Grange Resources : Significant Increase In Savage River Mineral Resources - 8 April 2019

ANNUAL RESOURCE & RESERVE

STATEMENT DECEMBER 2018

8 April 2019

ASX: GRR

GRANGE RESOURCES LIMITED

Australia's most experienced magnetite producer

Significant increase in Savage River Mineral Resources

December 2018 Resource - Reserve Statement

Savage River Operations, Tasmania

HIGHLIGHTS

•Mineral Resources & Ore Reserves have been estimated for Grange's Savage River magnetite deposits in Tasmania, as at 31 December 2018.

•This release encompasses the estimation updated with the first phase of the 2018 resource drilling program and includes mining depletion since the 2017 report.

•Mineral Resources have increased to 545.2MT @ 46.7%DTR

•This significant increase of over 170MT from the previous statement is driven by the deep holes drilled as part of the underground pre-feasibility study.

•Ore Reserves at Savage River are 94.0MT @ 49.8%DTR, reflecting mine production during 2018 and are based on future open pit extraction.

•The 10.6MT increase in Ore Reserve from the previous statement is attributed to increased confidence of material within the ultimate North Pit design.

•The attached updated Savage River Mineral Resource & Ore Reserve statement has been compiled in accordance with JORC 2012.

Commenting on the announcement, Grange Resources CEO Mr Honglin Zhao said:

"This increase in resource is a result of the first part of our study to investigate the depth and continuity of the magnetite deposit at Savage River."

"These results provide Grange with the confidence to continue our pre-feasibility studies to determine if there is an opportunity to access the ore body at depth utilising underground methods."

ANNUAL RESOURCE & RESERVE

STATEMENT DECEMBER 2018

Grange Resources Pty Ltd (ASX: GRR) ("Grange" or the "Company") advises that the Mineral Resource for the Savage River Ore Deposits has increased since the previous Mineral Resource estimate dated December 2017. This is as a result of the first phase of resource drilling for the underground pre- feasibility study. Ore Reserves have increased with improved confidence in ore defined within the ultimate North Pit design. The increase also accounts for ore mined during 2018.

The resource consists of 545.2 million tonnes at 46.7% DTR (above a cut-off of 15% DTR) as detailed in table 1 and the reserve consists of 94.0 million tonnes at 49.8% DTR (above a cut-off of 15% DTR) as detailed in table 2.

Table 1 - Savage River Mineral Resource Estimate

(Above a cut-off grade of 15% DTR)

		Measured	Indicated	Inferred	TOTAL
		Resources	Resources	Resources	Resources
Tonnes (Mt)		155.0	231.7	158.5	545.2
DTR (%)		55.6	45.9	39.2	46.7
Fe (%)		68.0	68.2	68.8	68.3
Ni (%)		0.04	0.04	0.04	0.04
TiO2 (%)		0.82	0.73	0.69	0.74
MgO (%)		1.65	1.39	1.14	1.39
P (%)		0.008	0.008	0.007	0.007
V (%)		0.38	0.36	0.35	0.36
S (%)		0.07	0.09	0.08	0.08
NB	- Elemental compositions were measured from Davis Tube Concentrate

-Stockpiles were included in this summary table and are itemised separately in tables of individual mining pits and aggregated stockpiles

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ANNUAL RESOURCE & RESERVE

STATEMENT DECEMBER 2018

Table 2 - Savage River Ore Reserve Estimate

(Above a cut-off grade of 15%DTR)

		Proved	Probable	TOTAL
		Reserves	Reserves	Reserves
	Tonnes (Mt)	75.9	18.1	94.0
	DTR (%)	54.0	32.3	49.8
	Fe (%)	68.0	67.4	67.9
	Ni (%)	0.03	0.07	0.04
	TiO2 (%)	0.95	0.60	0.88
	MgO (%)	1.64	1.41	1.59
	P (%)	0.007	0.012	0.007
	V (%)	0.38	0.32	0.37
	S (%)	0.04	0.14	0.06
NB	- Elemental compositions were measured from Davis Tube Concentrate

-Stockpiles were included in this summary table and are itemised separately in tables of individual mining pits and aggregated stockpiles

The Mineral Resource and Ore Reserve have been estimated by the company's technical staff assisted by external consultants and are reported in accordance with the guidelines of the JORC Code (2012 edition).

An independent technical review was performed by AMC Consultants Pty Ltd (AMC) with regard to the resource estimation process. AMC visited the site on 13 and 14 March 2019 to review the activities associated with generating the Mineral Resource estimates. A report was provided outlining observations with recommended process improvements. Following the site visit review, the resource was re-estimated with minor amendments to the database.

AMC considers, based on the available information, that processes to generate the block models for the Mineral Resource estimates have been completed using accepted practice with drillhole data supported by a quality control protocol, known mining history and reconciliation.

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ANNUAL RESOURCE & RESERVE

STATEMENT DECEMBER 2018

INTRODUCTION

This document has been prepared to summarise the Mineral Resource and Ore Reserve of Grange Resources' magnetite deposits, located at Savage River and Long Plains in Tasmania.

This statement covers the material remaining at the end of December 2018 and contains summary details on the history of Savage River, the geology of the deposit and information involved in producing Mineral Resource and Ore Reserve estimates.

TENURE

Grange Resources operates under the conditions of Mining Lease 2M/2001 which consolidates and expands the previous lease 11M/97. This lease stands for 30 years from 2001, encompassing a total of 4,975 hectares.

The mining lease encompasses the Savage River Mine and concentrator, and the pelletising plant, wharf and shipping facilities located on the north west coast at Port Latta. The operation and facilities were previously held under Mining Lease 44M/66 when Pickands Mather & Co International (PMI) were the managers of the project until 1997.

Mining lease 14M/2007 was granted in May 2008 to extend the coverage of 2M/2001 for a total of 91 hectares. Another lease, 11M/2008 was granted in August 2009 to extend coverage by a further 108 hectares. This lease renewal is pending at time of writing and remains in good standing. Figure 1 shows the location of each lease.

Exploration licence EL30/2003 was granted in February 2010. The current 2yr tenure period expires on the 18 June 2019, is renewable via a successful extension of term application. Grange is currently on its fifth extension of term and an application for a further extension will be made

prior to the renewal date. This license covers the	Figure 1: Tenements as at Dec 31, 2018

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ANNUAL RESOURCE & RESERVE

STATEMENT DECEMBER 2018

entire Long Plains deposit. The lease comprises 38 sq km and adjoins 2M/2001 to the north. EL30/2003 covers all potential mining infrastructure sites and haulage routes envisaged should the Long Plains magnetite deposits prove up to be economical and progress to mining.

Grange was granted an exploration licence application "Pipeline Road" shown as EL8/2014 for an 11sq km lease north of 2M-2001 in 2014 and this licence is currently in year three of a five year term which expires expires on 29 July 2019.

All leases and licences previously held by Australian Bulk Minerals (ABM) were transferred to Grange Resources Tasmania following the merger in January, 2009.

LOCATION

The Savage River Mine and concentrator plant are located approximately 100km south west by sealed road from Burnie. The pelletising plant and dedicated port facilities at Port Latta are located 70 kilometres northwest by sealed road from Burnie (Figure 2).

Local topography surrounding the mine is rugged, with incised valleys and steep hills. The west flowing Savage River dissects the

deposit. Regional

vegetation includes undisturbed rain forest with the mine area comprising wet eucalypt, acacia and open heath land. Climate is wet temperate with an average annual rainfall of 1,950mm and mean monthly temperatures ranging from 3-19°C.

Figure 2: Savage River Project Location

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