Classic Minerals Ltd: Drilling Delivers Bonanza Gold Intercept

Perth, Australia - WA-focused gold exploration and development company Classic Minerals Ltd. (ASX:CLZ) ("Classic", or "the Company") is pleased to announce that it has received assays results from its recent RC drilling program at its Forrestania Gold Project (FGP) in Western Australia. The Company completed a total of 38 holes for 2,408m - 18 holes for 1,588m at Kat Gap, 5 holes for 454 metres at Lady Magdalene and 5 holes for 366 metres at Lady Lila with the aim of improving/increasing known mineralisation at Kat Gap.

Highlights:

- Kat Gap returns its best ever high-grade gold intercept from shallow depth. Best results from most recent drilling include:

o 10m @ 30.77 g/t Au from 28m including 2m @ 116.10 g/t Au from 31 m

o 9m @ 8.08 g/t Au from 95m including 1m @ 62.30 g/t Au from 101 m

o 10m @ 4.18 g/t Au from 26m including 1m @ 15.10 g/t Au from 31 m

o 5m @ 4.85 g/t Au from 16m including 1m @ 19.10 g/t Au from 16m

o 1m @ 18.80 g/t Au from 86m

o 1m @ 15.20 g/t Au from 47m

o 1m @ 14.60 g/t Au from 68m

o 2m @ 13.44 g/t Au from 43m

- RC drilling at Kat Gap conducted over 160m of strike plus several deeper holes drilled testing downdip potential System remains open in all directions.

- Two deeper RC holes at Kat Gap targeting interpreted down plunge potential return very encouraging assays. Results include:

o 9m @ 8.08 g/t Au from 95m including 1 m @ 62.30 g/t Au from 101 m

o 1m @ 18.80 g/t Au from 86m

- Drilling at Lady Magdalene continues to uncover potential cross-cutting quartz veins similar in orientation to the high-grade Lady Ada deposit. Better assays from the new quartz veins include:

o 1m @ 23.70 g/t Au from 46m

o 1m @ 7.74 g/t Au from 34m

- Lady Lila results continue to impress yielding further zones of gold mineralisation along strike. Results include:

o 6m @ 9.57 g/t Au from 26m including 1m @ 54.50 g/t Au from 26m

o 5m @ 3.07 g/t Au from 65m

o 12m @ 1.50 g/t Au from 52m

o 14m @ 2.15 g/t Au from 74m

1. INTRODUCTION

Drilling results from Kat Gap continued to impress with significant zones of gold mineralisation located on the granitegreenstone contact. Drilling at Kat Gap also showed that high-grade gold mineralisation continues at depth down plunge. Drilling at Lady Magdalene yielded more impressive results further confirming the existence of high-grade, cross-cutting gold lodes previously missed due to wide spaced drilling while work at Lady Lila continued to extend mineralisation along strike.

Classic CEO Dean Goodwin said:

The Forrestania Gold Project just keeps on delivering fantastic results for Classic and its shareholders. I'm very excited about these high-grade zones of mineralisation we have encountered at each of the drill sites. They are all open along strike requiring urgent follow up.

Kat Gap is really shaping up nicely as a near surface high-grade gold deposit with so much remaining upside potential. We have only tested 160m of 3.5km of strike along this granite-greenstone contact During this round of drilling we returned significant gold grades from 12 of the 18 holes completed.

At Lady Magdalene, north-south orientated drilling continued to prove the existence of new high-grade cross-cutting quartz veins. As previously postulated, these quartz veins could be analogous to those at Lady Ada - reinforcing the view that substantially more high-grade ounces are hiding between the existing drill lines at Lady Magdalene. We will track these new quartz lodes further east and test for additional cross-cutting veins all the way south to Lady Ada.

Step out drilling along strike both north and south from historical RC holes has returned further encouraging results at Lady Lila. Mineralisation now extends over 100m with the system, which is hosted in a Banded Iron Formation, open in all directions. We are planning to restart drilling at Kat Gap, Lady Magdalene and Lady Lila in late October. This program will also include follow-up drilling at Van Uden West so there is plenty of good news to look forward to.

