Pantoro : High Grade Drilling Results at Paddock Well

High Grade Drilling Results at Paddock Well ASX Announcement

5 January 2017

Pantoro Limited (ASX:PNR) (Pantoro) is pleased to advise that it has received high grade drill results from the first drilling program at Paddock Well, located approximately three kilometres south east of the Nicolsons processing plant.

The initial eleven hole program returned results including:

• 5 m @ 6.23 g/t from 55 m including 2 m @ 12.67 g/t from 58 m.

  • 1 m @ 28.72 g/t from 72.6 m including 0.7 m @ 40.5 g/t from 72.6 m.

  • 1 m @ 7.77 g/t from 70 m.

• 2 m @ 5.46 g/t from surface.

Commenting on the results, Managing Director Paul Cmrlec said:

"This initial drill program highlights the strong potential for identification of new high grade ore deposits outside of the known Mineral Resources at the Nicolsons Project. Successful exploration efforts in the coming quarters could allow the production profile to be further increased and the life of the Nicolsons Project to be extended further.

Follow up drilling at Paddock Well is being planned and will be undertaken during the current quarter. Pantoro is stepping up its exploration effort at the Halls Creek Project with a detailed aeromagnetic survey of the Halls Creek tenement package completed this month. Drilling aimed at identifying underground ore sources beneath the Wagtail pits is progressing, and we will soon undertake an initial drill program at the nearby Shifty's prospect. We are fortunate to have so many drill ready targets in this vastly under-explored region, underpinned by the current production from the Nicolsons and Wagtail mines."

About the Paddock Well Prospect

The Paddock Well prospect, located approximately three kilometres south east of the Nicolsons processing plant is related to a separate mineralised structure from the Nicolsons mine trend, offset by approximately one kilometre to the east of the main mine structural corridor.

Local geology is characterised by the Halls Creek Group metasediment and volcanics which have been intruded by Lamboo Complex mafic and ultramafics and the Bow River Granite on the eastern margin. The initial exploratory drilling program was focussed around an outcropping quartz vein and historical drilling which was limited to approximately 50 m depth. The program was predominantly undertaken using reverse circulation methods, however a single diamond tail was completed on hole PWRC16007. The drill core identified a discrete quartz vein with massive sulphide inclusions, analogous to the Mother Lode ore zone at Nicolsons. The mineralised zone remains open to the north and south and at depth.

Enquiries

Paul Cmrlec | Managing Director I Ph: [phone] I Email: [e-mail]

Pantoro Limited

ABN 30 003 207 467

t: 08 6263 1110 | e: [e-mail] | w: www.pantoro.com.au PO Box 1353 West Perth WA 6872 | 1187 Hay Street, West Perth WA 6005

PWRC16005

1 m @ 7.77 g/t Au

PWRC16006

2 m @ 5.46 g/t Au

PWRC16008

1 m @ 1.66 g/t Au

PWRC16010

1 m @ 2.15 g/t Au

PWRC16011

1 m @ 2.16 g/t Au

PWRC16007

1 m @ 28.72 g/t Au inc. 0.7m @ 40.5 g/t Au

PWRC16009

5 m @ 6.23 g/t Au inc. 2m @ 12.7 g/t Au

PWRC16012

1 m @ 2.79 g/t Au

Current Drill Program Historical Drilling

0m 100m

Figure 1: Paddock Well drilling location plan showing significant intersections from the current drilling program.

Historical drilling was previously announced by Bulletin Resources Limited (ASX:BNR) on 12 July 2012 in a report entitled "Exploration Activities Update".

Figure 2: Location plan of Halls Creek Project mines and prospects.

Appendix 1 - List of Drill Results Received at Paddock Well

Hole Number	Easting	Northing	RL	Dip (degrees)	Azimuth (degrees)	End of Hole Depth (m)	Downhole From (m)	Downhole To (m)	Downhole Intersection (m)	True Width (m)	Au gpt (uncut)
PWRC16001	327250.1	7960790.2	409.4	-60.0	280.0	30.0	NSA
PWRC16002	327265.1	7960790.9	410.5	-60.0	270.0	45.0	NSA
PWRC16004	327278.5	7960768.0	409.9	-60.0	270.0	60.0	NSA
PWRC16005	327278.5	7960767.9	409.9	-60.0	270.0	81.0	70.00	71.00	1.00	0.87	7.77
PWRC16005	327301.7	7960763.2	409.6	-60.0	270.0	81.0	74.00	75.00	1.00	0.87	2.55
PWRC16006	327244.1	7960751.9	410.0	-60.0	280.0	30.0	0.00	2.00	2.00	1.73	5.46
PWRC16006	Including 8.72 g/t over 1 m from 1 - 2 m
PWRC16006	327244.1	7960751.9	410.0	-60.0	280.0	30.0	4.0	5.0	1.0	0.87	1.0
PWRC16006	327244.1	7960751.9	410.0	-60.0	280.0	30.0	6.0	7.0	1.0	0.87	3.9
PWRC16007	327295.7	7960752.1	409.0	-60.0	270.0	80.0	72.60	73.60	1.00	0.87	28.72
PWRC16007	Including 40.5 g/t over 0.7 m from 72.6 m
PWRC16008	327240.4	7960730.5	410.5	-60.0	280.0	20.0	13.00	14.00	1.00	0.87	1.66
PWRC16009	327276.0	7960727.6	408.9	-60.0	250.0	95.0	55.00	60.00	5.00	4.30	6.23
PWRC16009	Including 12.67 g/t over 2 m from 58 - 60 m
PWRC16010	327238.7	7960710.593	410.2	-60.0	275.0	35.0	10.00	11.00	1.00	0.87	2.15
PWRC16011	327264.3	7960709.1	409.3	-60.0	270.0	60.0	51.00	52.00	1.00	0.87	2.16
PWRC16012	327251.1	7960673.7	409.0	-60.0	260.0	61.0	57.00	58.00	1.00	0.87	2.79

Competent Persons Statement

Halls Creek Tenements - Exploration Targets, Exploration Results

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr. Scott Huffadine (B.Sc. (Hons)) MAusIMM who is a full time employee and director of Pantoro Limited. Mr. Huffadine has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as described by the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Huffadine consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr. Huffadine is eligible to participate in short and long term incentive plans of and holds shares and options in the Company as has been previously disclosed.

Forward Looking Statements

This announcement may contain forward-looking statements which are identified by words such as 'may', 'could', 'believes', 'estimates', 'targets', 'expects', or 'intends' and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Pantoro, the Directors and our management. Pantoro cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.

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