGC and 0.68% V2O5 with an average grade of 12.56% TGC and 0.34% V2O5 over 99m from 16m downhole including:

- 62m downhole at 23.7% TGC

- 106m downhole at 23.4% TGC

- 96m and 108m downhole at 0.68% V2O5

- 58m downhole at 0.64% V2O5

Mustang Resources Managing Director Dr Bernard Olivier said "The impressive results from diamond drillhole MODD010 located approximately 7.5km south of the "Caula-Hinge" and the recently announced MODD014 is further testimony to the overall potential of the Caula project. Although we are focusing our efforts on the main section of the Caula graphite and vanadium deposit, this southern extension clearly supports the potential for increasing the size of the deposit many times its current size. We expect to receive the assay results from the remaining drillholes shortly and will combine the results into a comprehensive market update once received."

Diamond Hole MODD014 Assay Results

Based on the assays completed on the DD samples in 2017, drillhole MODD010 on licence 5873L has an average grade of 12.56% TGC within a 99m (from 16m to 115m) mineralised graphitic zone (downhole width). Samples returned results including high grade zones of 53m at 15.06% TGC from 16m to 69m (downhole depths) and 11m at 14.67% TGC from 102m to 113m (downhole depths; see Appendix 1). These results confirm the continuation of a high-grade deposit similar in nature to that of the main Caula deposit. Importantly, the graphite mineralisation is shallow with high grades close to the surface, including 17.2% TGC at 26m. The highest TGC value recorded for this hole is 23.7% TGC at 62m below surface.

Based on the sampling completed on the DD samples in December 2017, drillhole MODD010 on licence 5873L, has an average vanadium pentoxide (V2O5) grade of 0.34% within a 99m (downhole width from 16m to 115m) mineralised zone (downhole width). Samples returned outstanding results including high grade zones of 15m at 0.46% V2O5 from 16m to 31m (downhole depths) and 24m at 0.41% V2O5 from 45m to 69m (downhole depths; see Appendix 1 in link below). The highest vanadium value recorded for this hole is 0.68% V2O5 at 96m below surface.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/2T75L724

About Mustang Resources Ltd:

Listed on the Australian Securities Exchange, Mustang Resources Ltd. (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.

The Montepuez Ruby Project consists of three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields Plc in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.

The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.

Visit the Mustang website at http://www.mustangresources.com.au for more information.



Contact:

Managing Director: Bernard Olivier
E: bernard@mustangresources.com.au
M: +61-4-08948-182
T: +27-66-4702-979

Media & Investor Relations: Paul Armstrong
E: paul@readcorporate.com.au
T: +61-8-9388-1474