2. KAT GAP DRILLING

Classic drilled 18 holes for 1588m at Kat Gap and is pleased to confirm that twelve holes returned gold mineralisation striking in a northwest-southeast direction. The drilling was conducted over approximately 160m of strike with mineralisation open in all directions.

The majority of the drilling was focused on testing the main granite-greenstone contact which has been the main focus since the prospect was discovered by previous holders. A few holes were drilled up against the cross-cutting Proterozoic dyke where high-grade gold mineralisation appears to have concentrated. Several holes were also drilled deeper testing the interpreted plunge of the main mineralisation. Drill holes FKGRC017 - FKGRC019, FKGRC022 - 024 and FKGRC028 - 033 (inclusive), all tested the main contact lode with holes FKGRC020 - 021 and FKGRC027 drilled close to the Proterozoic dyke. Holes FKGRC025 and FKGRC026 were drilled deeper down the potential plunge of the main system. Better results from these holes included: 10m @ 30.78 g/t Au from 28m including 2m @ 116.10 g/t Au from 31m in FKGRC018; 9m @ 8.08 g/t Au from 95m including 1m @ 62.30 g/t Au from 101m in FKGRC025; 10m @ 4.18 g/t Au from 26m including 1m @ 15.10 g/t Au from 31m in FKGRC022 and 5m @ 4.85 g/t Au from 16m including 1m @ 19.10 g/t Au from 16m in FKGRC017.

Holes FKGRC025 and FKGRC026 were drilled deeper than previous holes to test the potential down plunge extent of the main granite-greenstone contact lode. Both holes intersected significant gold mineralisation supporting the interpretation of a seventy-degree plunge to the north. Results from these holes include: 9m @ 8.08 g/t Au from 95m including 1m @ 62.30 g/t Au from 101m in FKGRC025 and 1m @ 18.80 g/t Au from 86m in FKGRC026. The plunge line is wide open along strike and down dip. Follow-up drilling is planned including several orientated diamond holes to collect valuable structural orientation data.

Historical RC drilling is currently on 100m - 200m line spacings. There is strong potential for additional mineralisation to be identified up-dip, down-dip and along strike, both outside of and within the existing RC drill coverage. Only about half of the 5 km long >50 ppb Au gold-in-soil anomaly has been tested by RC drilling along the granite/greenstone contact.

There is a further 5 km of strike of prospective granite-greenstone contact along-strike from the Kat Gap zone within E74/467 that has seen little or no exploration.

Classic has already planned follow up RC and diamond holes with drilling scheduled for late October.

3. DRILLING AT LADY MAGDALENE

Lady Magdalene hosts potential high-grade cross-cutting lodes in a similar orientation to Lady Ada (600m to the south). Classic drilled 5 RC holes for 454m on one north-south oriented traverse following up on encouraging results from the last drilling campaign. The holes were drilled in this particular orientation in an attempt to locate east-west striking Lady Ada style high-grade cross-cutting quartz veins. Of the 5 holes completed, two intersected quartz veining in a potential east-west orientation. The best result was recorded in MARC067 which returned 1m @ 23.70 g/t Au from 46m. This result is significant as it appears to link up with recently drilled holes MARC059 which returned 1m @ 9.36 g/t Au from 44m and MARC058 which returned 1m @ 13.40 g/t Au from 46m. The 3 holes when linked up cover a strike length of approximately 70m and is orientated in an east-west direction. Interpretation of the results and associated geology suggest the recent holes were drilled on the western margin of the corridor wh ere the linking high grade quartz veins are thought to be propagating. Further north-south orientated drilling will be conducted east of the recent RC drilling where it is thought thicker zones of mineralisation may exist This easterly target area, where the next upcoming round of RC drilling will be carried out, corresponds to the structural location of the high-grade Lady Ada deposit. These new cross-cutting quartz veins initially appear narrow but have the potential to thicken rapidly over short strike lengths similar to Lady Ada.

RC drilling also intersected thick zones of lower grade gold mineralisation similar to that intersected previously during the recent resource definition drilling conducted last year. Typically, Lady Magdalene alteration assemblage consists of strong biotite alteration, silicification with fine disseminated sulphides arsenopyrite and pyrite. These lower grade mineralised zones are typified by the absence of quartz veining. Results received from within the Lady Magdalene ore zone include: 18m @ 2.87 g/t Au from 34m in MARC067; 12m @ 1.64 g/t Au from 42m in MARC065 and 12m @ 1.33 g/t Au from 47m in MARC066.

The latest drilling confirms the existence of significant gold-bearing quartz veins between existing drill lines. As with Lady Ada's high-grade sapphire shear zone, these veins are low angle reverse thrust faults that dip gently to the south. In upcoming drilling, Classic will track the quartz veins to the east and will also drill south of the existing lines to determine how many additional lodes are located within the Lady Magdalene resource footprint.

Follow up drilling will commence late in October.

4. LADY LILA DRILLING

Lady Lila is situated 4km east of Lady Ada and is hosted by a chert/banded iron formation within the younger metasedimentary central zone. Previous drilling is shallow (approx. 50-60m depth testing) and generally intercepts the mineralised zone only two-three times per section. Additional drilling is required to test the orientation, and down dip extension of the mineralisation. The mineralisation at its strongest is 10m wide, over 400m long, and grades between 2.0-5.0g/t Au.

Drilling at Lady Lila was historically on 100m - 200m spaced drill lines. Classic's recent drilling was focused on extending either side of high-grade aircore/RC hits on the 6429860N line on 20m spaced lines. Drilling either side of this section has confirmed mineralisation extends both North and South along strike for up to 100m. Importantly, mineralisation remains open at depth and additional follow up drilling will be undertaken to continue to grow this deposit.

Five holes (FLLRC006 - FLLRC010 inclusive) for 366m were drilled at Lady Lila with all holes intersecting gold mineralisation. Drill highlights include: 6m at 9.57 g/t Au from 26m including 1m at 54.50 g/t Au from 26m in FLLRC006. 5m at 3.07 g/t Au from 65m in FLLRC007. 12m at 1.50 g/t Au from 52m in FLLRC009 and 14m at 2.15 g/t Au from 74m in FLLRC010.

A typical cross section of Lady Lila is displayed in Figure 5(see link below). The present gold mineralisation models indicate a steep easterly dip; future drilling will be to test a potential vertical dip, as gold deposits in the area have been known to steepen at depth (e.g., Bounty and Blue Vein (>1M oz Au) held by Kidman Resources).

Classic aims to re-commence drilling at Lady Lila by the end of October.

5. ABOUT THE FORRESTANIA GOLD PROJECT

The FGP Tenements (excluding Kat Gap and Lady Lila) are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd. (ASX:HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans has maintained its 20% interest in the gold rights. For the avoidance of doubt Classic Ltd owns a 100% interest in non-gold rights on the Kat Gap and Lady Lila Tenements including but not limited to nickel, lithium and other metals.

The FGP contains an existing Mineral Resource of 5.3 Mt at 1.39 g/t for 240,000 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2nd May 2017) suggesting both the technical and financial viability of the project. The current post-mining Mineral Resource for Lady Ada, Lady Magdalene and Lady Lila is tabulated below (see link below).

Additional technical detail on the Mineral Resource estimation is provided, further in the text below (see link below) and in the JORC Table 1 as attached to ASX announcements dated 14th March 2017 and 21st March 2017.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/5VB4Y18H

About Classic Minerals Ltd:

Classic Minerals Ltd. (ASX:CLZ) is an exploration and development company focused on gold deposits in Western Australia's famous Goldfields region. In March 2017, Classic acquired the Forrestania Gold Project, with seven tenements stretching across 450km2. Strategically located in a very prospective region, the FGP is an underexplored package surrounded by multimillion ounce deposits such as Bounty (2Moz) and Yilgarn Star (1.5Moz).

Source:

Classic Minerals Ltd.

Contact:

Classic Minerals Ltd. T: +61-8-6305-0221 E: contact@classicminerals.com.au WWW: www.classicminerals.com.au